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Updated: Friday, November 2, 2007 7:15 AM


OST-2005-22360 - United Air Lines - Los Angeles-Cancun

http://www.united.com/


OST-1999-5846 - Amendment of Certificate of Public Convenience and Necessity for Route 566 - US-Mexico

OST-2001-10009 - Alaska Airlines' Los Angeles-Cancun Authority
OST-1999-6690 - ATA's Los Angeles-Cancun Authority
OST-2005-22415 - Delta Air Lines - Los Angeles-Cancun


United Air Lines, Inc.

OST-2005-22360 - Exemption - Los Angeles-Cancun

September 1, 2005

Application for an Exemption

United seeks an exemption authorizing it to provide scheduled foreign air transportation of persons, property and mail between Los Angeles, California and Cancun, Mexico. United plans to initially operate daily service from Los Angeles International Airport starting on or about December 15, 2005. The service will be operated on a year-round basis using A320 aircraft.

Currently, Alaska Airlines and ATA Airlines are designated to provide nonstop service between Los Angeles and Cancun. However, ATA has announced that it will discontinue its Los Angeles-Cancun service in mid-September 2005. Furthermore, the OAG (September 2005) shows no ATA services between Los Angeles and Cancun after operations scheduled for September 3, 2005, and ATA has loaded no schedules for Los Angeles-Cancun service beyond September 3, 2005 in any global distribution systems. ATA's present exemption authority for Los Angeles-Cancun service is scheduled to expire on September 25, 2005, and ATA has not filed a timely application to renew that authority.

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



September 7, 2005

Answer of Delta Air Lines

Delta Air Lines, Inc. hereby submits this Answer to the above captioned application of United Air Lines, Inc. Today, Delta filed a competing application seeking an exemption and a U.S.-Mexico designation to provide scheduled foreign air transportation of persons, property and mail between Los Angeles and Cancun.

Delta opposes the application of United due to the fact that it is mutually exclusive to Delta's application. Because there is only one available U.S.-Mexico designation for the Los Angeles-Cancun route with two interested applicants, 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 superior public benefits of its proposal in that proceeding.

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



OST-2005-22360 - United Air Lines - Exemption - Los Angeles-Cancun
OST-2005-22415 - Delta Air Lines - Exemption - Los Angeles-Cancun

September 22, 2005

Answer and Motion for Consolidation of United

United opposes Delta's application for an exemption authorizing it to provide foreign air transportation between Los Angeles, California and Cancun, Mexico. As explained below, United has also applied for authority to operate scheduled nonstop service between its hub at Los Angeles and Cancun, a proposed service that would provide significantly greater public benefits than would Delta's. Because United's proposal clearly offers greater consumer and competition benefits than Delta's, the Department can and should move forward to grant United's application without further administrative procedure and delay. However, in the event the Department is not persuaded to do so, United hereby moves to have Delta's application consolidated with United's for contemporaneous consideration pursuant to Rule 13 of the Department's Rules of Practice, 14 CFR §302.13, and requests that the Department utilize the same streamlined procedure used in recent U.S-Mexico cases.

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



OST-2005-22360 - United Air Lines - Exemption - Los Angeles-Cancun
OST-2005-22415 - Delta Air Lines - Exemption - Los Angeles-Cancun

September 26, 2005

Reply of Delta Air Lines

Delta Air Lines, Inc. hereby files this Reply to United's Answer and Motion seeking consolidation of the above-captioned dockets. Delta urges the Department to immediately grant the pending applications of both carriers.

In light of the recent the new liberalizing agreement reached with Mexico, there is no need for further carrier selection proceedings, since there are now sufficient designations available to authorize both Delta and United to serve the Los Angeles-Cancun route. No other competing applications haev been filed, and both carriers' applications are ripe for decision. Under the new agreement, the Department will be able to designate three US carriers for service from any point in the United States to several specified points in Mexico, including Cancun.

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



September 29, 2005

Support Letter of Los Angeles World Airports

Los Angeles World Airports wishes to express its support for United Airlines’ request for an exemption to immediately engage in scheduled foreign air transportation of passengers, property and mail between Los Angeles and Cancun, Mexico on its low-fare subsidiary airline Ted. United Airlines’ proposed Ted service between Los Angeles and Cancun international airports would provide substantial economic and competitive benefit to Los Angeles and the Southern California region.

United’s proposed service would provide several economic benefits to consumers in the local market, by continuing to offer low-fare service in the LAX-CUN city pair. Ted service would be similar to the fare-competitive service offered by ATA up to this point. As a result, Southern California consumers would continue to enjoy both low-fare and mainline service alternatives in the market.

By: Kim Day



OST-2005-22767 - United - Exemption - Chicago-Cancun; Los Angeles-San Jose del Cabo; Chicago-Puerto Vallarta; Los Angeles-Puerto Vallarta
OST-2005-22360 - United - Exemption - Los Angeles-Cancun
OST-2005-22620 - Delta - Exemption - Atlanta-Acapulco; Boston-Cancun; Los Angeles-Puerto Vallarta/San Jose del Cabo/Zihuatanejo; Washington, DC-Cancun
OST-2005-22415 - Delta - Exemption - Los Angeles-Cancun
OST-2005-22580 - Frontier - Exemption - Chicago (MDW)-Cancun
OST-2005-22590 - Frontier - Exemption - Los Angeles-San Jose del Cabo
OST-2205-22589 - Spirit - Exemption - Dallas-Ft. Worth/Chicago-Cancun
OST-2005-22636 - USA 3000 - Exemption - Newark/Chicago-Cancun
OST-2005-22637 - USA 3000 - Exemption - US-Mexico
OST-2005-22766 - ExpressJet - Designation - Los Angeles-San Jose del Cabo
OST-2005-22769 - USAirways - Exemption - Los Angeles-San Jose del Cabo

October 20, 2005

Motion of United Air Lines

United requests that the Department immediately grant United's pending applications for exemptions to serve Chicago-Puerto Vallarta and Los AngelesCancun, as well as applications of other carriers for city-pair authorizations for which sufficient designations will be available under the Memorandum of Consultations between the U.S. and Mexico dated September 21, 2005 and streamline the process for granting exemption authority on the three U.S.-Mexico routes requiring carrier selection. In particular, United requests that the Department allow carriers that filed exemption applications for Chicago-Cancun, Los Angeles-Puerto Vallarta and Los Angeles-San Jose del Cabo one additional opportunity to file answers to competing applications, along with any other pertinent information to support their own applications, before the Department proceeds to a decision. The Department should issue a notice setting the date for submission of these answers and related information. United suggests that the filing date be no less than 15 days after the issuance of the notice. With regard to Los Angeles-Puerto Vallarta, for which there are only two applicants, the Department should proceed directly to final order. With regard to Chicago-Cancun and Los Angeles-San Jose del Cabo, for which there are four and five applicants, respectively, the Department should proceed to a show-cause order. These valuable bilateral rights will soon be available, and all interested parties have had an opportunity to file applications pursuant to the Department's Notice dated October 5, 2005.

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



OST-2005-22767 - United - Exemption - Chicago-Cancun; Los Angeles-San Jose del Cabo; Chicago-Puerto Vallarta; Los Angeles-Puerto Vallarta
OST-2005-22360 - United - Exemption - Los Angeles-Cancun
OST-2005-22620 - Delta - Exemption - Atlanta-Acapulco; Boston-Cancun; Los Angeles-Puerto Vallarta/San Jose del Cabo/Zihuatanejo; Washington, DC-Cancun
OST-2005-22415 - Delta - Exemption - Los Angeles-Cancun
OST-2005-22580 - Frontier - Exemption - Chicago (MDW)-Cancun
OST-2005-22590 - Frontier - Exemption - Los Angeles-San Jose del Cabo
OST-2205-22589 - Spirit - Exemption - Dallas-Ft. Worth/Chicago-Cancun
OST-2005-22636 - USA 3000 - Exemption - Newark/Chicago-Cancun
OST-2005-22637 - USA 3000 - Exemption - US-Mexico
OST-2005-22766 - ExpressJet - Designation - Los Angeles-San Jose del Cabo
OST-2005-22769 - USAirways - Exemption - Los Angeles-San Jose del Cabo

October 28, 2005

Answer of ExpressJet Airlines

Weeks before answers to the United application for Chicago-Cancun, Los Angeles-San Jose del Cabo, Chicago-Puerto Vallarta and Los Angeles-Puerto Vallarta authority were due and moments before issuance of the Deparment's Notice on procedures governing US-Mexico applications, United asked the Department to grant its Chicago-Puerto Vallarta and Los Angeles-Cancun exemption applications "immediately." Although United's request for immediate action on those applications has been mooted by the Department's Notice of October 20, United's request that the Department truncate its normal processes for comparative consideration of other U.S.-Mexico applications has not been mooted.

ExpressJet supports fully the Department's efforts to streamline its licensing procedures, but the specific relief sought by United may well prove counterproductive in this instance. The Department should be wary of truncating proceedings when less input from applicants might actually delay final decisions.

Although ExpressJet is anxious to expand its Los Angeles-Mexico services and begin Los Angeles-San Jose del Cabo service as promptly as possible, ExpressJet urges the Department to ensure that its procedures meet due process requirements and provide the Department with all relevant information it requires for thoughtful consideration of the issues raised by the contested applications for new US-Mexico combination route authority.

Counsel: Crowell & Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com



OST-2005-22360 - United - Exemption - Los Angeles-Cancun
OST-2005-22415 - Delta - Exemption - Los Angeles-Cancun

Filed September 1/7, 2005 | Supplemented October 17, 2005 | Issued December 12, 2005

Notice of Action Taken

Scheduled foreign air transportation of persons, property, and mail between Los Angeles, California, and Cancun, Mexico. United states that it will initially provide daily service in the market, beginning on or about December 15, 2005.

United also requests that its exemption authority for Los Angeles-Cancun be awarded under the Department’s streamlined licensing procedures. To the extent that United is seeking certificate authority for the subject market, we will handle that request subsequently.

Scheduled foreign air transportation of persons, property, and mail between Los Angeles, California, and Cancun, Mexico, and to combine this exemption authority with Delta’s existing exemption and certificate authority, consistent with applicable international agreements. Delta states that it will provide daily service in the market, beginning on or about June 1, 2006.

In a consolidated supplement filed in Delta’s present application (Docket OST-2005-22415), among other dockets, Delta urges the Department to grant its request for Los Angeles-Cancun authority under the Department’s streamlined licensing procedures. To the extent that Delta is seeking certificate authority for the subject market, we will handle that request subsequently.

By letter dated November 22, 2005, Delta revised its startup date for Los Angeles-Cancun services from December 1, 2005, to June 1, 2006.

Granted: exemption authority to United and Delta to serve the Los Angeles-Cancun market.

Granted: route integration authority to Delta.

Deferred: on United’s and Delta’s requests for certificate authority to serve the Los Angeles-Cancun market.

By: Paul Gretch



OST-2005-22360 - Exemption - Los Angeles-Cancun
OST-2005-22767 - Exemption - Chicago-Puerto Vallarta

October 11, 2007

Application for Renewal of Exemption Authorities

United hereby applies for renewal of exemptions from 49 U.S.C. §41101 authorizing it to provide scheduled combination service in foreign air transportation of persons, property, and mail between Los Angeles, California and Cancun, Mexico and Chicago, Illinois and Puerto Vallarta, Mexico. United’s exemption authorities for these markets are currently effective through December 12, 2007.

United intends to continue its year-round service between Los Angeles and Cancun, as well as between Chicago and Puerto Vallarta.

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



OST-2005-22360 - Exemption - Los Angeles-Cancun
OST-2005-22767 - Exemption - Chicago-Puerto Vallarta

Filed October 11, 2007 | Issued November 1, 2007

Notice of Action Taken | Word

Renewal for two years of scheduled foreign air transportation of persons, property, and mail between Los Angeles, California, and Cancun, Mexico (Docket OST-2005-22360), and between Chicago, Illinois, and Puerto Vallarta, Mexico (Docket OST-2005-22767).

By: Paul Gretch


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