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Alaska Airlines, Inc.

Hereby requests an exemption from 49 U.S.C. 41101, and from any regulations of the Department, to the extent necessary, to permit Alaska to engage in scheduled foreign air transportation of persons, property and mail between Los Angeles, California, and Guadalajara, Mexico, pursuant to a codeshare agreement with American Airlines, Inc. (“American”). Alaska requests that this exemption be granted for at least a two-year period. Alaska plans to commence codeshare service on this route on May 15, 2001. Alaska requests that the Department process this application expeditiously so that Alaska may enter as soon as possible its new service in the various computer reservations systems and begin advertising, accepting reservations and selling tickets. To assist the Department in processing Alaska’s exemption request, Alaska will contact by telephone each of the persons served with this application and will notify the Department promptly of the results of its poll.

Alaska’s proposed service between Los Angeles and Guadalajara will immediately inject additional U.S. carrier competition in an important U.S.-Mexico market, providing local as well as connecting passengers from the Pacific Northwest with the benefits of increased service options, improved connections and expanded choice of frequent flyer programs. Codeshare service between points in the United States and Mexico is specifically permitted under the January 1999 agreement between both countries. Approval of Alaska’s application is therefore clearly consistent with the public interest as well as the applicable bilateral agreement.

Alaska plans to commence daily service in the Los Angeles-Guadalajara market on May 15, 2001. Service will be offered pursuant to a codeshare arrangement with American under which Alaska will place its two-letter designator code on flights operated by American.

Alaska and American are separately notifying the Department by letter of their intention to begin Los Angeles-Guadalajara codeshare services under their existing agreement. To Alaska’s knowledge, only two U.S. carriers, Delta Airlines and United Air Lines, are currently engaged in codeshare services on the Los Angeles-Guadalajara route. Two codeshare authorizations therefore remain available for U.S. carriers.

Counsel:  Alaska and Squire Sanders, Marshall Sinick, 202-626-6651

Alaska Airlines, Inc.

Counsel:  United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmer.com

Alaska Airlines, Inc.

By:  Paul Gretch

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