### BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Application of

SEAPORT AIRLINES, INC.

for an exemption under 49 U.S.C. § 40109 to provide

foreign scheduled air transportation of persons, property

and mail between the United States and Mexico (San

Diego

– San Felipe

, Mexico). Docket No. OST

- 201 4

-

_



### APPLICATION OF SEAPORT AIRLINES, INC. FOR AN

EXEMPTION AND DESIGNATION

TO PROVIDE FOREIGN SCHEDULED AIR TRANSPORTATION

C ommunications with respect to this document should be sent to:

Timothy Sieber

Executive Vice President

SeaPort Airlines, Inc.

7505 N Airport Way

Portland International Airport

Portland, OR 97218

Telephone: (971) 340

- 1716

tsieber@seaportair.com

June 23

, 2014

Notice : Any person who wishes to support or oppose this Application may do so by: (1) filing

an answer by July 23 , 2014 ; and (2) serving that answer on the person(s) listed above and all

persons served with a copy of this Application.2 

### BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Application of

SEAPORT AIRLINES, INC.

for an exemption under 49 U.S.C. § 40109 to provide

foreign scheduled air transportation of persons, property

and mail between the United States and Mexico (San

Diego

– San Felipe

, Mexico). Docket No. OST

- 201 4

-

_



### APPLICATION OF SEAPORT AIRLINES, INC. FOR AN

EXEMPTION AND DESIGNATION

TO PROVIDE FOREIGN SCHEDULED AIR TRANSPORTATION

SeaPort Airlines, Inc. (“ SeaPort ”), pursuant to 49 U.S.C. § 40109 and Subpart C of the

Department’s Rules of Practice (14 C.F.R. Part 302), hereby applies for an exemption from 49

U.S.C. § 41101 and designation under the U.S.

– Mexico Transport Agreement 1 authorizing it to

provide scheduled combination service in foreign air transportation of persons, property and

mail between San Diego

, California, on the one hand, and San Felipe

, Mexico (“ SAN

- SFH ”), on

the other hand, as more fully described below. SeaPort respectfully requests that it be

granted an exemption so that it can promote the new service, accept reservations, and begin

scheduled service on or about October 14, 2014

.

In support of this application, SeaPort states as follows:



### 1. SeaPort is a n Alaska corporation in good standing with its principal place of

business at 7505 NE Airport Way, Portland International Airport, Portland, Oregon, 92718

.



### 2. SeaPort is a citizen of the United States as defined in 49 U.S.C. § 40102(a)(15)

.

1 Air Transport Services Agreement, with schedule, between the United States and Mexico (Aug. 15, 1960), as amended and extended.3

SeaPort's President and more than two

- thirds of its directors and managing officers are

citizens of the United States, and at least seventy

- five percent (75%) of its voting interest is

owned and controlled by persons who are citizens of the United States.

1. SeaPort holds Commuter Air Carrier authority as defined in 49 U.S.C. § 41738 and

has been found fit to provide scheduled interstate air transportation of persons, property and mail.

2. SeaPort currently provides daily scheduled interstate air transportation to 2 3 cities

in nine states: Gustavus, Haines, Hoonah, Juneau, and Skagway, Alaska; El Dorado, Harrison,

and Hot Springs, Arkansas; Burbank, Imperial/El Centro, and San Diego, California; Athens,

Georgia; Salina, Great Bend, and Wichita, Kansas; Kansas City, Missouri; North Bend/C oos Bay,

Pendleton, and Portland, Oregon: Jackson, Memphis, and Nashville, Tennessee; and Dallas,

Texas.

3. In a separate filing, SeaPort has submitted to the Department and Application for a

Certificate of Public Convenience and Necessity for Foreign Schedu led Air Transportation

Authority. The authority sought in that application is fully consistent with the public convenience

and necessity, as required under 49 U.S.C. § 41102. Necessary documents will be filed shortly

with Mexico Dirección General de Aeronáutica Civil (DGAC)

.

4. SeaPort will plans to initially operat e four ( 4 ) roundtr ip flights per week on the SAN

SFH route a nd , depending on market response to the service, may increase operations to t en ( 10 )

roundtrips per week

. 2

5. All services on the SAN

- SFH route will be operated with Cessna Caravan turboprop

aircraft, seating 9

- passengers and two crewmembers.

6. Currently, no air carrier from the United States or Mexico serves the SAN

- SFH

route , and it has been more than a decade since the market was served on a scheduled basis. As

a result of the 2005 Amendment to the U.S.

- Mexico Transport Agreement, up to three U.S. air

carriers may be designated to provide scheduled combination service on route s between the U.S.

2 Singl e daily roundtrip with increased frequency on weekends or to support s pecial event and/or holiday increases in demand.4

and Mexico using their own aircraft. SeaPort therefore requests that it be designated and awarded

exemption authority to provide the SAN

- SFH service.

7. Grant of SeaPort ’s application is consistent with the U.S.

- Mexico Transport

Agreement as well as the Department’s statutory mandate to provide maximum reliance on

competitive market forces, encourage entry into new markets, and promote low fare options for the

traveling public, under 49 U.S.C. § 40101.

8. SeaPort ’s proposed SAN

- SFH service w ill generate 3,7 44 annual seats and is

forecast to carry approximately 2,620 annual passengers (about 3.6 passengers per day each way

and a 70% load factor ).

9. SeaPort ’s proposed service will provide significant benefits for travelers between

San Diego and San Felipe w ho currently have only the automobile a s a travel option. Drive times

between San Diego and San Felipe average 4

- to

- 5 hours and include long sections of highway

with minimal lighting and roadside ser vices. L ong wait times (up to six hours depending on time of

day and day of week) at the U.S.

– Mexico border crossing c an result in travel consuming an entire

tday

. In contrast, SeaPort’s proposed S AN

- SFH service will take 1 hour and 20 minutes by

airplane

.

10. SeaPort ’s proposed service will benefit more than just local travelers between San

Diego and San Felipe. The service will offer interline connections with Alaska Airlines, which has

developed a “focus city” at SAN t hat includes nonstop service to 15 destinations . SeaPort is

pursuing additional interline agreements that w ill o ffer additional connect ivity between the SAN

SFH rout e and cities across the United States

.

11. SeaPort requests authority to combine the exem ption sought herein with all of it s

existing economic authority, consistent with applicable inter national air transport agreements.

12. SeaPort accepts and will comply with the Department’s standard terms and

conditions imposed on exemption authority for scheduled foreign air transportation.

13. SeaPort ’s application for an exemption poses no environmental or energy issues

,5

and a pproval of this a pplication will not result in an increase in fuel consumption of 10 million

gallons or more.

14. SeaPort ’s reliable , high quality operations and affordable fares on the proposed

SAN

- SFH service will provide needed nonstop air service between the U.S. and San Felipe,

market development and trade opportunities, and high quality service to the traveling public in the

U.S.

- Mexico market.

WHEREFORE, for the foregoing reasons, SeaPort Inc. respectfully requests that the

Department grant it an exemption from 49 U.S.C. § 41101, a designation, and such other

additional relief as may be necessary in order to permit SeaPort Inc. to provide scheduled

foreign air transportation of persons, property and mail between San Diego

, California, and

San Felipe

, Mexico.

Respectfully submitted,

Timothy Sieber

Executive Vice President

SeaPort Airlines, Inc.

7505 N Airport Way

Portland International Airport

Portland, OR 97218

Telephone: (971) 340

- 1716

tsieber@seaportair.com

J une 23 , 20146 CERTIFICATE OF SERVICE

I hereby certify that a copy of the foregoing Application of SeaPort Airlines, Inc. for an

exemption was served this 2 3 rd day of June 2014 , via email transmission or first class mail,

postage prepaid, on the following persons:

urkskr@state.gov (Department of State)

cristinasa@state.gov (Department of State)

esta.rosenberg@dot.gov (Department of Transportation)

brian.hedberg@dot.gov (Department o f Transportation)

peter.irvine@dot.gov (Department of Transportation)

brett.kruger@dot.gov (Department of Transportation)

benjamin.tayor@dot.gov (Department of Transportation)

kylelevine@alaskaair.com (Alaska)

charles.donely@squiressanders.com (Counsel for Alaska)

robert.wirick@aa.com (American)

abigail.donovan@aa.com (American)

dan.weiss@united.com (United)

steve.morrissey@united.com (United)

karine.faden@united.com (United)

gmurphy@crowell.com (Counsel for Unit ed)

sascha.vanderbellen@delta.com (Delta)

jhill@cooley.com (Counsel for JetBlue)

perkmann@cooley.com (Counsel for JetBlue)

Robert.land@jetblue.com (JetBlue)

howard.kass@aa.com (American Airlines and U.S. Airways)

msinick@ssd.com (Counsel for Alaska)

bob.kneisley@wnco.com (Southwest)

leslie.abbott@wnco.com (Southwest)

etha n.blank@rjet.com (Republic)7

Robert.cohn@hoganlovells.com (Counsel for Republic)

Patrick.rizzi@hoganlovells.com (Counsel for Republic)

John.fredricksen@suncountry.com (Sun Country)

Thomas.ting@suncountry.com (Sun Country)

rpommer@atlasair .com (Atlas)

anita.mosner@hklaw.com (Counsel for UPS)

Jennifer.nowak@hklaw.com (Counsel for UPS)

cefelts@fedex. com (Fed Ex)

nssparks@fedex.com (Fed Ex)

kevin.montgomery@polaraircargo.com (Polar)

stephen.lachter@lachterlaw.com (Frontier)

barbara.russell@virginamerica.com (Virgin America)

jhill@dowlohness.com (Counsel for Hawaiian)

dkirstein@yklaw.com (Counsel for Spirit)

jyoung@yklaw.com (Counsel for Spirit)8 VERIFICATION

Pursuant to Title 18 United States Code Section 1001, I, Timothy F. Sieber

, in my

individual capacity and as the authorized representative of the applicant, have not in any manner

knowingly or willfully falsified, concealed or covered up any material fact or made any false,

fictitious or fraudulent statement or knowingly used any documents which contain such

statements in connection with the preparation, filing or prosecution of this exemption

application. I understand that an individual who is found to have violated the provisions of 18

U.S.C. Section 1001 shall be fined not more than $10,000 or imprisoned not more than five

years, or both.

Respectfully,

Name: Timothy F. Sieber

Date: J une 23, 2014

Title: Executive Vice President