AirTran Airways

Consolidated Answer of Delta Air Lines

AirTran Airways will initially operate non‑stop services as follows:

Atlanta Georgia and Cancun Mexico AirTran Airways plans to commence daily non-stop services on December 15, 2005 using B-717-200 or B--737-700 aircraft configured at 117 seats or 137 seats respectively. The daily nonstops will depart Hartsfield-Jackson Atlanta International Airport (ATL) at 0920 hours, arriving Cancun at 1055 hours. In the northbound direction, the daily nonstops will depart Cancun at 1145 hours, arriving ATL at 1525 hours.

Orlando Florida and Cancun Mexico AirTran Airways plans to commence once weekly non-stop service on December 15, 2005 using B-717-200 or B-737-700 aircraft configured at 11 7seats or 137 seats respectively. The nonstop flight will depart Orlando International Airport (MCO) at 1230 hours, arriving Cancun at 1335 hours. In the northbound direction, the non-stop flight will depart Cancun at 1425 hours, arriving at MCO at 1715 hours.

Tampa Florida and Cancun Mexico AirTran Airways plans to commence once weekly non‑stop service on December 15, 2005 using B‑717‑200 or B‑737700 aircraft configured at ll7seats or 137 seats respectively. The non‑stop flight will depart Tampa International Airports (TPA) at 1115 hours, arriving Cancun at 1215 hours. In the northbound direction, the non‑stop flight will depart Cancun at 1305 hours, arriving at TPA at 1555 hours.

Counsel: AirTran and Wiley Rein, Bert Rein, 202-719-7045, brein@wrf.com

OST-2005-21165 - Spirit Airlines - Exemption - Orlando/Tampa-Cancun
OST-2005-21134 - AirTran Airways - Exemption - Atlanta/Tampa/Orlando-Cancun

May17, 2005

Today, Delta has also filed an application with the Department seeking an exemption and a U.S.‑Mexico designation to provide scheduled foreign air transportation of persons, property and mail between Orlando and Cancun.

Delta opposes the applications of Spirit and AirTran to the extent they are mutually exclusive to Delta's application. Because there are only two available U.S.‑Mexico designations for the Orlando‑Cancun route with three interested applicants, the opportunities are over‑subscribed and the Department must conduct a carrier selection proceeding to evaluate the public interest merits of the competing applications. See Ashbacker Radio Corp. v. FCC, 326 U.S. 327 (1945).

Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com

OST-2005-21134 - Exemption - Atlanta/Tampa/Orlando-Cancun

May 17, 2005

Answer of Spirit Airlines

At the moment, no carrier is serving the Tampa-Cancun market. Under the US- Mexico bilateral air service agreement, the United States may designate up to two carriers to serve any given city pair. Given those facts, the Department should promptly approve both this Application and the application filed by Spirit in Docket OST-2005-21165.

Until this afternoon, when Delta filed an application for Orlando-Cancun operating authority, (OST-2005-21284) Spirit would not have opposed the Air Tran application, as the Department could have awarded this authority to both Spirit and AirTran. However, now that Delta has belatedly expressed interest in this market, the Department will be compelled to employ some form of route allocation procedure in order to award the two available routes. In this proceeding, Spirit will demonstrate that its own daily service would be superior to AirTran's proposed once-weekly Orlando-Cancun service. Moreover, Spirit also will demonstrate that Delta's own (belated) interest in the market will offer fewer public benefits than the low-fare service proposed by Spirit.

Counsel: Garfinkle Wang, Anita Mosner, 703-294-5890

OST-2005-21165 - Spirit Airlines - Exemption - Orlando/Tampa-Cancun
OST-2005-21134 - AirTran Airways - Exemption - Atlanta/Tampa/Orlando-Cancun

May 23, 2005

Consolidated Reply of AirTran Airways

Following notice of AirTran' s initial application, both Delta and Spirit filed for Orlando-Cancun exemption authority. Because the U.S. may only designate two air carriers to exercise scheduled combination service rights under the U.S.- Mexico bilateral in its current form, the Department will be required to conduct a carrier selection proceeding, as was duly noted by Delta and Spirit in their answers to AirTran's application.

AirTran joins Delta and Spirit in requesting early institution of a 2005 Orlando--Cancun Exemption Proceeding so that timely awards of exemption authority may be in well in advance of the coming winter season. It is also important that selections be made as promptly as possible so that the U.S. and constituents of the U.S. airline industry can take full advantage of the important economic rights that have been negotiated with the Government of Mexico. Such selections will, in the usual manner, be made on the basis of final service proposals made by each applicant in response to the Department's requests for information.

AirTran notes that the efforts of both Delta and Spirit in their answers to jump the gun by invoking comparative consideration of their service proposals in their applications ‑ developed after having first seen AirTran's initial application are unavailing. AirTran will submit its final service proposal, including daily service between Orlando and Cancun building on its very strong scheduled service position at Orlando, within the context of the comparative proceeding once instituted.

Delta's application was filed on May 17, 2005, in Docket OST-2005-21284

Counsel: AirTran and Wiley Rein, Bert Rein, 202-719-7045, brein@wrf.com

OST-2005-21134 - Exemption - Tampa-Cancun

May 9, 2005

Re: Tampa International Airport Letter in Support

By: TIA, Louis Miller

OST-2005-21134 - Exemption - Atlanta/Tampa/Orlando-Cancun

Filed May 2, 2005 | Issued June 24, 2005

Support of Greater Orlando Aviation Authority

Exemption for two years under 49 U.S.C. 40109 to provide the following service: Scheduled foreign air transportation of persons, property, and mail between: (1) the terminal point Atlanta, Georgia, and the terminal point Cancun, Mexico; (2) the terminal point Orlando, Florida, and the terminal point Cancun, Mexico'; and (3) the terminal point Tampa, Florida, and the terminal point Cancun, Mexico. AirTran proposed to institute these services on December 15, 2005.

We will handle the carrier's request for authority to serve the Orlando-Cancun market separately. Under the U.S.-Mexico aviation agreement, two U.S. airlines may be designated to provide direct carrier (own aircraft) service in the Orlando-Cancun market. Currently, no U.S. carrier is designated to provide such services. Thus, two designations are available on this route. However, four applications have been filed for the Orlando-Cancun market (AirTran's application here, Boston-Maine Airways Corp.'s application in Docket OST-2003-14985, Delta Air Lines' application in Docket OST-2005-21284, and Spirit Airlines' application in Docket OST-2005-21165). Therefore, we are deferring action on AirTran's request for authority to serve the Orlando-Cancun market and will address it in the context of our consideration of these other applications.

By: Paul Gretch

OST-2005-21134 - Exemption - Atlanta/Orlando/Tampa-Cancun

June 27, 2005

Our interest, as well of that of passengers in Central Florida and our local economy, is an expeditious decision by the Department which permits the selected carriers to commence service this Winter Season. Successful launch of these new Winter Season flights will require advanced marketing so time is of the essence in awarding these new opportunities.

By: C. William Jennings

Order 2005-7-25
OST-2000-7176 - Exemption - New York LaGuardia Slots

Issued and Served July 26, 2005

Order | Word

By this order, the Department denies the request of AirTran Airways, Inc., for four slot exemptions in order to provide one additional roundtrip each day between LaGuardia Airport and Akron-Canton Airport, and one additional roundtrip each day between LGA and Newport News/Williamsburg Airport.

We agree with AirTran that competitive issues and promotion of new entry are important policy concerns, but note that the FAA's rule would apportion any slots coming available on a lottery basis, within which new entrants and limited incumbents are provided an advantage. We note that this approach has worked in the past to allow carriers such as AirTran to begin or increase service at LaGuardia up to the new entrant carrier limits in AIR-21. Obtaining slots from other carriers also remains an available option as slots may be bought, sold, leased, or transferred. These transactions, however, are done between parties and the Department is not involved in establishing terms of sale or lease of slots between parties.

By: Karan Bhatia

OST-2005-20896 - Form 41 Confidential Treatment

August 9, 2005

AirTran requests confidential treatment of information contained in its Schedule B-7, AirTran has deleted the aforementioned information from its public filings of its Schedule B-7 and has submitted a sealed envelope marked "Confidential Treatment Requested Under Rule 12" enclosing unredacted copies of AirTran' s Schedules, together with this Motion, with the Department. The release of this information would significantly hinder AirTran's efforts to negotiate favorable costs and terms from commercial vendors of airframes, aircraft, and aircraft engines. Confidential treatment of this commercially sensitive information is particularly appropriate in light of AirTran' s contracts with its vendors, which customarily contain language requiring that AirTran maintain the confidentiality of certain material terms, including acquisition costs. Finally, this information would not normally be made public by AirTran or its negotiating partners, as public disclosure would cause substantial competitive harm to AirTran.

Counsel: Wiley Rein, Edward Faberman, 202-719-7420

OST-2005-21134 - Exemption - Tampa-Cancun

August 26, 2005

Application for a Waiver

By Notice of Action Taken dated June 24, 2005 in this Docket, the Department granted the May 2, 2005 application of AirTran Airways, Inc. for an exemption to provide non-stop scheduled foreign air transportation of persons, property and mail between Tampa, Florida and Cancun, Mexico. The NOAT required that AirTran start these new services on December 15, 2005. By this application, AirTran respectfully requests a brief extension of the service institution date until March 4, 2006.

AirTran has proposed once‑a‑week scheduled flights in the Tampa ‑ Cancun market. The flights will be operated on Saturdays only and will arrive and depart during the peak operating hours at Cancun. AirTran, which is a new entrant in the Mexican market, is in the process of obtaining its Mexican operating authority. It is anticipated that this process will take a month or more for completion. AirTran has also met with the airport officials at Cancun regarding the availability of gates and landing/take‑off times to commence these new services.

Counsel: AirTran and Wiley Rein, Bert Rein, 202-719-7045

OST-2005-21134 - Exemption - Atlanta/Orlando/Tampa-Cancun

Filed August 26, 2005 | Issued September 28, 2005

After careful consideration of this matter, we have decided to grant the application filed by AirTran for a waiver of the start-up deadline imposed by the Notice of Action Taken dated June 24, 2005 (in Docket OST-2005-21134), and amend the start-up deadline through March 4, 2006, for Tampa-Cancun combination air transportation. We will require AirTran to institute the proposed services no later than March 4, 2006. We find that waiving the start-up condition imposed on AirTran’s award is in the public interest in the circumstances presented; namely, that as a new entrant in the Mexican market, AirTran must obtain a Mexican operating permit so it may serve the Tampa-Cancun market; that the record indicates it is in the process of doing so; and that no party opposed its request for a waiver.

In taking this action, however, we put AirTran on notice that, should other US carriers file applications for Tampa-Cancun authority, we reserve the right to reconsider our decision here to determine whether or not that decision continues to be in the public interest. In addition, there should be no expectation that an additional waiver request to further extend the start-up deadline will necessarily be granted. Any future request to extend the waiver at issue here will have to be considered in light of any specific arguments offered and responses thereto, and in the context of the circumstances present at that time, including whether another carrier seeks to use the designation at issue.

By: Paul Gretch

OST-2005-22768 - Exemption - Baltimore-Cancun

October 17, 2005

Notice of Withdrawal of Application for an Exemption

AirTran Airways, Inc. requests an exemption from Section 41101 of the Code and from any of the Department's related Economic Regulations to the extent necessary to permit it to engage in nonstop scheduled foreign air transportation of persons, property and mail between Baltimore, Maryland, and Cancun, Mexico, and for designation by our Government under the U.S. Mexico bilateral air transport services agreement to provide such foreign air transportation.

AirTran Airways proposes to commence 5 times weekly nonstop services on March 7, 2006, or such later date within ninety days thereof as may be required for obtaining all governmental authorizations, using B-737-700 aircraft configured at 137 seats. The 5 weekly nonstops will depart Baltimore-Washington International Thurgood Marshall Airport (BWI) at 1015 hours, arriving Cancun at 1305 hours. In the northbound direction, the 5 weekly nonstops will depart Cancun at 1350 hours, arriving BWI at 1755 hours. Block times for the round-trip flights will thus be 6.9 hours.

Counsel: Wiley Rein, Bert Rein, 202-719-7045, brein@wrf.com

OST-2005-21134 - Exemption - Orlando-Cancun

October 17, 2005

The Department's undocketed Notice served October 5, 2005, sought clarification of the status of pending applications for U.S.-Mexico authority in light of recent amendments to the U.S. Mexico bilateral agreement expected to become effective later this month. In response, AirTran Airways, Inc. herewith gives notice of withdrawal of its application for Orlando-Cancun, Mexico scheduled combination exemption authority pending in this Docket.

Counsel: Wiley Rein, Bert Rein, 202-719-7045, brein@wrf.com

OST-2005-22768 - Exemption - Baltimore-Cancun

November 1, 2005

Answer of State of Maryland in Support of Application for an Exemption

The State of Maryland, in its capacity as owner-operator of Baltimore/Washington International Thurgood Marshall Airport, submits this Answer to the Application of AirTran Airways, Inc. for an exemption authorizing it to engage in non-stop scheduled foreign air transportation of persons, property and mail between BWI and Cancun, Mexico, and for a designation under the U.S.-Mexico Air Transport Agreement to provide such service.

Maryland submits that AirTran's application is consistent with the public interest and should be granted for the following reasons. First, the new service would benefit passengers and shippers, the Baltimore community and the entire Washington/Baltimore region. The service would also benefit passengers connecting through BWI on AirTran and other flights to or from other U.S. cities. Second, the service would create additional opportunities for expanded tourism, international trade, and business for Maryland.

Counsel: Preston Gates, Jonathan Blank, 202-628-1700, jblank@prestongates.com

OST-2005-21134 - Exemption - Atlanta/Orlando/Tampa-Cancun

November 9, 2005

Decision Not to Inaugurate Service

By Notice of Action Taken June 24, 2005, AirTran Airways, Inc., received exemption authority to provide scheduled combination services between Atlanta/Tampa and Cancun, Mexico with a planned start-up date of December 15, 2005. The start-up date for the Tampa-Cuncan services was extended to March 4, 2006 by Notice of Action Taken September 28, 2005. This exemption authority is subject to the dormancy notice requirements set forth in condition 7 of Appendix A to Order 88-10-2. Pursuant to that condition, AirTran herewith gives notice of its decision not to inaugurate services in the Atlanta/Tampa - Cancun markets on the dates set forth in the Notices of Action Taken or until the winter season of 2006, at the earliest.

Counsel: Wiley Rein, Edwin Bailey, 202-719-7045, ebailey@wrf.com

OST-2005-22768 - Exemption - Baltimore-Cancun

November 9, 2005

Notice of Withdrawal of Application for Exemption

AirTran Airways, Inc. herewith gives notice of withdrawal of its application for Baltimore, Maryland - Cancun, Mexico scheduled combination exemption authority pending in this Docket.

Counsel: Wiley Rein, Bert Rein, 202-719-7045, brein@wrf.com

OST-2005-21134 - Exemption - Atlanta/Orlando/Tampa-Cancun

November 18, 2005

Motion for Temporary Dormancy Waiver

By letter dated November 9, 2005, AirTran Airways, Inc. gave notice to the Department of its decision not to inaugurate Atlanta-Cancun and Tampa-Cancun scheduled services on December 15, 2005 and March 4, 2006 as contemplated by Notices of Action Taken in this Docket. The notice, a copy of which was placed in this Docket, was required by condition 7 of Appendix A to Order 88-10-2, which is incorporated by reference in the Department's Notices. The decision not to commence the Cancun services was necessitated by the damage to the Cancun area brought about by Hurricane Katrina, The notice stated that AirTran did not believe that it could commence the services until the winter season of 2006 at the earliest.

By this motion, AirTran wishes to clarify that it is seeking a dormancy waiver from the 90-day notice requirements of condition 7 of the referenced Order for the Atlanta-Cancun and Tampa-Cancun routes through December 15, 2006. The relief requested is in the public interest because of the unexpected and widespread effects of Hurricane Katrina on the Cancun area and infrastructure. In the circumstances, AirTran respectfully requests that the Department grant temporary relief from the dormancy requirements for these routes through December 15, 2006.

Counsel: Wiley Rein, Bert Rein, 202-719-7045

Order 2005-12-5
OST-2005-22228

Issued and Served December 9, 2005

Order to Show Cause - Bookmarked

By this order we tentatively find that it is in the public interest to grant to each air carrier in the above-captioned proceeding the blanket route integration certificate attached as Appendix A to this order.

In response to the Notice, we received more than 20 submissions to the Docket from U.S. carriers seeking blanket route integration authority. The applicants of record are listed above, in the caption for this proceeding. For the most part, the carriers requesting such authority urged us to grant it in the broadest possible terms so that it would encompass prospective or future awards of authorities, as well as all currently held authority, and would be valid for an indefinite period or, alternatively, the longest possible duration, as opposed to the five-year term described in the Notice.

Decision:

We have tentatively decided to grant to each applicant of record a blanket route integration certificate covering all of its current and prospective international route authorities. We tentatively find that the award of such authority, with the enhanced operational flexibility and administrative convenience it would accord to the holder, is consistent with the public convenience and necessity. The authority would be subject to standard route integration and certificate conditions, and such other conditions as the Department may establish. The certificate would be awarded for a five-year duration and open to renewal. Consistent with the Notice, we will use a self-executing final order (Appendix B) to issue to each applicant of record an initial five-year blanket route integration certificate of public convenience and necessity in the form attached as Appendix A, assuming no objections and upon completion of the 49 U.S.C. § 41307 Presidential review.

We have considered requests that we issue longer term or even indefinite route integration authority. However, we tentatively find that it would be more reasonable in the circumstances presented to award the authority for an appropriate and suitably limited length of time to give us the opportunity to review our streamlining approach to blanket route integration authority before renewing it. We tentatively regard five years as the appropriate length of time for this purpose.

We note that some applicants of record may have previously submitted applications requesting route integration authority, among other things. To the extent superseded by the action taken here, we will deem those portions of pending applications as moot, as Department action on them would be duplicative and narrower in scope than the blanket route integration authority we intend to issue, and we will deem all such requests to have been dismissed without prejudice.

By: Paul Gretch

OST-2002-13527 - USA 3000 - Exemption - Washington Dulles-Cancun
OST-2002-13855 - US Airways - Boston, Charlotte, Ft. Lauderdale, Philadelphia, Pittsburgh-Cancun
OST-2005-22768 - AirTran - Exemption - Baltimore-Cancun

Filed March 30, 2004/April 21, 2005 | Supplemented October 17, 2005 | Issued December 15, 2005

Motion for Temporary Dormancy Waiver

USA 3000:
Scheduled foreign air transportation of persons, property, and mail between Washington, D.C. and Cancun, Mexico. USA 3000 states that it will initiate scheduled service in the subject market within 30 days of an award of the requested authority.

On April 21, 2005, USA 3000 requested an amendment to its existing exemption authority to serve the Baltimore-Cancun route, to the extent necessary to authorize service to Cancun from Washington, D.C. (Dulles). On September 21, 2005, the United States and Mexico reached an ad referendum agreement on certain amendments to the U.S.-Mexico aviation agreement, including as concerns service between Baltimore and Washington, D.C., on the one hand, and Cancun, on the other. By Notice dated October 5, 2005, the Department invited U.S. carriers to supplement already-filed applications and/or to file new exemption/certificate applications in light of the amendments. On October 17, 2005, in response to the Department’s Notice, USA 3000 filed a supplement to its application confirming its intention to serve the Washington (Dulles)-Cancun market.

US Airways:
Scheduled foreign air transportation of persons, property, and mail between Baltimore, Maryland, and Cancun, Mexico. US Airways proposes to operate this service on a seasonal basis, commencing operations before December 1, 2006.

On March 30, 2004, US Airway requested an amendment to its existing exemption authority for U.S.-Mexico service so that it might serve the Baltimore/Washington, D.C.-Cancun market. By Notice of Action Taken dated May 20, 2004, we deferred action on the carrier’s request as there were no designation opportunities available. United Air Lines, Inc. and USA 3000 were the incumbents in the market. The Department noted that Washington/Baltimore was considered a single U.S. gateway under the bilateral agreement. On October 17, 2005, in response to the Department’s October 5 Notice, US Airways filed a supplement to its application requesting exemption authority to serve only the Baltimore-Cancun market.

Granted: USA 3000’s request for Washington, D.C.-Cancun exemption authority.

Granted: US Airways’ request for Baltimore-Cancun exemption authority.

Granted: AirTran’s request for withdrawal of application in Docket OST-2005-22768.

By: Paul Gretch

OST-2005-21134 - Exemption - Atlanta/Orlando/Tampa-Cancun

Filed November 18, 2005 | Approved January 11, 2006

By letter dated November 9, 2005, AirTran Airways, Inc. gave notice to the Department of its decision not to inaugurate Atlanta-Cancun and Tampa-Cancun scheduled services on December 15, 2005 and March 4, 2006 as contemplated by Notices of Action Taken in this Docket. The notice, a copy of which was placed in this Docket, was required by condition 7 of Appendix A to Order 1988-10-2, which is incorporated by reference in the Department's Notices. The decision not to commence the Cancun services was necessitated by the damage to the Cancun area brought about by Hurricane Katrina. The notice stated that AirTran did not believe that it could commence the services until the winter season of 2006 at the earliest.

By: Esta Rosenberg

OST-2000-7182 - DCA Slots

March 17, 2006

AirTran requests that the Department of Transportation permanently allocate two within perimeter Ronald Reagan Washington National Airport slot exemptions to AirTran to operate nonstop service either between DCA and Indianapolis Airport, Indianapolis, IN or to Midway Airport in Chicago. If AirTran is able to obtain these two slots, AirTran will provide additional competitive nonstop service to IND and to markets connecting to IND. This new service would allow AirTran to further expand IND or MDW markets and bring major economic benefits to IND or MDW and the entire area.

Counsel: Wiley Rein, Edward Faberman, 202-719-7402, efaberman@wrf.com

OST-2005-20896 - Form 41 Confidential Treatment

March 30, 2006

AirTran hereby requests that information contained in AirTran's Form 41 filing, Schedule B-43, Inventory of Air frames/Aircraft Engines, for the year ended December 31, 2005, be accorded confidential treatment and be withheld from public disclosure pursuant to Rule 12. AirTran requests confidential treatment of information contained in its Schedule B-43, Columns 10 (Acquired Cost or Capitalized Value), 11 (Allowance for Depreciation or Amortization), 12 (Depreciated Cost or Amortized Value) and 13 (Estimated Residual Value). AirTran has deleted the aforementioned information from Schedule B-43 which is filed annually.

Counsel: Wiley Rein, Edward Faberman, 202-719-7420

OST-2005-20896 - Form 41 Confidential Treatment

March 30, 2006

Motion for Leave to File and Response of US Airways to Reply of AirTran

This information, which is the subject of this motion, details AirTran' s acquisition costs for its airfare and engine purchases. The public release of this information would cause substantial competitive and financial injury to AirTran. Accordingly, the information should be withheld from public disclosure.

Counsel: Wiley Rein, Edward Faberman, 202-719-7420

OST-2000-7182 - Special Rules for Ronald Reagan Washington National Airport (Within-Perimeter Slot Exemptions)

April 12, 2006

The law governing the AIR-21 slot exemptions at issue here is very clear: They must be used to serve “medium hub or smaller airports” on a year-round basis. (Order 2000-7-2). Neither federal statute nor regulation nor DOT precedent allows them to be shifted to other uses or permits non-use, either permanently or temporarily. AirTran is, of course, free to seek a change in this governing legislation, but should not expect DOT to change the law by administrative fiat.

The invalidity of AirTran’s approach is especially obvious here, where the carrier would divert the allocated slot exemptions from Fort Myers, a medium-hub market, to the world’s busiest airport – Atlanta – where it is the second largest carrier. Such a transfer directly contravenes the intent of Congress in passing AIR-21 – to ensure service from small and medium hub airports to the seat of governmental power in Washington. The Department explicitly so recognized, and made this clear to AirTran, when DOT awarded it these slot exemptions in 2003, as well as when it earlier rejected a similar attempt by AirTran to use slot exemptions that had been legislatively designated for smaller communities for service to Atlanta.

Moreover, as AirTran well knows, DCA slot exemptions are creatures of federal statute, and the AIR-21 exemptions it holds to serve specific Florida points derive from entirely different federal authority than Spirit’s “lottery slots” at issue in Order 2006-3-9.

AirTran no doubt takes issue with the statutory limitations, but its policy views about the merits of the law, and its role in promoting competition, are misplaced in the context of this regulatory proceeding, where statutory direction is clear.

In reality, AirTran’s “pitch” in this proceeding is remarkably consistent with its previous unsuccessful efforts to leverage its slot holdings at DCA by demanding that DOT grant it special dispensation from governing regulatory and statutory limitations on the use of its slots and slot exemptions. Stripped of its unsupported appeals for the exercise of over-arching regulatory discretion, and rhetorical attacks on the asserted “stranglehold” of its “dominant” competitors, AirTran’s core argument is that it is “the little guy” and should therefore be entitled to a special exemption from otherwise applicable statutes, regulations and DOT precedent.

Counsel: US Airways, Howard Kass, 202-326-5153, howard_kass@usairways.com

OST-2000-7182

April 14, 2006

Motion for Leave to File and Response of AirTran Airways

The Department has the authority to promote entry and expand competition. It can completely control all slot-related issues. The Department can approve a temporary suspension of AirTran's DCA-RSW service, allow the slots to temporarily be utilized for DCA-ATL and then be returned to DCA-RSW service. This request involves two slots held by AirTran, one of the smallest slot holders at DCA, which the Department has recognized as one of the low-fare carriers that continues to offer fares that expand market demand and economic benefits.

If the slots are withdrawn and assigned to one of the largest slot holders at DCA, the end result would be counter to all of the principles of deregulation.

Counsel: AirTran and Wiley Rein, Edward Faberman, 202-719-7402

OST-2000-7182 - Special Rules for Ronald Reagan Washington National Airport (Within-Perimeter Slot Exemptions)

May 4, 2006

Response of Delta Air Lines

Delta opposes AirTran's request because it is violates both the law and the terms of the Order granting AirTran the subject slot exemptions. For the same reasons, Delta opposed AirTran's "Comments."

AirTran was allocated the slot exemptions at issue in a contested carrier selection proceeding by Order 2003-1-16. AirTran was issued four slot exemptions for nonstop service between DCA and either Fort Lauderdale, Fort Myers, or West Palm Beach. AirTran commenced service to Fort Myers and West Palm Beach but then defaulted on the slot exemptions for the DCA-West Palm Beach service and the Department withdrew those two slots. Once again, AirTran plans to default on its use of the slot exemptions and seeks relief from the Department to do so. That request should be denied.

In addition, AirTran's request should be denied because it violates the conditions to its award set forth in Order 2003-1-16. AirTran was awarded the slot exemptions in a contested carrier selection proceeding based on its service proposal to provide year-round service to three medium hub airports in Florida. The Department expressly limited the award of slot exemptions to AirTran for service between DCA and those three Florida cities.

AirTran's plan to stop using the slot exemptions for service to Fort Myers from July to November constitutes a clear breach of the conditions to its award. In these circumstances, the two slot exemptions should be withdrawn and reallocated.

Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999

OST-2005-20896 - Form 41 Confidential Treatment

May 9, 2006

AirTran hereby files this Motion to Withhold from Public Disclosure information and data incorporated within the attached sealed envelope captioned Form 41, Schedule B-7, Airframes/Aircraft Engines acquisitions/retirements, for the first quarter of 2006.

The release of this information would significantly hinder AirTran’s efforts to negotiate favorable costs and terms from commercial vendors of airframes, aircraft, and aircraft engines. Confidential treatment of this commercially sensitive information is particularly appropriate in light of AirTran’s contract with its vendors, which customarily contain language requiring that AirTran maintain the confidentiality of certain material terms, including acquisition costs. Finally, this information would not normally be made public by AirTran or its negotiating partners, as public disclosure would cause substantial competitive harm to AirTran.

Counsel: Wiley Rein, Edward Faberman, 202-719-7420, efaberman@wrf.com

OST-2005-20896 - Form 41 Confidential Treatment - Schedule B-7

May 10, 2006

Notice of Decision Not to Operate Service

Counsel: Wiley Rein, Edward Faberman, 202-719-7420

OST-2005-21134 - Exemption - Atlanta/Orlando/Tampa-Cancun

July 31, 2006

With the continuing increases of operating costs and initiating new service, AirTran has decided not to operate the Tampa-Cancun service. Therefore, AirTran herewith gives notice of its decision not to inaugurate services in the Tampa-Cancun market.

Nevertheless, inaugurating service to Cancun is important to AirTran. AirTran applauds actions taken by the Department to open new opportunities for U.S. carriers in U.S.-Mexico markets. As a low-fare carrier that has expanded options for travelers in markets throughout the country, AirTran continues to maintain plans to inaugurate Atlanta-Cancun service and remains interested in other service options.

Counsel: Wiley Rein, Edward Faberman, 202-719-7402, efaberman@wrf.com

OST-2005-20896 - Form 41 Confidential Treatment - Schedule B-7

August 10, 2006

Counsel: Wiley Rein, Edward Faberman, 202-719-7420

OST-2005-21134 - Exemption - Atlanta/Orlando/Tampa-Cancun

November 9, 2006

Dormancy Notice

By Notice of Action Taken June 24, 2005, AirTran Airways, Inc., received exemption authority to provide scheduled combination services between Hartsfield-Jackson Atlanta International Airport and Cancun, Mexico with a planned start-up date of December 15, 2005. The start-up date for the Atlanta Cancun services was extended to March 4, 2006 by Notice of Action taken September 28, 2005 and then extended to December 15, 2006 by action of the Department dated January 11, 2006.

As a result of changes in a number of factors including aircraft deliveries and costs and since the reopening of various Cancun resorts took longer than originally planned, AirTran Airways hereby advises the Department that it cannot initiate the proposed Atlanta-Cancun service as planned. Accordingly, AirTran Airways respectfully provides Notice of Dormancy with respect to this route.

AirTran Airways is anxious to begin service to Cancun and other markets in Mexico and will continue to look at dates in 2007 to initiate important low-fare service to Mexico.

Counsel: Wiley Rein, Edward Faberman, 202-719-7402, efaberman@wrf.com

OST-2005-20896 - Form 41 Confidential Treatment - Schedule B-7

November 13, 2006

Counsel: Wiley Rein, Edward Faberman, 202-719-7402, efaberman@wrf.com

OST-1996-1960 - Family Assistance Plans

January 31, 2007

Family Assistance Plan

By: AirTran, Ann Cline

OST-2005-20896 - Form 41 Confidential Treatment - Schedule B-7

February 12, 2007

Counsel: Wiley Rein, Edward Faberman, 202-719-7402, efaberman@wrf.com

OST-2005-20896 - Form 41 Confidential Treatment

April 12, 2007

Counsel: Wiley Rein, Edward Faberman, 202-719-7402

OST-2005-20896 - Form 41 Confidential Treatment

May 10, 2007

Counsel: Wiley Rein, Edward Faberman, 202-719-7420

OST-2005-20896 - Form 41 Confidential Treatment

August 13, 2007

Counsel: Wiley Rein, Edward Faberman, 202-719-7420

OST-2007-0032 - Exemption - 14 CFR 93 - DCA Slot Times

October 26, 2007

AirTran Airways, Inc. hereby requests an exemption from 14 C.F.R. 93, and any other regulation to the extent required, permitting AirTran to assign the two Ronald Reagan Washington National Airport slots currently held by ATA Airlines, Inc. to the slot hour times in which they are currently being operated, rather than reverting them back to their original 2100 slot hour time. On November 28, 2007, pursuant to an agreement with ATA, AirTran will begin utilizing the two slots currently operated in the 1300 and 1400 slot hours by ATA. These two 2100 hour slots were originally awarded to ATA at the Federal Aviation Administration's August 12, 2003 slot lottery and then the FAA approved ATA's request that the slots be reassigned to the 1300 and 1400 slot hours. (See Department of Transportation Order 2003-9-30, Docket OST-2003-15968, September 30, 2003.)

Approval of AirTran's limited exemption request to allow AirTran to use those 2100 slots in the hours where they are currently being utilized will permit AirTran to better serve travelers by offering a greater variety of flights between DCA and Hartsfield-Jackson Atlanta International Airport. The exemption will allow AirTran to fly six daily roundtrip flights between Washington, D.C. and Atlanta spread out in various hours during the business day, which will better meet the demand for AirTran's low fares and superior service for both business and leisure travelers. These two slots are in popular travel times for AirTran's ATL-DCA passengers.

AirTran has one other daily DCA roundtrip - DCA-RSW.

By keeping these slots in the 1300 and 1400 slot hours rather than returning to the 2100 hour, AirTran will be also able to provide consumers with a significant number of connecting opportunities in AirTran's growing Atlanta hub. This will ensure that the slots originally awarded to ATA in the lottery are put to their best possible use to maximize consumer benefits. AirTran will operate all six of its daily DCA-ATL roundtrips with 137-seat Stage 3 Boeing 737 aircraft with a business class section. AirTran's Boeing 737 aircraft is fuel efficient, environmentally friendly and equipped with free XM satellite radio.

Counsel: Wiley Rein, Edward Faberman, 202-719-7402, efaberman@wileyrein.com

OST-2005-20896 - Form 41 Confidential Treatment

November 9, 2007

Counsel: Wiley Rein, Edward Faberman, 202-719-7420

OST-2003-14308 - Exemption - Baltimore-Grand Bahama Island

Filed January 3, 2005 | Issued November 14, 2007

Order Granting AirTran Airways' Request to Reassign the Operating Times of Two Slots at Ronald Reagan Washington National Airport | Word

Renewal of scheduled foreign air transportation of persons, property, and mail between Baltimore, Maryland and Grand Bahama Island (Freeport), the Commonwealth of The Bahamas.

AirTran Airways’ renewal application was not timely filed under the terms of 14 CFR 377.10(c). In the circumstances presented, including the absence of opposition to AirTran Airways’ application, we will grant the carrier a waiver of the advance filing requirement.

By: Paul Gretch

OST-2003-15968 - Exemption - Reassignment of DCA Slots

February 20, 2008

Supplement No. 1

In its October 26 Application, AirTran stated that use of the two slots in the 1300 and 1400 slot times would allow AirTran to offer a greater variety of flights between DCA and Hartsfield-Jackson Atlanta International Airport. The exemption would allow AirTran to fly six daily roundtrip flights between Washington, D.C. and Atlanta spread out throughout the day. Changing the flight times would allow AirTran to meet the travel demands of business and leisure travelers for afternoon flights and to compete against the dominant ATL carrier, Delta Airlines, which has sixteen daily DCA-ATL roundtrips including several during the afternoon hours. (U.S. Airways also operates three daily DCA-ATL roundtrips.)

In addition to providing low fare options in the heavily traveled DCA-ATL market, a new AirTran afternoon flight (made possible with the 1300 and 1400 ATA slots) would provide DCA passengers with improved connecting opportunities to AirTran's expanding network through its Atlanta hub.

The Department has required that applicants for slot reassignment demonstrate that they hold only a limited number of slots at DCA: "our authority to grant exemptions for slot slides at Reagan National is applicable only in limited circumstances to meet the specific needs of carriers holding a limited number of slots at that airport. With these two ATA slots, AirTran will hold and operate an extremely limited number of DCA slots (only 12 between the hours of 0700 and 2159), well within the number of slots the Department has previously determined to constitute a limited number, and satisfies the requirement that an applicant for reassignment hold only a limited number of DCA slots.

Counsel: Wiley Rein, Edward Faberman, 202-719-7402, efaberman@wileyrein.com

Order 2008-3-25
OST-2003-15968 - Exemption - Reassignment of Reagan Washington National Slots

Issued March 25, 2008 | Served March 28, 2008

By this order, the Department is granting the request of AirTran Airways, Inc. to reassign the operation of its two 2100 hour slots at Ronald Reagan Washington National Airport, one each to the 1300-1359 and 1400-1459 periods. The terms of this order require AirTran to utilize the re-timed slots to provide an additional daily nonstop round trip to Atlanta, Georgia, with 137-seat Boeing 737-700 aircraft.

The Department has granted slot slide requests to a new entrant or limited incumbent carrier that demonstrated a lack of flexibility in otherwise addressing a service requirement, and further demonstrated such circumstances as the importance of a slot slide to maintain an overall connecting operation (Order 1994-9-49); to strengthen an airport as a competitive alternative hub (Orders 1999-11-4 and 2000-10-32); to meet increasing demand in a market (Order 2000-7-20), or to inaugurate service to a new market (Order 2000-2-33); and where a limited number of slots received via lottery had little utility and if restricted to their times would have frustrated the purpose of the lottery (Order 2003-9-30).

Here, as in other typical precedent cases, AirTran’s DCA slot portfolio greatly limits its ability to adjust and expand its service offerings, but its relatively small slot holdings are not exceptional per se; rather, they are a typical circumstance held by recent entrants to the airport. Here, however, as AirTran has presented in its February 20 supplement, grant of these exemptions will enable the carrier to enhance its service in both the local DCA-ATL market and in thirty-three connecting markets that AirTran serves beyond Atlanta, and provide low-fare service options to such large connecting markets as Dallas and Los Angeles. These afternoon flights would, as AirTran asserts, “significantly increase a wide array of connecting opportunities,” maintaining a “benefit for travelers and dozens of communities” that “would be lost if AirTran is unable to keep the ATA slots in the same hours as operated by ATA.” These factors are sufficient to meet the statutory requirement of exceptionality, as defined by Congress.

By: Michael Reynolds

OST-2005-20896 - Form 41 Confidential Treatment

April 2, 2008

Motion for Confidential Treatment Pursuant to Rule 12

Counsel: Wiley Rein, Edward Faberman, 202-719-7402, efaberman@wileyrein.com

OST-2005-20896 - Form 41; Schedule B-7

May 13, 2008

The Department has previously determined that the financial information contained in Schedule B-7 reports submitted by AirTran and other carriers would be withheld from public disclosure for a period of ten (10) years from the date on which Rule 12 motions were filed. The same ruling should apply with equal validity to AirTran's B-7 report for the quarter that ended March 31, 2008.

Counsel: Wiley Rein, Edward Faberman

Order 2008-5-38
OST-2008-0031 - Consent Orders

Issued and Served May 29, 2008

Consent Order

This consent order concerns fare displays by AirTran Airways on its website that failed to comply with the Department’s rule on full fare advertising, 14 CFR 399.84. The carrier’s website failed to include fuel surcharges applicable to advertised fares in certain markets. These advertising practices, in addition, constituted an unfair and deceptive trade practice and an unfair method of competition in violation of 49 U.S.C. § 41712. Based on these violations, this order assesses a compromise civil penalty of $45,000 and directs the carrier to cease and desist from future similar violations.

The AirTran website, in late 2007, violated Department requirements by displaying fares which did not include a fuel surcharge. Information on the fuel surcharge the carrier applied in certain markets was deferred to secondary screens after the consumer had selected an itinerary; such charges must be included in the base advertised fare. The carrier, in response to the inquiries of the Office of Aviation Enforcement and Proceedings, has revised its site to include the fuel surcharge in all base fares. The revised website also provides a link adjacent to fares displayed on its initial screen with an explanation of the nature and amount of those charges.

In mitigation, AirTran states that the fuel surcharge was incorrectly displayed because of an oversight in its internal review process that in the normal course would have identified the incorrect display. AirTran notes that the fuel surcharge at that time did not apply to all fares and staff was attempting to inform the consumer of those fares to which the announced surcharge did apply.

AirTran, for its part, in order to avoid litigation and without admitting or denying the alleged violations, agrees to the issuance of this order to cease and desist from future violations of 49 U.S.C. § 41712 and 14 CFR 399.84 and to an assessment of $45,000 in compromise of potential civil penalties of which $22,500 shall be paid within 30 days of the date of service of this order. The additional $22,500 will become immediately payable if AirTran violates the provisions of this order within the one-year period following issuance of this order.

By: Rosalind Knapp

OST-2005-20896 - Form 41 Confidential Treatment

August 11, 2008