BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

___________________________________________ 

 ) 

Application of ) 

 ) 

COMPASS AIRLINES, INC ) Docket No. OST-2010- 

 ) 

for exemptions pursuant to 49 U.S.C. § 40109 ) 

(Detroit, Michigan – Monterrey, Mexico; ) 

U.S. – Canada Open Skies ) ) 

 ) 

___________________________________________ ) 

APPLICATION OF COMPASS AIRLINES 

FOR AN EXEMPTION

Communications with respect to this document should be directed to: 

 Kenneth P. Quinn 

Jennifer E. Trock 

PILLSBURY WINTHROP 

SHAW PITTMAN LLP 

2300 N Street NW 

Washington, DC 20037 

Phone: (202) 663-8000 

Fax: (202) 663-8007 

Email: kquinn@pillsburylaw.com

jennifer.trock@pillsburylaw.com

Counsel for Compass Airlines 

NOTICE: Compass requests expedited treatment of this application. Compass will poll the 

parties and advise the Department of the results. 

August 11, 2010 
2

BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

___________________________________________ 

 ) 

Application of ) 

 ) 

COMPASS AIRLINES, INC ) Docket No. OST-2010- 

 ) 

for an exemption pursuant to 49 U.S.C. § 40109 ) 

(Detroit, Michigan – Monterrey, Mexico) ) 

 ) 

for an exemption pursuant to 49 U.S.C. § 40109 ) 

(U.S. – Canada Open Skies) ) 

___________________________________________ ) 

APPLICATION OF COMPASS AIRLINES 

FOR AN EXEMPTION

 Pursuant to 49 U.S.C. § 40109, Subpart C of the Rules of Practice of the Department of 

Transportation (the “Department”), the U.S.-Canada Open Skies Air Transport Agreement, and 

the U.S.-Mexico Air Transport Agreement, Compass Airlines, Inc. (“Compass”), respectfully 

requests an exemption from 49 U.S.C. § 41101 authorizing Compass to provide scheduled 

foreign air transportation of persons, property, and mail: (1) between Detroit, Michigan and 

Monterrey, Mexico; and (2) a point or points in the United States, via intermediate points, and to 

a point or points in Canada and beyond. Compass requests that the exemptions be effective for 

a period of two years or such longer period as the Department deems fit to grant. Compass seeks 

expedited approval of this application and intends to conduct a polling of all carrier parties listed 

on the service list. 

In support of this application, Compass states the following: 

1. Compass is fit, willing, and able to provide the proposed services described in this 

application. It holds certificates of public convenience and necessity authorizing it to engage in 
3

scheduled interstate and foreign air transportation of persons, property, and mail. 

Detroit-Monterrey Service

2. The Department previously granted Compass an exemption for Detroit – Monterrey 

on October 22, 2007.1 On July 1, 2010, and concurrent with its acquisition by Trans States 

Holdings (“Trans States”), Compass surrendered its authority and ceased service on the above 

referenced route.2

 

3. On August 6, 2010, the Department completed its continuing review under 14 C.F.R. 

Part 204 of Compass’s change in ownership and confirmed that Compass remains a U.S. citizen. 

Compass asks the Department take note of its previous fitness filings. 

4. Compass seeks exemption authority to provide scheduled foreign air transportation 

of persons, property, and mail on flights between Detroit and Monterrey. The U.S.-Mexico 

services proposed herein are anticipated to remain the same as those services the Department 

authorized in Docket OST-2007-29323. 

5. The proposed service will provide significant benefits to travelers and shippers, and 

will enhance competition in the U.S.-Mexico market and will support the development of 

Compass’ U.S.-Mexico services. Compass’ proposed service is consistent with the Air 

Transport Agreement between the U.S. and Mexico, as amended. Pinnacle is the only other 

carrier serving the Detroit-Monterrey route, and additional designations remain available.3

6. Compass will provide the Detroit – Monterrey service under a fee-for-service with 

Delta Airlines as Delta Connection, using DL*’s code.4 Delta and Compass have previously 

 

1

 DOT Notice of Action Taken, OST-2007-29323 (Oct. 22, 2007). 

2

 Letter from T. Campbell to E. Rosenberg dated June 30, 2010 available at www.regulations.gov. 3

 Agreement Between the Government of the United States of America and the Government of the United Mexican 

States Amending the Air Transport Agreement of August 15, 1960, as Amended and Extended, Annex III, 

Cooperative Marketing Arrangements at ¶ 3 (Entered into force Jul. 18, 2006). 4

 The Delta codeshare designation authorized by OST-2008-0374 remains unchanged. Delta has separate 
4

requested and been granted authority for Delta to place its code on Compass’ flights in the 

market.5

 Compass requests that the Department notify the Mexican aviation authority that 

Delta’s code will be placed on Compass’ flights in this market. 

United States – Canada

7. The Department previously granted Compass an exemption for the U.S. – Canada 

service on August 6, 2007.6

 On June 30, 2010, and concurrent with its acquisition by Trans 

States Holdings (“Trans States”), Compass surrendered its authority and ceased service to 

Canada.7 

8. On August 6, the Department completed its post-ownership change continuing 

fitness review under 14 C.F.R. Part 204 and confirmed that Compass remains a U.S. Citizen. 

Compass asks the Department take note of its previous fitness filings. 

9. Compass seeks exemption authority to provide scheduled foreign air transportation 

of persons, property, and mail on flights between the United States and Canada. The U.S.-

Canada services proposed herein are anticipated to remain the same as those services the 

Department authorized in Docket OST-2008-28132. 

10. Compass will provide U.S. – Canada service under a fee-for-service arrangement 

with Delta Airlines as Delta Connection. 

11. The proposed service will provide significant benefits to travelers and shippers, and 

will enhance competition in the U.S.-Canada market and will support the development of 

Compass’s U.S.-Canada services. Compass’s proposed service is consistent with the Open Skies 

 exemption authority for this route. See Order 2010-3-12 (Mar. 9, 2010). 5

 Notice of Action Taken, Docket OST-2008-0374 (Dec. 23, 2008). The Delta codeshare designation authorized 

by OST-2008-0374 remains unchanged. Delta has separate exemption authority for this route. See Order 2010-3-

12 (Mar. 9, 2010). 

6

 DOT Notice of Action Taken, OST-2007-28132(Aug. 6, 2007), as amended by DOT Notice of Action taken 

(June 19, 2008). 7

 Letter from T. Campbell to E. Rosenberg dated June 30, 2010 available at www.regulations.gov. 
5

Agreement between the U.S. and Canada, as amended. 

 WHEREFORE, Compass respectfully requests an exemption from 49 U.S.C. § 41101 to 

provide scheduled foreign air transportation of persons, property, and mail between (1) Detroit, 

Michigan and Monterrey, Mexico, and (2) a point or points in the U.S., via intermediary points, 

to a point or points in Canada. Compass asks that the exemption be issued for a two-year period, 

or such longer period as the Department may deem appropriate, and seeks expedited approval of 

this application. 

 Respectfully submitted, 

Kenneth P. Quinn 

Jennifer E. Trock 

PILLSBURY WINTHROP 

 SHAW PITTMAN LLP 

2300 N Street, N.W. 

Washington, D.C. 20037 

Tel: (202) 663-8000 

Fax: (202) 663-8007 

E-mail: kquinn@pillsburylaw.com 

jennifer.trock@pillsburylaw.com 

Counsel for Compass Airlines 

August 11, 2010