BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

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1 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. In the matter of the application of CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, Docket DOT-OST S.A.P.I. DE C.V. d/b/a VOLARIS for an exemption from 49 U.S.C REPLY OF CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, S.A.P.I. DE C.V. d/b/a VOLARIS AND REQUEST FOR IMMEDIATE ACTION Communications with respect to this document should be addressed to: Director Juridico Concesionaria Vuela Compañía de Aviación, Av. Prolongacion Paseo de la Reforma 490, Piso 1 Col. Santa Fe Pena Blanca Mexico D.F Mexico alfonso.ascencio@volaris.com.mx

2 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. In the matter of the application of CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, Docket DOT-OST S.A.P.I. DE C.V. d/b/a VOLARIS for an exemption from 49 U.S.C REPLY OF CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, S.A.P.I. DE C.V. d/b/a VOLARIS AND REQUEST FOR IMMEDIATE ACTION Concesionaria Vuela Compañía de Aviación, ( Volaris submits this reply to the answer of American Airlines, Inc. ( American filed in the captioned docket, and respectfully requests immediate action on its application to serve Monterrey-Chicago, Mexico City-Las Vegas and Mexico City-Los Angeles. American states in its answer that it does not oppose approval of Volaris application provided its application for extrabilateral authority to institute additional U.S. carrier service in the New York-Mexico City market is approved. 1 While American attempts to equate its application with Volaris, the relief sought by American is substantially different and greater than that sought by Volaris, which is narrowly tailored to address a specific competitive imbalance currently affecting Mexican carriers. 1 Application of American Airlines, Inc., for an Exemption, Docket DOT-OST-2011-, July 5, 2011

3 Reply of Concesionaria Vuela Compañía de Aviación, Docket DOT-OST July 6, 2011 Volaris requests authority only to replace service in three U.S.-Mexico markets that was discontinued by another Mexican carrier nearly one year ago. Approval of Volaris application will therefore not result in more than the bilaterally-authorized number of carriers operating in any U.S.-Mexico market. American s request is not comparable to Volaris application and should not be treated as such. American requests approval to operate as an additional U.S. carrier in a double designation market that is served currently by two U.S. carriers Delta and Continental. If its application were approved, American would become the third operating U.S. carrier in the New York-Mexico market in competition with a single Mexican carrier, exacerbating the competitive imbalance that now exists as a result of Mexicana s service suspension. In contrast, approval of Volaris application would simply restore in three U.S.-Mexico markets the level of Mexican carrier competition that existed prior to August 2010, and that was agreed to by the United States and Mexico under the bilateral. Moreover, Volaris stated specifically in its application that it would terminate service in the affected U.S.-Mexico market if and when Mexicana resumes operations, thus ensuring that no more than two carriers of either side will operate in a double designation market at any time, as the bilateral requires. In asserting that the same - 2 -

4 Reply of Concesionaria Vuela Compañía de Aviación, Docket DOT-OST July 6, 2011 considerations apply to its application as Volaris, American ignores this important condition as well as the bilateral provisions on which it is based. 2 Approval of Volaris application should not be delayed while the Department considers American s request. The three markets for which Volaris requests authority have been without a second Mexican carrier since August The peak summer travel season has begun and Volaris must begin sales immediately if these services are to be inaugurated successfully. Consumers have been denied the benefits of a choice in Mexican carriers for long enough; nothing in American s reply or answer disputes this fact or that additional Mexican carrier competition would benefit consumers. Volaris respectfully requests that the Department immediately approve its application so that it can begin marketing and sale of its Monterrey-Chicago, Mexico City-Las Vegas and Mexico City-Los Angeles services. Respectfully submitted, /s/ Director Juridico Concesionaria Vuela Compañía de Aviación, Av. Prolongacion Paseo de la Reforma 490, Piso 1 Col. Santa Fe Pena Blanca Mexico D.F Mexico alfonso.ascencio@volaris.com.mx 2 Application of American Airlines, p.2-3 -

5 CERTIFICATE OF SERVICE I hereby certify that the foregoing Reply has this day been served on all persons listed on the attached service list via , telecopier or first class mail, postage prepaid. /s/ sascha.vanderbellen@delta.com; sametta.c.barnett@delta.com; jeff.morgan@delta.com dan.weiss@coair.com; steve.morrissey@united.com efaberman@wrf.com msinick@ssd.com howard.kass@usairways.com; benjamin.slocum@usairways.com jhill@dowlohnes.com mlbenge@zsrlaw.com dkirstein@yklaw.com carl.nelson@aa.com pmurphy@lopmurphy.com; pmurphy@ggh-airlaw.com

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