AirTran Airways, Inc.

OST-2005-22768 - Exemption - Baltimore-Cancun

October 17, 2005

Application for an Exemption

AirTran Airways, Inc. requests an exemption from Section 41101 of the Code and from any of the Department's related Economic Regulations to the extent necessary to permit it to engage in nonstop scheduled foreign air transportation of persons, property and mail between Baltimore, Maryland, and Cancun, Mexico, and for designation by our Government under the U.S. Mexico bilateral air transport services agreement to provide such foreign air transportation.

AirTran Airways proposes to commence 5 times weekly nonstop services on March 7, 2006, or such later date within ninety days thereof as may be required for obtaining all governmental authorizations, using B-737-700 aircraft configured at 137 seats. The 5 weekly nonstops will depart Baltimore-Washington International Thurgood Marshall Airport (BWI) at 1015 hours, arriving Cancun at 1305 hours. In the northbound direction, the 5 weekly nonstops will depart Cancun at 1350 hours, arriving BWI at 1755 hours. Block times for the round-trip flights will thus be 6.9 hours.

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

OST-2002-13527 - USA 3000 Airlines' Baltimore-Cancun Authority
OST-2002-13855 - US Airways - Washington/Baltimore-Cancun

OST-2005-22768 - Exemption - Baltimore-Cancun

November 1, 2005

Answer of State of Maryland in Support of Application for an Exemption

The State of Maryland, in its capacity as owner-operator of Baltimore/Washington International Thurgood Marshall Airport, submits this Answer to the Application of AirTran Airways, Inc. for an exemption authorizing it to engage in non-stop scheduled foreign air transportation of persons, property and mail between BWI and Cancun, Mexico, and for a designation under the U.S.-Mexico Air Transport Agreement to provide such service.

Maryland submits that AirTran's application is consistent with the public interest and should be granted for the following reasons. First, the new service would benefit passengers and shippers, the Baltimore community and the entire Washington/Baltimore region. The service would also benefit passengers connecting through BWI on AirTran and other flights to or from other U.S. cities. Second, the service would create additional opportunities for expanded tourism, international trade, and business for Maryland.

Counsel: Preston Gates, Jonathan Blank, 202-628-1700, jblank@prestongates.com

OST-2005-22768 - Exemption - Baltimore-Cancun

November 9, 2005

Notice of Withdrawal of Application for Exemption

AirTran Airways, Inc. herewith gives notice of withdrawal of its application for Baltimore, Maryland - Cancun, Mexico scheduled combination exemption authority pending in this Docket.

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

OST-2002-13527 - USA 3000 - Exemption - Washington Dulles-Cancun
OST-2002-13855 - US Airways - Boston, Charlotte, Ft. Lauderdale, Philadelphia, Pittsburgh-Cancun
OST-2005-22768 - AirTran - Exemption - Baltimore-Cancun

Filed March 30, 2004/April 21, 2005 | Supplemented October 17, 2005 | Issued December 15, 2005

Notice of Action Taken | Word

USA 3000:
Scheduled foreign air transportation of persons, property, and mail between Washington, D.C. and Cancun, Mexico.  USA 3000 states that it will initiate scheduled service in the subject market within 30 days of an award of the requested authority.

On April 21, 2005, USA 3000 requested an amendment to its existing exemption authority to serve the Baltimore-Cancun route, to the extent necessary to authorize service to Cancun from Washington, D.C. (Dulles).   On September 21, 2005, the United States and Mexico reached an ad referendum agreement on certain amendments to the U.S.-Mexico aviation agreement, including as concerns service between Baltimore and Washington, D.C., on the one hand, and Cancun, on the other.  By Notice dated October 5, 2005, the Department invited U.S. carriers to supplement already-filed applications and/or to file new exemption/certificate applications in light of the amendments.  On October 17, 2005, in response to the Department’s Notice, USA 3000 filed a supplement to its application confirming its intention to serve the Washington (Dulles)-Cancun market.

US Airways:
Scheduled foreign air transportation of persons, property, and mail between Baltimore, Maryland, and Cancun, Mexico.  US Airways proposes to operate this service on a seasonal basis, commencing operations before December 1, 2006.

On March 30, 2004, US Airway requested an amendment to its existing exemption authority for U.S.-Mexico service so that it might serve the Baltimore/Washington, D.C.-Cancun market.  By Notice of Action Taken dated May 20, 2004, we deferred action on the carrier’s request as there were no designation opportunities available.  United Air Lines, Inc. and USA 3000 were the incumbents in the market.  The Department noted that Washington/Baltimore was considered a single U.S. gateway under the bilateral agreement.  On October 17, 2005, in response to the Department’s October 5 Notice, US Airways filed a supplement to its application requesting exemption authority to serve only the Baltimore-Cancun market.

Granted: USA 3000’s request for Washington, D.C.-Cancun exemption authority.

Granted: US Airways’ request for Baltimore-Cancun exemption authority.

Granted: AirTran’s request for withdrawal of application in Docket OST-2005-22768.

By: Paul Gretch