BEFORE THE
DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

--------------------------------------------------------------- --------- Application of : : UNITED AIR LINES, INC

. : Docket DOT

- OST

- 2013

-

____ : f or an exemption pursuant to 49 U.S.C. § 40109 : and designation ( Austin

- San Jose del Cabo , Mexico) :

---------------------------------------------------------------- --------

APPLICATION OF UNITED AIR LINES , INC. FOR AN EXEMPTION AND DESIGNATION
Communications with respect to this document should be sent to:
Hershel I. Kamen Senior Vice President

- Alliances, Regulatory and Policy Daniel A. Weiss Managing Director

- International Affairs and Regulatory UNITED AIR LINES, INC. 77 West Wacker Drive HDQIZ Chicago, IL 60601 (312) 997

- 7573 hershel.kamen@united.com dan.weiss@united.com Steve Morrissey Managing Director

- Regulatory Affairs and Policy Karine R. Faden Managing Counsel

- Regulatory, Antitrust & Competition UNITED AIR LINES, INC. 1225 New York Avenue, N.W. Suite 1100 DCAIZ/DCALD Washington, DC 20005 (202) 521

- 4373 (202) 521

- 4363 steve.morrissey@united.com karine.faden@united.com January 30 , 2013 Thomas Newton Bolling Vice President and Deputy General Counsel Jonathan T. Linde Senior Counsel

- Regulatory, Antitrust & Competition UNITED AIR LINES, INC. 77 West Wacker Drive HDQLD Chicago, IL 60601 (312) 997

- 8341 thomas.bolling@united.com jonathan.linde@united.com Lorraine B. Halloway Gerald F. Murphy CROWELL & MORING LLP 1001 Pennsylvania Avenue, N.W. Washington, DC 20004 (202) 624

- 2500 lhalloway@crowell.com gmurphy@crowell.com
Counsel for United Air Lines, Inc.

NOTICE : United has request ed expedited treatment of this application . Accordingly, it will

poll U.S. carrier representatives and inform the Department of the results.BEFORE THE
DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

------------------------------------------------------------------ ------- Application of : : UNITED AIR LINES, INC. : Docket DOT

- OST

- 2013

-

____ : f or an exemption pursuant to 49 U.S.C. § 40109 : and designation (Austin

- San Jose del Cabo, Mexico) :

-------------------------------------- -----------------------------------

APPLICATION OF UNITED AIR LINES, INC. FOR AN EXEMPTION AND DESIGNATION
United 1 applies , pursuant to 49 U.S.C. § 40109 and Subpart C of the Department's Rules
of Practice , for an exemption from 49 U.S.C. § 4 1101 authorizing it to provid e scheduled foreign air transportation of persons, property and mail between Austin and San Jose del Cabo, Mexico beginning on or a bout June 6, 2013 , and the U.S.

- Mexico operating designation necessary to
offer such service

. United ask s for the requested exemption authority to be granted on a seasonal
basis to allow United to provide service to San Jose del Cabo on Saturdays using an A

- 319
aircraft . United ask s that its exemption authority become effective as soon as possible and that it be effective for a period of at least two years, subject to the Department’s standard conditions.
United also ask s the Departmen t to issue the necessary notice to Mexican authorities confirming
United’s au thority to serve the Austin

- San Jose del Cabo route.
United state s as follows in support of this application :
1. Awarding Austin

- San Jose del Cabo exemption authority to United will allow it to provide service to meet seasonal demand in this market using Uni ted’s A

- 319 aircraft . United

urge s the Department to act promptly on this application so that it can secure foreign authority, make final operating plans and begin marketing the Austin

- San Jose del Cabo flights well in

1 Common names are used for airlines.Application of United

Page 2

advance of operations, which it plan s to commence on or about June 6, 2013, provided all necessary approvals have been secured. 2
2. United ’s service between Austin and San Jose del Cabo will provide substantial
benefits to the U.S. traveling and shipping public by offering new U.S.

- Mexico ser vice and by providing c ompetition for AirTran , which is the only other carrier that has proposed to serve this
market 3 that currently has no nonstop service

. 3. The authority sought by United fully complies with the terms of the U.S.

- Mexico Air Transport Se rvices Agreement (“U.S.

- Mexico Agreement”), as amended . Route 1(a ) of the
U.S.

- Mexico Agreement authorizes carriers designated by the United States to operate from “a point or point s in the United States to a point or points in Mexico.” U.S.

- Mexico Agreement, Annex I, A(1)(a). Further, the U.S.

- Mexico Agreement permits the United States to designate up
to three airlines to provide scheduled combination services between any point or points in the
United States and San Jose del Cabo

. S ee U.S.

- Mexico Agreement, Annex I, B(5 ) . Sufficient designations are available for United to operate on the Austin

- San Jose del Cabo route

. 4
4. United holds various certificates of public convenience and necessity and exemptions authorizing it to engage in scheduled air transportation of persons, property and mail between the U.S. and foreign countries, and United is fit, willing and able to provide the service
for which it seeks authority

. See , e.g., Orders 2007

- 4

- 19 (Blanket Open Skies), 2010

- 5

- 17 (U.S.

- Mexico) and 2011

- 3

- 14 (Continental/United route transfer); and Notices of Action Taken dated July 18, 2012 in Docket DOT

- OST

- 2012

- 0113 (Chicago

- Monterrey) and October 11, 2011 in

2 United will poll airline representatives and advise the Department of the results.
3 AirTran has applied to provide seasonal Austin

- San Jose del Cabo service beginning on or about June 2, 2013. See Docket DOT

- OST

- 2013

- 0012.

4 Based on currently published scheduled services, there are three U.S. carrier operating designations available on this route.