OST-00-7114 / American Trans Air / High Density Rule - New York LaGuardia / March 21, 2000

Application of

AMERICAN TRANS AIR, INC. / Docket No. OST 00-7114

For an exemption from Subparts K and S of 14 C.F.R. Part 93

(Chicago Midway - LaGuardia)

Pursuant to 49 U.S.C. 41714 and 41716, as amended by the Wendell H. Ford Aviation Investment and Reform Act for the 21" Century (the "Act"), /1 American Trans Air, Inc. ("ATA") hereby requests an exemption from 14 C.F.R. 93, Subparts K and S (the "High Density Rule"), to the extent necessary to permit ATA to maintain beyond June 15, 2000 its current limited level of Chicago Midway-LaGuardia service. Even though the Department is likely to be receiving many applications requesting large numbers of LaGuardia slots under the new Act, ATA Is requesting just one slot exemption for an 830 a.m. operation at LaGuardia Airport, effective June 15. ATA requests the prompt grant of its application, consistent with the time limits established under the Act, so that ATA's enthusiastically received Chicago Midway-LaGuardia services may continue without interruption. Unless ATA receives the single additional slot It Is

1/ Although the Act has yet to be signed by the President, ATA's expectation is that the Act will be signed into law within the next several days.

Application of American Trans Air, Inc.

March 21, 2000

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requesting by June 15, ATA will be forced to cancel its fifth daily roundtrip in the Midway-LaGuardia market.

In operating its five daily roundtrip flights, ATA will be utilizing ten slots including five slots awarded to ATA by the Department through the exemption process, several slots leased from other air carriers, and one slot previously used by Access Air and granted on a temporary basis to ATA by the FAA. However, on June 15, 2000, ATA will lose the f6rmer Access Air slot which will be transferred to Midway Express. Therefore, unless the Department grants ATA's exemption request for a replacement slot, ATA will be compelled to terminate one of its existing daily roundtrip flights in the Chicago Midway-LaGuardia market. In support of its exemption request, ATA states as follows:

1. Section 41716 of Title 49, as amended by the Act, provides that the Department shall grant exemptions from the High Density Rule "to any new entrant carrier or limited incumbent air carrier to provide air transportation to or from LaGuardia Airport if the number of slot exemptions granted to such air carrier with respect to such airport when added to the slots and slot exemptions held by such air carrier with respect to such airport does not exceed 20," provided the carrier will utilize Stage 3 aircraft for the service. ATA qualifies as a limited incumbent air carrier under Section 41716 in that it currently holds only ten (shortly to be reduced to nine) slots, and operates the majority of its flights between Chicago and LaGuardia with modem, efficient Stage 3 B-757 aircraft. Since ATA is now requesting only the replacement of its tenth slot and conducts its operations with Stage 3 aircraft, ATA's request clearly fits within the unambiguous standard established by Congress in the Act.

2. There is no question that award of this single slot to ATA will result in greater economic ~ benefit than virtually any other LaGuardia slot award the Department may make.

Application of American Trans Air, Inc.

March 21, 2000

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ATA's Midway-LaGuardia low fare service has already generated enormous public benefits. ATA's low fare Midway- LaGuardia nonstop service, first inaugurated in July 1998, remains the only nonstop service in the market. The vast size of the Chicago-New York market, the 23 nonstop destinations ATA serves beyond its Chicago Midway hub, the 216-seat B-757 aircraft ATA principally uses to serve LaGuardia and ATA's established track record as a low-cost and low-fare carrier guarantee that ATA has thus far made, and will continue to make, much greater use of each and every LaGuardia slot - in terms of passengers carried and seats per slot - than virtually any other carrier. Even though ATA until recently has been limited to just three daily roundtrips and has not had access to slots at the most desirable hours, ATA has carried more than 450,000 passengers on its Chicago Midway-LaGuardia nonstop flights - an irrefutable indication of the substantial consumer benefits generated by ATA's service. ATA's low fares - when compared to the significantly higher fares in the O'Hare-LaGuardia market - have also saved millions of dollars for ATA's passengers.

ATA's Chicago Midway-LaGuardia service also conveniences a large number of beyond passengers. ATA attracts such beyond passengers because of the 23 destinations ATA and its commuter affiliate serve from Chicago Midway and the low LaGuardia beyond-market fares ATA offers. This combination of dramatically lower fares and the established nature of ATA's Chicago Midway connecting service pattern has generated significant volumes of LaGuardia traffic from cities such as Denver, Dallas[Ft. Worth, Las Vegas, Los Angeles, Phoenix and San Francisco.

3. ATA has made a significant investment in its Chicago-New York services. The f6rmer Access Air slot obtained recently by ATA has permitted ATA to fill a significant gap 'in its schedule, which now includes a critical late afternoon departure from Chicago Midway In

Application of American Trans Air, Inc.

March 21, 2000

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addition. to this temporary 'slot, ATA is paying substantial slot lease fees to other carriers. These payments, along with the other significant financial investments ATA has made in gates, counterspace and associated facilities, guarantee that ATA will make the maximum effort to ensure the continued commercial success of its Chicago-New York services.

4. Approval of ATA's exemption request for a single slot will have absolutely no environmental impact. ATA will shortly be operating five roundtrip flights daily between Chicago Midway and LaGuardia predominantly with efficient, quiet B-757 aircraft. Approval of this request will simply permit ATA to continue operation of its existing fifth roundtrip. There will be absolutely no increase in noise, emissions or fuel usage as a result of approval.

WHEREFORE, American Trans Air, Inc. respectfully requests, for all the reasons set forth above, that the Department - on or before June 15 grant ATA a single slot through an exemption from the High Density Rule to permit ATA to continue operation of its five daily roundtrip flights in the Chicago Midway-LaGuardia market.

Respectfully submitted,

Marshall S. Sinick

SQUIRE, SANDERS & DEMPSEY LL.P

1201 Pennsylvania Avenue, N.W.

P 0. Box 407

Washington, D.C. 20044

(202) 626-6651

Counsel to American Trans Air, Inc.

DATED: March 21, 2000