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Sun Country and MNA have entered into an Asset Purchase Agreement whereby MNA will acquire Sun Country's assets. (The agreement was submitted with the transfer application.) MNA will also acquire and utilize the Sun Country name. It is essential that MNA complete asset acquisition by March 29, 2002, in order to minimize disruption of operations and to allow it to continue to enhance service.  At a time when the number of airlines are decreasing and consolidation of the remaining few continues, expeditious grant of this exemption would be consistent with the public interest. Sun Country is unique in that it provides affordable fare service at a time when there is little competition and no new entry in the industry, particularly in Minneapolis/St. Paul.

MNA is a limited liability company organized under the laws of Minnesota which has directed its activities to capitalizing and structuring the company and negotiating a transaction for the acquisition of assets from Sun Country and preparing strategies for operation of the airlines following the acquisition and certificate transfer subject to Department approval. MNA will continue to operate the current Sun Country scheduled service and charter operations using four aircraft. Because of Sun Country's name recognition in the marketplace, the airline will retain the Sun Country name. MNA is also currently in negotiations with a number of tour operators to re-enter service in the traditional manner in which it made money consistently, flying to leisure destinations with the market/load factor risk being primarily absorbed by the tour operator.

MNA will acquire from Sun Country two 727s and two 737-800s. MNA intends to maintain a fleet of four to six aircraft during 2002. MNA hopes to grow to a fleet of 14 new generation 737-800s by 2004-2005.

Counsel:  Ungaretti Harris, Edward Faberman, 202.639.7500 and Kennedy Graves, Bonnie Wilkins

Sun Country Airlines, Inc. and MN Airlines, LLC

By:  Janet Davis 

ALPA's opposition to the Joint Application was based on the fact that, at the time it was filed, MNA had not agreed to be bound by the collective bargaining agreement between ALPA and Sun Country. On March 28, 2002, subsequent to the filing of ALPA's opposition, an agreement was reached between MNA, Sun Country, and ALPA in which MNA agreed to accept and be bound by the terms and conditions of ALPA's agreement with Sun Country, subject to certain conditions and modifications that all parties have agreed to. A premise of the agreement between ALPA and MNA is that should DOT grant MNA's and Sun Country's request for an exemption, the U.S. Bank National Association will promptly execute and deliver to MNA a bill of sale transferring to MNA all of Sun Country's interests in certain assets in which the Bank holds a security interest. Should the execution and delivery of that bill of sale not occur promptly after the issuance of the requested exemption, ALPA has reserved its right to request revocation of the exemption.

Counsel:  ALPA, Russell Bailey, 202.797.4087

Counsel:  Ungaretti Harris, Edward Faberman, 202.639.7500, epfaberman@uhlaw.com

Sun Country Airlines, Inc. and MN Airlines, LLC

This is a follow-up of my letter of March 29, 2002 in connection with the above captioned application. This letter amends the information provided in the March 29 letter in Section 3 of the "Ownership/Management" Section of the Requested Information in response to your letter of March 22, 2002 requesting additional fitness information.

Counsel:  Ungaretti Harris, Edward Faberman, 202.639.7500, epfaberman@uhlaw.com

Sun Country Airlines, Inc. and MN Airlines, LLC

By:  Janet Davis

Sun Country Airlines, Inc. and MN Airlines, LLC

Counsel:  Ungaretti Harris, Edward Faberman, 202.639.7500, epfaberman@uhlaw.com 

Counsel:  Ungaretti Harris, Edward Faberman, 202.639.7500, epfaberman@uhlaw.com

Sun Country Airlines, Inc. and MN Airlines, LLC

This is a follow-up to your letter of March 22, 2002 concerning the Joint Application of Sun Country, Inc. and MN Airlines, LLC for exemption from the provisions of 49 USC §41105 and for transfer of certificate authority. The following responds to your information request.

Counsel:  Ungaretti Harris, Edward Faberman, 202.639.7500, epfaberman@uhlaw.com 

Sun Country Airlines, Inc. and MN Airlines, LLC

By this order, we (1) confirm our oral action of April 5, 2002, granting MN Airlines, LLC d/b/a Sun Country Airlines and Sun Country Airlines, Inc. a limited exemption from the transfer requirements of 49 U.S.C. 41105, (2) find that MN Airlines is fit, willing, and able to conduct interstate and foreign scheduled passenger operations as a certificated air carrier, and (3) transfer and reissue to MN Airlines the interstate scheduled certificate authority currently held by Sun Country, subject to various limitations.

While we find that MN Airlines is fit to conduct the operations authorized by the certificate and exemption authority issued to Sun Country, we will not transfer to it the Mexico authority previously issued to Sun Country under various exemptions. The U.S.-Mexico aviation regime is limited-entry in nature. In this regard, we have long­standing U.S.-Mexico licensing procedures providing for the award of U.S.-Mexico route authority only where an applicant has presented firm plans to serve. In addition, U.S.-Mexico route authority is subject to certain dormancy conditions, whereby the subject authority becomes dormant if not used for a period of 90 days. Sun Country ceased all scheduled operations to Mexico on or before December 8, 2001. Thus, the carrier's U.S.-Mexico route authority became dormant on or before March 7, 2002. As the dormant authority can no longer be used, we will cancel Sun Country's U.S.-Mexico authority by this order. Should MN Airlines wish to serve the U.S.-Mexico market in the future and has firm plans for such service, the carrier may apply for the authority at that time.

By:  Read Van de Water

Sun Country Airlines, Inc. and MN Airlines, LLC d/b/a Sun Country Airlines

By Order 2002-5-12, issued May 14, 2002, we found MN Airlines, LLC d/b/a Sun Country Airlines fit to conduct interstate and foreign scheduled air transportation operations, and transferred to the company the interstate scheduled certificate previously issued to Sun Country Airlines, Inc. By this order, we transfer to MN Airlines the foreign scheduled certificate authority previously issued to Sun Country Airlines by Orders 96-6-42, served June 21, 1996 (Route 623: Norway, Denmark, and Sweden), and 97-10-8, served October 16, 1997 (Route 746: Aruba, Bahamas. Barbados, Dominican Republic, and Jamaica). The transferred certificates will be subject to the same aircraft limitation and reporting requirement imposed by Order 2002-5-12.

By:  Read Van de Water

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