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Updated: Thursday, June 16, 2011 7:44 AM


OST-2004-18692 - 2004 US-Mexico Combination Service Proceeding


OST-1999-5846 - United's Request for Renewal of US-Mexico Certificate Authority
OST-2004-17299 - United - Denver-Cancun
OST-2004-17491 - United - Denver-Puerto Vallarta
OST-2004-17407 - Champion - Denver-Cancun
OST-2004-17408 - Champion - Denver-Puerto Vallarta


2004 US-Mexico Combination Service Proceeding

Order 2004-7-17
OST-2004-18692 - 2004 US-Mexico Combination Service Proceeding
OST-2004-17416 - Allegiant Air - Denver-Cancun
OST-2004-17407 - Champion Air - Denver-Cancun
OST-2004-17299 - United Air Lines - Denver-Cancun
OST-2004-17408 - Champion Air - US-Mexico
OST-2004-17491 - United Air Lines - Denver-Puerto Vallarta
OST-2004-17405 - Champion Air - Detroit-Cancun
OST-2004-17234 - Spirit Airlines - Detroit-Cancun
OST-2004-17351 - USA 3000 - Detroit-Cancun
OST-2004-17470 - Frontier Airlines - St. Louis-Cancun
OST-2004-17479 - USA 3000 - St. Louis-Cancun/Cozumel

Issued and Served July 21, 2004

Instituting Order | Word

By this order we: (1) institute the 2004 U.S.-Mexico Combination Service Proceeding to select one primary and one backup carrier, to provide foreign air transportation of persons, property, and mail over the following transborder routes: Denver-Cancun, Denver-Puerto Vallarta, Detroit-Cancun, and St. Louis-Cancun; (2) consolidate the already-filed captioned applications into this new proceeding; and (3) direct the applicants to file the requested information, as set forth below.

Petitions for Reconsideration:

July 28, 2004

Answers to Petitions:

August 2, 2004

Direct Exhibits:

August 16, 2004

Rebuttal Exhibits:

August 30, 2004

Briefs:

September 7, 2004

By: Karan Bhatia



OST-04-18692 - 2004 US-Mexico Combination Service Proceeding
OST-04-17299 - United Air Lines - Denver-Cancun
OST-04-17470 - Frontier Airlines - St. Louis-Cancun

July 26, 2004

Answer of Frontier Airlines

Hereby submits comments in response to the motion of United Airlines, Inc. for "Pendente Lite Grant of An Exemption" to allow it to operate scheduled service, between Denver, Colorado and Cancun, Mexico.

Under the U.S./Mexico bilateral air services agreement, only two U.S. carriers may be designated in each city pair. In the DEN‑CUN city pair, only one additional designation remains. At a time that the Department has initiated a proceeding to select a second carrier for the DEN‑CUN route, United has asked that the Department take the time to give it immediate authority to initiate DEN‑CUN service. United is not the only carrier that is attempting to initiate new Mexico service this year. On April 1, 2004, Frontier Airlines asked the Department to allow it to operate scheduled service between STL‑CUN. The Department has not awarded Frontier the CUN authority it requested. Unfortunately, since one carrier already serves that market and other carriers applied for the second destination, Frontier has been forced to modify its plans and schedules for the STL‑CUN market because award of the route has been delayed.

Frontier is prepared to wait until this proceeding is completed before it asks the Department to give it that authority. If the Department is going to proceed with separate Pendente Lite deliberations, it needs to allow Frontier to operate in STL‑CUN this fall.

Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7501



July 28, 2004

Answer of Allegiant Air In Opposition to Motion for Pendente Lite Exemption

United's motion makes clear that the carrier contemplates only minimal, once‑aweek Denver‑Cancun service prior to October 31, 2004; year‑round daily service would begin October 31st.3 Assuming the Department chooses United for Denver‑Cancun in the selection case, however, United is still likely to have several weeks' lead time before October 31.

Moreover, under the procedures applicable to all U.S.-Mexico route authority, selected carriers are free to inaugurate service as late as 90 days after DOT's issuance of authority. United's motion for pendente lite authority envisions essentially a three-month period preceding initiation of daily service ... but if United is awarded the route in the expedited selection case, it will have that flexibility in any event.

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3974, agoerlich@ggh-airlaw.com


July 27, 2004

Petition for Reconsideration of Frontier Airlines | Word

To expedite the process, the Order contains an accelerated “procedural schedule.”  While Frontier applauds the proposed shortened timetable to conclude the selection process, it is essential that each party have sufficient time to submit all required information.  The time schedules listed in the Order involve a time period in which carrier representatives are focusing on a variety of planning and scheduling issues including developing winter schedules. They are also responding to rapidly changing industry conditions. To address this workload, Frontier believes it is necessary to add a brief amount of time to the proposed schedule.

Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7501



OST-04-18692
OST-04-17299 -
United Air Lines - Denver-Cancun

July 29, 2004

Consolidated Reply of United Air Lines and Motion for File to Leave

Unless the Department is prepared to grant United the temporary authority it seeks, a valuable economic opportunity obtained by the U.S. under the U.S.-Mexico bilateral air services agreement will have been allowed to go to waste for another year. Such spoilage of valuable opportunities is contrary to the Department's well-established policies and can be avoided in this case by the temporary award of Denver-Cancun authority to United on a pendente lite basis. That award will enable United to offer immediately additional capacity and a competitive product between its Denver hub and Cancun, allowing United to connect its entire network of cities served via that hub to Cancun. For this new competitive choice to become effective in time to meet peak demand this winter, United must have the authority to start service before the Department's carrier selection process can be completed, even if that process can be expedited.

In sum, only United has requested pendente lite authority and its proposal is clearly in the public interest. There are no competing proposals for such authority, and the only objections come from the two carriers currently operating service in the market - one of whom operates charter service and the other operates scheduled service and is not an applicant for the exemption. These opponents are simply trying to keep out a new competitor as long as possible. As noted in its motion, granting United the requested pendente lite authority would be fully consistent with the terms of the U.S.-Mexico ASA.

Moreover, grant of this temporary authority to United will not prejudice any other party. United is already operating scheduled services at both Denver and Cancun and will use aircraft from its current fleet to operate the new Denver-Cancun service. United will not, therefore, require any substantial additional investment in order to start service in that city pair.

Counsel: Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmerhale.com



Served July 30, 3004

Notice | Word

In view of the immediate availability of the route rights, and in light of the carrier interest to commence services on these routes as soon as possible, and given our stated intent to process this case on an expedited procedural schedule, we have decided not to change the requirement that answers to petitions for reconsideration be filed as stated above (i.e., August 2, 2004). However, we will defer action on the balance of the request until after receipt of answers to the petition.

Therefore, acting under authority assigned in 14 CFR 385.13(p), we deny the request to modify the due date for the answers to petitions for reconsiderations and require that answers to the petitions be filed August 2. We defer a decision on the balance of the request of Frontier.

By: Paul Gretch



August 2, 2004

Answer of Frontier Airlines to Petitions for Reconsideration

For the reasons set forth in Frontier's July 27 petition, Frontier continues to believe that some additional time must be added to allow each carrier to thoroughly address all issues. We also note that the September 7 schedule for brief submissions is immediately after the Labor Day weekend. For this and the other reasons discussed in the July 27 petition, Frontier believes additional time is needed to assemble and submit information.

It is unfortunate that United Airlines continues to claim that all proposals to improve the process relate to them. Frontier's objective is to ensure that each party is able to present all relevant material. Frontier does want to see the process completed in a reasonable time period and therefore would accept a September 15, 2004 date for submission of "briefs."

Counsel: Frontier and Ungaretti & Harris, Edward Faberman, 202-639-7501


August 2, 2004

Answer of United Air Lines

Recognizing the valuable nature of the available exemptions and the public interest in adding new competition in each city‑pair as soon as possible, the Department appropriately proposed an expedited procedural schedule in the Instituting Order. In so doing, the Department was, in fact, granting the requests of both United and Frontier to act on the applications as soon as possible.

In a complete reversal, Frontier now wants the Department to slow down the selection proceedings. Frontier's explanation for this sudden shift is a vague reference to its "workload" due to "a variety of planning and scheduling issues ...." In truth, however, this is yet another attempt by Frontier to delay the introduction of competitive service in the Denver‑Cancun and Denver‑Puerto Vallarta markets in which Frontier holds a U.S. flag carrier monopoly. Such delay is evidently more important to Frontier than quickly introducing its own St. Louis‑Cancun service.

Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670



Served August 6, 2004

Notice | Word

Upon consideration of the pleadings filed here, we have decided to grant, in part, the request of Frontier to extend the procedural schedule in this Docket.  Accordingly, we will modify the procedural timetable established in Order 2004-7-17 as follows:  Direct Exhibits will still be due no later than August 16, with Rebuttal Exhibits still due no later than August 30; however, Briefs will now be due no later than September 8.  We will deny the request of Frontier for longer-term extension of the procedural dates in this proceeding

By: Paul Gretch



August 16, 2004

Motion of Allegiant Air for Leave to Withdraw Application

One can scarcely imagine what circumstances could have changed so dramatically that a proposed market in which United would commit to only one flight per week in March 2004, merited a seven-fold increase in that commitment by June 2004. The only plausible explanation for such absurdity is that United's intent in March was to tie up the sole remaining Denver-Cancun designation with the bare minimum of service accepted by the Department - one round trip per week - to foreclose the introduction of scheduled Cancun service by an independent carrier, such as Allegiant, at United's Denver hub. No doubt this desire was inflamed by the presence of United's principal competitor at Denver, Frontier Airlines, on the Denver-Cancun scheduled route.

Based on its own year-round Denver-Cancun operating experience, Allegiant knows the market will not support two carriers operating daily flights, no matter the form of service. Consequently, were Allegiant to continue as a participant in the Denver-Cancun selection case, it could not in good faith prosecute a service proposal involving more than the four round trips per week it originally proposed.

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3974, agoerlich@ggh-airlaw.com


August 16, 2004

Direct Exhibits of Frontier Airlines

Counsel: Ungaretti and Harris, Edward Faberman, 202-639-7502


August 12, 2004

Re: Lambert-St. Louis International Airport Letter in Support of Frontier

By: Leonard Griggs, Jr.


OST-17234 - Detroit-Cancun

August 16, 2004

Amended Application of Spirit Airlines for an Exemption and Designation

Hereby submits this Amended Application for an Exemption from 49 U.S.C. §41101 that would authorize Spirit to engage in scheduled foreign air transportation of persons, property and mail between Detroit, Michigan and Cancun, Mexico. Spirit also requests that it be designated by the Government of the United States to serve the Detroit-Cancun city pair in accordance with the United States-Mexico Air Services Agreement.

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


August 16, 2004

Direct Exhibits and Testimony of United Air Lines

Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670


August 16, 2004

Direct Exhibits of USA 3000 Airlines

USA 3000 currently operates an expanding fleet of Airbus A‑320 aircraft and the aircraft to be used on USA 3000's currently‑pending DTW‑CUN and STL‑CUN scheduled service applications are on hand and are currently being used in USA 3000's other U.S. and foreign scheduled services as well as its Public Charter operations.

Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com



OST-04-18692 - 2004 US-Mexico Combination Service Proceeding
OST-04-17299 - United Air Lines - Denver-Cancun
OST-04-17407 - Champion Air - Denver-Cancun
OST-04-17408 - Champion Air - US-Mexico
OST-04-17416 - Allegiant Air - Denver-Cancun
OST-04-17491 - United Air Lines - Denver-Puerto Vallarta

August 18, 2004

Motion of United Air Lines for Immediate Action

On August 16, when direct exhibits were due, Allegiant filed a motion seeking leave to withdraw its application, and Champion filed nothing, electing, in effect, to abandon its application without any formal filing of a motion for leave to withdraw.

There are no direct exhibits of Champion (or Allegiant) for United to rebut and the Department can rely on United's Direct Exhibits and this Motion as United's Brief. To delay a decision on United's application until the procedural schedule, which is now superfluous as it relates to Denver markets, has run its course would be contrary to any legitimate procedural concern. To include United's applications in any tentative decision in an Order to Show Cause would likewise be to put form over substance in circumstances where no other carrier is presenting an application for authority in either of the markets United seeks. There are no due process concerns to be considered here and the matter should be brought quickly to a conclusion by granting Allegiant's Motion to Withdraw and dismissing Champion's applications as to Denver‑Cancun and Denver-Puerto Vallarta.

Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmerhale.com


July 23, 2004

Re: Attorney General of Colorado Ken Salazar Letter in Support of United

By: Ken Salazar



Served August 20, 2004

Notice Shortening Answer Period | Word

On August 18, 2004, United filed a motion in the captioned proceeding requesting that the Department: (1) grant the motion of Allegiant Air, Inc. to withdraw its Denver-Cancun application in the 2004 U.S.-Mexico Combination Service Proceeding, (2) dismiss the applications of Grand Holdings, Inc., d/b/a Champion Air for Denver-Cancun and Denver-Puerto Vallarta authority in the 2004 U.S.-Mexico Combination Service Proceeding, and (3) immediately grant United’s applications for exemption authority to serve the Denver-Cancun/Puerto Vallarta markets in the 2004 U.S.-Mexico Combination Service Proceeding.

United also requests the Department to shorten the answer period to the motion and require answers to be filed no later than Friday, August 20, 2004. On August 19, 2004, United orally advised the Department that no party opposed its request to shorten the answer period to its motion.

As no party has opposed United’s request for a shortened answer period, we will grant the request. Therefore, acting under authority assigned in 14 CFR 385.13(p), answers to United’s August 18 motion will now be due no later than Friday, August 20, 2004, with replies due no later than Monday, August 23, 2004. Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulations, 14 CFR 385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effective when taken (August 20, 2004), and the filing of a petition for review will not alter such effectiveness.

By: Paul Gretch


August 20, 2004

Re: Polling Letter (United)

On behalf of United, I have polled the representatives of all carriers on the service list attached to the Motion of United for Immediate Action filed August 18, 2004, in the above referenced dockets, with regard to the request contained in the motion that the Department shorten the answer period and require that answers be filed no later than Friday, August 20, 2004. All carriers' representatives have advised me that they have no objection to the granting of the request to shorten the answer period to the motion.

Counsel: Wilmer Cutler, Caryn Garvin, 202-663-6000


OST-04-17470 - Frontier - St. Louis-Cancun
OST-04-17408 - Champion Air - US-Mexico
OST-04-17479 - USA 3000 - St. Louis-Cancun/Cozumel

August 20, 2004

Motion of Frontier for Immediate Action

By Order 04-7-17 the Department instituted this proceeding, in part, to select a carrier to operate scheduled service between St. Louis and Cancun. Frontier, Champion, and USA 3000 submitted applications for the St. Louis-Cancun authority. The Order established a procedural schedule for the filing of direct exhibits setting forth detailed information regarding each applicant's service proposals, and required the filing of certain additional documents. The Department also made clear that the provision of the information was mandatory, and stated "we expect all applicants to set out their firm proposals at the Direct Exhibit stage." (p. 6, footnote 8) As Champion failed to present any information or exhibits in the Denver-Cancun and Denver-Puerto Vallarta docket, it has also not submitted any of the information that the Department ordered to be submitted in the St. Louis-Cancun proceeding.

On August 16, 2004, Frontier and USA 3000 filed the STL-CUN information required to be submitted under the Order. However, Champion has not filed any of the additional information set forth in the Order.

Champion cannot be allowed to participate in this proceeding unless it provides all the requested information. If Champion had a valid basis for not submitting the information requested, it should have filed a motion.

Since Champion has elected not to participate in this proceeding, its application for St. Louis-Cancun should be dismissed. Of course, Champion can continue to operate charter flights in this market.

Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7502, epfaberman@uhlaw.com


OST-04-17234 - Spirit - Detroit-Cancun
OST-04-17351 - USA 3000's Application
OST-04-17405 - Champion's Application

August 20, 2004

Motion of Spirit Airlines

By Motion dated August 18, 2004, United Airlines requested, among other things, that the Department remove Champion as a party to the Denver-Cancun/Puerto Vallarta portion of the US-Mexico 2004 Combination Service Proceeding because of Champion’s failure to file Direct Exhibits in this Proceeding, or otherwise prosecute its pending requests for U.S.-Mexico authority.

Spirit Airlines hereby files this Motion to request that, to the extent that the DOT decides to dismiss Champion’s request for Denver-Mexico authority, it should do the same with respect to Champion’s request for Detroit-Cancun authority, as Champion failed to submit Direct Exhibits or otherwise respond to the requests for information required by Order 04-7-17 with regard to that city-pair.

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


OST-04-17470 - Frontier - St. Louis-Cancun
OST-04-17408 - Champion Air - US-Mexico
OST-04-17479 - USA 3000 - St. Louis-Cancun/Cozumel
OST-04-17234 - Spirit - Detroit-Cancun
OST-04-17351 - USA 3000's Application
OST-04-17405 - Champion's Application
OST-04-17299 - United Air Lines - Denver-Cancun
OST-04-17407 - Champion Air - Denver-Cancun
OST-04-17416 - Allegiant Air - Denver-Cancun
OST-04-17491 - United Air Lines - Denver-Puerto Vallarta

August 20, 2004

Answer of USA 3000 to Motions of United and Spirit and Motion of USA 3000

In addition to supporting the dismissal of Champion's applications in the Denver-Cancun, Denver‑Puerto Vallarta, and Detroit‑Cancun portions of this proceeding sought by United and Spirit in their motions, USA 3000 would also urge that Champion's other application in the St. Louis‑Cancun portion of this proceeding be similarly dismissed for the same fundamental reasons advanced by United and Spirit, and to the extent necessary, USA 3000 so moves. Neither USA 3000 nor the other competing applicant for St. LouisCancun transborder city‑pair should be put to the trouble and expense of trying to rebut direct exhibits which do not exist.

Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com



OST-04-18692 - 2004 US-Mexico Combination Service Proceeding
OST-04-17470 - Frontier - St. Louis-Cancun
OST-04-17408 - Champion Air - US-Mexico
OST-04-17479 - USA 3000 - St. Louis-Cancun/Cozumel

August 20, 2004

Answer of Frontier Airlines to Motions of United and Spirit

Frontier Airlines, Inc. files this answer in response to certain issues raised in the August 18 Motion of United Airlines, Inc. and the August 20 Motion of Spirit Airlines, Inc. seeking dismissal of the Denver-Cancun, Denver-Puerto Vallarta, and Detroit-Cancun exemption applications of Grand Air Holdings, Inc., d/b/a Champion Air, due to Champion's failure to prosecute its pending applications or to comply with any of the terms or requirements of the Instituting Order in the 2004 U.S.-Mexico Combination Service Proceeding (see: Order 2004-7-17 herein).

This filing supplements Frontier's earlier filing of today asking the Department of Transportation to dismiss to dismiss Champion's application for St. Louis-Cancun service since Champion has not filed documents in the STL-CUN proceeding. As to other issues raised by United and Spirit, Frontier does not support changing the briefing schedule set forth in Order 2004-7-17 nor does Frontier support elimination of the briefing requirement.

Wherefore, Frontier again urges the Department to dismiss Champion's STL-CUN application. Moreover, Frontier opposes any proposal to accelerate or eliminate the briefing requirements.

Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7502, epfaberman@uhlaw.com


OST-04-17470 - Frontier - St. Louis-Cancun
OST-04-17408 - Champion Air - US-Mexico
OST-04-17479 - USA 3000 - St. Louis-Cancun/Cozumel

August 23, 2004

Reply of Frontier Airlines

United's basis for requesting that the Department dismiss Champion's Denver-Cancun and Denver-Puerto Vallarta applications is identical to the motion submitted for Frontier to dismiss Champion's St. Louis-Cancun application and Spirit Airlines' motion to dismiss Champion's Detroit-Cancun application.

Since Champion has elected not to participate in any of those proceedings, its applications for Cancun authority, including for the St. Louis‑Cancun authority, should be handled simultaneously, and dismissed at the same time. This is particularly so since the various Champion Cancun applications involve the same legal and factual issues.

Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7502, epfaberman@uhlaw.com


OST-04-17299 - United Air Lines - Denver-Cancun
OST-04-17407 - Champion Air - Denver-Cancun
OST-04-17408 - Champion Air - US-Mexico
OST-04-17416 - Allegiant Air - Denver-Cancun
OST-04-17491 - United Air Lines - Denver-Puerto Vallarta

August 23, 2004

Consolidated Answer and Reply of United Air Lines

United respectfully requests that the Department issue an order immediately granting United's exemption applications for Denver‑Cancun and Denver Puerto Vallarta service as requested in United's Motion for Immediate Action dated August 18, 2004. United objects to any delay in such action while the Department reviews the unrelated motions of Spirit, USA 3000 and Frontier. United also requests that the Department grant it such other and further relief as is deemed consistent with this consolidated answer and reply and the public interest.

Counsel: Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmerhale.com



OST-04-18692 - 2004 US-Mexico Combination Service Proceeding
OST-04-17470 - Frontier - St. Louis-Cancun
OST-04-17408 - Champion Air - US-Mexico
OST-04-17479 - USA 3000 - St. Louis-Cancun/Cozumel

August 23, 2004

Reply of Frontier Airlines

United's basis for requesting that the Department dismiss Champion's Denver-Cancun and Denver-Puerto Vallarta applications is identical to the motion submitted for Frontier to dismiss Champion's St. Louis-Cancun application and Spirit Airlines' motion to dismiss Champion's Detroit-Cancun application.

Since Champion has elected not to participate in any of those proceedings, its applications for Cancun authority, including for the St. Louis‑Cancun authority, should be handled simultaneously, and dismissed at the same time. This is particularly so since the various Champion Cancun applications involve the same legal and factual issues.

Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7502, epfaberman@uhlaw.com



OST-04-18692 - 2004 US-Mexico Combination Service Proceeding
OST-04-17299 - United Air Lines - Denver-Cancun
OST-04-17407 - Champion Air - Denver-Cancun
OST-04-17408 - Champion Air - US-Mexico
OST-04-17416 - Allegiant Air - Denver-Cancun
OST-04-17491 - United Air Lines - Denver-Puerto Vallarta

August 23, 2004

Consolidated Answer and Reply of United Air Lines

United respectfully requests that the Department issue an order immediately granting United's exemption applications for Denver‑Cancun and Denver Puerto Vallarta service as requested in United's Motion for Immediate Action dated August 18, 2004. United objects to any delay in such action while the Department reviews the unrelated motions of Spirit, USA 3000 and Frontier. United also requests that the Department grant it such other and further relief as is deemed consistent with this consolidated answer and reply and the public interest.

Counsel: Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmerhale.com



Filed March 10, 2004 and April 5, 2004 | Issued August 25, 2004

Notice of Action Taken (United) | Word

Scheduled foreign air transportation of persons, property, and mail between Denver, Colorado, and Cancun, Mexico. United states that it will serve the market on a year-round basis.

Scheduled foreign air transportation of persons, property, and mail between Denver, Colorado, and Puerto Vallarta, Mexico. United states that it will serve the market on a seasonal basis.

Under the circumstances presented, United is now the only applicant requesting exemption authority in both the Denver‑Cancun and Denver‑Puerto Vallarta markets. In light of the fact that there are no longer competing requests for these markets, no party has opposed United's request for an immediate award of Denver‑Cancun and Denver‑Puerto Vallarta exemption authority, and there is one designation opportunity available for both the Denver‑Cancun and Denver‑Puerto Vallarta services, we have decided to grant United's August 18 motion and (1) grant Allegiant's request to withdraw its application for Denver‑Cancun authority; (2) dismiss Champion Air's applications for authority to serve the Denver‑Cancun and Denver‑Puerto Vallarta markets; and (3) award United the Denver‑Cancun and Denver‑Puerto Vallarta exemption authority it requests.

By: Paul Gretch



August 30, 2004

Rebuttal Exhibits of Frontier Airlines

Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7502, epfaberman@uhlaw.com


August 30, 2004

Rebuttal Testimony and Exhibits of Spirit Airlines

Spirit proposes to serve this market far more intensively, with service being offered between 5 and 7 times per week. Spirit's service dips to only 4 weekly frequencies (which is the highest level of service USA 3000 ever would offer) in the few weeks of the early fall, when leisure traffic drops off somewhat (NK‑200). However, during those periods, Spirit will offer its Detroit‑area passengers one‑stop connecting service via Ft. Lauderdale.

Another advantage that Spirit's competitors cannot match is the fact that only Spirit's proposal offers behind and beyond‑gateway connections. While Spirit is known primarily as a point‑to‑point carrier, Spirit is transporting an ever‑growing volume of connecting traffic on its flights. This is the case in part because of the attractiveness of Spirit's low fares, and in part because Spirit's schedules have been designed to accommodate connecting traffic flows.

Counsel: Garfinkle Wang, Anita Mosner, 703-522-0900


August 30, 2004

Rebuttal Exhibits of USA 3000

Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com



Posted and Served September 3, 2004

Notice Dismissing the Application of Champion Air and Denying the Request of Spirit | Word

By this Notice we dismiss the application of Champion Air in this Proceeding and deny the request of Spirit to change the procedural schedule in the Proceeding.

Therefore, acting under authority assigned in 14 CFR 385.13(p), we (1) dismiss the applications of Champion Air for Detroit-Cancun and St. Louis-Cancun exemption authority in the 2004 U.S.-Mexico Combination Service Proceeding; and (2) terminate the 2004 U.S.-Mexico Combination Service Proceeding to the extent that this Proceeding would involve consideration of the Denver-Cancun and Denver-Puerto Vallarta markets. Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulations, 14 CFR 385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effective when taken September 3, 2004, and the filing of a petition for review will not alter such effectiveness.

By: Paul Gretch



September 8, 2004

Brief of Frontier Airlines | Word

Frontier’s growth in Mexico has benefited multiple communities. Frontier operates year round service in all of its Mexico markets; it does not suspend service in any time periods. More importantly to the communities it serves, Frontier has expanded service in its current Mexico markets which has brought similar responses from other scheduled carriers in those same markets.

If awarded the STL-CUN authority, Frontier will help expand vacation options for STL area residents. USA 3000, a charter operator that operates scheduled service in some routes, particularly if it can block additional competition on those routes, will not bring those same benefits to the STL community. Moreover, while Frontier will operate at least three times per week in the STL-CUN market during peak season, USA 3000’s history demonstrates that despite its claims, it will not operate the service throughout the year and will likely not operate more than three days per week during the peak seasons. Even if not awarded the service, 3000 will be able to operate its charter flights at STL. Some local residents will benefit from 3000’s service. More will benefit when Frontier is awarded the authority.

Counsel: Ungaretti and Harris, Edward Faberman, 202-639-7502, epfaberman@uhlaw.com


September 8, 2004

Brief of Spirit Airlines

Spirit and USA 3000 each are seeking the single available designation to provide nonstop scheduled air service between Detroit and Cancun. As Spirit will demonstrate below, an award to Spirit would offer far, far greater public benefits than would an award to USA 3000. In fact, an award to Spirit is supported by every relevant public interest criterion.

  • Spirit would offer more than twice the capacity in the market than would USA 3000.
  • Only Spirit would offer connecting service beyond and behind Detroit.
  • As the second largest carrier at Detroit, Spirit would compete more effectively against Northwest, the incumbent in the Detroit-Cancun market, than would USA 3000.
  • Spirit benefits consumers by offering fares in the market that are substantially lower than the competition.
  • Spirit’s low fares and frequent service will stimulate and expand the Detroit-Cancun market, just as Spirit has stimulated the other markets it serves.
  • If USA 3000 were to receive the award in this case, Spirit would not realistically be able to serve the Cancun-Detroit market. If Spirit were to receive the award, however, USA 3000 would be able to continue to operate the Detroit-Cancun charters that it currently offers.

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


September 8, 2004

Brief of USA 3000

Unlike Frontier and Spirit which concentrate their scheduled operations on a mix of business and leisure flights from their respective hubs or primary focus cities (Denver, in the case of Frontier; and New York‑LaGuardia and Ft. Lauderdale in the case of Spirit), USA 3000's scheduled services are tailored exclusively to meet the specific needs of the leisure traveler in the local, point‑to‑point market at issue. It is USA 3000's experience that the leisure traveler is typically looking for early‑morning departures out of the gateway city (as opposed to a hub connection), thereby ensuring an early arrival at the leisure destination, and a late‑departure back from the leisure destiiation, thereby ensuring an "extra day" at each end of the leisure trip without any additional night(s) in the hotel. By contrast, the primary reliance of both Spirit and Frontier on the hub concept typically results in a later departure out of the hub city getting into the leisure destination far later.

By every objective Public Interest standard, the service proposal of USA 3000 for STL‑CUN service is superior to that of Frontier. Whether viewed from the standpoint of frequency of weekly service to be operated, capacity to be offered in the market or history of successful scheduled operations to Mexico or other leisure destinations from its other U.S. gateways, USA 3000's service proposal for the STL‑CUN city‑pair will maximize the use of these scarce route rights.

Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com



August 12, 2004

Re: Municipal Airport Authority of the City of Fargo Letter in Support of United

By: Shawn Dobberstein



Order 04-12-08
OST-2004-18692 - 2004 US-Mexico Combination Service Proceeding

Issued and Served December 7, 2004

Order to Show Cause

By this order, we tentatively select: Spirit Airlines, Inc., for primary authority to serve the Detroit-Cancun market; Frontier Airlines, Inc., for primary authority to serve the St. Louis-Cancun market; and Brendan Airways, LLC, d/b/a USA 3000 Airlines for backup authority in both the Detroit-Cancun and St. Louis-Cancun markets to provide scheduled air transportation of persons, property, and mail. We will afford interested parties ten calendar days from the service date of this order to file objections, with answers to such objections due seven calendar days thereafter.

By: Karan Bhatia



December 20, 2004

Reply and Motion for Immediate Action of Frontier Airlines | Word

When Frontier originally applied for the St. Louis-Cancun authority, it hoped to originate the service in the fall of 2004, in time for the high demand winter season. Unfortunately, as a result of a prolonged selection process, Frontier was not able to initiate service in 2004. Frontier is anxious to begin service as soon as possible in the STL-CUN market. To market and initiate service for the high demand winter-spring season, obtain necessary Mexican government authority, and to work with the airport authority and local community to build the service, Frontier would like to begin service by the end of February, 2005. To accomplish this, Frontier asks that it receive authority to operate this service within the next few days. This would help build demand for the service since many passengers select Cancun service during the holiday season.

Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7501, epfaberman@uhlaw.com



Order 04-12-16
OST-2004-18692 - 2004 US-Mexico Combination Service Proceeding

Issued and Served December 23, 2004

Final Order | Word

No objections were filed to the Department’s tentative decision in Order 2004-12-8. On December 20, 2004, Frontier filed a reply and motion for immediate action stating that, since no objections were filed, there is no need to have an answer period. Frontier further states that it would like to begin service by the end of February 2005 and asks that the Department grant immediately the authority it has requested for the St. Louis-Cancun market. No other pleadings were filed. In light of the fact that no objections were filed to our show-cause order in this proceeding, we have decided to proceed directly to final order in this matter.

By: Karan Bhatia



January 13, 2005

Re: Spirit Airlines Start-Up Date for Detroit-Cancun

Spirit is submitting this letter to notify the Department of its intention to introduce its new service on April 8, a bit more than two weeks later than originally planned. As the Department knows, Spirit earlier this year announced plans to take delivery of up to 35 new Airbus aircraft. Because of the dramatic and prolonged increase in fuel prices, Spirit has opted to accelerate the retirement of its MD-80 fleet. Given the need to adjust its operation without causing undue disruption during the Easter holiday, Spirit plans to defer the anticipated startup of this service by two weeks.

Spirit intends to introduce daily service in the Detroit-Cancun market on April 8, 2005. Spirit submits that no party will be affected by the minor deferral of its proposed start-up date.

Counsel: Garfinkle Wang, Anita Mosner, 703-522-0900



February 8, 2005

Approval of Application (Spirit)

By: George Wellington



June 5, 2006

United Air Lines Application for Renewal of an Exemption

United intends to continue to operate year‑round nonstop service in the Denver‑Cancun market and seasonal nonstop service in the Denver‑Puerto Vallarta market with its own aircraft. Renewal of this exemption authority is clearly in the public interest, and United requests renewal of its exemption authority based on the original findings that the proposed services are fully consistent with the bilateral air transportation agreement between the U.S. and Mexico.

Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmerhale.com



Filed June 5, 2006 | Issued August 3, 2006

Notice of Action Taken

Scheduled foreign air transportation of persons, property, and mail between (1) Denver, Colorado, and Cancun, Mexico; and (2) Denver, Colorado, and Puerto Vallarta, Mexico.  United states that it will continue to serve the Denver-Cancun market on a year-round basis, and the Denver-Puerto Vallarta market on a seasonal basis.

By: Paul Gretch



September 29, 2006

Application of Spirit Airlines for Renewal of an Exemption

Spirit hereby applies for renewal of its exemption so that it may continue to engage in scheduled foreign air transportation of persons, property and mail between Detroit and Cancun.

Spirit has been serving the Detroit-Cancun market since early 2005. This service has been a success, and provides a low-cost option to leisure travelers both in Detroit, and in points beyond Detroit that Spirit serves.

Spirit respectfully requests that the Department grant this Renewal Application for a minimum period of two years.

Counsel: Holland & Knight, Anita Mosner, 202-419-2604



Filed September 29, 2006 | Issued November 7, 2006

Notice of Action Taken - Spirit Airlines

Renewal of scheduled foreign air transportation of persons, property and mail between Detroit, Michigan and Cancun, Mexico.

By: Paul Gretch



OST-2005-21033 - Exemption - Denver-Cozumel
OST-2002-13061 - Exemption - Denver-Cancun
OST-2002-13011 - Exemption - Denver-San Jose del Cabo/Mazatlan
OST-2004-17466 - Exemption - Kansas City-Cancun
OST-2004-17467 - Exemption - Salt Lake City-Cancun
OST-2004-18179 - Exemption - Nashville-Cancun
OST-2004-18692 - 2004 US-Mexico Combination Service Proceeding


May 31, 2007

Application of Frontier Airlines for Renewal of Exemption Authorities

Frontier hereby applies for a renewal of its existing exemption authorities from 49 U.S.C. 41101 and any other provision of the Department of Transportation's rules to continue scheduled foreign air transportation of persons, property, and mail between:

  • Denver, Colorado and Cozumel, Mexico;
  • Kansas City, Missouri and Puerto Vallarta, Mexico;
  • Denver and Cancun, Mexico;
  • Denver and San Jose del Cabo, Mexico, and Mazatlan, Mexico;
  • Kansas City and Cancun;
  • Salt Lake City and Cancun;
  • St. Louis, Missouri and Cancun; and
  • Nashville, Tennessee and Cancun.

Frontier requests that its exemption authorities to operate these services be extended two years in accordance with Departmental policy or that the carrier be issued new authorities if necessary. This would allow all authorities to expire on June 6, 2009.

Frontier is fit, willing, and able to perform the U.S.-Mexico services it proposes to renew herein using Airbus A-319-111 aircraft, with an average seat configuration of 132 seats. Frontier reserves the right to serve these routes with other aircraft from its fleet.

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


June 1, 2007

Re: Polling Results

We have polled the US carrier representatives served with the above-referenced applicatoin, and no carrier has objected to Frontier's request for exemption renewals. Frontier asks that the Department grant the exemption authority as soon as possible.

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



OST-2005-21033 - Exemption - Denver-Cozumel; Kansas City-Puerto Vallarta
OST-2002-13061 - Exemption - Denver-Cancun
OST-2002-13011 - Exemption - Denver-San Jose del Cabo/Mazatlan
OST-2004-17466 - Exemption - Kansas City-Cancun
OST-2004-17467 - Exemption - Salt Lake City-Cancun
OST-2004-18179 - Exemption - Nashville-Cancun
OST-2004-18692 - 2004 US-Mexico Combination Service Proceeding

Filed May 31, 2007 | Issued June 6, 2007

Notice of Action Taken

Renewal of exemption:

Docket OST-2005-21033:
Scheduled foreign air transportation of persons, property, and mail between (1) Denver, Colorado, and Cozumel, Mexico; and (2) Kansas City, Missouri, and Puerto Vallarta, Mexico.

Originally, Frontier also obtained authority to serve the Salt Lake City-Puerto Vallarta market in this docket (see Notice of Action Taken dated June 6, 2005). Subsequently, however, Frontier advised that this market was dormant, and the carrier does not seek renewal of that authority herein.

Exemptions:

Docket OST-2002-13061:
Scheduled foreign air transportation of persons, property, and mail between Denver, Colorado, and Cancun, Mexico.

Docket OST-2002-13011:
Scheduled foreign air transportation of persons, property, and mail between (1) Denver, Colorado, and San Jose del Cabo, Mexico; and (2) Denver, Colorado, and Mazatlan, Mexico.

Docket OST-2004-17466:
Scheduled foreign air transportation of persons, property, and mail between Kansas City, Missouri, and Cancun. Mexico.

Docket OST-2004-17467:
Scheduled foreign air transportation of persons, property, and mail between Salt Lake City, Utah, and Cancun. Mexico.

Docket OST-2004-18692:
Scheduled foreign air transportation of persons, property, and mail between St. Louis, Missouri, and Cancun, Mexico.

Docket OST-2004-18179:
Scheduled foreign air transportation of persons, property, and mail between Nashville, Tennessee, and Cancun, Mexico.

Frontier styles its requests for the Dockets below as renewal requests. We note, however, that the applicant's previous authority in these Dockets had lapsed. Our action here, thus, does not in fact constitute renewal.

By: Paul Gretch



OST-2007-28682 - Exemption - Milwaukee-Cancun
OST-2007-27033 - Exemption - Dallas/Ft. Worth-Mazatlan
OST-2004-18692 - Exemption - St. Louis-Cancun
OST-2005-22241 - Exemption - Indianapolis-Cancun
OST-2004-18179 - Exemption - Nashville-Cancun
OST-2007-28519 - Exemption - Albuquerque-Puerto Vallarta

March 31, 2008

Dormancy Notice

Frontier hereby notifies the Department that Frontier's service between these locations will end with the last day of service as follows:

Docket Number
Market
Last Day of Service in 2008
MKE-CUN
4/13/08
DFW-MZT
4/14/08
STL-CUN
4/27/08
IND-CUN
5/31/08
BNA-CUN
6/1/08
ABQ-PVR
6/14/08

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



April 21, 2008

Application of United Air Lines for Renewal of an Exemption

United seeks renewal of its exemption authorizing it to provide scheduled foreign air transportation of persons, property and mail between Denver, CO and Cancun and Puerto Vallarta, Mexico. United plans to continue to operate services in these city pairs year-round, with daily service in both markets throughout the peak winter season (December-April) and less than daily in the remainder of the year. United will operate its services from its hub at Denver International Airport. United and United Express serve over 135 points from Denver with over 400 daily departures, offering connection opportunities to Cancun and Puerto Vallarta from points throughout its system. The U.S.-Mexico bilateral agreement permits the designation of three U.S. carriers to serve the Denver-Cancun and Denver-Puerto Vallarta city pairs. Currently, one other U.S. carrier (Frontier) is operating service in these city pairs. Renewal of United's exemption will leave at least one designation unallocated should another carrier wish to enter either of these markets. Renewal of United's exemption will serve the public interest as it will enable United to continue to stimulate passenger travel and provide valuable service options to consumers in these two transborder city pairs.

United, Jeffrey Manley, 301-229-8571



OST-2005-21033 - Exemption - Denver-Cozumel; Kansas City-Puerto Vallarta
OST-2002-13061 - Exemption - Denver-Cancun
OST-2002-13011 - Exemption - Denver-San Jose del Cabo/Mazatlan
OST-2004-17466 - Exemption - Kansas City-Cancun
OST-2004-17467 - Exemption - Salt Lake City-Cancun
OST-2004-18179 - Exemption - Nashville-Cancun
OST-2004-18692 - 2004 US-Mexico Combination Service Proceeding

March 11, 2009

Application of USA 3000 Airlines for Renewal of Exemption Authorities

Frontier hereby applies for a renewal of the below listed existing exemption authorities from 49 U.S.C. § 41101 and any other provision of the Department of Transportation's rules to continue scheduled foreign air transportation of persons, property, and mail between U.S. cities and cities in Mexico:

Denver, Colorado and Cozumel, Mexico;
Kansas City, Missouri and Puerto Vallarta, Mexico;
Denver, Colorado and Cancun, Mexico;
Denver, Colorado and San Jose del Cabo, Mexico, and
Denver-Mazatlan, Mexico;
Kansas City, Missouri and Cancun, Mexico;
Salt Lake City and Cancun, Mexico; and
Denver, Colorado and Puerto Vallarta, Mexico.

Frontier requests that its exemption authorities to operate these services be extended two years in accordance with Departmental policy. This would allow all of these authorities to expire on June 6, 2011. Frontier proposes to renew herein using Airbus A-319-111 aircraft, with an average seat configuration of 136 seats, or Airbus A-318 aircraft with an average seat configuration of 120 seats, or A-320 aircraft with an average seat configuration of 162 seats. Size of aircraft may vary at different times of year.

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



Filed April 21, 2008 | Issued October 13, 2009

Notice of Action Taken - United Air Lines

Renewal of scheduled foreign air transportation of persons, property and mail between (1) Denver, Colorado and Cancun, Mexico; and (2) Denver, Colorado and Puerto Vallarta, Mexico. United states that it currently serves these markets on a year-round basis.

By: Paul Gretch



June 7, 2011

Application of Spirit Airlines for an Exemption

By Notice of Action Taken dated November 7, 2006, the Department renewed the Spirit Airlines, Inc. exemption from 49 USC § 41101, to engage in scheduled foreign air transportation of persons, property and mail between Detroit, Michigan and Cancun, Mexico. Spirit operates this service on a seasonal basis. As the service was not being operated at the time the exemption was to expire, a timely renewal application was not submitted. Accordingly, Spirit hereby applies for reinstatement/renewal of its Detroit-Cancun exemption authority for at least a two-year period.

Counsel: Kirstein & Young, Joanne Young, 202-331-3348



Polling Results for Spirit Airlines

Spirit Airlines has completed its poll of the carrier parties served with its application of June 7, 2011 for a renewal/reinstatement of an exemption pursuant to 49 USC § 40109 for service between Detroit, Michigan and Cancun, Mexico.

Spirit received non-objections from each of the carrier parties served. We request expedited approval of our application.

Counsel: Kirstein & Young, Joanne Young, 202-331-3348



Filed June 7, 2011 | Issued June 15, 2011

Notice of Action Taken

Scheduled foreign air transportation of persons, property, and mail between Detroit, Michigan, and Cancun, Mexico. Spirit states that it serves this market on a seasonal basis.

Spirit’s previous exemption authority lapsed when the applicant failed to seek timely renewal. Our approval of its present request does not serve to insulate the applicant from any enforcement action which may be taken by the Assistant General Counsel for Aviation Enforcement and Proceedings.

By: Paul Gretch


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