BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.
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2 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of MN Airlines, LLC d/b/a SUN COUNTRY AIRLINES for exemptions from 14 C.F.R. Part 93, Subparts K and S, pursuant to 49 U.S.C (b, Special Rules for Ronald Reagan Washington National Airport (within-perimeter slot exemptions Docket OST Dated: January 25,2012 APPLICATION OF MN AIRLINES, LLC D/B/A SUN COUNTRY AIRLINES By DOT Order dated December 10, 2010, the Depat1ment allocated two within-perimeter slot exemptions at Ronald Reagan Washington National Airport (DCA to MN Airlines, LLC dba Sun Country Airlines (Sun Country. Pursuant to the Order, Sun Country commenced round trip service between Lansing, Michigan and DCA on April 1, The slots awarded to Sun Country were in the 1100 and 1400 hour time periods, but Sun Country has operated its flights at DCA in the 1000 and 1100 hour time period pursuant to a slot trade with another airline. The introduction of Sun Country Airlines service on the LAN-DCA route has been extremely beneficial to the consumers in that market. According to DOT data for the third quarter of 20 11, the average fare on that route has decreased by 26% year over year,
3 Page 2 and the number of daily passengers on the route has risen by 156%. Sun Country has proven that a new entrant carrier at DCA can successfully compete, even with this very limited slot availability, and even in a new entrant market. Sun Country has invested over $500,000 in advertising, marketing and staiiup costs associated with introduction of the LAN-DCA service. In addition, the Lansing AirpOli and the surrounding region have made substantial economic investments in the introduction of the new service. This request for exemption is necessary as a result of the recent decision of the U.S. Court of Appeals for the District of Columbia Circuit in Republic Airlines, Inc. v. United States Department of Transportation; No.II-1018 dated January 6, The Court vacated DOT Order No , and thereby ordered the return of two DCA slots to Republic Airlines. It is important to note that Sun Country was not a party to the Republic Airlines, Inc., case, and the Court's decision was not related in any way to Sun Country's performance under the High Density Rule. In order to return the two slots to Republic, and ensure that Sun Country can continue to provide the existing beneficial service from Lansing to DCA, additional slots must be authorized through this exemption proceeding. Sun Country's Service on the DCA -LAN Route Meets the Vision 100 Criteria for Allocation of DCA Slot Exemptions In its initial proposal to utilize the available slot exemptions, Sun Country demonstrated that it qualified for the award of the slots based on the following statutory criteria:
4 Page 3 1. The service to be provided was to a community without existing non-stop service to DCA. 2. The service to be provided was to a small hub under the statutory definition. 3. The service was to be provided by a new entrant or limited incwnbent carrier. 4. The service would maximize the competitive benefits for the traveling public, including low fares. Sun Country continues to qualify for an allocation of slots based on the above criteria, and has, in fact, demonstrated the validity of its initial request for exemption by the actual perfottilance noted in the DOT statistics as described above. See Attachment A. In addition to the competitive benefits enjoyed by consumers in the Lansing metropolitan area, the service has provided additional benefit to consumers in Minneapolis-St. Paul. The LAN-DCA service connects with daily service in the LAN-MSP market, providing citizens ofmilmeapolis-st. Paul with a low fare alternative to the non-stop service provided to DCA by Delta Airlines. The Public Interest Supports an Expeditious Grant of the Exemption to Sun Country Airlines Sun Country currently offers scheduled service for sale on the LAN-DCA-LAN route only through the end of April, due to the Republic Airlines, Inc. decision, and pending a decision by the Department on this Application for Exemption. Summer season sales in the market are largely dependent on availability for sale as soon as possible. Further delay in the ability to offer the market for sale will result in significant negative financial impact.
5 Page 4 For the reasons described above, Sun Country Airlines respectfully requests that the Department grant this Application for Exemption on an expedited basis, with slots as close as possible to the 1000 and time period, so as to avoid any intemlption of the LAN-DCA-LAN service.
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