Frontier Airlines

Application for an Exemption | Word

Scheduled foreign air transportation of persons, property, and mail between the terminal point Denver, Colorado, and the terminal point Puerto Vattarta, Mexico.

By: Paul Gretch

Filed June 5, 2003 | Issued July 22, 2003

OST-02-13011 - Denver-San Jose del Cabo/Mazatlan
OST-02-13061 - Denver-Cancun

Approval of Application

Denver, Colorado and Cancun, Mexico, and to serve Denver and San Jose del Cabo and Mazatlan, Mexico. Consistent with the exemption authority, Frontier began Denver-Mazatlan-Denver service on December 21, 2003. As a result of a change in market demand, Frontier will suspend the Den ver-Mazatlan-Denver service on June 30, 2003. Frontier requests that the Department approve the conversion of this service from year round service to seasonal service. As a result of market changes, when Frontier initiated Denver service under the exemption authority, the service initiated was Denver-Mazatlan-Denver. Service was not initiated to San Jose Cabo. Unfortunately, Frontier inadvertently did not notify the Department of this action. Frontier would like to initiate the Denver-San Jose Cabo service on November 1, 2003.

By: Linda Lundell

OST-03-15840 - Exemption - Denver-Ixtapa/Zihuatanejo, Mexico)

July 31, 2003

hereby applies for a two-year exemption from 49 U.S.C. 41101 and any other provision of the Department's rules to the extent necessary to engage in scheduled foreign air transportation of persons, property, and mail between Denver, Colorado, and Ixtapa/Zihuatanejo, Mexico with services beginning on November 22, 2003.

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

August 7, 2003

OST-03-15840 - Exemption - Denver-Ixtapa/Zihuatanejo, Mexico

Re: Polling Letter

Letter of Frontier Airlines, Inc., regarding the poll conducted on the U.S. passenger carrier representatives that were served its application, and advising that there were no objections.

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

Filed July 31, 2003 | Issued August 20, 2003

OST-03-15840 - Denver-Ixtapa/Zihuatanejo, Mexico

Application for an Exemption | Word

By: Paul Gretch

OST-00-7188 - LaGuardia Slots

October 24, 2003

Frontier Airlines, Inc. hereby requests the Department of Transportation to issue an order granting Frontier a total of two (2) additional slots with which to add to its existing service at New York’s LaGuardia Airport in accordance with 49 U.S.C. Section 41716(b) Frontier serves LGA from Denver International Airport . Section 41716(b) directs the Secretary to grant by Order exemptions from Subparts K and S (the “High Density Airport Rule”) to any new entrant or limited incumbent if the number of slot exemption slots held by the applicant carriers, the total number of slots held does not exceed twenty (20) in number. As of October 24, 2003, Frontier was operating four (4) slots at LGA.

Frontier will utilize the exemption slots to add a third DEN-LGA roundtrip. Frontier has operated at LGA since December 1997. Frontier had operated three (3) daily roundtrips in the LGA-DEN market until June 1999 when it reduced its service to two (2) daily roundtrips. By this request, Frontier would resume the three (3) roundtrip schedule that it previously operated. It would allow Frontier to operate a schedule that would provide passengers with several travel options. Such options are essential to allow a carrier to solidify its presence in a market. Frontier requests approval for the slot request for the third roundtrip to operate effective March 1, 2004. If this request is approved, as of March 1, 2004, Frontier will operate at LGA with six (6) slots, one (1) of which will be in an off peak hour and five (5) of which will be within the slot hours.

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

OST-00-7188 - Exemption - Denver-LGA Slots

November 7, 2003

Answer of American Airlines

Frontier's application fails to acknowledge that the FAA, in response to a dependability crisis at LGA caused by excessive AIR-21 operations, adopted a regulatory cap on additional service at LGA. See 65 Fed. Reg. 75765, December 4, 2000. That cap remains in place, and was most recently extended to October 31, 2004 by FAA action in 67 Fed. Reg. 65826, October 28, 2003. Further background on the FAA's LGA cap is provided in the attached Denial of Exemption (AirTran Airways) issued by the FAA Chief Counsel on October 3, 2003 (FAA-2003-15925).

Counsel: AA, Carl Nelson, 202-496-5647, carl.nelson@aa.com

OST-00-7188 - Exemption - Denver-LGA Slots

November 10, 2003

Answer of US Airways

Respectfully submits this Answer opposing the Application of Frontier Airlines, Inc. for two newly-created slot exemptions from the high density traffic rules in effect at LaGuardia Airport. As explained by the FAA in its recent denial of a similar petition by AirTran Airways, severe operational limitations at LGA have necessitated the imposition of caps on the number of AIR-21 slot exemptions that can be created at that airport. Those caps remain in effect today. Frontier's application not only ignores this cap, but impermissibly attempts to circumvent FAA procedures to ensure the appropriate allocation of slot exemptions that fall within the cap. Accordingly, Frontier's application should be denied.

By: US Airways, Howard Kass, 703-872-5230

Order 03-11-5
OST-03-14194 - 2003 Consent Orders

Issued and Served November 13, 2003

Consent Order | Word

While conducting a Part 382 compliance review in October 2002, the Department of Transportation's Office of Aviation Enforcement and Proceedings discovered several statements on Frontier's website and in its contract of carriage that appeared to depart from 14 CFR Part 382. The statements at issue addressed Frontier's: (1) stowage of one passenger's folding wheelchair on its aircraft, 14 CFR § 382.21(a)(2); (2) carriage and stowage of wheelchair batteries, 14 CFR § 382.41(g); (3) liability for loss, damage or destruction of wheelchairs and other assistive devices, 14 CFR § 382.43(b); and (4) carriage of assistive devices, 14 CFR § 382.41(d).

This order directs Frontier to cease and desist from similar violations in the future and assesses a civil penalty of $100,000 in compromise of the penalties otherwise assessable under 49 U.S.C. § 46301. Frontier will be credited $90,000 for its past and future work to improve air service to passengers with disabilities above and beyond the requirements of Part 382.

By: Rosalind Knapp

OST-00-7188 - Exemption - Denver-LGA Slots

October 27, 2003

Correspondence of the City and County of Denver

Frontier's proposal clearly meets the objectives of the Aviation Investment and Reform Act for the 21' Century (AIR‑21). An award of the two slots to Frontier would also meet the important statutory objective of supporting new entrant carriers. Frontier is one of the few carriers that has been able to establish a successilil niche in the wake of deregulation. We must do all we can to support carriers like Frontier as they compete against larger, incumbent carriers. In oider to compete successfully, carriers like Frontier must be able to offer flight choices, which are important to all travelers. Frontier has brought important set‑vice options to Denver area and Colorado residents. With its fare structure, Frontier has allowed leisure and business travelers to take important trips.

By: John Hickenlooper

October 27, 2003

Correspondence of Denver International Airport

Frontier's proposal clearly meets the objectives o the Aviation Investment and Reform Act for the 21' Century (AIR‑21). An award of the two slots to Frontier would also meet Denver International Airport's important statutory objective of supporting new entrant carriers. Frontier is one of the few carriers that have been able to establish a successful niche in the wake of deregulation. We must do all we can to support carriers like Frontier as they compete against larger, incumbent carriers. In order to compete successfully, carriers like Frontier must be able to offer flight choices, which are important to all travelers. Frontier has brought important service and fare options to Denver area and Colorado residents.

By: Vicki Braunagel

OST-00-7188 - Exemption - Denver-LGA Slots

November 13, 2003

Response of Frontier to American and US Airways | Word

It is interesting that the same US Airways that claims the government should protect LGA operations, holds approximately 400 LGA slots (American has only approximately 250 LGA slots), recently traded seven LGA slots to American and operates a large number of LGA slots including slots obtained under AIR-21, with regional jet aircraft. Frontier is not asking the Department to allow LGA operations to reach an "unsustainable" level or to add slots. The congestion problem created in 2000 was driven by carriers such as US Airways and American that flooded the airport with hundreds of additional regional jet flights many of which are no longer operated. Since that time, Frontier has reduced its six LGA slots to four.' Frontier now seeks to increase its LGA slot totals back to six (five within 7:00 a.m. and 9:59 p.m.).

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

OST-00-7176 - Denver-New York LaGuardia

Application for an Exemption | Word

Hereby requests the Department of Transportation (“Department”) to issue an order granting Frontier a total of two (2) additional slots with which to add to its existing service at New York’s LaGuardia Airport (“LGA”) in accordance with 49 U.S.C. Section 41716(b) Frontier serves LGA from Denver International Airport (“DEN”). Section 41716(b) directs the Secretary to grant by Order exemptions from Subparts K and S (the “High Density Airport Rule”) to any new entrant or limited incumbent if the number of slot exemptions held by the applicant carriers does not exceed twenty (20) in number. As of October 24, 2003, Frontier was operating four (4) slots at LGA.

This application was also filed in Docket OST-00-7188 along with a “Response of Frontier Airlines, Inc. to American Airlines, Inc. and US Airways, Inc.” on November 13, 2003.

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

OST-00-7176 - Denver-New York LaGuardia

November 4, 2003

Correspondence of the Denver Metro Chamber of Commerce

By: Tom Clark

OST-00-7188 - Exemption - Denver-LGA Slots

November 4, 2003

Correspondence of The Denver Metro Chamber of Commerce

For the Denver area and the entire state of Colorado to continue to experience economic growth, it is essential that Frontier be allowed to expand its service to LaGuardia. Therefore, we ask that you approve Frontier's request for tWu additional LGA slots so that it cah add a third roundtrip in this very important market.

By: Tom Clark

Order 04-02-22
OST-04-17197 - Information Directive

Issued and Served February 24, 2004

Order | Word

By this order Frontier Airlines (Frontier) is directed to answer certain questions, provide information and/or produce documents that are necessary to enable the Department to determine whether Frontier on a particular occasion violated federal statutes prohibiting air carriers from discriminating against passengers based on their race, color, national origin, religion, sex, or ancestry. The Department may require air carriers and foreign air carriers to provide information, special reports, records, papers, documents, and specific answers to questions upon which information is deemed necessary.

It is under 14 CFR 302.403 that the Enforcement Office received the complaint at issue. The complainant, Maria Aguirre, alleges that Frontier Airlines, through its employees, discriminated against her because she is Hispanic. Upon its receipt, the complaint was referred informally to Frontier with a request that it send a substantive written response to the complainant (with a copy to the Enforcement Office) specifically addressing the facts alleged in the complaint and providing any relevant explanatory information. The referral also requested that Frontier provide the Enforcement Office information regarding prior discrimination complaints against any specific individual or individuals employed by Frontier accused by the complainant of discriminatory conduct.

By: Rosalind Knapp

OST-96-1960 - Family Assistance Plans

March 10, 2004

Re: Amended Family Assistance Plan

By: Tom Nunn

OST-04-17466 - Exemption - Kansas City-Cancun

April 1, 2004

Frontier Airlines, Inc., pursuant to 49 U.S.C. 40109, hereby applies for a two-year exemption from 49 U.S.C. 41101 and any other provision of the Department's rules to the extent necessary to engage in scheduled foreign air transportation of persons, property, and mail between Kansas City, Missouri and Cancun, Mexico with services beginning on July 3, 2004.

Frontier has been serving the Mexico market since August 2002. Frontier's existing Denver service to Cancun, Mexico, Mazatlan, Mexico, Puerto Vallarta, Mexico, Ixtapa/Zihuatanejo, Mexico and cabo San Lucas, Mexico has been highly successful. (See Frontier Airlines, Inc. Notice of Action Taken dated august 23, 2002, Docket 2002-13061, 2002-13011, July 23, 2003, Docket 2003-15371 and August 20, 2003 Docket 2003-15840) Frontier's expanded Mexico service has contributed to its system wide growth and its presence in Mexico.

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

OST-04-17467 - Exemption - Salt Lake City-Cancun

April 1, 2003

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

OST-04-17470 - Exemption - St. Louis-Cancun

April 1, 2003

Answer of The City of Kansas City

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

OST-04-17408 - Champion Air's Application
OST-00-7704 - Sun Country's Authority (Dormant)

OST-04-17466 - Exemption - Kansas City-Cancun

April 5, 2004

The introduction of such service may also serve as a catalyst for the development of further routes between MCI and points in Mexico. Cancun has long been popular with Kansas City travelers. Prior to Frontier's announcement of scheduled service, Kansas City sustained approximately three charter flights per week during the peak winter travel season. Frontier's service will provide an attractive new option for passengers who prefer scheduled service to charter flights. Frontier proposes once weekly service, commencing on July 3, 2004. This will enhance the availability of service in the summer months, when many travelers still desire service to Cancun, but must otherwise travel on connecting flights.

Counsel: Shaw Pittman, Robert Cohn, 202-663-8060

OST-04-17470 - St. Louis-Cancun

April 8, 2004

Answer of USA 3000

Brendan Airways, LLC, d/b/a USA 3000 Airlines hereby answers in opposition to the April 1, 2004 application submitted by Frontier Airlines Inc. requesting an exemption to operate scheduled services on a St. Louis, MO-Cancun, Mexico route.

As Frontier states in its application, under the terms of the U.S.-Mexico Bilateral Air Service Agreement the United States is entitled to designate up to two (2) airlines to provide U.S.-Mexico scheduled airline services in any city-pair. USA 3000 understands that, at present only American Airlines is designated and currently operates scheduled services in the St. Louis-Cancun city-pair, leaving one additional designation available for designation.

In view of the fact that Champion, Frontier and USA 3000 all have pending applications for St. Louis-Cancun exemption authority and only one designation is available, USA 3000 submits that these applications are mutually exclusive. Under the principles established by the Supreme Court in Ashbacker Radio Comm v. FCC, the Department is required to conduct a carrier selection proceeding to choose the applicant whose proposal will generate the maximum public benefit.

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

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

April 8, 2004

Reply of Frontier Airlines

On April 1, 2004 Frontier Airlines, Inc. applied for authority to provide scheduled service between St. Louis, Missouri and Cancun, Mexico. On April 2, USA 3000 Airlines filed an application to operate service on this route and on March 24 Champion Air filed an application to operate service on this route. If true open skies existed between the U.S. and Mexico, Frontier would not object to the petitions of either Champion or USA 3000 to serve the STL-CUN market. However, given the fact that only one additional carrier can be designated and licensed to provide this service, the choice should be Frontier.

In addition to introducing year-round scheduled service between STL and CUN, Frontier is working with the airport authority and the STL community to establish alternative travel options to various domestic and international locations from STL. Frontier would make far greater use of its STL-CUN route rights than would either USA 3000 or Champion.

As the Department of Transportation stated when it recently allocated (Order 2004-4-1) Ronald Reagan Washington National Airport slots to Frontier. Frontier is a new entrant/limited incumbent with a record as a low-fare competitor that will help discipline the multiple markets that it serves via its Denver hub. If Frontier can add international service to its domestic presence in STL, that same discipline will be brought to all markets in STL. Moreover, by adding an international destination, Frontier’s base in STL will also expand.

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

OST-04-17466 - Kansas City-Cancun

April 16, 2004

Re: Polling Letter

On behalf of Frontier Airlines, Inc., I have polled the representatives of all carriers on the service list attached to the Application of Frontier Airlines, Inc. for an Exemption to serve Kansas City, Missouri-Cancun, Mexico filed on April 1, 2004, in the above referenced docket. All carriers' representatives have advised me that they have no objection to the granting of the request contained in the Application.

Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7505

OST-04-17467 - Salt Lake City-Cancun

April 16, 2004

Re: Polling Letter

On behalf of Frontier Airlines, Inc., I have polled the representatives of all carriers on the service list attached to the Application of Frontier Airlines, Inc. for an Exemption to serve Salt Lake City, Utah-Cancun, Mexico filed on April 1, 2004, in the above referenced docket. All carriers' representatives have advised me that they have no objection to the granting of the request contained in the Application.

Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7505

OST-04-17408 - Champion Air - St. Louis-Cancun
OST-04-17470 - Frontier Airlines - St. Louis-Cancun
OST-04-17479 - USA 3000 Airlines - St. Louis-Cancun

April 16, 2004

Consolidated Answer and Motion of Champion Air for Consolidation

Grand Holdings, Inc. d/b/a Champion Air hereby submits the following answer in support of its application and in opposition to the applications of Frontier Airlines, Inc. and USA 3000 Airlines for authority to operate nonstop service between St. Louis, Missouri and Cancun, Mexico. Champion Air also requests that the Department set down a simplified and expedited carrier selection proceeding consolidating the above-captioned applications and to establish uniform procedural dates for consideration of these applications.

Champion Air objects to the applications of Frontier and USA 3000 for exemption authority in the St. Louis-Cancun city-pair market to the extent that these applications preclude Champion Air's applications for authority in this market. If true open skies existed between the U.S. and Mexico, Champion Air would not object to the petitions of either Frontier or USA 3000 to serve the St. Louis-Cancun market. However, given the fact that only one additional carrier can be designated and licensed to provide this service, the choice should be Champion Air. Champion Air understands that American Airlines holds one of the two designations in the St. Louis-Cancun market, leaving one designation available for allocation.

By: Champion Air, Edward Davidson, 952-814-8785, edward.davidson@championair.com

OST-04-17470 - Exemption - St. Louis-Cancun

April 14, 2004

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

By: Leonard Griggs

OST-04-17466 - Kansas City-Cancun

Filed April 1, 2004 | Issued May 11, 2004

Scheduled foreign air transportation of persons, property, and mail between Kansas City, Missouri, and Cancun, Mexico.

By: Paul Gretch

OST-04-17467 - Salt Lake City-Cancun

Filed April 1, 2004 | Issued May 11, 2004

Application for Renewal of Exemption Authority

Scheduled foreign air transportation of persons, property, and mail between Salt Lake City, Utah, and Cancun, Mexico.

By: Paul Gretch

OST-02-13061 - Denver-Cancun
OST-02-13011 - Denver-San Jose del Cabo/Mazatlan

June 11, 2004

Pursuant to 49 U.S.C. § 40109, Frontier Airlines, Inc. hereby applies for a renewal of its existing exemption authority 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 ("DEN") on the one hand and Cancun, Mexico ("CUN"), San Jose del Cabo, Mexico ("SJD"), and Mazatlan, Mexico ("MZT") on the other hand.

Frontier requests that its exemption authority to operate these services, currently effective through August 23, 2004 (see Department’s Notice of Action Taken issued August 23, 2002, in Docket Nos. OST 2002-13061 and OST-2002-13011) be extended in accordance with Departmental policy until August 23, 2006.

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

OST-04-17470 - Exemption - St. Louis-Cancun

June 14, 2004

Amended Application for an Exemption

On March 24th, Champion Air filed an application to operate scheduled service on this route and on April 2, USA 3000 Airlines filed an application to operate scheduled service on this route. Frontier originally stated that it would initiate service on July 3, 2004.

Since those filings, the Department has not made any decision on the application. As a result, it is no longer possible to initiate STL-CUN operations this summer. In the April 1st filing, Frontier stated that it would operate one roundtrip STL-CUN flight per week (Saturday). As a result of the changes in circumstances since Frontier filed its STL-CUN application, Frontier now proposes to operate STL-CUN three times per week (Tuesday, Friday, and Sunday). Frontier proposes to initiate its three weekly STL-CUN operations on November 7, 2004.

OST-04-17408 - Champion Air - St. Louis-Cancun
OST-04-17479 - USA 3000 Airlines - St. Louis-Cancun

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

OST-04-18181 - Exemption - Austin-Cancun

June 14, 2004

Hereby applies for a two-year exemption from 49 U.S.C. § 41101 and any other provision of the Department's rules to the extent necessary to engage in scheduled foreign air transportation of persons, property, and mail between Austin, Texas and Cancun, Mexico with services beginning on November 7, 2004. No other U.S. carrier is currently providing scheduled service in the AUS-CUN market and therefore thus this request is within the double-designation-per-city-pair limitation.

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

OST-04-18179 - Exemption - Nashville-Cancun

June 14, 2004

Re: The St. Louis Convention and Visitors Commission Letter in Support of the St. Louis-Cancun Route

Hereby applies for a two-year exemption from 49 U.S.C. § 41101 and any other provision of the Department's rules to the extent necessary to engage in scheduled foreign air transportation of persons, property, and mail between Nashville, Tennessee and Cancun, Mexico with services beginning on November 7, 2004. No other U.S. carrier is currently providing scheduled service in the BNA-CUN market and therefore thus this request is within the double-designation-per-city-pair limitation.

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

OST-04-17470 - St. Louis-Cancun

June 18, 2004

Answer of USA 3000

In view of the fact that Champion, Frontier and USA 3000 all have pending applications for St. Louis- Cancun exemption authority and only one designation is available, USA 3000 submits that these applications are mutually exclusive. Under the principles established by the Supreme Court in Ashbacker Radio Corp v. FCC, the Department is required to conduct a carrier selection proceeding to choose the applicant whose proposal will generate the maximum public benefit.

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

June 18, 2004

By: Carole Moody

OST-04-18179 - Exemption - Nashville-Cancun

Filed June 14, 2004 | Issued July 1, 2004

Scheduled foreign air transportation of persons, property, and mail between Nashville, Tennessee, and Cancun, Mexico.

By: Paul Gretch

OST-04-18181 - Exemption - Austin-Cacnun

Filed June 14, 2004 | Issued July 1, 2004

Re: The Regional Business Council Letter in Support of the St. Louis-Cancun Route

Scheduled foreign air transportation of persons, property, and mail between Austin, Texas, and Cancun, Mexico.

By: Paul Gretch

OST-04-17470 - St. Louis-Cancun

June 21, 2004

By: Kathleen Osborn

2004 US-Mexico Combination Service Proceeding

Order 04-07-17
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.

Summary of Applications Filed

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

Order 04-08-07
OST-04-16943 - Violations of 14 CFR 201.5 and 49 USC 41712

Issued and Served August 11, 2004

Consent Order

This consent order concerns Frontier Airlines' advertisement and sale of proposed new service to Cancun prior to obtaining the requisite economic authority from the Department. The order assesses a compromise civil penalty of $35,000 and directs the carrier to cease and desist from further violations.

On April 1, 2004, Frontier applied for authority under 49 U.S.C. § 41101 to operate nonstop service to Cancun from St. Louis, Kansas City and Salt Lake City. The carrier issued a press release describing the service at the time it made its filings with the Department and indicated that consumers interested in making reservations should contact the carrier. The service, which was to begin in July, also appeared on the carrier's website, where reservations could be booked prior to the Department's approval of the requested authority.

Applications were filed in the following dockets: OST 04-17470 for St. Louis-Cancun; OST-04-17467 for Salt Lake City-Cancun; and OST-04-17466 for Kansas City-Cancun. The carrier thereafter withdrew its application for the St. Louis authority. Its applications for Kansas City and Salt Lake City authority were granted on May 11, 2004.

OST-04-18692 - 2004 US-Mexico Combination Service Proceeding

By: Rosalind Knapp

Order 04-08-20
OST-04-16943 - Violations of 49 U.S.C. § 41712 and 14 CFR Part 212

Issued and Served August 18, 2004

Consent Order

Blue Moon engaged in significant indirect air carrier service pursuant to an "aircraft management and charter services agreement" with Frontier, requiring, among other things, that Frontier place Blue Moon's aircraft on its Part 121 Operating Certificate and operate it exclusively for charter flights "arranged and sponsored by" Blue Moon.

Pursuant to its arrangement with Frontier, Blue Moon held out air transportation in its own right and not as an agent of Frontier or any other properly certificated entity through direct solicitation. Blue Moon also held out in its own right on its Internet website, which invited potential customers to request quotes for charters aboard an A‑319 that it claimed to operate. Blue Moon's efforts resulted in the procurement of a number of contracts for air transportation, ranging from single flights to operations over an entire professional sports season, into which Blue Moon entered as a principal, despite its lack of economic authority.

Frontier Airlines, Inc., is assessed $30,000 in compromise of civil penalties that might otherwise be assessed for the violations described in ordering paragraphs 2, 3, and 4, above. Of this total penalty amount, $15,000 shall be due and payable within 30 days of the issuance of this order.

By: Rosalind Knapp

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-04-18692 - 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
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-02-13061 - Denver-Cancun
OST-02-13011 - Denver-San Jose del Cabo/Mazatlan

Filed June 11, 2004 | Issued August 23, 2004

Scheduled foreign air transportation of persons, property, and mail between the terminal point Denver, Colorado, and the terminal point Cancun, Mexico.

Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Denver, Colorado, and the terminal point San Jose del Cabo, Mexico; and (2) the terminal point Denver, Colorado, and the terminal point Mazatlan, Mexico

On 7/23/03, the Department approved the carrier’s request to convert its Denver-Mazatlan services from year-round to seasonal.

By: Paul Gretch

OST-2005-21033 - Exemption - Denver-Cozumel / Kansas City/Salt Lake City-Puerto Vallarta

April 18, 2005

Answer of Delta Air Lines

Hereby applies for a two-year exemption from 49 U.S.C. 41101 and any other provision of the Department's rules to the extent necessary to engage in scheduled foreign air transportation of persons, property, and mail between Denver, Colorado (DEN) and Cozumel, Mexico (CZM); Kansas City, Missouri (MCI) and Puerto Vallarta, Mexico (PVR); and Salt Lake City, Utah (SLC) and Puerto Vallarta, Mexico (PVR) with services beginning on or about November 18, 2005.

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

OST-2005-21033 - Exemption - Denver-Cozumel / Kansas City/Salt Lake City-Puerto Vallarta

April 22, 2005

Since there are two available designations and two interested applicants, Delta has no objection to Frontier's request, provided that Delta's Salt Lake City-Puerto Vallarta authority is granted simultaneously. By virtue of the fact that the Salt Lake City-Puerto Vallarta route is a limited-entry market for U.S. carriers, the Department must consider Delta's application and Frontier's application contemporaneously.

Counsel: Hogan & Hartson, Alexander Van der Bellen, 202-637-8382, sascha.vanderbellen@hhlaw.com

OST-2005-21033 - Exemption - US-Mexico

April 29, 2005

Answer of the City of Kansas City

Kansas City is very pleased that Frontier has decided to add a second nonstop destination in Mexico, following the successful introduction of Kansas City‑Cancun service in 2004. Puerto Vallarta is a popular destination for Kansas City travelers, and Frontier's introduction of scheduled service will help foster and promote the strong and growing communities of interest between Mexico and the Kansas City region.

Counsel: Hogan & Hartson, Alexander Van der Bellen, 202-637-8382, sascha.vanderbellen@hhlaw.com

OST-2005-21033 - Exemption - Denver-Cozumel

May 3, 2005

Answer of United Air Lines

Under the U.S-Mexico bilateral air services agreement, two U.S. carriers may be designated in each city pair. No carrier has yet been designated for Denver- Cozumel service. Therefore, there are designations available for both United and Frontier.

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

OST-2003-15371 - Exemption - Denver-Puerto Vallarta, Mexico

May 18, 2005

Application for Renewal of Exemption Authority

Hereby applies for a renewal of its existing exemption authority from 49 U.S.C. 41101 and any other provision of the Department of Transportation's rules to the extent necessary to continue to engage in scheduled foreign air transportation of persons, property, and mail between Denver, Colorado (DEN) and Puerto Vallarta, Mexico (PVR).

Counsel: Frontier and Wiley Rrein, Edward Faberman, 202-719-7402, efaberman@wrf.com

OST-2005-21033 - Exemption - Denver-Cozumel / Kansas City/Salt Lake City-Puerto Vallarta

May 18, 2005

Response of Frontier Airlines to Comments of United Air Lines and Delta Air Lines

As Frontier stated in its application, the proposed DEN‑CZM, MCI‑PVR, and SLC‑PVR service is fully consistent with the aviation agreement between the United States and Mexico. No other U.S. carrier currently provides scheduled service in the DEN‑CZM, MCI‑PVR, and SLC‑PVR markets; thus, this request is within the double‑designation‑per‑city‑pair limitation. Therefore, the Department can approve all of Frontier's requests and authorize United's request for DEN-CZM and Delta's request for SLC‑PVR.

Counsel: Frontier and Wiley Rrein, Edward Faberman, 202-719-7402, efaberman@wrf.com

OST-2005-21075 - Delta Air Lines - Salt Lake City-Puerto Vallarta
OST-2005-21162 - United Air Lines - Denver-Cozumel

OST-2005-21033 - Exemption - Denver-Cozumel / Kansas City/Salt Lake City-Puerto Vallarta

Filed April 18, 2005 | Issued June 6, 2005

Application for Renewal of Exemption Authority

Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Denver, Colorado, and the terminal point Cozumel, Mexico; (2) the terminal point Kansas City, Missouri, and the terminal point Puerto Vallarta, Mexico; and (3) the terminal point Salt Lake City, Utah, and the terminal point Puerto Vallarta, Mexico. Frontier proposes to operate these services beginning on or about November 18, 2005.

By: Paul Gretch

OST-2003-15840 - Exemption - Denver-Ixtapa/Zihuatanejo

June 28, 2005

Frontier's proposed extension of its Denver‑Ixtapa/Zihuatanejo service is fully consistent with the aviation agreement between the United States and Mexico. Frontier will operate the service during certain times of the year from a minimum of two days per week to a maximum of eight times per week. United Airlines is the only other U.S. carrier that provides scheduled service in the Denver-Ixtapa/Zihuatanejo market; thus Frontier's service is within the double-designation‑per‑city‑pair limitation.

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

OST-2005-21033 - Exemption - Salt Lake City-Puerto Vallarta

June 29, 2005

Withdrawal of Application

In its application, Frontier stated it would operate the SLC-PVR service on a three days per week basis. Within four days of Frontier's application for SLC-PVR authority, on April 22, 2005, Delta Airlines applied to serve the same market on a year round basis seven days per week basis.

On June 23, 2005, Aerovia De Mexico, S.A. De CV. and Delta Air Lines Inc. submitted a joint application for exemptions and code‑share statement of authorization. They asked for exemption authority for one year for Aeromexico to the extent necessary to permit Aeromexico to engage in scheduled foreign air transportation of persons, property and mail between Puerto Vallarta, Mexico and Salt Lake City, Utah via its code share agreement with Delta.

When Frontier applied for this authority, it knew that this market was one that could be developed over a period of time although it would not necessarily be as strong as the other Mexico markets served by Frontier from Salt Lake City. While Frontier believes that it can fully compete in any market, the combination of steps taken by Delta in the SLC‑PVR market and its position at Salt Lake City International Airport, including announcing that it would operate daily year round service, connections to other markets it serves from SLC, its code share relationships, and its other travel relationships will make it more difficult for Frontier to be competitive and, profitable in this market. At a time that industry costs, including fuel continue to rise, unlike a number of legacy carriers, Frontier will not enter a market where it cannot be profitable after a short period of time in that market. Apparently, Delta is not concerned about the profitability of its markets. Nevertheless, Frontier will continue to monitor this market and may again ask to be allowed to compete in the SLC‑PVR market.

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

OST-2005-21838 - Exemption - Denver-Acapulco

July 11, 2005

Seeks an exemption authorizing it to engage in scheduled foreign air transportation of persons, property and mail between DEN and ACA. Frontier plans initially to operate this service on a twice weekly (Thursday/Sunday) basis during peak season with operation of the service commencing December 18, 2005 and continuing through May 2006. Frontier intends to resume this pattern of seasonal service in subsequent years.

Although no other carrier currently operates DEN-ACA service, as soon as carriers such as Frontier and other small carriers propose service to markets in Mexico, legacy carriers, regardless of their financial situation, immediately respond by proposing identical service. To many of these carriers, the need to reduce costs to return to profitability takes a back seat to challenging a competitor.

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

OST-2003-15371 - Exemption - Denver-Puerto Vallarta

Filed May 18, 2005 | Issued July 22, 2005

Renewal of exemption authority for two years under 49 U.S.C. 40109 to provide scheduled foreign air transportation of persons, property, and mail between the terminal point Denver, Colorado, and the terminal point Puerto Vallarta, Mexico.

By: Paul Gretch

OST-2005-21838 - Exemption - Denver-Acapulco

July 27, 2005

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

OST-2005-22241 - Exemption - Indianapolis-Cancun

August 25, 2005

Pursuant to 49 U.S.C. 40109 and Subpart C of the Department of Transportation's Procedures and Regulations, Frontier Airlines, Inc. hereby applies for a two-year exemption from 49 U.S.C. 41101 and any other provision of the Department's rules to the extent necessary to engage in scheduled foreign air transportation of persons, property, and mail between Indianapolis, Indiana (IND) and Cancun, Mexico (CUN) with services beginning in the first quarter of 2006.

Frontier is fit, willing, and able to perform the U.S.-Mexico services proposed herein using Airbus A-319-111 aircraft, with an average seat configuration of 132 seats. Frontier reserves the right to serve this route with other aircraft from its fleet. In addition to promoting this new service to its customers and in all markets, Frontier will also work with tour operators to sell these flights.

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

OST-2005-21838 - Exemption - Denver-Acapulco

Filed July 11, 2005 | Issued August 31, 2005

Amended Application for an Exemption

Scheduled foreign air transportation of persons, property, and mail between Denver, Colorado, and Acapulco, Mexico. Frontier proposes seasonal service in the market, beginning December 18, 2005.

By: Paul Gretch

OST-2005-22241 - Exemption - Indianapolis-Cancun

On August 25, 2005, Pursuant to 49 U.S.C. 40109 and Subpart C of the Department of Transportation's Procedures and Regulations, Frontier Airlines, Inc. applied for a two-year exemption from 49 U.S.C. 41101 and any other provision of the Department's rules to the extent necessary to engage in scheduled foreign air transportation of persons, property, and mail between Indianapolis, Indiana (IND) and Cancun, Mexico (CUN) with services beginning in the first quarter of 2006.

Frontier is fit, willing, and able to perform the U.S.-Mexico services proposed herein using Airbus A-319-1 11 aircraft, with an average seat configuration of 132 seats. Frontier reserves the right to serve this route with other aircraft from its fleet. In addition to promoting this new service to its customers and in all markets, Frontier will also work with tour operators to sell these flights.

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

OST-2003-15840 - Exemption - Denver-Ixtapa/Zihuatanejo, Mexico

Filed June 28, 2005 | Issued September 6, 2005

By: Paul Gretch

OST-2005-22580 - Exemption - Chicago (MDW)-Cancun

September 27, 2005

Hereby applies for a two-year exemption from 49 U.S.C. 41101 and any other provision of the Department's rules to the extent necessary to engage in scheduled foreign air transportation of persons, property, and mail between Chicago, Illinois, Midway Airport (MDW), and Cancun, Mexico (CUN) with services beginning in the first quarter of 2006.

American Airlines (OST-2000-8101) has the authority to serve the ORD-CUN market. ATA Airlines (OST-2001-9074) also has authority to serve MDW-CUN. Therefore, under the recently amended agreement, one opportunity to serve Chicago-Cancun is now available.

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

OST-2005-22589 - Spirit's Application for Dallas-Ft. Worth/Chicago-Cancun

OST-2005-22590 - Exemption - Los Angeles-San Jose del Cabo

September 27, 2005

Answer of Delta Air Lines

Hereby applies for a two-year exemption from 49 U.S.C. 41101 and any other provision of the Department's rules to the extent necessary to engage in scheduled foreign air transportation of persons, property, and mail between Los Angeles, California (LAX) and San Jose del Cabo, Mexico (SJD) with services beginning in the second quarter of 2006.

Frontier is fit, willing, and able to perform the U.S-Mexico services proposed herein using Airbus A-319-111 aircraft, with an average seat configuration of 132 seats. Frontier reserves the right to serve this route with other aircraft from its fleet. In addition to promoting this new service to its customers and in all markets, Frontier will also work with tour operators to sell these flights.

American Airlines (OST-2000-8361) and Alaska Airlines (OST-1999-6276) have the authority to serve the LAX-SJD market. Therefore, one opportunity to serve LAX-SJD is now available.

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

OST-2005-22590 - Exemption - Los Angeles-San Jose del Cabo

September 29, 2005

Delta opposes the application of Frontier to the extent that it is mutually exclusive to Delta's application. Because only one additional U.S. carrier designation will become available for the Los Angeles-San Jose del Cabo route under the U.S. -Mexico agreement reached last week and there are two applicants for authority to provide service on this route, the opportunity is oversubscribed 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). Delta will demonstrate the superiority of its proposal in such a proceeding.

Counsel: Hogan & Hartson, Robert Cohn, 202-467-4999, recohn@hhlaw.com

OST-2005-22241 - Exemption - Indianapolis-Cancun

October 13, 2005

Second Amended Application for an Exemption

In the application, Frontier noted that its proposed IND‑CUN service is fully consistent with the aviation agreement between the United States and Mexico. Northwest Airlines has the authority to serve the IND‑CUN market. Frontier also noted in its application that on December 1, 2004, ATA Airlines, Inc. filed for a renewal of its authority to serve IND‑CUN. One opportunity to serve IND‑CUN is available. On August 29, 2005, counsel for ATA Airlines advised the Department that ATA is no longer serving the IND-CUN route and that it would have no objection to the Department awarding that route to another carrier

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

OST-2005-22839 - Emergency Exemption - Denver-Merida Rejon Airport

October 25, 2005

Application for a Temporary Emergency Exemption

Frontier Airlines, Inc., pursuant to 14 CFR § 302.311, hereby applies for an emergency exemption through October 31, 2005, from 49 U.S.C. § 41101 and any other provision of the Department's rules to the extent necessary to engage in scheduled foreign air transportation of persons, property, and mail between Denver, Colorado (DEN) and Merida Rejon Airport (MID) with services beginning immediately.

Frontier seeks an exemption authorizing it to engage in temporary scheduled foreign air transportation of persons, property and mail between DEN and MID. This service is necessary to allow Frontier to pick up passengers stranded in Mexico, including many that flew to Cancun before it was damaged by Hurricane Wilma. Since CUN is not open, passengers must utilize MID or other airports in Mexico. Local authorities have advised that it could be several days before CUN is reopened and able to accommodate Frontier's flights. Frontier plans to operate this MID service on a two times per day basis through October 31, 2005, by which time it is expected that CUN will be reopened. If CUN is opened before October 31, 2005, Frontier may discontinue the MID flights.

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

OST-2005-22838 - Emergency Exemption - Denver-Merida

Filed and Issued October 25, 2005

Scheduled foreign air transportation of persons, property, and mail between the terminal point Denver, Colorado, and the terminal point Merida, Mexico. Frontier states that it will use this temporary authority to evacuate persons stranded in Mexico due to Hurricane Wilma by operating flights two times per day through October 31, 2005, and may also bring some passengers to Merida.

By: Paul Gretch

OST-2005-22241 - Exemption - Indianapolis-Cancun

Filed August 25, 2005 | Amended September 1, 2005 | Issued November 3, 2005

Order 2005-12-5
OST-2005-22228

Scheduled foreign air transportation of persons, property, and mail between the terminal point Indianapolis, Indiana, and the terminal point Cancun, Mexico.

Frontier’s first amendment was to advise the Department that a designation opportunity had become available (see Remarks), and its second amendment provided Frontier’s proposed startup date for the subject market, specifically March 5, 2006.

By: Paul Gretch

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

Order 2005-12-18

OST-2005-23494 - New York/Newark-Cancun Combination Service Proceeding
OST-2005-23496 - Chicago-Cancun Combination Service Proceeding
OST-2005-23497 - Los Angeles-Puerto Vallarta Combination Service Proceeding
OST-2005-23498 - Los Angeles-San Jose del Cabo Combination Service Proceeding

OST-2005-22551 - Delta - Exemption - New York-Cancun
OST-2005-22579 - Jet Blue - Exemption - US-Cancun
OST-2005-22636 - USA 3000 - Exemption - Newark/Chicago-Cancun

OST-2005-22636 - USA 3000 - Exemption - Newark/Chicago-Cancun
OST-2005-22580 - Frontier - Exemption - Chicago (MDW)-Cancun
OST-2005-22767 - United - Exemption - Chicago-Cancun; Los Angeles-San Jose del Cabo; Chicago-Puerto Vallarta; Los Angeles-Puerto Vallarta
OST-2005-22589 - Spirit - Exemption - Dallas-Ft. Worth/Chicago-Cancun

OST-2005-22620 - Delta - Exemption - Atlanta-Acapulco; Boston-Cancun; Los Angeles-Puerto Vallarta/San Jose del Cabo/Zihuatanejo; Washington, DC-Cancun
OST-2005-22767 - United - Exemption - Chicago-Cancun; Los Angeles-San Jose del Cabo; Chicago-Puerto Vallarta; Los Angeles-Puerto Vallarta

OST-2005-22769 - America West d/b/a US Airways - Exemption - Los Angeles-San Jose del Cabo
OST-2005-22620 - Delta - Exemption - Atlanta-Acapulco; Boston-Cancun; Los Angeles-Puerto Vallarta/San Jose del Cabo/Zihuatanejo; Washington, DC-Cancun
OST-2005-22766 - ExpressJet - Designation - Los Angeles-San Jose del Cabo
OST-2005-22590 - Frontier - Exemption - Los Angeles-San Jose del Cabo
OST-2005-22767 - United - Exemption - Chicago-Cancun; Los Angeles-San Jose del Cabo; Chicago-Puerto Vallarta; Los Angeles-Puerto Vallarta

Issued and Served December 29, 2005

Instituting Order - Bookmarked

By this order we institute proceedings to select one primary carrier and one backup carrier to provide direct carrier (own-aircraft), scheduled combination air services in the New York/Newark-Cancun, Chicago-Cancun, Los Angeles-Puerto Vallarta, and the Los Angeles-San Jose del Cabo markets, thereby implementing new rights available to US. carriers under the recently amended US.-Mexico aviation agreement.

We grant the motions to consolidate applications into the relevant proceedings as described in this instituting order, and we consolidate the applications for the four city-pair markets addressed in this instituting order into the four carrier selection cases described herein.

We grant the motion of Spirit Airlines, Inc. to withdraw its application for exemption authority to serve the Chicago-Cancun market and hereby dismiss that application.

Procedural Timetable:

Petition for Reconsideration:	1-4-06
Replies to Petitions for Reconsideration:	1-6-06
Supplements/Amendments to Applications:	1-10-06
Answers:	1-12-06
Replies:	1-17-06

By: Michael Reynolds

OST-2005-23498 - 2005 Los Angeles-San Jose del Cabo Combination Service Proceeding

January 17, 2006

Supplemental Application of Frontier Airlines for an Exemption

Frontier hereby applies for a two-year exemption from 49 U.S.C. § 41101 and any other provision of the Department's rules to the extent necessary to engage in scheduled foreign air transportation of persons, property, and mail between Los Angeles, California and San Jose del Cabo, Mexico with services beginning in the second quarter of 2006.

Frontier is fit, willing, and able to perform the U.S.-Mexico services proposed herein using Airbus A-319-111 aircraft, with an average seat configuration of 132 seats, which are currently in Frontier's fleet. Frontier reserves the right to serve this route with other aircraft from its fleet.

Flight Number	#77	#78
Equipment	Airbus A319	Airbus A319
Seats	132	132
Frequency	Daily (year round)	Daily (year round)
From	LAX	SJD
Departure Time	0710	1115
To	SJD	LAX
Arrival Time	1030	1245
Elapsed Flight Time	2:20	2:30

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

OST-2005-23496 - Chicago-Cancun Combination Service Proceeding

January 17, 2006

Supplemental Application of Frontier Airlines for an Exemption

Frontier hereby applies for a two-year exemption from 49 U.S.C. § 40109 and any other provision of the Department's rules to the extent necessary to engage in scheduled foreign air transportation of persons, property, and mail between Chicago, Illinois, Midway Airport and Cancun, Mexico with services beginning in the second quarter of 2006.

Flight Number	#88	#89
Equipment	Airbus A319	Airbus A319
Seats	132	132
Frequency	4/27/06 to 8/19/06: 3 per week (peak) (Tu, Fr, Su) 8/20/06 to 11/14/06: 1 per week (Sa) 11/15/06: Resume at least 3 days per week	4/27/06 to 8/19/06: 3 per week (peak) (Sa, We, Sa) 8/20/06 to 11/14/06: 1 per week (Sa) 11/15/06: Resume at least 3 days per week
From	MDW	CUN
Departure Time	0730	1925
To	CUN	MDW
Arrival Time	1050	2310
Elapsed Flight Time	3:20	3:45

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

OST-2006-23558 - Exemption - US-Canada

January 18, 2006

I have polled the representatives of all carriers on the service list attached to the Application of Frontier Airlines, Inc. for an Exemption filed on January 5, 2006 in the above-referenced docket. All carriers' representatives have advised me that they have no objection to the granting of the request contained in the Application.

Counsel: Wiley Rein, Meg Crawford, 202-719-4144, mcrawford@wrf.com

OST-2006-23558 - Exemption - US-Canada

Filed January 5, 2006 | Approved January 20, 2006

Scheduled foreign air transportation of persons, property, and mail between any point or points in the United States and any point or points in Canada. Frontier intends to operate this service using its own aircraft or under a code-share arrangement with Horizon Air, Inc.

The Department is acting on Frontier’s application prior to the expiration of the 15-day answer period with the consent of all parties served.

By: Paul Gretch

OST-2006-25207 - Exemption - Kansas City-San Jose del Cabo

June 22, 2006

Frontier Airlines, Inc. hereby applies for a two-year exemption from 49 U.S.C. 41101 and any other provision of the Department’s rules to the extent necessary to engage in seasonal scheduled foreign air transportation of persons, property, and mail between Kansas City, Missouri and Los Cabos Airport in San Jose del Cabo, Mexico with services beginning in the fourth quarter of 2006.

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

Frontier plans initially to operate this service on a one day per week basis during peak season (December through April). Frontier would not serve the markets from May, 2007, through November, 2007, and would resume the service in December 2007. Frontier would continue this seasonal service in future years. Frontier believes that the MCI-SJD market may expand (as Frontier has experienced in its other Mexico markets) and that if it does expand, Frontier would be able to add flights.

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

OST-2006-25208 - Exemption - San Diego-Cancun

June 22, 2006

Frontier Airlines, Inc. hereby applies for a two-year exemption from 49 U.S.C. 41101 and any other provision of the Department’s rules to the extent necessary to engage in seasonal scheduled foreign air transportation of persons, property, and mail between San Diego, California and Cancun, Mexico on a one day per week basis with services beginning in the fourth quarter of 2006.

Frontier plans initially to operate this service on a one day per week basis during peak season (December through July). Frontier would not serve the markets from August 2007, through mid-November, 2007, and would resume the service in mid-November, 2007. Frontier believes that the SAN-CUN market may expand (as Frontier has experienced in its other Cancun markets) and that if it does expand, Frontier would be able to add flights.

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

OST-2006-25209 - Exemption - Denver-Guadalajara

June 22, 2006

Re: San Diego County Regional Airport Authority Letter in Support

Frontier Airlines, Inc. hereby applies for an exemption from 49 U.S.C. 41101 and any other provision of the Department’s rules to the extent necessary to engage in scheduled foreign air transportation of persons, property, and mail between Denver, Colorado and Don Miguel Hidalgo y Costilla, Guadalajara, Mexico with services beginning in the fourth quarter of 2006. Frontier requests that it be designated for this route under the U.S.-Mexico Air Transport Agreement, as amended. Frontier requests that this exemption be granted for at least a two-year period. Frontier intends to begin service on this route in December 2006 (or earlier) and will operate it on a year round basis. Frontier requests prompt approval so that marketing and selling can begin without delay.

Frontier plans initially to operate this service on a four-day per week basis during the entire year. Frontier is prepared to initiate service on this route on approximately December 1, 2006.

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

OST-2006-25208 - Exemption - San Diego-Cancun

June 23, 2006

The San Diego County Regional Airport Authority supports the application of Frontier Airlines for an exemption to operate air service between San Diego-Cancun. The authority to operate this route will provide Cancun-bound passengers a new choice of air carrier and gateway. The service will also significantly reduce the travel time between San Diego and Cancun.

By: Thella Bowens

OST-2006-25207 - Exemption - Kansas City-San Jose del Cabo

June 27, 2006

Answer of the City of Kansas City

The City of Kansas City, Missouri, owner and operator of the Kansas City International Airport, strongly supports the application of Frontier Airlines, Inc. for an exemption authorizing it to provide scheduled nonstop service between Kansas City and San Jose del Cabo, Mexico. Frontier proposes to operate one weekly flight on this route during the peak season (December through April) commencing in December 2006, using A-319-111 aircraft.

Kansas City is very pleased that Frontier has decided to add a third nonstop destination in Mexico, following the successful introduction of Kansas City-Cancun service in 2004 and Kansas City-Puerto Vallarta service in 2005. Notices of Action Taken dated May 11, 2004 (Docket OST-2004-17466) and June 6, 2005 (Docket OST-2005-21033).

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

OST-2006-25207 - Exemption - Kansas City-San Jose del Cabo

June 28, 2006

We have polled the US Carrier representatives served with the above-referenced application, and no carrier has objected to Frontier's request for exemption authority. Frontier urges that the exemption be granted as soon as possible.

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

OST-2006-25209 - Exemption - Denver-Guadalajara

June 29, 2006

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

OST-2006-25207 - Exemption - Kansas City-San Jose del Cabo

Filed June 22, 2006 | Issued June 29, 2006

Scheduled foreign air transportation of persons, property, and mail between Kansas City, Missouri, and San Jose del Cabo, Mexico, and to combine this authority with its existing certificate and exemption authorities. Frontier proposes to operate these services on a seasonal basis beginning December 16, 2006.

The carrier’s representative orally clarified the proposed start-up date on June 28, 2006. On 7/23/03, the Department approved the carrier’s request to convert its Denver-Mazatlan services from year-round to seasonal. All other services are offered on a year-round basis

By: Paul Gretch

OST-2006-25209 - Exemption - Denver-Guadalajara

Filed June 22, 2006 | Issued June 30, 2006

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 Denver, Colorado, and Guadalajara, Mexico, and to combine this authority with its existing certificate and exemption authorities. Frontier proposes to operate these services on a year‑round basis beginning December 1, 2006.

By: Paul Gretch

OST-2006-25208 - Exemption - San Diego-Cancun

July 6, 2006

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

OST-2006-25208 - Exemption - San Diego-Cancun

Filed June 22, 2006 | Issued July 10, 2006

Application for Exemption and Certificate Authority

Scheduled foreign air transportation of persons, property, and mail between San Diego, California, and Cancun, Mexico, and to combine this authority with its existing certificate and exemption authorities. Frontier proposes to operate these services on a seasonal basis beginning December 16, 2006.

Frontier’s application indicated that the carrier planned a December 2006 startup. On June 28, 2006, the carrier’s representative orally advised us of the carrier’s specific proposed start-up date.

By Order 2006-1-1, the Department awarded the carrier a blanket route integration certificate.

By: Paul Gretch

OST-2006-25993 - Exemption and Certificate - San Jose/Sacramento-San Jose del Cabo

October 2, 2006

Frontier applies for a certificate of public convenience and necessity authorizing it to conduct scheduled foreign air transportation of persons, property, and mail between San Jose, California and San Jose del Cabo, Mexico and between Sacramento, California and San Jose del Cabo, Mexico.

Frontier proposes using Airbus A-319-111 aircraft with an average seat configuration of 132 seats. Frontier reserves the right to serve this route with other aircraft from its fleet. In addition to promoting this new service to its customers and in all markets, Frontier will also work with tour operators to sell these flights.

Frontier plans to commence service to SJC-SJD and SMF-SJD in March 2007. The SJC-SJD service will operate on a four day per week basis (Mon/Wed/Fri/Sat) in the peak season, effective March 1, 2007, while the SMF-SJD service will operate on a three day per week schedule (Tue/Thu/Sat) in the peak season, effective March 1, 2007. Both markets will operate on a one day per week basis during the remainder of the year.

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

OST-2006-25993 - Certificate and Exemption - San Jose/Sacramento-San Jose del Cabo

October 4, 2006

Answer of Sacramento County Airport System in Support of Exemption and Certificate Application

On October 2, 2006, Frontier Airlines filed an application for exemption and certificate authority to operate nonstop service from Sacramento International Airport to San Jose del Cabo, Mexico. The Sacramento County Airport System enthusiastically supports this application.

Sacramento International Airport constantly pursues opportunities to increase its international service. This additional service will benefit the traveling public by bringing lower fares to a route that was first inaugurated in June of 2004 and is still served by a single carrier. International traffic has increased dramatically in the last four years and has led the Customs and Border Protection to create a fully funded Port of Sacramento effective October 5, 2006.

Frontier Airlines would provide much needed competition in the San Jose del Cabo market and we respectfully urge the Department to move expeditiously to grant Frontier the requested authority so that marketing and promoting of the service can begin as soon as possible.

By: Director of Airports, G. Hardy Acree

October 3, 2006

Answer of The City of San Jose and The San Jose International Airport in Support of Exemption and Certificate Application - Bookmarked

Like most U.S. cities, San Jose is constantly pursuing opportunities to increase its international services. The City has worked closely with Frontier to demonstrate the strength and viability of its aviation market for international travel in general and for travel to Mexico, in particular. Frontier's proposed nonstop service between San Jose and San Jose del Cabo, Mexico, is a response to the City's committed marketing efforts. The proposed service will further enhance the breadth of the Airport's international service offerings. It will provide the only nonstop service to San Jose del Cabo, Mexico, from San Jose. Indeed, it will constitute San Jose's only nonstop service to any of the Mexico beach resort communities and its only U.S.-flag carrier service to Mexico. In addition, it will provide inter-gateway competition to the San Jose del Cabo services offered by United Air Lines and Alaska Airlines at San Francisco International Airport.

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

OST-2006-25993 - Certificate and Exemption - San Jose/Sacramento-San Jose del Cabo

October 5, 2006

We have polled the U.S. Carrier representatives served with the above-referenced application, and no carrier has objected to Frontier's request for Exemption and Certificate Authority. Therefore, Frontier urges that its request be granted as soon as possible.

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

OST-2006-25993 - Certificate and Exemption - San Jose/Sacramento-San Jose del Cabo

Filed October 2, 2006 | Issued November 7, 2006

Application for Exemption and Certificate Authority

Scheduled foreign air transportation of persons, property, and mail to serve between (1) San Jose, California, and San Jose del Cabo, Mexico; and (2) Sacramento, California, and San Jose del Cabo, Mexico, and to combine this authority with Frontier's existing certificate and exemption authority, consistent with applicable international agreements. Frontier states that it will provide service on the routes on a year-round basis, offering a combination of peak and off-peak services.

Frontier also requests certificate authority for the subject routes. We will handle that request subsequently.

The carrier's request for route integration authority is superseded by Order 2006-1-1, where the Department awarded the carrier a blanket route integration certificate.

By: Paul Gretch

OST-2007-27033 - Exemption and Certificate Authority - Dallas/Ft. Worth-Mazatlan

January 19, 2007

Frontier hereby applies for an exemption and pursuant to 49 U.S.C. 41101, and applies for a certificate of public convenience and necessity authorizing it to conduct scheduled foreign air transportation of persons, property, and mail between Dallas/Ft. Worth Int'l. Airport and Mazatlan - Gen Rafael Buelna Airport.

As a result of the new agreement reached between U.S. and Mexican authorities on September 21, 2005, three airlines from each country may fly between any U.S. city and MZT. Although there has been some interest in this market in the past, no carrier serves this market.

Frontier plans to commence service to DFW-MZT in June 2007. The service will operate on a two to three day per week basis in the peak season.

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

OST-2007-27033 - Exemption - Dallas/Ft. Worth-Mazatlan

January 23, 2007

We have polled the U.S. Carrier representatives served with the above‑referenced application, and no carrier has objected to Frontier's request for an exemption and certificate authority. Frontier urges that the exemption and certificate authority be granted as soon as possible.

Counsel: Wiley Rein, Edward Faberman, 202-719-7000

OST-2007-27033 - Exemption - Dallas/Ft. Worth-Mazatlan

Filed January 19, 2007 | Issued January 26, 2007