BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Transcription

1 BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. ) Application of ) ) JETBLUE AIRWAYS CORPORATION ) Docket DOT-OST ) 2017 U.S.-Cuba Frequency Allocation Proceeding ) ) CONSOLIDATED ANSWER OF JETBLUE AIRWAYS CORPORATION Communications with respect to this application should be addressed to: James G. Hnat Executive Vice President General Counsel & Government Affairs Evelyn D. Sahr Drew M. Derco Eckert Seamans Cherin & Mellott, LLC 1717 Pennsylvania Ave., N.W. Twelfth Floor Robert C. Land Senior Vice President Government Washington, D.C Affairs & Associate General Counsel Tel: (202) Fax: (202) Adam L. Schless Director, Aircraft Transactions & International Counsel JetBlue Airways Corporation 1212 New York Avenue, N.W. Suite 1212 Washington, D.C Tel: (202) Fax: (202) September 19, 2017 Counsel for JetBlue Airways Corporation

2 BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. ) Application of ) ) JETBLUE AIRWAYS CORPORATION ) Docket DOT-OST ) 2017 U.S.-Cuba Frequency Allocation Proceeding ) ) CONSOLIDATED ANSWER OF JETBLUE AIRWAYS CORPORATION Pursuant to Order JetBlue 1 submits this consolidated answer in response to the applications for U.S.-Havana frequencies filed by American, Delta, FedEx, Southwest, and United/Mesa in this proceeding. As detailed below, an examination of the competing applications clearly establishes that granting JetBlue s frequency request is warranted. JetBlue s proposed service will offer additional travel opportunities from Fort Lauderdale, Newark, and New York and open an entirely new gateway between Havana and Boston. An award enabling this service will maximize public benefits and better serve the public interest as compared to the competing proposals. Moreover, JetBlue s proposal is the only one that can simultaneously satisfy two important facets of this proceeding: (1) the Department s belief that Florida markets, particularly South Florida markets, deserve a substantial allocation of Havana frequencies ; 2 and (2) that the public should benefit from a wide array of travel choices: choices in terms of type of carrier, specifically, network, low-cost, ultra-low-cost; choices of airport; choices of nonstop or connecting service. 3 1 Common names for airlines used throughout. 2 See Order , at 7. 3 See Order , at 3 (emphasis added). 1

3 Two key conclusions can be drawn from the service proposals submitted by JetBlue, American, Delta, FedEx, Southwest, and Mesa/United. First, South Florida remains an important market. And second, while frequencies from South Florida are indeed critical for the success of U.S.-Cuba air service, the Department s desire to promote the public interest would be maximized by awarding frequencies to fund travel from destinations outside of South Florida. JetBlue will address each of these themes in turn and demonstrate why its service proposal is superior to those of its competitors, will maximize public benefits as compared to the proposals filed by American, Delta, FedEx, Southwest, and United Mesa, and should be granted in full. I. JetBlue s service proposal offers the best option to maximize public benefits JetBlue is requesting 21 frequencies in order to: (1) provide additional non-stop service between Havana, Cuba and Fort Lauderdale, Florida; (2) inaugurate the first ever non-stop service between Havana, Cuba and Boston, Massachusetts; (3) begin daily non-stop service between Havana, Cuba and Newark, New Jersey; and (4) provide additional daily non-stop service between Havana, Cuba and New York, New York. JetBlue offers the most well-rounded service proposal and gives the Department an opportunity to increase public benefits by: (1) awarding frequencies to a deserving carrier with market knowledge that will provide additional quality and competitive transportation options from three existing hubs for U.S.-Cuba travel: Fort Lauderdale, Newark, and New York; and (2) opening an entirely new gateway for U.S.-Cuba travel from JetBlue s focus city of Boston, thereby benefitting the entire New England region. A. An allocation of additional frequencies to South Florida is warranted JetBlue, together with Delta, FedEx, Southwest and American, have all requested additional frequencies to serve Havana from South Florida. It is well-established that Fort Lauderdale and Miami, together with their surrounding catchment areas, are the most important 2

4 source of current demand for the U.S.-Cuba market. In the 2016 U.S.-Cuba Frequency Allocation Proceeding, DOT carefully analyzed the service proposals of numerous carriers and, after evaluating those proposals and the perceived needs of the U.S.-Havana market, allocated the majority of frequencies to carriers operating to Havana from Fort Lauderdale and Miami. 4 Little market data was available at this time, and DOT (for the most part) equally divided the frequencies between both destinations, as well as between a mix of legacy, low-cost and ultra-low-cost carriers. Shortly after beginning service to Havana, the two ultra-low-cost carrier awardees, Spirit and Frontier exited the market, leaving 21 frequencies - which were originally allocated to Fort Lauderdale (14 of 21) and Miami (7 of 21) - to be re-allocated. Carriers have provided initial market data on their U.S.-Havana service to date in the course of this proceeding. While the market is still developing, the data to date establishes that the public interest would best be served if the available frequencies continue to be allocated pursuant to the same formula the Department originally deemed appropriate, but to carriers with a demonstrated commitment and strong service record in the U.S.-Cuba market. JetBlue agrees with Delta, Southwest, and American that additional frequencies should be awarded to carriers operating from South Florida. Such an award is needed to bring the frequency allocation back to what the Department originally intended in JetBlue, however, disagrees with these carriers that South Florida is the only important market and recommends that the Department also consider the great public interest benefits that flow from travel from other gateways. Moreover, in order to ensure the competitive structure of the Department s original allocation, and to best promote public benefits, JetBlue urges the Department to re-allocate South Florida frequencies to low-cost carriers offering Fort Lauderdale-Havana service and to consider service from new routes before awarding 4 See Order

5 additional flights to a legacy carrier looking to strengthen its already strong hub position from Miami. Failing to do so would lead to a competitive imbalance and undermine the ability of lowcost carriers like JetBlue to discipline the prices of competitors operating from Miami such as American and Delta. JetBlue s service proposal, which would offer consumers low fares and access to more than 40 destinations from Fort Lauderdale, represents the Department s best option to meet these goals. JetBlue was the first carrier to operate scheduled passenger service to Cuba in more than 50 years, and the first to request re-allocation of the frequencies available in this proceeding. Since its original application, JetBlue has continued to increase service to the Caribbean and has invested heavily in the market, most recently by opening two new ticket offices in Havana that are expected to further increase demand from Cuban travelers. 5 It is also one of the few carriers to remain committed to serving the entire island, and currently operates to four destinations in Cuba. Most importantly, JetBlue s service to date has been well received. Its load factors to Havana, particularly those from Fort Lauderdale and New York (JFK), are among the highest of any carrier and its first-class service offerings are unrivaled in the market. JetBlue s actual load factors 6 - which are based on operational seat restrictions due to weight-and-balance safety requirements - are strong. JetBlue s load factor on its JFK-HAV route is 73.8% (having increased several points since February 2017). The load factor on its FLL-HAV 5 In addition to opening two ticket offices in Havana, JetBlue has trained employees of two Cuban entities Commercial Take Off and ECASA. JetBlue also offers tourist visas for its customers and sells them at cost at the airport. Since initiating service to Cuba in 2016, JetBlue has also included the required ESICUBA medical insurance as part of its ticket cost. Finally, and perhaps most significantly, JetBlue has opened a bank account in Cuba and is one of the only U.S. companies to have secured a license to open its own branch office in Cuba (i.e., a sucursal ) from the Cuban Chamber of Commerce s National Registry of Branches and Agents of Foreign Businesses, as approved by the Council of State and the Ministry of Foreign Trade & Foreign Investment, and inscribed on the Registry of the Chamber of Commerce. 6 Because Cuba is a baggage-heavy VFR market, JetBlue places lids on capacity so that its customers can bring extra baggage. 4

6 route is even higher, at 76.1%, and leads the market, being higher than that of Southwest. JetBlue notes that these figures are very much on track for a developing market and, as explained below, are expected to increase following the recent opening of JetBlue s Havana ticket offices. While American and Delta would have the Department believe otherwise, Fort Lauderdale s Fort Lauderdale-Hollywood International Airport (FLL) is a popular choice for customers in the U.S.-Havana market. FLL is South Florida s leading low fare airport, and is a short drive from Miami International Airport (MIA). It is, in fact, interchangeable with MIA for the vast majority of South Florida travelers. Moreover, because its average cost per enplaned passenger is approximately one quarter of that at MIA, carriers like JetBlue are generally able to offer lower fares to consumers on most itineraries. This is especially true on routes to Havana, where fares from Fort Lauderdale are significantly lower than those charged by legacy carriers operating from Miami. On a per departure basis, JetBlue s Fort Lauderdale-Havana service outperformed all other U.S.-Havana routes. U.S. - HAV Pax per Departure Dec Feb B6 - FLLB6 - JFK AA - MIA DL - MIA WN - TPA UA - EWR B6 - MCO WN - FLL AS - LAX UA - IAH B6 - BOS DL - JFK DL - ATL AA - CLT The passenger experience is also far superior at FLL. International passengers flying from Fort Lauderdale not only enjoy lower prices, but are able to travel from a facility that offers speedier access, more efficient CBP clearance procedures, fewer delays, and more customer- 5

7 friendly terminal enhancements. For this reason it is expected that U.S.-Cuba travelers will increasingly choose FLL over MIA as the market continues to develop. JetBlue s proposal to serve Havana with six additional frequencies from Fort Lauderdale should be granted. It would connect travelers with 43 domestic destinations (including nine new destinations) and offer the traveling public access to a more balanced schedule, as well as other benefits such as lower fares, more itinerary options, award-winning service, etc. For the reasons noted herein it offers enhanced options for travelers as compared to Southwest s proposal for additional frequencies from FLL, as well as American s and Delta s proposals for additional frequencies from MIA. Moreover, allocating additional frequencies from Fort Lauderdale is consistent with the Department s well-reasoned initial frequency allocation. With the departure of both ULCCs from the South Florida-Havana market, increasing frequencies to low cost carriers like JetBlue is critical in order to discipline legacy carrier fares and to promote competition in the marketplace. This, together with FLL s and JetBlue s superior passenger experience, supports an award of six frequencies to fund JetBlue s proposed service from Fort Lauderdale which would provide vastly more public benefits than competing proposals. B. The public interest would be maximized by also awarding frequencies to fund travel from destinations outside of South Florida The Department s stated objective in this proceeding was to allow the traveling public to benefit from a wide array of travel choices: choices in terms of type of carrier, specifically, network, low-cost, ultra-low-cost; choices of airport; choices of nonstop or connecting service. 7 While JetBlue agrees with many of its fellow applicants that South Florida (and Fort Lauderdale in particular) are deserving of additional frequencies, JetBlue urges the Department to 7 See Order , at 3 (emphasis added). 6

8 consider new and existing geographic regions that would benefit from new or expanded service to Havana. In this proceeding, both JetBlue and United applied for frequencies to serve destinations outside of South Florida. United seeks to increase its existing presence in the Houston-Havana market and JetBlue has sought to open an entirely new gateway from its focus city of Boston (with connectivity to 14 U.S. airports), as well as increase its presence in the New York (JFK)-Havana market, and add service from Newark in order to compete head-to-head with United from this important city and large Cuban-American population center. JetBlue believes that a percentage of the available frequencies should be allocated to points outside of South Florida, as so doing would satisfy the Department s public interest objectives in this proceeding. JetBlue submits that its service proposal would best meet this goal as compared to those of its competitors and should be granted in full. II. Other Service Proposals A. Granting American s service proposal would create a competitive imbalance in South Florida JetBlue urges the Department to carefully evaluate the public benefit, if any, that would actually be realized if American s application were approved as requested. In the 2016 U.S.-Cuba Frequency Allocation Proceeding, American received more frequencies than any other carrier, including four daily frequencies to serve Havana from Miami. 8 It has now applied for an additional ten frequencies to serve this market. Granting American s request would give it 38 frequencies - or 27% of the total frequencies permitted under the 2016 Memorandum of Understanding - all of which are focused on the Miami-Havana market. A grant by DOT of such a large share of frequencies to one carrier, on a single route, would only serve to unjustly reward American s 8 See Order

9 already dominant market position in Miami, as well as in the U.S.-Cuba market as a whole. This would result in further industry concentration, reduced competition in the South Florida-Havana market (the most important market), and lead to higher airfares and poorer customer service. JetBlue believes that such a result would harm the traveling public and directly contravene the Department s goal of promoting the public interest. The Department should not be swayed by American s arguments about the importance of the Miami-Havana market as it relates to other destinations. While JetBlue agrees that the South Florida-Havana market is vital for many reasons, including its large Cuban-American population, JetBlue disputes the reasoning underlying American s application, including American s skewed presentation of statistics and its statements that no carrier has better served the needs of the traveling public than American at MIA 9 and that demand for U.S.-Havana services is centered on MIA alone. 10 Repeatedly stating, like a mantra, that Miami is the only destination that matters for travel in the U.S.-Cuba market is patently incorrect. JetBlue notes that American provides zero evidence to support its assertions that MIA is the focus of unmet demand for U.S.-Havana frequencies, that sustainable demand for scheduled service is only at MIA and why exactly passengers prefer MIA over FLL. To the contrary, Havana is already served with five daily flights from Miami which, according to American s data, are more than 20% empty. 11 Based on these figures JetBlue questions whether MIA actually has the demand American believes it does, and queries whether the public interest would be promoted by adding additional service from this destination. 9 See Application of American Airlines, Inc. for an Allocation of Frequencies, at 2, September 12, 2017, Docket DOT- OST Id. at See Application of American, Figure 1. 8

10 Like the baseless statements made throughout American s application, the figures provided by American are similarly misleading and should be disregarded. For example, in Figure 1, American presents a chart of passenger load factors by gateway which erroneously depicts demand at FLL as having load factors of just 60.2%. This statistic is confusing 12 and deceptive. A metric measuring the volume of passengers per flight rather than load factors more accurately correlates to individual HAV slot utilization. Charts depicting this data are below. Notably, the average gauge at FLL for the period is 189 (19% higher than MIA, which comes in at 159) and the average number of passengers per departure at FLL is (as compared to at MIA). 13 Despite American s assertions to the contrary, the below statistics demonstrate passengers prefer FLL service over MIA to Cuba. 12 The 60.2% is correlated in part to JetBlue s high gauge during the December 2016 February 2017 reporting period (200 seats for B6 vs. average non-b6 gauge for MIA/FLL-HAV of 162). 13 Note, these figures exclude flights operated by F9 and NK. Source: U.S. DOT T-100 data via Diio Mi (December February 2017). 9

11 South Florida - HAV Passengers per Departure (Dec Feb 2017) FLL MIA FLL MIA Given the robust Cuban-American population in Miami, there is only one logical conclusion to draw from these statistics: many Cuban-Americans living in Miami are choosing FLL over MIA for their travel needs, likely due to FLL s low fares, ease of use and higher quality options. American s Figure 6 is similarly deceptive. In it, American attempts to argue that its MIA- HAV service is better than B6 by 90% because it carried more traffic. 14 As the Department is well aware, American was allocated more than twice as many frequencies in the South Florida- Havana market than JetBlue. With double the frequencies, even with its high fares and poor service, American should have more traffic. It currently operates 28 weekly flights as compared to just 13 by JetBlue. American s traffic argument collapses when one does an apples to apples comparison. JetBlue FLL service to Havana is successful and, moreover, growing at a steady and reliable pace. JetBlue s actual load factor on its FLL-HAV route is 76.1% 15 and JetBlue expects even greater productivity on this route as a result of additional sales now that its ticket offices in 14 See Application of American, Figure Source: U.S. DOT T-100 data via Diio Mi (through February 28, 2017). 10

12 Havana have opened. Both locations, which opened on September 1, 2017, will provide Cuban travelers the ability to easily and efficiently purchase tickets for travel on JetBlue, notwithstanding their general lack of internet access and inability to pay with credit cards. This source of potential demand for POS-Cuba traffic did not exist before September 1, 2017, and, as a result, JetBlue was at a distinct disadvantage to American in this regard, which opened its ticket office in January American saw a marked increase in its load factors between February (load factor of 75.6%) and July (load factor of 88.2%) 17 and JetBlue anticipates a similar uptick in sales over the coming months. Clearly Fort Lauderdale is a high demand market for Havana traffic and a preferred alternative to MIA. It should receive a proportionate award of frequencies. American also argues that MIA should receive a disproportionate award of frequencies because other carriers have down-gauged to meet market demands. It is true that JetBlue, like several of its competitors including American and Delta, has down-gauged certain routes to Cuba. This down-gauging was for right-sizing and did not in any way impact the customer experience. The Cuban market is like no other, and is constantly evolving. JetBlue has been operating to Havana for less than a year and it, like many competitors and the Department, could not predict how the market would look within the first year. JetBlue has, however, demonstrated its longterm commitment to participating in the market and notes that down-gauging is not an indicator of weak demand or lack of market share. Nor is it necessarily permanent. To the contrary, downgauging allows carriers to temporarily dial-in their operation on a market-to-market basis in order to enhance operating efficiencies and can, in some cases, bring lower fares to the marketplace. Such matching of supply and demand merely illustrates JetBlue s determination and long-term commitment to this market. 16 See 17 See Exhibit AA

13 What JetBlue has not done, unlike American, is eliminate service to any point in Cuba. Earlier this year, American reduced service from Holguín, Santa Clara and Varadero to one daily flight from two, which resulted in a nearly 25% reduction of its seats in the U.S.-Cuba market. 18 This is vastly more concerning than down-gauging for operational reasons, and represents a wavering commitment to the Cuban market as a whole that should be noted by the Department. With respect to American s reliance on former charter service, Jetblue highlights that it, like American, successfully operated charter flights between the United States and Cuba. However, those flights occurred before the U.S. and Cuba signed the Memorandum of Understanding on February 16, 2016 and, with metrics on scheduled service now available, provide little justification for current or future demand in the scheduled market that exists today. Regarding the United States Government s new policy towards Cuba, JetBlue notes that, without specific regulations, any conclusions as to how the Administration s directive about individual people-to-people travel will impact future demand is speculative at best. JetBlue also points out that if American s assertions about MIA are taken as fact, a reduction in individual people-to-people travel means that demand from Miami would decrease proportionally in larger numbers than from other locations. If American s concerns are borne out, then the public interest necessitates an award of frequencies to destinations that can support travel to Cuba under the otherapproved categories. Boston, for example, with its proven and extensive educational, healthcare, and industry connections to Cuba, has the potential for significant and proportionally increased demand if/when the OFAC rules for travel are tightened. 18 See In addition to eliminating service from Holguín, Santa Clara and Varadero, American also down-gauged the aircraft used to operate between Charlotte and Havana. In its application, American initially applied to operate 144-seat A319 aircraft, but later down-gauged to a lower 128-seat configuration. 12

14 In determining how to allocate the 21 frequencies available in this proceeding, particularly to South Florida, the Department should continue to prioritize selecting a balanced mix of carriers in order to maximize competition. JetBlue s proposed service from Fort Lauderdale has and will continue to provide a competitive alternative to American s already overwhelming presence in the market. Additionally, an award of frequencies to JetBlue to inaugurate service to Boston, and to enhance already-available service offerings at Newark and New York (JFK), would satisfy the Department s goal of providing access to a variety of markets, and open a new gateway for travel to Cuba from Boston. B. Southwest s service and history to date of operating in Cuba do not justify an award Southwest has applied for seven of the 21 available U.S. HAV frequencies so that it can provide an additional daily flight between Fort Lauderdale and Havana. JetBlue agrees with Southwest s assessment that the departure of Spirit and Frontier from the South Florida-Havana market has serious implications, as residents of South Florida will no longer receive the diverse level of service and inter-carrier competition so carefully chosen by the Department, particularly from low-cost carriers. 19 However, for the reasons noted below, JetBlue believes that its application for service from Fort Lauderdale would generate far superior public benefits than that which is being proposed by Southwest. First, Southwest touts its superior aircraft size of 175 seats and the fact that it has maintained its large aircraft gauge on all of its flights to HAV as evidence of its strong 19 Although Southwest may self-identify as the preeminent U.S. low cost carrier (See Application of Southwest Airlines Co. for an Additional Daily FLL-HAV Frequency, at 2, September 12, 2017, Docket DOT-OST ) its days as a true low-cost carrier are long gone. With a fleet of more than 700 aircraft (See it regularly boasts of being the nation's largest carrier in terms of originating domestic passengers boarded (See Southwest is much more akin to legacy carriers American, Delta, and United than a true low-cost carrier. 13

15 commitment to U.S. Cuba air service and as justification for additional frequencies. While Southwest currently operates the largest aircraft between South Florida and Havana at 175 seats, JetBlue notes that Southwest has indicated it may operate its proposed service with 143-seat Boeing 737 aircraft. 20 This is a departure from Southwest s initially-awarded frequencies which are operated by 175-seat Boeing 737s and the proposed new service offers significantly less seating capacity on a per-frequency basis than JetBlue s upgraded 162-seat Airbus A320 fleet. JetBlue also notes that Southwest is the only carrier operating to Havana that does not utilize a split fleet. This prohibits Southwest from making the operational changes that are sometimes necessary in a developing market and can result in the termination of air service where economics may not allow service to continue due to poor load factors. Southwest s fleet restricts its ability to flexibly match supply with demand as compared to competitors like JetBlue and this rigidity prevents Southwest from achieving greater economic efficiencies on certain routes. To illustrate, Southwest recently completely eliminated service to Varadero and Santa Clara 21 after less than a year, stating there is not a clear path to sustainability serving these markets. 22 If Southwest had smaller aircraft in its fleet, it could have considered down-gauging as JetBlue and others have reasonably done instead of taking the drastic measure of terminating service altogether because it cannot fill a Boeing 737. Surely, the former is a preferred option for the U.S.-Cuba traveling public. Unlike Southwest and American, JetBlue has not eliminated a single Cuba route since it became the first U.S. carrier to offer scheduled service to Cuba on August 31, To the contrary, it has made and continues to make significant investments in the market and the Cuban communities it serves. 20 See Exhibit WN See Application of Southwest, at FN See 14

16 Southwest also has limited experience serving the Caribbean (and international) market. Unlike JetBlue, which has been operating to the Caribbean since 2002 (with service to Puerto Rico) and internationally since 2004 (Dominican Republic), Southwest only started flying internationally as a result of acquiring AirTran, which was not fully integrated until 2014 and its expansion into the Caribbean and Latin American markets was mired by obstacles. Regarding its strong commitment to U.S.-Cuba air service, Southwest is the only applicant seeking frequencies for passenger service that has not established a ticket office in Cuba. Nor has Southwest referenced any other efforts it made (if there were any) to expand its infrastructure or operation in Havana or elsewhere in Cuba. As highlighted in JetBlue s application, ticket offices are typically the most convenient and preferred way for customers to make their reservations in Cuba, as most Cubans are unable to book tickets online due to extremely limited internet access and financial restrictions that prevent them from owning credit cards and transacting for goods or services on-line. Ticket offices serve to further enhance the ability of an airline to cater to the Cuban population and drive demand for POS-Cuba travel. As explained above, American saw a significant uptick in sales and load factors after opening a ticket office, and JetBlue expects to see analogous results. The fact that Southwest does not have a ticket office, nor any discernable plans to open one, calls into question its commitment to the market, whether it will ever realize a similar increase in its load factors in order to keep up with its competitors, and whether an award of additional Havana frequencies to Southwest is warranted. The Department should similarly not be swayed by Southwest s fare argument. The public fare data Southwest cites are merely a distillation of the actual paid fares. Selecting arbitrary days out, arbitrary fare classes (e.g., lowest available ) and arbitrary travel dates is cherry-picking and does not present a reliable data set for the Department to evaluate. Moreover, different airlines 15

17 have different inventory rules, and tickets may be booked ahead or behind the booking curve of a competitor. 23 As convincing as Southwest tries to be, public display fares are not in fact the full fare and are not an appropriate snapshot of the actual fares charged to consumers. Southwest also argues that, in addition to the fare, ancillary charges should be considered. These vary greatly depending on both the carrier and the customer and Southwest s assumptions about its competitors ancillary and bag fees are speculative at best. For example, Southwest Exhibit WN-102 assumes a $10.73 cost (on top of the fare) for JetBlue, but just $0.36 for Southwest. 24 JetBlue wonders how its customers pay nearly 30 times as much for ancillary fees as compared to Southwest, especially considering that JetBlue offers a litany of free drinks and snacks, reserved seat selections, and free hi-speed Wi-Fi and 100 channels of DirecTV and XM radio where available (and that s not peanuts ). JetBlue questions whether this is another instance of cherry-picking, whereby Southwest only chose to add in certain ancillary fees and cautions the Department to review these statistics with that possibility in mind. Moreover, while it is true Southwest does not charge for bags, it limits passengers to just two checked bags, and does not allow boxes to be shipped. JetBlue, on the other hand, allows passengers to check three bags and also to transport boxes. The ability to transport significant amounts of baggage is critical for Cuba passengers, as many bring back goods that are not available to Cuban consumers living on the island. JetBlue is clearly the preferred carrier from Fort Lauderdale. As noted below, it eclipses Southwest in metrics for seats per departure, passengers per departure, and load factor. 23 For example, Southwest could be open to a certain fare class while JetBlue could be open to another, simply based on each carrier s respective strategy for the market. 24 See Exhibit WN-102. Southwest notes that the fares shown in Exhibit WN-102 include average checked baggage and reservation change fees paid per passenger as derived from DOT Form 41 data. Southwest believes American charges $12.13 and Delta charges $

18 FLL - HAV Seats and Passengers per Departure (Dec Feb 2017) B6 WN Seats/Departure Pax/Departure FLL - HAV Load Factors (Dec Feb 2017) 72.6% B6 WN 62.3% LF Finally, Southwest notes that it offers 78 daily non-stop departures from FLL to 31 U.S. cities, and that the proposed FLL-HAV flight will connect to just 23 airports. 25 JetBlue, on the other hand, is the largest carrier at Fort Lauderdale/Hollywood International Airport (FLL). Its 25 See Application of Southwest at 4. 17

19 service proposal will provide for connectivity to 43 domestic cities, or 87 percent more than Southwest. This is largely because JetBlue currently operates up to 113 flights a day from this important focus city (up from 96 at the time of JetBlue s 2016 application, and significantly more than Southwest). Moreover, JetBlue is planning to continue this trend and will operate up to 140 flights per day from FLL in the coming years. It is clear from the above that JetBlue s proposal for six additional frequencies to serve the Fort Lauderdale-Havana market would offer many greater public benefits than that of Southwest, including more connections, a better product (i.e., more legroom in coach, free drinks and snacks, etc.) and JetBlue s award-winning customer service. Consequently, if the Department ultimately determines to maintain, at least in part, the competitive dynamic so thoughtfully calculated in its initial allocation of Havana frequencies (i.e., split between Miami and Fort Lauderdale) the public interest benefits offered by JetBlue mandate an award of the six additional FLL-HAV frequencies it has requested in this proceeding. C. There is no justification for United s request of additional Houston frequencies, and its request to substitute Mesa aircraft is contrary to Department precedent JetBlue appreciates the reasonable approach United has taken in this proceeding, applying for six weekly frequencies to enable it to expand its existing Saturday-only Houston-Havana service to daily service. Additionally, Mesa seeks exemption authority that would allow it to operate United s Houston-Havana service as a United Express carrier. Mesa and United, citing a need for operational flexibility, similarly request that Mesa be permitted to operate United s existing Saturday-only frequency with its 76-seat Embraer E175 aircraft. This would represent a reduction of more than 50% from the seating capacity of United s Boeing B aircraft which 18

20 are currently used on the route and which offer 154 seats and would be a terrible use of an extremely scarce, unique and highly-demanded public resource. In its application United correctly concedes that the South Florida-Havana market is deserving of additional frequencies, but also cites the need to allocate a portion of the available frequencies to destinations outside of South Florida. It argues that Houston is a deserving candidate as it is the only potential recipient of frequencies that is not on the east coast. However, the traveling public in Houston already have direct access to Havana and United s service to date, by its own admission, only has been moderately successful. JetBlue questions whether passenger demand from Houston truly justifies an allocation of precious frequencies to fund United s daily Houston-Havana service, and whether United s experience in the market supports an award of more frequencies. United itself seems ambivalent as well, stating that its current Saturday-only service continues to develop and shows strong enough demand to support an expansion from Saturday-only to daily service using appropriately sized capacity that Mesa s 76-seat [aircraft] offer. 26 United similarly references its limited experience operating scheduled service in the Havana market 27 and how the market is taking some time to develop and is subject to fluctuating demand. 28 United then cites decisions by several applicants to down-gauge aircraft in certain markets based on operational needs and uses this as justification for its own decision to reduce seat capacity, by more than 50%, between Houston and Havana. 26 See Joint Application of United Airlines, Inc. and Mesa Airlines, Inc. for a Frequency Allocation and Exemption, at 7, September 12, 2017, Docket DOT-OST In fact, United has scheduled just 674 commercial flights between the United States and Cuba as of the date of this filing, as compared to 4,232 scheduled commercial flights by JetBlue. Note: these figures do not take into account cancellations for operational reasons or otherwise, nor do they include charter flights. 28 See Application of United/Mesa, at

21 United s us too approach with respect to down-gauging is concerning. Under United s proposal, frequencies specifically allocated to United in the prior proceeding and the frequencies it seeks herein would be operated by an entirely different carrier. In Order , the Department stated that this proceeding will also consider whether, as to any Houston-Havana frequencies currently held by, or awarded in this proceeding to United, the public interest calls for approving the request of United and Mesa for operational flexibility to use United aircraft or Mesa s aircraft, as conditions warrant. 29 JetBlue raised questions as to whether United and Mesa s request and intended operation was procedurally allowable, 30 and finds it interesting that United and Mesa chose not to substantively respond to the issues raised by JetBlue, but instead elected to parrot back previously vague explanations and clarifications as to why the Mesa operation is justified in a footnote. JetBlue appreciates the Department s openness to evaluate the unprecedented and procedurally inappropriate joint request by United and Mesa for operational flexibility to operate Houston-Havana frequencies that are specifically awarded to United in a contested route proceeding. Allowing two separate carriers to share a frequency as conditions warrant - no matter how United and Mesa deem to define it - conflicts with years of Departmental licensing precedent, 31 both in this docket 32 and elsewhere, 33 and should not be permitted here. 29 See Order , at See Reply and Consolidated Answer of JetBlue Airways Corporation, May 16, 2017, Docket DOT-OST DOT treats airlines as distinct entities for licensing purposes. For instance, while it is well established Mesa and United have a close relationship and Mesa operates numerous routes on behalf of United via capacity purchase agreements, Mesa nevertheless holds its own Open-Skies Certificate (See Order ). 32 As noted in JetBlue s Reply and Consolidated Answer, American s Regional partner Republic applied for and received separate exemption authority and frequencies before serving Cinefuegos and Camaguey. In fact, United referenced this in its own application but failed to note the distinction that before operating the route, Republic obtained its own frequencies as opposed to piggy-backing on those specifically allocated to American. 33 See, e.g., Docket DOT-OST (requiring regional carriers to obtain separate designations from mainline affiliates before serving points in Mexico). 20

22 In justifying the intended operation, United and Mesa state that United will hold the awarded Houston-Havana frequencies and market the service; Mesa will operate these flights using United s frequencies. They also assert that such an arrangement is permitted because the Memorandum of Understanding between the United States and the Republic of Cuba permits cooperative marketing arrangements between airlines of the same country. The Department should not be persuaded by these statements. 34 The 2016 U.S.-Cuba Frequency Allocation Proceeding was clearly intended to be carrier specific, in accordance with past Departmental precedent. If Mesa was interested in operating to Havana, it should have applied for a frequency then. The fact that United apparently cannot fill a mainline Boeing B737 from Houston is not justification to de facto transfer the frequency to an entirely different airline that does not hold a frequency to operate the route. Nor would such an action be permitted by Department precedent. Moreover, while JetBlue agrees with United and Mesa s reading of the MOU with respect to cooperative marketing arrangements, it believes United and Mesa are mischaracterizing what that provision means in this particular market. 35 Notwithstanding the above, JetBlue agrees with United s position that the Department s public interest standards compel the selection of proposals that, in the aggregate, will maximize consumer benefits for a diverse array of passengers and communities and that the traveling public would best be served in this proceeding by DOT s allocation of frequencies to under-served and un-served cities such as Houston and Boston. However, JetBlue believes that because Houston 34 See Application of United and Mesa, at Carriers operating to a limited entry market like Cuba are subject to additional and sometimes market-specific restrictions, and JetBlue believes that Section 7 of the MOU must be analyzed in conjunction with Departmental awards of frequencies. While Section 7 would certainly allow United to place the code of another carrier on Houston- Havana flights for which it had been awarded frequencies (provided it obtained all required government approvals), it would not be appropriate for an entirely different carrier to operate those flights unless that airline held its own frequency to do so. Any attempt by United and Mesa to do so would violate Departmental precedent and be contrary to the public interest. 21

23 already has service, Boston is a more deserving city to receive a frequency in this proceeding. Actual demand from Houston is questionable at best, given United s own statements and the fact that it is seeking to cut capacity by more than 50% to allow for operational flexibility. JetBlue is proposing to offer more appropriately-sized aircraft to a city that originally sought service in 2016 and has tremendous support from its educational, scientific, healthcare, and business communities (as well as local, state and federal officials), all of which will generate tangible demand under the current travel restrictions or any new restrictions that may be imposed by the Administration. The U.S.-Cuba market, with its frequency limitations, OFAC travel ban, and infrastructure challenges, is a difficult environment to operate in, as evidenced by the departure of Spirit and Frontier, and clearly is not a good match with Houston. For the reasons noted above, JetBlue believes that its service proposal would result in greater public benefits as compared to United s request for additional frequencies between Houston and Havana. D. Delta s proposal would generate fewer public benefits than JetBlue s Delta has proposed to add one additional daily frequency to serve Havana from Miami. JetBlue agrees with Delta s position that DOT should maintain the geographic distribution of scheduled air service that it established in the 2016 U.S.-Cuba Frequency Allocation Proceeding, and that it is important to promote additional, competitive service in South Florida to discipline American s virtual monopoly at MIA. However, for the reasons stated below, JetBlue believes its proposed additional service from FLL would better promote the public interest and Delta s proposal should therefore be rejected. As described more fully above, MIA is not a better alternative for the traveling public than FLL and load factors over the first several months of service are not necessarily indicative of long- 22

24 term needs in a new and evolving market, especially when one considers the increase in loads JetBlue expects to see now that it has established a ticket office in Havana like Delta and American. Delta is also not the only carrier that can offer meaningful competition to American at MIA. To the contrary, awarding additional frequencies to another legacy carrier for service from Miami hardly represents competition. Rather, it would support and strengthen the duopoly that currently exists at MIA to the detriment of the traveling public. 36 Awarding additional South Florida frequencies to a low-cost carrier like JetBlue for service from FLL would provide more public benefits and lower fares for the U.S.-Cuba traveling public than an award to another legacy carrier from MIA (which would further exacerbate the competitive imbalance that is in place due to American s already dominant market position there). Moreover, Delta states that its proposed MIA-HAV route would open connections to traffic from 33 flights to the 12 U.S. destinations that Delta serves from MIA. 37 In contrast, JetBlue, is the largest carrier at FLL, from which it operates more than 110 flights per day. It is actively growing its presence at FLL and is invested in serving Cuba and the Caribbean as a whole. And, most importantly, its service proposal will provide for connectivity to 43 domestic cities which, together with its award-winning passenger experience and amenities, would allow for greater competition with American. Finally, JetBlue questions Delta s commitment to the Havana market. While it appears Delta has made investments to support its Havana service, JetBlue notes that Delta has reduced its scheduled service to this important destination from New York For example, before JetBlue entered the shuttle market from Boston to New York, American and Delta were competing with each other by charging walk-up fares of more than $400 each way. True competition came only when low fare competitor JetBlue launched its LGA-BOS shuttle. JetBlue s entry into the market fractured this duopoly, and the lowest walk-up fare was reduced by approximately 50%. The lowest 14-day advance purchase fare has been reduced along similar margins. 37 See Application of Delta Air Lines, Inc. at 8, September 12, 2017, DOT-OST See Application of JetBlue Airways Corporation at 6., September 12, 2017, DOT-OST

25 The Department has already determined that the public would benefit the most from a diversification of the allocation among a variety of carriers 39 and that, in order to maximize the public benefit, the public needs access to a wide array of travel choices including low-cost and ultra-low-cost carriers. 40 Delta has presented no evidence requiring the Department to deviate from this approach and, in fact, no such evidence exists contradicting the Department s original market analysis. As such, the Department should maintain the division of frequencies in its original proceeding between legacy and low cost carriers. The frequencies that are the subject of this proceeding were originally allocated to low cost carriers and should be reallocated to another low cost carrier in keeping with the Department s clearly-expressed intentions. JetBlue s proposal to add additional frequencies from Fort Lauderdale should be granted, as it would best meet the Department s objectives as compared to Delta s proposal, provide additional and meaningful lowcost competition to American, and drive greater benefits for the U.S.-Cuba traveling public. E. Granting FedEx s proposal would squander a valuable resource that could better be utilized by another applicant FedEx has applied for five weekly frequencies to serve Havana from Miami (Monday- Friday). While JetBlue recognizes the reasonableness of FedEx s request, an award of additional frequencies to FedEx would be a waste of limited resources and would fall well short of the Department s goal to best utilize frequencies to Havana to maximize public benefit. FedEx s service proposal should therefore be rejected. FedEx s proposal must be examined in the context of its Cuba service to date. In the 2016 U.S.-Cuba Frequency Proceeding, FedEx applied for frequencies to operate five-times weekly 39 See Order , at See Order , at

26 service between Miami and Havana. 41 However, after reviewing the pleadings by other carriers in that proceeding, FedEx amended its application and applied for frequencies to serve Varadaro instead of Havana. 42 In doing so, FedEx argued that VRA as the base for its Cuba air operations would be the more optimal use of its resources under current Cuba marketplace conditions. 43 FedEx s request was fully supported by its fellow applicants and was granted by the Department. Unfortunately, FedEx has been unable to initiate this service to date, despite being granted authority to do so more than a year ago. And, as the Department is aware, FedEx recently requested an additional extension of the start-up date for its MIA-VRA air services, citing an inability to establish the requisite Cuban commercial partnerships in VRA. 44 Having failed to implement cargo service to VRA after more than a year of efforts, FedEx has turned its sights back on Havana, arguing that operating from HAV, the Cuban capital and a leading commercial location in the country, will provide the necessary certainty of access and commercial partnerships. 45 FedEx provides absolutely no factual support for this assertion and no explanation of what has changed since its original analysis of Cuban marketplace conditions led it to believe that that MIA-VRA service (over MIA-HAV service) was the most optimal use of its resources. Second, FedEx s proposal is emblematic of its overall ambivalence towards the Cuban market. FedEx asserts that it will use a Cessna 208 as the preferred aircraft for its proposed service. This aircraft is the smallest available in FedEx s fleet and offers only a fraction of the capacity of the vast majority of FedEx s aircraft. For example, FedEx s Cessna 208B has a capacity to 41 See Application of Federal Express Corporation for Exemption and Frequency Allocation U.S.-Cuba, March 2, 2016, DOT-OST See Motion of Federal Express for Leave to File Amendment to Application, June 16, 2016, DOT-OST Id. 44 See Motion of Federal Express Corporation for Additional Extension of Start-Up Date, September 7, 2017, DOT- OST Id. 25

27 internally transport just 340 cubic feet of cargo. 46 In contrast, a Boeing F, which is typically used by FedEx in limited demand markets and was the aircraft FedEx originally intended to operate to Havana, has a ULD volume of 6,600 cubic feet, 47 or nearly twenty times as much as the Cessna 208B. FedEx s proposed service to be operated by a Cessna 208B, which is smaller than a delivery truck. 46 Cessna 208B Grand Caravan, available at (last visited Sep. 16, 2017) F, BOEING.COM, available at (last visited Sep. 16, 2017). In fact, the Boeing F has an additional 1830 cubic feet of cargo capacity in its lower cargo hold. Id. 26

28 FedEx s choice of aircraft and repeated requests to delay Cuba service illustrates a lack of confidence in its ability to develop and maintain a profitable service between the U.S. and Cuba. Unlike competitors such as JetBlue, which has a robust and successful history operating to Cuba and has committed substantial resources and investments in the market, FedEx has provided no evidence why its service proposal would succeed, especially when one considers its history in the market. An award of frequencies to FedEx under these circumstances is unjustifiable and would not promote the public interest. III. Conclusion As demonstrated above, JetBlue s application is the superior choice to maximize public benefits for the U.S.-Havana traveling public. Its request for 21 frequencies to operate additional service to Havana from Fort Lauderdale, Boston, Newark, and New York should be granted in full. Respectfully submitted, Dated September 19, 2017 Robert C. Land Senior Vice President of Government Affairs & Associate General Counsel 27

29 CONSOLIDATED ANSWER OF JETBLUE AIRWAYS CORPORATION DOT DOCKET DOT-OST Docket DOT-OST B6-ANS-100

30 Proposed Service: Overview US Origin Cuba Destination Daily Frequency FLL Fort Lauderdale/Hollywood FL 1 HAV Havana 6x Weekly(X-Sat) BOS Boston HAV Havana 1x Weekly (Sat Only) EWR Newark 2 HAV Havana 1x Daily JFK New York 2 HAV Havana 1x Daily Total: 3 JetBlue intends to fly 3 additional, daily frequencies to Havana from three origins: A split slot between FLL (Sun-Fri) and BOS (Sat only) plus daily service from EWR and a second daily JFK frequency. 1 Also serving the greater Miami/West Palm Beach metro area 2 Also serving the greater New York metro area Docket DOT-OST B6-ANS-101 2

31 Proposed New Service Schedules Flt # Day of Week Dep Statio n Dep Time Arv Statio n Arv time Equip Flt # Dep Statio n Dep Time Arv Statio n Arv time Equip 113 Sat BOS 11:15 HAV 15: HAV 16:45 HAV 20: All (X Sat) FLL 15:15 HAV 16: HAV 17:55 FLL 19: All EWR 12:32 HAV 16: HAV 17:25 EWR 21: All JFK 13:46 HAV 17: HAV 18:55 JFK 22: Other US Carriers: 9k, 3M, F9 &G4 NW, CO, FL and US data is represented as DL, UA, WN and AA respectively Docket DOT-OST B6-ANS-102 3

32 Flight Schedule: BOS HAV (New Service) Boston, Massachusetts (BOS) Havana, Cuba (HAV) Non-Stop Service (Year Round) B6 113 Saturday A320 Effective March 17 th, 2018 Flight Number Frequency Equipment B6 114 Saturday A320 11:15 Boston (BOS) 16:45 15:30 4:15 Havana (HAV) Elapsed Time 20:23 3:38 Docket DOT-OST B6-ANS-103 4

33 Flight Schedule: FLL HAV (New Service) Fort Lauderdale, Florida (FLL) Havana, Cuba (HAV) Non-Stop Service (Year Round) B Sunday - Friday A320 Effective March 15 th, 2018 Flight Number Frequency Equipment B Sunday - Friday A320 15:15 Fort Lauderdale (FLL) 17:55 16:40 1:25 Havana (HAV) Elapsed Time 19:12 1:17 Docket DOT-OST B6-ANS-104 5

34 Flight Schedule: EWR HAV (New Service) Newark, New Jersey (EWR) Havana, Cuba (HAV) Non-Stop Service (Year Round) B Daily A320 Effective March 15 th, 2018 Flight Number Frequency Equipment B Daily A320 12:32 Newark (EWR) 17:25 16:10 3:38 Havana (HAV) Elapsed Time 21:00 3:35 Docket DOT-OST B6-ANS-105 6

35 Flight Schedule: JFK HAV (New Service) New York, New York (JFK) Havana, Cuba (HAV) Non-Stop Service (Year Round) Effective March 15 th, 2018 B6 443 Daily A320 Flight Number Frequency Equipment B6 442 Daily A320 13:46 New York (JFK) 18:55 17:40 3:54 Havana (HAV) Elapsed Time 22:12 3:17 Docket DOT-OST B6-ANS-106 7

36 On per departure basis, B6 FLL-HAV service outperformed all other U.S. - HAV routes Highest number of passengers per flight U.S. - HAV Pax per Departure Dec Feb B6 - FLL B6 - JFK AA - MIA DL - MIA WN - TPA UA - EWR B6 - MCO WN - FLL AS - LAX UA - IAH B6 - BOS DL - JFK DL - ATL AA - CLT Source: U.S. DOT T-100 data via Diio Mi (December February 2017). Docket DOT-OST B6-ANS-107 8

37 U.S. - HAV Seats and Passengers per Departure U.S. - HAV Seats and Passengers per Departure (Dec Feb 2017) Seats per Departure Pax per Departure MIA EWR FLL TPA JFK ATL IAH LAX MCO CLT Source: U.S. DOT T-100 data via Diio Mi (December February 2017). Docket DOT-OST B6-ANS-108 9

38 South Florida HAV Pax per Departure South Florida - HAV Passengers per Departure (Dec Feb 2017) FLL MIA FLL MIA Source: U.S. DOT T-100 data via Diio Mi (December February 2017). Docket DOT-OST B6-ANS

39 JetBlue enjoys better Load Factors & Seats and Passenger per Departure as compared to Southwest FLL - HAV Seats and Passengers per Departure (Dec Feb 2017) B6 WN FLL - HAV Load Factors (Dec Feb 2017) B6 WN % % Seats/Departure Pax/Departure LF Source: U.S. DOT T-100 data via Diio Mi (December February 2017). Docket DOT-OST B6-ANS

40 JetBlue has higher load factors than Southwest FLL-Cuba Load Factor (bi-directional total) DOT T-100 JetBlue Southwest HAV SNU Source: U.S. DOT T-100 data via Diio Mi (December February 2017). Docket DOT-OST B6-ANS

41 JetBlue has more seats/flight than Southwest Southwest seats JetBlue A320 (today) 150 seats JetBlue A320 (future) 162 seats Docket DOT-OST B6-ANS

42 UA daily IAH-HAV service proposal is a 51% seat per departure reduction from the current B738 weekly service Seats per Departure B E175 Docket DOT-OST B6-ANS

43 Embraer 175 (Mesa/United) Airbus A320 (JetBlue) Source: Docket DOT-OST B6-ANS

44 United IAH Caribbean Network (10 destinations) Docket DOT-OST B6-ANS

45 JetBlue FLL Caribbean Network (16 destinations) Docket DOT-OST B6-ANS

46 FedEx has applied to use its smallest aircraft Gross Max Structural Payload (Lbs/Aircraft) Requested aircraft for Cuba service Boeing 777F Boeing MD11 Boeing MD10-30 Boeing MD10-10 Boeing 767F Airbus A Airbus A /300 Boeing Boeing ATR-72 ATR-42 Cessna 208B Source: page 17 Docket DOT-OST B6-ANS

47 FedEx Cessna 208B Docket DOT-OST B6-ANS

48 THE JETBLUE EXPERIENCE Docket DOT-OST B6-ANS-200

49 The JetBlue Experience Docket DOT-OST B6-ANS

50 Docket DOT-OST

51 Docket DOT-OST B6-ANS

52 A320 Configuration with new Seats Entire fleet undergoing cabin refresh beginning in 2017 and will have 162 Core seats A320 cargo capacity is 5,700-7,800 pounds in the winter and 6,100-8,600 pounds in the summer Docket DOT-OST B6-ANS

53 Docket DOT-OST B6-ANS

54 Docket DOT-OST B6-ANS

55 Docket DOT-OST B6-ANS

56 Docket DOT-OST B6-ANS

57 Docket DOT-OST B6-ANS

58 Docket DOT-OST B6-ANS

59 Recent Awards America s Best Employers 2017 Forbes Gold Award: The Best Airlines for Your Money in 2017 Time/Money Gold Sabre Award in Consumer Marketing (Existing Product) Sabre Awards North America The 10 Best Low-Cost Airlines in the World (#3) SkyTrax Top Mid-Size & Low Cost Airlines in North America TripAdvisor Best Airline for North American Travel (2016) Business Traveler Docket DOT-OST B6-ANS

60 Docket DOT-OST B6-ANS

61 Docket DOT-OST B6-ANS

62 JETBLUE IS COMMITTED TO THE CUBAN MARKET Docket DOT-OST B6-ANS-300

63 JetBlue Milestones in Cuba First airline to begin commercial service to Cuba in 50+ years with start of service to SNU on August 31, First airline to include the collection of the Cuba medical insurance fee at time of booking (see attached picture) & incorporated the sale of visas into the customer check-in flow at U.S. gateway airports JetBlue has opened 2 Ticket offices in Havana (See Pictures attached): Office #1: HAV Airport - Terminal 3 Office #2: Vedado (La Rampa) JetBlue continues to operate same frequencies & routes since start of commercial service Docket DOT-OST B6-ANS

64 JetBlue - First airline to include the collection of the Cuba medical insurance fee at time of booking & incorporated the sale of visas into the customer checkin flow at U.S. gateway airports Docket DOT-OST B6-ANS

65 Airport Ticketing Office #1 - Opening September 1 st, 2017 Docket DOT-OST B6-ANS

66 City Ticketing Office #2 - Opening September 1 st, 2017 Docket DOT-OST B6-ANS-304

67 HAV CTO & ATO Photos Docket DOT-OST B6-ANS