United Air Lines, Inc.

OST-2003-16210 - Exemption - Washington, DC-Cancun

September 17, 2003

Application for Grant of an Exemption

United seeks an exemption authorizing it to provide scheduled foreign air transportation of persons, property and mail between Washington, D.C., on the one hand, and Cancun, Mexico, on the other, on a once weekly basis (Saturday), commencing February 14, 2004. United plans to operate its proposed services with A320 equipment or similar aircraft. United anticipates no difficulty in obtaining fuel for these services.

According to the OAG there is twice weekly nonstop service operated between Baltimore and Cancun by Brendan Airways LLC d/b/a USA 3000 Airlines. See NOAT, dated October 29, 2002, in Docket OST-02-13527 (exemption authority between the terminal point Baltimore, Maryland, and the terminal point Cancun, Mexico).

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

September 24, 2003

Re: Polling Letter

Correspondence from United Air Lines, Inc., informing the Department that they have polled the representatives of all carriers on the service list to the Application of United for an Exemption filed September 17, 2003, and have been advised by all carriers' representatives that they have no objection to the granting of the request contained in the Application.

Counsel: Wilmer Cutler, Caryn Garvin

Filed September 17, 2003 | Issued October 9, 2003

Notice of Action Taken | Word

Scheduled foreign air transportation of persons, property, and mail between Washington, D.C., and Cancun, Mexico.

By: Paul Gretch

OST-2002-13527 - USA 3000 Airlines - Baltimore-Cancun
OST-2003-16210 - United Air Lines - Washington, DC-Cancun

May 4, 2005

Re: Letter Requesting Comparative Carrier Selection

On behalf of AirTran Airways, Inc., we ask the Department to institute a comparative carrier selection proceeding for Washington/Baltimore ‑ Cancun, Mexico services. Such a proceeding will assure that the limited traffic rights available under the U.S.‑Mexico bilateral are put to the highest and best use possible by selecting the carriers that will maximize public benefits under the Department's traditional carrier selection criteria.

At the time the Department "deferred" the US Airways application, AirTran was actively preparing an application for BWI-CUN. AirTran has a substantial connecting complex of low-fare scheduled services at BWI, where it now provides air services to 10% of the total BWI market and is the second largest operator after Southwest Airlines, Inc. AirTran's initiation of scheduled services between BWI and CUN is therefore a logical expansion of those operations (AirTran currently has pending in Docket OST-2005-21134 an application for exemption authority to provide scheduled combination services in the ATL/MCO/TPA-CUN markets, with a start date of December 15, 2005.) Because of the Department's decision to "defer" the US Airways application in anticipation of some liberalization of the bilateral following talks with the Government of Mexico, AirTran refrained from submitting its application for BWI-CUN authority.

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

July 8, 2005

Application for Renewal of an Exemption

United intends to continue to operate daily year-round nonstop service with its own aircraft between Washington and Cancun. United operates A320 equipment in this market and, in November, will introduce its popular low-fare Ted service using specially configured A-320 aircraft with 156 seats in all-economy configuration (including Economy Plus). United also offers code-share service sold under US Airways' US* designator code on these flights. See Notice of Action Taken dated July 6, 2004 (Docket OST-04-18060).

In November 2004, United filed an application requesting renewal of its U.S.-Mexico certificate authority and amendment of that authority to add, inter alia, its exemption authority for Washington, D.C.-Cancun granted in this docket to its certificate. Application for Renewal and Amendment of a Certificate of Public Convenience and Necessity, at p. 4, November 23, 2004 (Docket OST-99-5846).

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

July 18, 2005

Answer of Metropolitan Washington Airpots Authority to Application for Renewal of an Exemption | Word

The Authority believes that United is operating this service in complete accord with the terms and conditions of the authority granted it by the Department in this exemption and under its various certificates. The Authority is aware of no countervailing reason or contention that would indicate that United is not adequately serving this market or is not in compliance with the terms of the exemption.

Because United's service is a benefit to the traveling public and for the other reasons set forth herein, the Metropolitan Washington Airports Authority urges the Department to renew the exemption authority for United Airlines to serve Cancun, Mexico from Washington for a minimum period of two years.

By: Edward Faggen, 703.417.8615, Edward.Faggen@mwaa.com

July 25, 2005

Answer of AirTran Airways

AirTran Airways, Inc. submits this answer in opposition to the July 8, 2005 application of United Air Lines, Inc., for renewal of an exemption to provide nonstop service between Washington, D. C. and Cancun, Mexico. AirTran respectfully requests that the Department defer action on this application until the bilateral rights of U.S. air carriers to directly provide scheduled combination services have been resolved in negotiations with the Government of Mexico. In the event such negotiations do not improve the opportunities for U.S. carriers to offer such scheduled services in the Washington, D.C./Baltimore - Cancun markets, the Department should then set down a carrier selection proceeding to hear this and other applications for the reasons presented in AirTran's motion to institute such a proceeding pending in Docket OST-2002-13527. Deferral of action on United's application will not harm United or any member of the public because United can continue to serve the market under the automatic extension provisions of the Administrative Procedure Act as set forth in paragraph 2 of the application.

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

July 29, 2005

Reply of United Air Lines to AirTran Airways Opposition

In opposing United's application, the arguments FL makes are essentially identical to claims it made in Docket OST-02-13527, where it is opposing an application USA 3000 Airlines filed to amend an exemption it holds to provide scheduled service between Baltimore and Cancun to include Washington, D.C. as a U.S, gateway. United has already responded to FL's arguments in pleadings it filed in Docket OST-02-13527, wherein United showed that FL's position is fundamentally inconsistent with longstanding Department precedent and utterly without merit --if not actually frivolous - in public interest and transportation policy terms,S Simply repeating unsound arguments in another docket, as FL has done, does not improve their standing.

Counsel: Wilmer Cutler, Bruce Rabinovitz, 202-663-6960

August 1, 2005

Attachments Omitted from July 29, 2005 Reply - Bookmarked

Attached are copies of two pleadings that were referenced as attachments to the Reply of United Air Lines, Inc. filed in the above referenced docket on July 29, 2005. These attachments were inadvertently omitted from United's reply.

Counsel: Wilmer Cutler, Bruce Rabinovitz, 202-663-6960, brucerabinovitz@wilmerhale.com

Filed July 8, 2005 | Issued January 4, 2006

Notice of Action Taken | Word

Scheduled foreign air transportation of persons, property, and mail between Washington, D.C., and Cancun, Mexico.

On November 23, 2004, United filed an application, in Docket OST-1999-5846, requesting renewal of its U.S.-Mexico certificate authority and amendment of that authority to add, inter alia, its exemption authority for the Washington, D.C.-Cancun market to its certificate.  In the instant docket, United requests renewal of its Washington, D.C.-Cancun exemption authority by substantially equivalent certificate authority, or, in the alternative, renewal of its exemption authority for a minimum of two years.  We will address the carrier’s request to amend its certificate authority separately.

On July 18, 2005, the Metropolitan Washington Airports Authority filed an answer supporting United’s application.  On July 25, 2005, AirTran Airways, Inc. filed an answer requesting that the Department defer action on United’s application until the bilateral rights of U.S. air carriers to directly provide scheduled combination services have been resolved in negotiations with the Government of Mexico.  United filed a reply.  On September 21, 2005, the United States and Mexico reached an agreement expanding U.S. carrier rights to serve various Mexico points, including Cancun, and the United States and Mexico signed the agreement in Mexico City on December 12, 2005.

By: Paul Gretch

October 16, 2007

Application for Renewal of an Exemption

United hereby applies for renewal of exemption from 49 U.S.C. §41101 authorizing it to provide scheduled combination service in foreign air transportation of persons, property, and mail between Washington, D.C. and Cancun, Mexico. United’s exemption authority for this market is currently effective through January 4, 2008. United intends to continue its year-round service in the Washington and Cancun market.

Counsel: United, Julie Oettinger, 202-296-2370, julie.oettinger@united.com

Filed October 16, 2007 | Issued November 8, 2007

Notice of Action Taken | Word

Renewal of scheduled foreign air transportation of persons, property, and mail between Washington, D.C., and Cancun, Mexico.

By: Paul Gretch