BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of MN Airlines, LLC d/b/a SUN COUNTRY AIRLINES For Removal of Fleet Restriction from its Certificate of Public Convenience and Necessity Docket OST - May 20, 2013 APPLICATION OFMN AIRLINES LLC, D/B/A SUN COUNTRY AIRLINES FOR REMOVAL OF FLEET RESTRICTION FROM ITS CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY MN Airlines, LLC dba Sun Country Airlines ("Sun Country") was issued its Certificate of Public Convenience and Necessity on May 14, 2002 by Order 2002-5-12. Order 2002-5-12 set a fleet number restriction on Sun Country. By letter dated August 31, 2012, the Department of Transportation (the "Department") updated the restriction on the size of Sun Country's fleet at eighteen aircraft. Sun Country hereby requests that the Department remove said restriction contained in Order 2002-5-12 issuing its Certificate of Public Convenience and Necessity so that Sun Country can proceed with an orderly growth of the airline. Sun Country will operate seventeen Boeing 737 new generation aircraft this year, and it expects to operate at least nineteen leased aircraft by next year. Present business plans provide for conservative additional growth of at least two aircraft per year for the next three years. The Department recently concluded in its fitness review following Sun Country's change in ownership to the current ownership that Sun Country remained fit and a V.S. citizen. As stated in Sun Country's correspondence to the Department, dated June 8, 2012, since the Department first imposed fleet size restrictions on the airline in 2002, Sun Country has consistently demonstrated its ability to operate safe and reliable airline service. Its economic fitness has been closely scrutinized during two ownership changes, as well as the bankruptcy filing in 2008 caused by the sudden and unexpected collapse of the holding company that owned the airline. Sun Country has continued to provide its customers with uninterrupted quality airline service during all of these changes. Sun Country has achieved qualification as an international carrier from the V.S. Transportation Command, after an extensive review by the Department of Defense. The new owners, the Davis family of Minnesota, were found to meet all of the Department's criteria for ownership in the review conducted in 2011. Further, Sun Country has demonstrated the ability to generate all of its operating cash needs through internal operations since 2008, and is forecast to continue to do so in the immediate future. Sun Country has operated a safe and reliable airline for its customers since its inception in 2002 and has 2
maintained a flawless record of service to its customers by having no interruptions during this time. RESPONSES TO INFORMATION REQUESTED IN 14 CFR 204.3: 14 CFR 204.3 (I) List of all actions or outstanding judgments in excess of $5,000 There have been no actions or judgments against Sun Country, its key personnel, owners and other relevant corporations in excess of $5,000. 14 CFR 204.3 (m) List of all actions or outstanding judgments less than $5,000 There have been no actions or judgments against Sun Country, its key personnel, owners and other relevant corporations less than $5,000. 14 CFR 204.3 (n) Fleet Sun Country operates 17 aircraft under leases. See attached Fleet Schedule. 14 CFR 204.3 (0) Compliance There is currently one compliance matter involving Sun Country pending with the FAA Regional Counsel's office. FAA alleges that Sun Country did not follow the approved Sun Country Exit Row Seat Program (Ops Spec A022) for a flight on March 13, 2013. Except as stated herein, there are no other compliance matters involving Sun Country, its key personnel, owners and other relevant corporations. 14 CFR 204.3 (P) Unfair or Deceptive Business Practices No owner of MN Airlines, LLC or its parent companies have been charged with unfair or deceptive or anticompetitive business practices, or with fraud, felony or antitrust violations in the last 10 years. 14 CFR 204.3 (q) Accidents or Incidents There have been no accidents or incidents involving Sun Country aircraft during the last ten years. ADDITIONAL EXHIBITS IN SUPPORT OF APPLICATION: 1. Audited financial statements for 2011 and 2012 and 2. Unaudited current financial statements. Snmmary and Request Sun Country has demonstrated the ability to operate safely, reliably and in the best interest of the traveling public for more than ten years since its initial fitness detennination in 2002. It can no 3