BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. 2016 U.S.-CUBA FREQUENCY Docket DOT- OST-2016-0021 ALLOCATION PROCEEDING CONSOLIDATED ANSWER OF FEDERAL EXPRESS CORPORATION AND APPLICATION FOR EXEMPTION AND FREQUENCY ALLOCATION Federal Express Corporation ( FedEx 1 hereby submits this consolidated Answer to the recent filings 2,3 of JetBlue, Delta, American, Southwest, and United in the above-captioned Department of Transportation ( the Department docket wherein those carriers seek award of additional U.S.-Havana, Cuba ( HAV daily frequencies ostensibly becoming available for reallocation by the Department after Spirit and Frontier cease their U.S.-HAV air services. 4 Given that this potentially available HAV frequency supply already outnumbers the carrier requests i.e., four carriers have collectively applied for allocation of the three daily HAV frequencies 5 currently held by Spirit and Frontier FedEx supports JetBlue s motion to institute a frequency 1 2 FedEx will use common carrier names throughout this filing. FedEx submits this consolidated Answer to the following carrier filings: Joint Answer and Application of United Airlines, Inc. and Mesa Airlines, Inc. for an Exemption and Frequency Re-Allocation, DOT-OST-2016-0021 (May 5, 2017; Consolidated Answer of JetBlue Airways Corporation and Motion to Institute a Frequency Allocation Proceeding, DOT-OST-2016-0021-1197 (May 2, 2017; Application of Southwest Airlines Co. for an Additional Daily Frequency, DOT-OST-2016-0021-1195 (April 25, 2017; Application of American Airlines, Inc. for an Allocation of Frequencies, DOT-OST-2016-0021-1192 (April 24, 2017; Motion and Application of Delta Airlines, DOT-OST-2016-0021-1191 (April 21, 2017; and Application of JetBlue Airways Corporation for an Exemption and Allocation of Frequencies, DOT-OST-2016-0021-1190 (April 20, 2017. 3 FedEx opposes the applications cited in footnote 2, to the extent that they would prevent consideration of FedEx s requests herein regarding a U.S.-HAV frequency allocation and accompanying exemption authority. To the extent required, FedEx requests leave to late file this pleading. 4 See, e.g., http://www.sun-sentinel.com/business/fl-bz-spirit-nixes-lauderdale-havana-route-20170414- story.html; and http://www.bizjournals.com/denver/news/2017/03/13/frontier-airlines-ends-its-flights-to-cuba.html 5 See Order 2016-8-38, at 13-14, DOT-OST-2016-0021(Served August 31, 2016. 1

allocation proceeding for the Department s adjudication of this matter. 6 In fact, and as further described herein, FedEx hereby submits its application for allocation of a single daily scheduled frequency to operate all-cargo service between Miami, Florida (MIA and HAV and for the necessary exemption authority for this MIA-HAV air service. FedEx, however, would respectfully note that a U.S.-HAV frequency allocation proceeding regarding the HAV frequencies currently held by Spirit and Frontier would be premature if it occurred before Spirit and Frontier either formally surrendered their HAV frequencies or the 90-day dormancy period for those frequencies had elapsed. Until one of these events occurs, there are actually no available HAV frequencies to re-allocate. Moreover, with respect to the 90-day dormancy condition attached to these frequencies, it is not a foregone conclusion that the required timeframe will have run for the HAV frequencies at-issue by the time of the Fall 2017 service start dates proposed in the other carriers HAV frequency applications. Accordingly, FedEx would respectfully request that any frequency allocation proceeding instituted in this matter not occur until the HAV frequencies currently held by Spirit and Frontier in fact are available for re-allocation. And, at that appropriate time, FedEx looks forward to demonstrating how, as the only U.S. all-cargo carrier participant in the overall U.S.-Cuba Frequency Allocation Proceeding, granting FedEx s HAV frequency request would maximize the public benefit for U.S. shippers and U.S. commerce overall. Notwithstanding the foregoing, and to the extent required at this juncture, FedEx submits its application both for allocation of a single daily scheduled frequency to operate all-cargo service between MIA and HAV and for exemption authority under 49 U.S.C. 40109, as more fully set forth below. In support of its application and in accordance with 14 C.F.R. 302.303, 6 Consolidated Answer of JetBlue Airways Corporation and Motion to Institute a Frequency Allocation Proceeding, DOT-OST-2016-0021-1197 (May 2, 2017. 2

the Department s Order Instituting Proceeding and Inviting Applications 7, and the MOU, FedEx states as follows: 1. FedEx is a Delaware corporation with its principal place of business and mailing address at 3610 Hacks Cross Road, Memphis Tennessee 38125. FedEx holds certificates of public convenience and necessity authorizing it to engage in domestic and foreign allcargo air transportation. 2. Pursuant to 49 U.S.C. 40109, FedEx is seeking an exemption from 49 U.S.C. 41101, effective January 1, 2018 and for an indefinite period (or no less than two years if the grants are time-limited, to engage in scheduled transportation of property and mail between MIA and HAV to the full extent permitted by the MOU. 3. FedEx is a citizen of the United States and is fit, willing, and able to provide the requested services as required by 49 USC 41102(b(1. 8 FedEx s president and over two thirds of its board of directors and other managing officers are citizens of the United States, and over seventy-five percent of its voting rights are in the hands of U.S. citizens. 4. FedEx does not operate any charter services to or from any point in Cuba, nor has it done so in the past. 5. FedEx is seeking allocation of one daily (Monday-Friday scheduled frequency to operate all-cargo service between MIA and HAV. FedEx is seeking an allocation of a single daily frequency. 6. A Cessna 208 will be the aircraft utilized for FedEx s proposed service. 7 8 Order 2016-2-12, DOT-OST-2016-0021(Served February 16, 2016. Pursuant to 14 C.F.R. 302.24(g, FedEx requests that the Department take official notice of the extensive record with the Department establishing FedEx s fitness to operate under the requested authority. See e.g. Order 2014-4-12 (U.S.-China; and Order 2013-7-7 (U.S.-Mexico. 3

7. FedEx specifically reserves the right to supplement its application with further information related to its proposed MIA-HAV all-cargo service, including detailed schedule, equipment type, and fuel burn information, as necessary and in accordance with the requirements of the Department s instituting order for this matter and standard Department practice. In conclusion, FedEx respectfully requests that the Department accept FedEx s application for allocation of a single daily scheduled frequency to operate all-cargo service (Monday-Friday between MIA and HAV and for exemption authority relating thereto, that the Department institute a frequency allocation proceeding for this matter at the appropriate time when there are HAV frequencies actually available for re-allocation and include FedEx s application 9 in said proceeding, and that the Department grant any such further relief deemed warranted. Dated: May 5, 2017 Respectfully submitted, /s/ Courtney E. Felts Courtney E. Felts Senior Counsel 9 See also, paragraph 7, above. 4

CERTIFICATE OF SERVICE I hereby certify that on May 5, 2017, a copy of the foregoing Consolidated Answer of Federal Express Corporation and Application for Exemption and Frequency Allocation was served upon the following persons via email: Robert Wirick Howard Kass American Airlines, Inc. robert.wirick@aa.com howard.kass@aa.com Daniel Weiss Steve Morrissey United Airlines, Inc. dan.weiss@united.com steve.morrissey@united.com Evelyn Sahr Drew Derco Counsel for JetBlue esahr@eckertseamans.com dderco@eckertseamans.com Eric Levenhagen Karen Erazo Sun Country eric.levenhagen@suncountry.com karen.erazo@suncountry.com Bob Kneisley Leslie Abbott Southwest Airlines bob.kneisley@wnco.com leslie.abbott@wnco.com Patrick Rizzi Robert Cohn Counsel for Frontier Airlines, Inc. patrick.rizzi@hoganlovells.com robert.cohn@hoganlovells.com David Heffernan Jeremy Ross Alaska Airlines dheffernan@cozen.com jeremy.ross@alaskaair.com Alex Krulic Chris Walker Delta Air Lines, Inc. alex.krulic@delta.com chris.walker@delta.com Joanne Young David Kirstein Counsel for Spirit Airlines jyoung@yklaw.com dkirstein@yklaw.com Sami Teittinen Jason Bewley Silver Airways sami.teittinen@silverairways.com jason.bewley@silverairways.com Emilio T. Gonzalez Miami-Dade International Airport Aviation Department ETGonzalez@miami-airport.com Havana Jose Marti International Airport Aeropuerto Internacional Jose Marti Avenida Nguyen Van Troi, Boyeros La Habana, Cuba aijm@hav.ecasa.avianet.cu Thomas S. Engle Deputy Assistant Secretary for Transportation Affairs U.S. Department of State englets@state.gov Brian Hedberg Brett Kruger Office of International Aviation U.S. Department of Transportation brian.hedberg@dot.gov brett.kruger@dot.gov Eugene Alford Senior International Trade Specialist International Trade Administration U.S. Department of Commerce Eugene.Alford@trade.gov /s/ Courtney E. Felts 5