BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON D.C.

__________________________________________

)

Application of )

)

AIRTRAN AIRWAYS, INC. )

) Docket No. OST-2012-

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

to engage in foreign scheduled air transportation )

of persons, property and mail between Austin, ) 

Texas and Cancun, Mexico and between Denver, )

Colorado and Cancun, Mexico. )

__________________________________________ )

APPLICATION OF AIRTRAN AIRWAYS, INC.

Communications with respect to this document should be sent to:

Bob Jordan Robert W. Kneisley

 President Associate General Counsel

AIRTRAN AIRWAYS, INC. Leslie C. Abbott

9955 AirTran Boulevard Senior Attorney

Orlando, FL 32827 SOUTHWEST AIRLINES CO.

 1901 L Street, N.W., Suite 640

Washington, D.C. 20036

 bob.kneisley@wnco.com

(202) 263-6284

January 18, 2012

NOTICE: ANY PERSON MAY FILE AN ANSWER TO THIS APPLICATION IN THIS 

DOCKET AND SERVED ON THE PERSONS LISTED ABOVE, ON OR BEFORE 

FEBRUARY 2, 2012. AIRTRAN WILL POLL THE U.S. CARRIERS ON THE 

ATTACHED SERVICE LIST REGARDING THIS APPLICATION AND WILL NOTIFY

THE DEPARTMENT OF THE RESULTS AS SOON AS POSSIBLE.
1

BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON D.C.

__________________________________________

)

Application of )

)

AIRTRAN AIRWAYS, INC. )

) Docket No. OST-2012-

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

to engage in foreign scheduled air transportation )

of persons, property and mail between Austin, ) 

Texas and Cancun, Mexico and between Denver, )

Colorado and Cancun, Mexico. )

__________________________________________ )

APPLICATION OF AIRTRAN AIRWAYS, INC.

Pursuant to 49 U.S.C. § 40109 and Subpart C of the Department’s Rules of

Practice, AirTran Airways, Inc. (AirTran) hereby applies for an exemption from 49 

U.S.C. § 41101 authorizing AirTran to engage in scheduled foreign air transportation of 

persons, property, and mail on the following two U.S. – Mexico routes: Austin, Texas 

(AUS) and Cancun, Mexico (CUN) and Denver, Colorado (DEN) and Cancun, Mexico. 

Assuming receipt of all necessary approvals, AirTran proposes to commence 

operations between AUS and CUN on or about May 25, 2012, and between DEN and 

CUN on or about April 16, 2012. AirTran requests that the exemption authority 

specified in the application be granted as soon as possible for a period of at least two 

years.

In support of this application, AirTran states the following:
2

1. AirTran is a wholly owned subsidiary of Southwest Airlines Co. (Southwest), a 

Texas corporation with its principal place of business at 2702 Love Field Drive, Dallas, 

Texas, 75235. AirTran maintains its principal place of business at 9955 AirTran 

Boulevard, Orlando, Florida, 32827 and operates pursuant to a separate FAA operating 

certificate from Southwest. 

2. Southwest is a citizen of the United States as defined by Section 40102(a)(15) of 

Title 49 of the United States Code and Section 204.2(c) of the Department’s Economic 

Regulations. Southwest’s president and at least two-thirds of its board of directors and 

other managing officers are citizens of the United States. Southwest is under the actual 

control of citizens of the United States and more than 75 percent of its voting interest is 

owned or controlled by persons that are citizens of the United States. Additionally, 

AirTran’s president and other managing officers are citizens of the United States and 

AirTran is under the actual control of citizens of the United States. 

3. AirTran proposes to commence year-round service between AUS and CUN on or 

about May 25, 2012. AirTran will provide this service using Boeing 737-700 aircraft 

configured for 137 seats and plans to offer service four times a week to daily, depending 

on demand and other market conditions.

4. AirTran proposes to commence year round service between DEN and CUN

beginning on or about April 16, 2012. AirTran will provide this service using Boeing 

737-700 aircraft configured for 137 seats. AirTran plans to offer daily service during the 

peak season (December through June) and service several times a week during the offpeak period, depending on demand and market conditions.
3

5. AirTran is fit, willing and able to conduct the services described in this 

application. AirTran holds a Certificate of Public Convenience and Necessity to engage 

in interstate scheduled air transportation of persons, property and mail. See Order 97-

11-28. Furthermore, AirTran already holds exemption authority from the Department in 

several U.S. – CUN markets, providing scheduled service from Baltimore, Atlanta, and 

Milwaukee, as well as in a number of other international markets. See Dockets OST2005-21134 (BWI-CUN and ATL-CUN), OST-2005-21134 (MKE-CUN), OST-2009-0201 

(U.S. – Montego Bay, Jamaica), and OST-2009-0200 (U.S. – Aruba). In addition, the 

Department recently granted AirTran exemption authority to provide service between 

SAT-CUN, SAT-MEX, SNA-MEX, and SNA-SJD, with flights starting in early summer

20121. See Docket OST-2011-0205. Pursuant to Rule 24 of the Department’s Rules of 

Practice, AirTran asks the Department to take official notice of all data on file necessary 

to establish AirTran’s fitness.

6. The requested exemption authority is fully consistent with the terms of the U.S.-

Mexico Air Transport Agreement (Agreement) as amended by the two governments on 

December 12, 2005. The Agreement authorizes carriers designated by the U.S. to 

operate “[f]rom a point or points in the United States to a point or points in Mexico.” 

Annex I(A)(1)(a). Pursuant to the amended Agreement, three U.S. carrier designations 

are authorized on U.S. – CUN routes. Annex I(B)(5).

7. U.S. carrier designations are available on each of the routes for which AirTran is 

seeking authority in this application. Currently, Continental (OST-2010-0255) and Sun 

Country (OST-2010-0030) hold AUS-CUN authority. By letter dated December 21, 

 

1

Service between SAT-CUN and SAT-MEX begins May 24, 2012 and between SNA-MEX and SNA-SJD on June 3,

2012 .
4

2011, Delta Air Lines informed the Department that it had ceased operations on the 

AUS-CUN route and that it had no objection to the withdrawal of its exemption authority, 

leaving one designation available. See Docket OST-2010-0196. In the DEN-CUN 

market, United Air Lines (OST-2004-17299) and Frontier Airlines (OST-2002-13061)

each hold authority to operate scheduled combination nonstop service, leaving one 

designation available. 

8. AirTran already provides scheduled service to Mexico with nonstop flights in the 

ATL-CUN, BWI-CUN and MKE-CUN markets. AirTran’s low-cost competition has 

expanded these markets significantly and will undoubtedly have an even greater impact 

on U.S. – Mexico service once its schedule is linked with Southwest’s vast domestic 

network. Southwest/AirTran is the largest carrier at AUS and the second largest at 

DEN.

2 Accordingly, the Southwest/AirTran network would offer passengers on these 

new international flights numerous domestic connecting opportunities, many of them to 

small or medium sized cities without current nonstop service to Mexico. In sum, 

AirTran’s proposed service will provide new convenient and reliable low-cost travel 

options to passengers and shippers in both the United States and Mexico, and clearly is 

in the public interest.

9. The environmental impacts of AirTran’s proposed services are de minimis, and 

will therefore not lead to a near-term annual increase in aircraft fuel consumption of 10 

million gallons or more. Accordingly, grant of this application will not constitute a “major 

regulatory action” within the meaning of the Energy Policy and Conservation Act of 1975 

or Part 313 of the Department’s Economic Regulations.

 

2

Based on domestic enplanements for the 12 month period ending September 2011.
5

10. AirTran will accept and comply with the terms and conditions that the Department 

routinely imposes on exemption authority for scheduled foreign air transportation. 

WHEREFORE, AirTran requests that the Department act expeditiously in 

granting the requested exemption authority to enable AirTran to engage in scheduled 

foreign air transportation of persons, property and mail on the two U.S. – Mexico routes 

listed above. 

Respectfully submitted,

______________________

Robert W. Kneisley

January 18, 2012
6

CERTIFICATE OF SERVICE

I hereby certify that on January 18, 2012, a copy of the foregoing was served via 

e-mail on the following persons:

msinick@ssd.com (Alaska Airlines)

carl.nelson@aa.com (American Airlines)

sascha.vanderbellen@delta.com (Delta Air Lines)

jeff.morgan@delta.com (Delta Air Lines) 

robert.cohn@hoganlovells.com (Frontier Airlines)

patrick.rizzi@hoganlovells.com (Frontier Airlines

jhill@dowlohnes.com (JetBlue Airways)

dkirstein@yklaw.com (Spirit Airlines)

jyoung@yklaw.com (Spirit Airlines)

John.Fredericksen@suncountry.com (Sun Country Airlines)

dan.weiss@united.com (United Air Lines)

howard_kass@usairways.com (US Airways)

pmurphy@lopmurphy.com (USA3000)

barbara.russell@virginamerica.com (Virgin America)

susan.kurland@dot.gov

paul.gretch@dot.gov

brian.hedberg@dot.gov

brett.kruger@dot.gov

todd.homan@dot.gov

esta.rosenberg@dot.gov

john.allen@faa.gov 

urskr@dos.gov

Jim Smith

Director of Aviation

Austin-Bergstrom International Airport

jimsmith@ci.austin.tx.us

Kim Day

Manager of Aviation

Denver International Airport

kim.day@diadenver.net

info@airlineinfo.com

__________________________

Leslie C. Abbott