BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. __________________________________________ Application of ) ) JetBlue Airways Corporation ) ) ) For a Statement of Authorization ) Pursuant to 14 C.F.R. Part 212 Code-sharing ) __________________________________________) Docket DOT-OST-2013- APPLICATION OF JETBLUE AIRWAYS CORPORATION FOR A STATEMENT OF AUTHORIZATION Communications with respect to this document should be directed to: James G. Hnat Executive Vice President Corporate Affairs & General Counsel Jonathan B. Hill J. Parker Erkmann Dow Lohnes PLLC Robert C. Land Senior Vice President Government Affairs and Associate General Counsel 1200 New Hampshire Ave., NW Suite 800 Washington, DC 20036 (202) 776-2000 jhill@dowlohnes.com perkmann@dowlohnes.com JetBlue Airways Corporation 27-01 Queens Plaza North Long Island City, NY 11101 (718) 709-3089 Counsel for JetBlue Airways Corporation NOTICE: Answers to this application are due on or before March 6, 2013. Copies of such answers should be served on the undersigned and all persons named on the attached service list. BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. __________________________________________ Application of ) ) JetBlue Airways Corporation ) ) ) For a Statement of Authorization ) Pursuant to 14 C.F.R. Part 212 Code-sharing ) __________________________________________) Docket DOT-OST-2013- APPLICATION OF JETBLUE AIRWAYS CORPORATION FOR A STATEMENT OF AUTHORIZATION JetBlue Airways Corporation (“JetBlue”) recently entered into an agreement with Aer Lingus Limited (“Aer Lingus”) which contemplates that JetBlue will place Aer Lingus’ “EI” designator code on flights operated by JetBlue between any points within the United States in conjunction with services held out by Aer Lingus between the European Union and the United States (either nonstop or via third-country intermediate points).1 JetBlue therefore respectfully requests that the Department of Transportation (“Department”) issue JetBlue a blanket statement of authorization under 14 C.F.R. Part 212 that would permit JetBlue to display Aer Lingus’ “EI” designator code on JetBlue’s flights between points in the United States.2 JetBlue requests that the Statement of Authorization remain in effect for a period of unlimited duration (subject to the Department’s usual conditions). JetBlue wishes to begin the code-share services on or about April 1, 2013. JetBlue respectfully requests the Department’s prompt approval of this application so that the marketing and sale of new code-share services can begin without delay. In that regard, JetBlue requests a waiver of the Department’s 45-day advance notice requirement in order to effectuate this arrangement. 1 A copy of the parties’ code-share agreement is attached hereto as Exhibit 2. A list of the initial code-sharing routes is attached hereto as Exhibit 1. JetBlue and Aer Lingus request that the Department treat this application as the 30-day notice of the code-share service set forth in Exhibit 1 that is required under the standard terms and conditions of an approved Statement of Authorization. 2 2 In support of its application, JetBlue submits the following: 1. JetBlue and Aer Lingus have entered into a code-share agreement to display Aer Lingus’ “EI” code on certain of JetBlue’s flights (persons, property and mail), which code-share services JetBlue wishes to begin on or about April 1, 2013. Therefore, JetBlue requests a statement of authorization for blanket code-share authority to display Aer Lingus’ “EI” designator code on flights operated by JetBlue between points within the United States in conjunction with services held out by Aer Lingus between the European Union and the United States (either nonstop or via third-country intermediate points). 2. JetBlue currently holds certificate authority issued by the Department authorizing it to engage in scheduled interstate air transportation of persons, property and mail between any points in the United States. See Order 2000-2-7. 3. Aer Lingus holds a foreign air carrier permit issued by Order 2007-10-38 authorizing it to provide service to and from the United States to the full extent permitted by the U.S.-EU Open Skies Agreement. Aer Lingus thus holds the appropriate underlying DOT authority necessary for the proposed code-share services. 4. Approval of this Application is consistent with the applicable bilateral and multilateral air transport agreements and the public interest. The proposed code-share services are consistent with the terms of the United States open skies agreement with the European Union.3 These services will represent a valuable service enhancement for passengers traveling between the United States and the European Union. 5. Moreover, approval of this application is consistent with long-standing precedent and Department policy. The Department has consistently granted applications for statements of authorizations involving implementation of various code-share/block space arrangements where those arrangements were pro-competitive and in the public interest. There is no question that this Application satisfies that standard, as it will enable Aer Lingus and JetBlue to offer the 3 See Air Transport Agreement between the United States and the European Union, Annex 5(2) (signed Apr. 30, 2007). 3 flying public an enhanced network and more services. In addition, the Department has confirmed in its international aviation policy statement that code-share/block space arrangements are in the public interest as they provide the benefits of increased service and competition: Code sharing and other cooperative market agreements can provide a cost efficient way for carriers to enter new markets, expand the system and obtain additional flow traffic to support their operations by using existing facilities and scheduled operations. 59 Fed. Reg. at 55525 (Nov. 7, 1994). 6. JetBlue agrees to accept the conditions normally applicable to code-share authority such as requested herein. 7. This application raises no environmental or energy issues. Since approval is sought only to add Aer Lingus’ designator code on flights that are being operated by JetBlue, grant of this application will not result in a near-term increase in fuel consumption of 10 million gallons or more. For the same reasons, all flights will be operated with Stage 3-compliant aircraft, and approval will not result in an increase in noise levels. 8. JetBlue requests that the blanket statement of authorization be issued for an indefinite period so long as the code-share agreement continues in effect. JetBlue will notify the Department if that agreement should cease to be effective. 9. A blanket code-share authorization is consistent with the Department’s efforts to reduce the administrative burden on both carrier applicants and the Department, because it would eliminate the need for JetBlue to seek a new or amended statement of authorization every time new code-share services are to be implemented. In addition, if blanket authority is granted, JetBlue could implement the new services without delay due to the regulatory process. The traveling public would benefit from such new services being available more rapidly. 10. Aer Lingus and JetBlue agree to abide by the consumer notification requirements of 14 C.F.R. Part 257. 4