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

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BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. ) ) SLOT ASSIGNMENT PHASE OF THE ) Docket DOT-OST-2015-0070 DELTA AEROMEXICO ATI PROCEEDING ) ) ) APPLICATION OF SOUTHWEST AIRLINES CO. FOR MEX SLOTS Communications with respect to this document should be sent to: Mark Shaw Robert W. Kneisley Senior Vice President General Associate General Counsel Counsel and Corporate Secretary Leslie C. Abbott SOUTHWEST AIRLINES CO. Senior Attorney 2702 Love Field Drive SOUTHWEST AIRLINES CO. Dallas, TX 75235-1611 919 18th Street, N.W., Suite 600 Washington, D.C. 20006 Andrew Watterson bob.kneisley@wnco.com Senior Vice President, leslie.abbott@wnco.com Chief Revenue Officer (202) 263-6284 SOUTHWEST AIRLINES CO. 2702 Love Field Drive Dallas, TX 75235-1611 January 23, 2017

TABLE OF CONTENTS I. Southwest s Proposed MEX Service Will Benefit Consumers by Providing New, Low-Fare Competition with Delta/Aeromexico in Three Key U.S. MEX Markets... 3 II. Southwest s Proposed HOU-MEX Schedule Will Compete Directly with DL/AM and United, Reduce Fares, and Create Additional Travel Options... 7 III. Southwest s Proposed New FLL-MEX Service Will Benefit Consumers by Reducing Fares and Increasing Passenger Traffic... 9 IV. Southwest s LAX-MEX Flight Will Reduce Fares and Increase Passengers by Providing the Only U.S. LCC Competition in this Important Market... 11 V. On Average, Southwest s Proposed New U.S. MEX Services Will Reduce Fares 19% and Increase Passengers 33%... 12 CERTIFICATE OF SERVICE DL-AM SLOT REQUEST FORM (Excel Spreadsheet) EXHIBITS APPENDICES

BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. ) ) SLOT ASSIGNMENT PHASE OF THE ) Docket DOT-OST-2015-0070 DELTA AEROMEXICO ATI PROCEEDING ) ) ) APPLICATION OF SOUTHWEST AIRLINES CO. FOR MEX SLOTS On January 6, 2017, the Department of Transportation issued Order 2017-1-6 (Instituting Order) establishing the Slot Assignment Phase of the Delta-Aeromexico ATI Proceeding to allocate 24 slot pairs at Mexico City s Benito Juarez International Airport (MEX) and four slot pairs at John F. Kennedy International Airport (JFK) being divested by Delta and Aeromexico (the Joint Applicants). 1 Consistent with the terms of DOT s Final Order in the ATI Proceeding (Order 2016-12-13, issued December 14, 2016), the Instituting Order in this proceeding invites applications from eligible carriers, including Southwest, to utilize the divested slots. The Instituting Order states that the Department intends to allocate the slots in a manner that provide[s] the maximum competitive benefits possible from new (preferably daily) services to/from JFK and MEX, taking into account a carrier s ability to exercise competitive discipline by: Serving a monopoly and/or nonstop overlap route, including JFK-MEX; Providing network benefits, including behind/beyond connections, as well as service to communities without existing nonstop service to the slot-controlled airport; and/or 1 Common names of carriers are used herein. 1

Enhancing the quality of competition, such as by offering additional frequencies in major markets or introducing the benefits of new business models. 2 Consistent with these criteria, Southwest hereby applies for the following four (4) MEX slot pairs, in the order of preference shown below (see Exhibit WN-1 and attached DL-AM Slot Request Excel Spreadsheet): One daily slot pair for Houston (Hobby) Mexico City (HOU-MEX-HOU) o HOU to MEX (2050 arrival), MEX to HOU (0700 departure) One daily slot pair for Houston (Hobby) Mexico City (HOU-MEX-HOU) o HOU to MEX (1045 arrival), MEX to HOU (1140 departure) One daily slot pair for Fort Lauderdale Mexico City (FLL-MEX-FLL) o FLL to MEX (1245 arrival), MEX to FLL (1340 depature) One daily slot pair for Los Angeles Mexico City (LAX-MEX-LAX) o LAX to MEX (2200 arrival), MEX to LAX (0750 departure) Southwest requests that the two HOU-MEX slot pairs be awarded in Phase One of the proceeding and the FLL-MEX and LAX-MEX slot pairs be awarded in Phase Two. If either of the HOU-MEX slots are not awarded in Phase One, Southwest requests they be awarded in Phase Two. Southwest will operate all of its Mexico City service with 143-seat Boeing 737-700 aircraft and will operate all slots seven days-a-week, year round. The details of Southwest s proposal are summarized in the attached Excel spreadsheet and exhibits. Southwest is prepared to launch these new flights within 90 days of execution of signed 2 Instituting Order at 4. 2

slot transfer agreements for the slot pairs in question and any required Mexican regulatory approvals. As shown below, Southwest s proposed new U.S. - MEX services meet the Department s decisional criteria and will: (1) produce enormous consumer benefits by providing high-quality, low-fare service in direct competition with the Joint Applicants and other legacy carriers; (2) maximize the benefits of the slots by offering numerous convenient behind/beyond connections to communities without existing nonstop and/or LCC service to MEX; and (3) permanently enhance the quality of competition in the three MEX transborder markets by providing daily, year-round, large-jet service on the preeminent U.S. low cost carrier. I. Southwest s Proposed MEX Service Will Benefit Consumers by Providing New, Low-Fare Competition with Delta/Aeromexico in Three Key U.S. MEX Markets. Southwest s service proposal will provide new, strong low-fare competition with the Joint Applicants, and other legacy carriers, from three of the most important U.S. gateways to Mexico City. In fact, all three of Southwest s proposed markets are in the top five largest U.S. markets to/from MEX (Exhibit WN-2). As the Department stated in its Final Order: [T]he importance of access to Mexico City cannot be overstated. Approximately two-thirds of all domestic and one-third of all international passengers in Mexico have their origin or destination at MEX. The main contested issue in this proceeding has been the ability, or lack thereof, of new entrant carriers to access the important Mexico City market. The record contains substantial evidence that the Joint Applicants exert significant market power at MEX, control approximately 50% of MEX slots, and are able to use the MEX slot allocation system to their advantage by leveraging its non-standard rules to preclude competitive entry by other carriers (internal citations omitted). 3 3 Order 2016-12-13 at p. 3. 3

Southwest s experience in serving MEX is entirely consistent with the Department s findings in this proceeding. Currently, Southwest s only U.S. - MEX service is limited to a mere three daily roundtrips in the HOU-MEX market. Moreover, one of these slot pairs is not commercially viable, arriving in MEX at 11:30 pm, and departing MEX at 5:30 am. Despite repeated efforts, Southwest has been unsuccessful in acquiring slots at better times. So, effectively, Southwest has been able to provide only two viable daily flights to/from MEX. 4 Southwest s first priority is to use one of the two requested HOU-MEX slot pairs to replace the unmarketable 11:30 pm/5:30 am slot pair with more viable flight times, and add a fourth roundtrip in the market with the other requested HOU-MEX slot pair. Together, these new slot pairs will create an appealing schedule for business travelers and enable numerous behind/beyond connections to/from other U.S. cities in Southwest s extensive domestic network. Southwest s proposed FLL-MEX and LAX- MEX services will be new routes for the Company and will add a low-fare travel option and U.S. LCC competition in two key U.S. gateways, as well as tie into Southwest s extensive domestic networks in each location. Southwest s new flights will provide needed U.S. LCC competition to Delta/Aeromexico and other legacy carriers that currently dominate these important transborder markets. Southwest will integrate these flights into its comprehensive U.S. national and local business development plans, which include print, television and online marketing campaigns, Rapid Rewards frequent flyer outreach, customer engagement activities, 4 One of Southwest s current HOU - MEX flights was transferred to HOU from SAT, and the other was transferred from SNA, because Southwest was unable to obtain marketable slot times for Houston MEX service. 4

corporate sales development and inclusion in Southwest Vacations packages. The Company s unique value proposition, centered on its unique policy of no-hidden-fees and Transfarency in pricing, will continue to offer Southwest customers from both countries low fares, no reservation change fees and no fees for two checked bags. Southwest s current U.S. Mexico fares are a remarkable 39% below existing legacy carrier fares (Exhibit WN-3). Southwest s fares for its proposed new MEX services will similarly undercut Delta/Aeormexico and other legacy carrier fares, and stimulate new traffic as a result. Southwest retained the Campbell-Hill Aviation Group to provide a detailed traffic forecast for each of the three routes it proposes to serve using Campbell-Hill s standard econometric models. As summarized below, Campbell- Hill s traffic analysis and forecast methodology show that Southwest will achieve load factors averaging at least 83% in each market (Exhibit WN-4 and Appendix 2): Summary of Southwest s HOU, FLL and LAX - MEX Service Proposal LAX HOU FLL MEX Distance Aircraft Type Aircraft Seat Size WN Daily Round Trip Frequency WN Annual One-Way Flights WN Annual One-Way Seats WN Annual One-Way Passengers Passengers per Flight WN Load Factor HOU-MEX FLL-MEX LAX-MEX Total 742 1,289 1,553 B737-7 B737-7 B737-7 143 143 143 2 1 1 4 1,460 730 730 2,920 208,780 104,390 104,390 471,560 173,408 92,559 88,829 354,797 119 127 122 122 83% 89% 85% 85% See Exhibit WN-4 5

Moreover, Southwest s proposal will also offer numerous convenient connections to 50 other cities in Southwest s extensive domestic network behind the HOU, FLL, and LAX gateways, 5 many of which have no nonstop or low-fare service to MEX today: Southwest s Proposed Services at MEX Will Provide Nonstop or Nonstop-to-Nonstop Connecting Service to 50 Airports Across the U.S. SEA PDX RNO SMF OAK SFO SJC LAX LAS SNA SLC ABQ DEN MAF OMA MCI TUL OKC DAL STL MEM MDW IND BNA BHM ATL BUF BOS LGA PVD EWR PIT ISP BWI IAD PHL DCA RDU CLT CHS AUS SAT HOU MSY PNS ECP TPA MCO FLL Southwest s Proposed Service Covers 72% of all U.S. - MEX O&D Passengers Proposed Route Existing nonstop market See Exhibit WN-5 MEX SJU Campbell-Hill has also estimated the consumer benefits that will accrue to passengers in each of the three U.S. - MEX markets where Southwest proposes to add service. These benefits include estimated reductions in market fares, increases in passenger traffic, and annual fare savings to consumers. To be conservative, Campbell-Hill has not included any traffic stimulation or fare savings in the beyond gateway markets. A summary of these benefits is as follows: 5 For this purpose, Southwest considers only connecting markets within a 40% circuity limit and a four hour scheduled connection time. 6

Market MEX - Projected Reduction in One-Way Market Fare Projected Increase in Passengers After New Southwest Service Est. Annual Consumer Fare Savings (Millions) HOU/IAH $32 (21%) 155,852 +39% $12.9M FLL/MIA $46 (25%) 223,846 +45% $24.3M LAX $21 (10%) 92,936 +18% $10.3M Total/Average $35 (19%) 472,634 +33% $47.5M Source: Appendix 2, pages 2, 4, 6 and 9. See also Exhibit WN-20. As shown, the Southwest Effect of lowering fares and stimulating new passenger traffic in these markets will save consumers nearly $50 million annually by the grant to Southwest of just four MEX slot pairs. Southwest s service proposal will provide these enormous benefits to consumers by offering robust low-fare competition with the Joint Applicants as well as new LCC service that would not otherwise be possible between the U.S. and Mexico City. Southwest has the extensive network, financial strength, and corporate commitment to serve and grow these markets over the long-term. Its proposed service warrants the modest four MEX slot pairs it is requesting in this proceeding. II. Southwest s Proposed HOU-MEX Schedule Will Compete Directly with DL/AM and United, Reduce Fares, and Create Additional Travel Options. Southwest is requesting two slot pairs for HOU-MEX service. One slot pair will be used to add a fourth daily frequency, and one slot pair will replace a current, nonviable roundtrip flight that operates outside the slot controlled hours. As noted above, this trip arrives MEX at 11:30 pm, and returns from MEX at 5:30 am. 6 The new 6 These flights are outside the slot controlled hours and do not count as slots per se. 7

(replacement) flight will arrive at MEX from HOU at 8:50 pm, and leave MEX to return to HOU at 7:00 am (Exhibits WN-6 and WN-7). These times are vastly superior to the flight times that will be replaced, and will allow Southwest to introduce a new, commercially viable low-fare flight into the market. With the two additional HOU-MEX slot pairs that Southwest is requesting, Southwest will have an effective schedule for business travelers with flights spaced conveniently throughout the day (Exhibit WN-7). Having a schedule that appeals to business travelers will allow Southwest to compete with the immunized DL/AM alliance, which is also focused on attracting business passengers. Southwest s low-fare service will force DL/AM to respond by lowering their fares as well. In fact, with four marketable daily flights on this route, Southwest will match DL/AM s capacity (Exhibit WN-8), making Southwest a viable competitor and increasing its ability to place downward pressure on all legacy fares in the market. Because Southwest has provided service in the HOU-MEX market since 2014, data on its market impact is publicly available. In its initial entry in the HOU-MEX market, Southwest reduced average Houston (HOU/IAH) - MEX market fares by a stunning 43% and increased total passengers by 24% (Exhibit WN-9). Southwest will not only continue to exercise this level of market impact (via the Southwest Effect) but will be able to exert even greater competitive influence with a more marketable schedule. Furthermore, Southwest has a significant presence in HOU and with its two requested MEX slot pairs it will connect with 39 behind/beyond destinations in Southwest s domestic network, including cities such as Denver (DEN), Dallas (DAL) and 8

Kansas City (MCI) (Exhibit WN-10). 7 Allocation of two slot pairs for expanded and improved Southwest service between HOU and MEX will generate 155,852 additional one-way O&D passengers from HOU/IAH. In addition, two-thirds of Southwest s onboard passengers will be local and one-third will connect at HOU to at least 39 U.S. cities on the Southwest network (Exhibit WN-10 and Appendix 2, p. 2). Of all the eligible carrier applicants, only Southwest is able to leverage the limited MEX slot pairs to passengers in so many U.S. cities, thereby providing convenient, low-fare, online connections to a potential pool of millions of travelers. III. Southwest s Proposed New FLL-MEX Service Will Benefit Consumers by Reducing Fares and Increasing Passenger Traffic. Southwest operates more domestic seat capacity at FLL/MIA than any other sloteligible carrier (Exhibit WN-11). Southwest has built a major network at FLL consisting of 73 daily departures to 37 nonstop destinations (Exhibit WN-12). In fact, Southwest s FLL seat-capacity has increased by 39% during the past year, some of which is attributable to its three new routes to Cuba and its forthcoming new service to Cancun and Grand Cayman plus four other Caribbean markets (Exhibit WN-13). To this end, Southwest is nearing completion of a new five-gate FLL international terminal that will support its Latin American/Caribbean gateway in South Florida. The $333 million terminal is on schedule to open in early June 2017 and will enable Southwest to operate up to 30 international departures per day. Comparing June 2016 to June 2017 schedules, Southwest will increase its number of nonstop Latin America/Carribbean destinations form FLL from one to nine and daily departures from two to twelve (Exhibit WN-13). 7 Note that this includes connections for only the proposed two new MEX slot pairs. 9

Southwest does not currently provide service in the FLL-MEX market due to the lack of commercially viable MEX slots. Southwest is proposing to add a daily nonstop flight between Ft. Lauderdale and MEX that will benefit residents of South Florida as well as provide convenient connections to/from Southwest s extensive domestic network, including cities such as BWI, DCA, RDU, PIT and EWR (Exhibit WN-14). Current service in the FLL/MIA-MEX market is concentrated at Miami with four weekday American roundtrips, three by Aeromexico/Delta, and two roundtrips by Interjet. JetBlue and Volaris each have one roundtrip in the FLL-MEX market (Exhibit WN-15). There is a significant need for greater LCC capacity by a U.S. carrier that can leverage its U.S. gateway position to deliver consumer benefits throughout its domestic network. Southwest is best positioned to be that low cost carrier. Southwest s proposal will generate significant stimulation, partly due to its added service, but primarily because of its reduction in average market fares (Appendix 2, pages 4, 5 and 9). Total traffic stimulation in the FLL/MIA-MEX market from Southwest s service and fare proposal is forecast to be 224,000 passengers (Appendix 2, page 9), and 93,000 will fly on Southwest 87% will be local O&D and 13% will be in Southwest markets beyond FLL (Appendix 2, page 4). For its once daily service Southwest projects a first year load factor of 89%. If load factor pressure becomes significant in this market (or any other), Southwest can easily up-gauge to its B737-800 aircraft with 175 seats which is 32 seats, or 22% larger than its B737-700. The proposed service is worthy of a slot pair allocation as Southwest will have an outsized impact on this important market by leveraging just a single daily roundtrip flight. 10

IV. Southwest s LAX-MEX Flight Will Reduce Fares and Increase Passengers by Providing the Only U.S. LCC Competition in this Important Market. In 2016 Southwest Airlines expanded its LAX-Mexico service by adding five daily flights to/from CUN, SJD and PVR. 8 It now proposes to further expand its LAX Mexico service by adding one daily roundtrip to/from MEX. Southwest has a very large presence at LAX serving 31 nonstop markets with 125 average daily departures (Exhibit WN-16). In fact, Southwest is by orders of magnitude the largest low cost carrier at LAX and carries three times as many domestic onboard passengers as the next largest eligible carrier (Exhibit WN-17). Legacy carriers (Delta/Aeromexico, American and United) dominate the LAX-MEX market with all nine of the U.S. flag frequencies. Interjet and Volaris each operate two daily roundtrips (Exhibit WN-18). Southwest would be the only U.S. flag LCC serving the market, adding critical competition and travel options for consumers. Southwest s LAX-MEX traffic forecast is presented in Appendix 2, pages 6 and 7. Total market stimulation created by the Company s service (one daily roundtrip) and its low fares will be 93,000 annual passengers (Appendix 2, page 9). Its own volume of annual passengers is forecast to be 89,000, of which 70% will be local LAX, and 30% will be in convenient Southwest connecting markets (Appendix 2, page 6). The forecasted load factor is 85%. Because Southwest has built a robust route network at LAX (Exhibit WN-19), it will be able to market this new service to local consumers as part of its growing LAX - Mexico service portfolio and also extend the benefits of the 8 https://www.swamedia.com/releases/release-3498f0a91c014df281e8e43d50e77604-southwest-airlinesannounces-new-nonstop-service-in-u-s-cities-from-coast-to-coast-applies-for-new-international-servicebetween-los-angeles-lax-and-three-cities-in-mexico 11

new low-fare service to/from connecting markets. The grant of one slot pair for this service is clearly in the public interest. V. On Average, Southwest s Proposed New U.S. MEX Services Will Reduce Fares 19% and Increase Passengers 33%. Empirical evidence has shown consistently over many decades that new Southwest low-fare service causes high-fare carriers to reduce their fares in order to remain competitive. Similarly in this case, Southwest s new MEX service will result in a meaningful reduction in market fares thereby stimulating considerable additional passenger travel. The Southwest Effect from Proposed MEX Slots Will Decrease Fares and Increase Passengers Significantly % Change Yr/Yr 40% +33% 30% 20% 10% 0% +472,633-10% -20% -30% See Exhibit WN-20. -19% -$35 Per Passenger Decrease in Fares Increase in Passengers 12

Southwest s low-fare entry generates not only new traffic for itself but also more traffic for other carriers as the market responds to lower fares by all carriers. This is the essence of the Southwest Effect. The volume of new, or stimulated, passengers is shared by Southwest and other carriers. Fare savings accrue to existing passengers (who would still have flown at the old (pre-southwest) fare as well as to newly stimulated passengers (who would not have flown except for the lower fares). Looking at each of Southwest s three proposed MEX markets shows that fares will decrease between 10% and 25% for an average of 19% (Exhibit WN-21): The Proposed Southwest MEX Services Will Reduce Market Fares By 19% on Average Avg. One-Way Fare Including Avg. Fees Paid $225 Market Fare YE Q3 2016 Market Fare with New WN Nonstops Forecast WN Fare $203 $200 $187 $182 $175 $155 $160 $150 $141 $125 $123 $110 $115 $100 $75 $50 $25 $0 HOU/IAH FLL/MIA LAX Market Fare Change: -21% -25% -10% See Exhibit WN-21 13

Naturally, these significantly reduced fares will stimulate new passenger traffic in each market. The Campbell-Hill model projects traffic increases between 18% and 45% in the three markets, for an average increase of 33% (Exhibit WN-22): Passengers in the Proposed Markets Are Forecast to Increase by 33% On Average After Southwest s Service Introduction Total O&D Passengers 800,000 CY 2018 O&D Passengers Before Stimulation CY 2018 Passengers After WN Entry 726,331 700,000 600,000 500,000 +39% 552,213 +45% 502,485 +18% 525,835 618,771 400,000 396,361 300,000 200,000 100,000 0 HOU/IAH FLL/MIA LAX See Exhibit WN-22 As noted earlier, the Campbell-Hill model estimates that consumers in the three proposed markets will reap annual fare savings of nearly $50 million from Southwest s fare reductions: $12.9 million for Southwest s HOU-MEX proposal, $24.3 million for its new FLL-MEX service, and $10.3 million for the LAX-MEX market. (Exhibit WN-23). These huge savings will be produced by an award of only four MEX slot pairs, demonstrating the power of the Southwest Effect to generate enormous consumer benefits in international markets as it has for decades in domestic markets. 14

CONCLUSION For the reasons stated above, Southwest s proposed U.S. MEX service will maximize public benefits by providing new high quality, low-cost travel options for U.S. passengers in direct competition with the Joint Applicants and other high-fare legacy carriers. Given Southwest s proven track record of introducing and maintaining competitive low-fare, large-aircraft service, we urge the Department to grant all four of the slot pairs requested in this Application for new and expanded U.S. MEX service. Respectfully submitted, Robert W. Kneisley January 23, 2017 15

CERTIFICATE OF SERVICE I hereby certify that on January 23, 2017, a copy of the foregoing was served via e-mail on the following persons: jeremy.ross@alaskaair.com (Alaska Airlines) dheffernan@cozen.com (Counsel for Alaska Airlines) robert.wirick@aa.com (American Airlines) howard.kass@aa.com (American Airlines) chris.walker@delta.com (Delta Air Lines) alex.krulic@delta.com (Delta Air Lines) matwood@cozen.com (Counsel for Frontier) slachter@cozen.com (Counsel for Frontier) robert.land@jetblue.com (JetBlue Airways) esahr@eckertseamans.com (Counsel for JetBlue Airways) dderco@eckertseamans.com (Counsel for JetBlue Airways) rdavidson@eckertseamans.com (Counsel for JetBlue Airways) jyoung@yklaw.com (Counsel for Spirit Airlines) dkirstein@yklaw.com (Counsel for Spirit Airlines) mathew.friebe@suncountry.com (Sun Country Airlines) dan.weiss@united.com (United Airlines) mwarren@crowell.com (Counsel for United Airlines) robert.cohn@hoganlovells.com (Counsel for Aeromexico) patrick.rizzi@hoganlovells.com (Counsel for Aeromexico) mroller@rollerbauer.com (Counsel for Interjet) Anita.Mosner@hklaw.com (Counsel for Volaris) susan.mcdermott@dot.gov brian.hedberg@dot.gov todd.homan@dot.gov peter.irvine@dot.gov kristen.davis@dot.gov joseph.landart@dot.gov benjamin.taylor@dot.gov brett.kruger@dot.gov bob.goldner@dot.gov jeffrey.gaynes@dot.gov matt.zisman@dot.gov EngleTS@state.gov info@airlineinfo.com Amanda Hoff

Phase Rank Carrier Origin Dest Effective Date Days Operated Departure Time (local time) Arrival Time (local time) Arrival Day Aircraft Type Seats on Aircraft Forecasted PPD Min/Max Ground Time Existing Nonstops in Market RON Required? 1 1 of 4 WN HOU MEX see FN 1 1234567 18:40 20:50 737-700 143 119 RON 3 Yes (replace existing) 1 1 of 4 WN MEX HOU see FN 1 1234567 7:00 9:10 737-700 143 119 RON 3 Yes (replace existing) 1 2 of 4 WN HOU MEX see FN 1 1234567 8:40 10:45 737-700 143 119 55/65 3 No 1 2 of 4 WN MEX HOU see FN 1 1234567 11:40 13:50 737-700 143 119 55/65 3 No 2 3 of 4 WN FLL MEX see FN 1 1234567 10:10 12:45 737-700 143 127 55/65 0 No 2 3 of 4 WN MEX FLL see FN 1 1234567 13:40 18:05 737-700 143 127 55/65 0 No 2 4 of 4 WN LAX MEX see FN 1 1234567 16:05 22:00 737-700 143 122 RON 0 Yes 2 4 of 4 WN MEX LAX see FN 1 1234567 7:50 10:00 737-700 143 122 RON 0 Yes FN1/ Southwest is prepared to launch these new flights within 90 days of execution of the signed slot transfer agreements and any required Mexican regulatory approvals.

BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION SLOT ASSIGNMENT PHASE OF THE DELTA/AEROMEXICO ATI PROCEEDING Docket DOT-OST-2015-0070 Direct Exhibits Supporting the Application of Washington, D.C. January 23, 2016

Southwest s Requested MEX Slot Pairs Exhibit WN-1 Southwest requests the four MEX slot pairs shown below. Southwest requests that the HOU slot pairs be awarded in Phase 1. If either of the HOU-MEX slot pairs are not awarded in Phase 1 Southwest requests they be awarded in Phase 2. Southwest requests the award of FLL and LAX slot pairs in Phase 2. Rank Route MEX Slot Time Desired Phase Back-Up Phase 1 HOU-MEX 2050A/0700D 1 2 2 HOU-MEX 1045A/1140D 1 2 3 FLL-MEX 1245A/1340D 2 4 LAX-MEX 2200A/0750D 2 1/ See Exhibit WN-6. Source: Southwest s MEX service proposal.

Southwest s Proposed Markets of LAX, FLL and HOU Are All in the Top Five Largest U.S. Markets to/from MEX Exhibit WN-2 YE Q3 2016 MEX O&D Passengers /1 500,000 450,000 437,656 418,221 400,000 370,740 350,000 329,894 300,000 290,680 250,000 222,369 200,000 189,582 181,681 180,380 150,000 156,008 100,000 50,000 0 LAX FLL/MIA JFK HOU/IAH MDW/ORD MCO SFO LAS DAL/DFW EWR 1/ Excludes Mexican Low Cost carrier data because MIDT data for these carriers is inaccurate. Source: Travelport Adjusted MIDT data, YE Q3 2016.

Southwest s Average U.S. - Mexico Fares (All Markets) Are 39% Below the Legacy Carriers Exhibit WN-3 Avg. One-Way Fare Including Avg. Fees Paid, YE Q3 2016 $325 $300 $275 $250 American Fares United Fares Delta Fares $225 $200 $175 Southwest Fares $150 $125 $100 $75 $50 $25 At 1200 miles, Legacy Fares are Higher than Southwest by: United $87 Delta $87 American $102 $0 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 Trip Length (One-Way Nonstop Miles) Notes: Fare curves derived by regression analysis. Includes fared passengers only. Excludes taxes. Includes average baggage/cancellation/rebooking fees paid. Includes U.S.-Mexico O&D markets with at least 5 passengers per day each way. Source: Travelport Adjusted MIDT data and internal WN data, YE Q3 2016.

Summary of Southwest s HOU, FLL and LAX - MEX Service Proposal Exhibit WN-4 LAX HOU FLL MEX Distance Aircraft Type Aircraft Seat Size WN Daily Round Trip Frequency WN Annual One-Way Flights WN Annual One-Way Seats WN Annual One-Way Passengers Passengers per Flight WN Load Factor HOU-MEX FLL-MEX LAX-MEX Total 742 1,289 1,553 B737-7 B737-7 B737-7 143 143 143 2 1 1 4 /1 1,460 730 730 2,920 208,780 104,390 104,390 471,560 173,408 92,559 88,829 354,797 119 127 122 122 83% 89% 85% 85% 1/ In addition, Southwest will continue to operate two existing HOU-MEX round trips scheduled in viable time periods. Source: Southwest s MEX service proposal.

Exhibit WN-5 Southwest s Proposed Services at MEX Will Provide Nonstop or Nonstop-to-Nonstop Connecting Service to 50 Airports Across the U.S. SEA PDX RNO SMF OAK SFO SJC LAX LAS SNA SLC ABQ DEN MAF OMA MCI TUL OKC DAL AUS SAT HOU STL MEM MSY MDW IND BNA BHM ATL PNS ECP TPA BUF PIT MCO IAD RDU CLT CHS EWR BWI PHL DCA LGA ISP BOS PVD FLL Southwest s Proposed Service Covers 72% of all U.S. - MEX O&D Passengers Proposed Route Existing nonstop market MEX SJU Source: Southwest s MEX service proposal and Travelport Adjusted MIDT data, YE Q3 2016. (Excludes Mexico LCCs due to lack of accurate MIDT data.)

Southwest Will Offer Four Total HOU - MEX Round Trips if Awarded the Requested Slots Exhibit WN-6 Current Summer 2017 Schedule Seats Equip Flight Orig Dep Time MEX Time Arr Time Dest Flight Equip Seats 0530 0740 HOU 944 73W 143 143 73W 2302 HOU 1145 1350 1445 1655 HOU 954 73W 143 143 73W 953 HOU 1310 1515 1610 1825 HOU 2831 73W 143 143 73W 943 HOU 2120 2330 Not Commercially Viable Timing Not Commercially Viable Timing Proposed Summer 2017 Schedule Seats Equip Flight Orig Dep Time MEX Time Arr Time Dest Flight Equip Seats 0700 910 HOU 9002 73W 143 143 73W 9003 HOU 0840 1045 1140 1350 HOU 9004 73W 143 143 73W 2302 HOU 1145 1350 1445 1655 HOU 954 73W 143 143 73W 953 HOU 1310 1515 1610 1825 HOU 2831 73W 143 143 73W 9001 HOU 1840 2050 Proposed New Slots Proposed New Slot Source: Innovata schedule data, via Diio, for the week of June 5-11, 2017, and Southwest s proposed MEX schedules.

Exhibit WN-7 Proposed Southwest Daily Flight Schedules to/from MEX HOU - MEX FLL - MEX LAX - MEX Flight # 9003 9001 /1 9004 9002 /1 9005 9006 9007 9008 Elapsed Time 2:05 2:10 2:10 2:10 3:35 3:25 3:55 4:10 Local Time 0840 1840 HOU 1350 0910 1010 FLL 1805 1605 LAX 1000 1045 2050 MEX 1140 0700 1245 MEX 1340 2200 MEX 0750 Aircraft Type 737-700 737-700 737-700 737-700 737-700 737-700 737-700 737-700 Seats 143 143 143 143 143 143 143 143 1/ Represents retime of Southwest s existing RON service at MEX (23:30 arrival; 05:30 departure) to commercially viable times. Note: Excludes Southwest s existing flights operated to/from HOU.

Southwest will be Better Able to Compete Against the Legacy Carriers at Houston with One Net New Slot Pair and Better-Timed Slots Weekday HOU/IAH-MEX Round Trips 8 Exhibit WN-8 7 7 6 5 4 4 4 1 Proposed Net New 3 2 2 1 3 1 0 United Aeromexico Southwest InterJet Volaris Note: HOU includes HOU and IAH airports. Source: Innovata Schedules for Wednesday June 7, 2017.

In Its Initial Entry in the Houston - MEX Market, Southwest Reduced Average Fares 43% and Increased Passengers 24% Exhibit WN-9 One-Way Average Fare HOU/IAH-MEX O&D Passengers HOU/IAH-MEX $300 $270 400,000 $250 $200-43% $155 350,000 300,000 250,000 265,994 +24% 329,894 $150 200,000 $100 150,000 100,000 $50 50,000 $0 0 Before Southwest Entry After Southwest Entry Before Southwest After Southwest Entry (YE Q3 2015) (YE Q3 2016) Entry (YE Q3 2015) (YE Q3 2016) Avg. Daily DL WN Round Trips: 0 1.5 0 1.5 Notes: Includes fared passengers only. Excludes taxes. Includes average baggage/cancellation/rebooking fees paid. Houston includes HOU and IAH airports, FLL includes FLL and MIA airports. Market Fare is the weighted average fare of all carriers in the market. Mexican LCCs are excluded due to lack of accurate MIDT data. Source: Travelport Adjusted MIDT and WN internal data, YE Q3 2016; U.S. DOT T-100 data, via Diio.

SNA SNA SNA SNA SNA SNA SNA SNA SNA LAX LAX LAX LAX LAX LAX LAX LAX LAX HOU HOU HOU HOU HOU HOU HOU HOU HOU DAL DAL DAL DAL DAL DAL DAL DAL DAL BWI BWI BWI BWI BWI BWI BWI BWI BWI BHM BHM BHM BHM BHM BHM BHM BHM BHM CLT CLT CLT CLT CLT CLT CLT CLT CLT PNS PNS PNS PNS PNS PNS PNS PNS PNS MEX MEX MEX MEX MEX MEX MEX MEX MEX SAT SAT SAT SAT SAT SAT SAT SAT SAT AUS AUS AUS AUS AUS AUS AUS AUS AUS MAF MAF MAF MAF MAF MAF MAF MAF MAF LAS LAS LAS LAS LAS LAS LAS LAS LAS OAK OAK OAK OAK OAK OAK OAK OAK OAK SEA SEA SEA SEA SEA SEA SEA SEA SEA PDX PDX PDX PDX PDX PDX PDX PDX PDX ABQ ABQ ABQ ABQ ABQ ABQ ABQ ABQ ABQ SLC SLC SLC SLC SLC SLC SLC SLC SLC DEN DEN DEN DEN DEN DEN DEN DEN DEN OKC OKC OKC OKC OKC OKC OKC OKC OKC TUL TUL TUL TUL TUL TUL TUL TUL TUL OMA OMA OMA OMA OMA OMA OMA OMA OMA MCI MCI MCI MCI MCI MCI MCI MCI MCI STL STL STL STL STL STL STL STL STL ATL ATL ATL ATL ATL ATL ATL ATL ATL BNA BNA BNA BNA BNA BNA BNA BNA BNA DCA DCA DCA DCA DCA DCA DCA DCA DCA ECP ECP ECP ECP ECP ECP ECP ECP ECP MCO MCO MCO MCO MCO MCO MCO MCO MCO MDW MDW MDW MDW MDW MDW MDW MDW MDW MEM MEM MEM MEM MEM MEM MEM MEM MEM MSY MSY MSY MSY MSY MSY MSY MSY MSY RDU RDU RDU RDU RDU RDU RDU RDU RDU SJU SJU SJU SJU SJU SJU SJU SJU SJU TPA TPA TPA TPA TPA TPA TPA TPA TPA BOS BOS BOS BOS BOS BOS BOS BOS BOS CHS CHS CHS CHS CHS CHS CHS CHS CHS FLL FLL FLL FLL FLL FLL FLL FLL FLL IND IND IND IND IND IND IND IND IND LGA LGA LGA LGA LGA LGA LGA LGA LGA PIT PIT PIT PIT PIT PIT PIT PIT PIT Southwest s Proposed Daily HOU - MEX Service Will Connect Conveniently to 39 U.S. Airports Proposed nonstop route Connecting market Note: Only includes points with a maximum connect time of 4 hours. Source: Appendix 1, pages 1-4. Exhibit WN-10

FLL/MIA Domestic Weekly Seat-Departures 80,000 Southwest Has the Most Domestic Seat-Departures at FLL/MIA Among the Eligible Carriers Exhibit WN-11 70,000 68,807 67,102 60,000 57,392 50,000 40,000 30,000 20,000 10,000 0 8,159 3,540 3,108 Southwest JetBlue Spirit Allegiant Frontier Virgin America 1,113 0 0 0 0 Alaska Hawaiian Sun Country VivaAerobus Volaris % Share 33% 32% 27% 4% 2% 1% 1% 0% 0% 0% 0% Note: Includes all nonstop service from FLL and MIA airports to points within the United States. Source: Innovata schedule data, via Diio, for the week of June 5-11, 2017.

Southwest Has A Very Large Presence at FLL Exhibit WN-12 MDW BUF ALB BDL PVD DEN MCI STL IND CMH PIT EWR PHL IAD BWI DCA ISP LAS BNA RDU PHX DAL ATL AUS HOU MSY TPA MCO WN has grown its Seat- Departures at FLL by 39% during the past year FLL NAS Pending Government Approval HAV VRA SNU CUN Nonstop Destinations 37 Avg. Daily Departures 73 Avg. Daily Seat-Departures 11,181 BZE GCM MBJ SJU WN Annual Onboard Passengers = 4.8 million Source: Innovata schedules, via Diio, for the week of June 5-11, 2017, and U.S. DOT T-100 data, YE Q2 2016.

FLL Has Been A Key Element to Southwest s Latin America/Caribbean Growth Plan Exhibit WN-13 June 2016 June 2017 FLL FLL NAS HAV VRA SNU SJU MEX CUN BZE GCM MBJ SJU Pending Government Approval Nonstop Destinations 1 Avg. Daily Departures 2 Avg. Daily Seat-Departures 350 Nonstop Destinations 9 Avg. Daily Departures 12 Avg. Daily Seat-Departures 1,889 Source: Innovata schedules, via Diio, for the week of June 2-12, 2016 and June 5-11, 2017.

Southwest s Proposed Daily FLL - MEX Service Will Connect Conveniently to 13 U.S. Airports Exhibit WN-14 PIT BUF EWR ISP PHL DCA BWI IAD PVD RDU MCO TPA FLL MEX SJU Proposed nonstop route Connecting market Note: Only includes points with a maximum connect time of 4 hours. Source: Appendix 1, pages 5-6.

An Award of One Slot Pair to Southwest Will Provide Needed Competition in the FLL/MIA - MEX Market Exhibit WN-15 Weekday FLL/MIA-MEX Round Trips 5 4 4 3 3 2 2 1 1 Proposed 1 1 0 American Aeromexico InterJet Southwest JetBlue Volaris Source: Innovata Schedules for Wednesday June 7, 2017.

Southwest Has A Very Large Presence at LAX Exhibit WN-16 PDX MKE SMF OAK SFO SJC RNO LAS SLC DEN OMA MCI STL MDW IND BNA PIT BWI ABQ LAX PHX TUS ELP DAL ATL AUS SAT HOU MSY Nonstop Destinations 31 SJD Avg. Daily Departures 125 Avg. Daily Seat-Departures 18,284 PVR CUN WN Annual Onboard Passengers = 9.2 million Source: Innovata schedules, via Diio, for the week of June 5-11, 2017, and U.S. DOT T-100 data, YE Q2 2016.

LAX Domestic Onboard Passengers 10,000,000 Southwest Carries By Far the Most Domestic Onboard Passengers at LAX Among the Eligible Carriers Exhibit WN-17 9,000,000 9,171,895 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,137,691 3,000,000 2,697,102 2,000,000 1,949,597 1,299,895 1,000,000 0 Southwest Virgin America 829,693 519,099 391,858 178,717 0 0 Alaska Spirit JetBlue Hawaiian Frontier Allegiant Sun Country VivaAerobus Volaris % Share 45% 16% 13% 10% 6% 4% 3% 2% 1% 0% 0% Note: Includes passengers carried on nonstop flights between LAX and points within the United States. Source: U.S. DOT T-100 data, via Diio, for YE Q2 2016.

An Award of One Slot Pair to Southwest Will Inject the First U.S. LCC Competition into the LAX - MEX Market Exhibit WN-18 Weekday LAX-MEX Round Trips 8 7 6 6 5 4 3 2 2 2 2 1 Proposed 1 1 0 Aeromexico InterJet American Volaris Southwest United Source: Innovata Schedules for Wednesday June 7, 2017.

Southwest s Proposed Daily LAX - MEX Service Will Connect Conveniently to 7 U.S. Airports Exhibit WN-19 SLC SMF RNO OAK SFO SJC LAS LAX Proposed nonstop route Connecting market MEX Note: Only includes points with a maximum connect time of 4 hours. Source: Appendix 1, pages 7-8.

The Southwest Effect from Proposed MEX Slots Will Decrease Fares and Increase Passengers Significantly Exhibit WN-20 % Change Yr/Yr 40% +33% 30% 20% 10% 0% +472,634-10% -20% -30% -19% -$35 Per Passenger Decrease in Fares Increase in Passengers Notes: Includes fared passengers only. Excludes taxes. Includes average baggage/cancellation/rebooking fees paid. Houston includes HOU and IAH airports, FLL includes FLL and MIA. Market Fare is the weighted average fare of all carriers in the market. Mexican LCCs are excluded due to lack of accurate MIDT data. Assumes an 8.5% annual growth rate based on historical trends (See Appendix 2). Source: Travelport Adjusted MIDT and WN internal data, YE Q3 2016.

The Proposed Southwest MEX Services Will Reduce Market Fares By 19% on Average Exhibit WN-21 Market Fare YE Q3 2016 Avg. One-Way Fare Including Avg. Fees Paid Market Fare with New WN Nonstops $225 Forecast WN Fare $203 $200 $187 $182 $175 $155 $160 $150 $141 $125 $123 $110 $115 $100 $75 $50 $25 $0 Market Fare Change: HOU/IAH FLL/MIA LAX -21% -25% -10% Notes: Includes fared passengers only. Excludes taxes. Includes average baggage/cancellation/rebooking fees paid. Market Fare is the weighted average fare of all carriers in the market. Mexican LCCs are excluded due to lack of accurate MIDT data. Source: Travelport Adjusted MIDT and WN internal data, YE Q3 2016.

Passengers in the Proposed Markets Are Forecast to Increase by 33% On Average After Southwest s Service Introduction Exhibit WN-22 Total O&D Passengers 800,000 CY 2018 O&D Passengers Before Stimulation CY 2018 Passengers After WN Entry 726,331 700,000 600,000 500,000 +39% 552,213 +45% 502,485 +18% 525,835 618,771 400,000 396,361 300,000 200,000 100,000 0 HOU/IAH FLL/MIA LAX Notes: Mexican LCCs are excluded due to lack of accurate MIDT data. Assumes an 8.5% annual growth rate based on historical trends (See Appendix 2) from YE Q3 2016 to CY 2018. Source: Travelport Adjusted MIDT and WN internal data, YE Q3 2016.

Annual Fare Savings (Millions) The Proposed Southwest Daily MEX Round Trips Will Generate $48 Million in Annual Fare Savings Exhibit WN-23 $50 $45 $40 Savings to Newly Generated Passengers (Stimulation) Savings to Existing Passengers $47.5 Million $8.6 Million $35 $30 $25 $20 $24.3 Million $5.1 Million $38.9 Million $15 $12.9 Million $10 $2.5 Million $19.2 Million $10.3 Million $1.0 Million $5 $10.4 Million $9.3 Million $0 HOU/IAH-MEX FLL/MIA-MEX LAX-MEX Total 1/ See Appendix 2 for calculations. Notes: Includes fared passengers only. Excludes taxes. Includes average baggage/cancellation/rebooking fees paid. Consumer Benefits for existing passengers equals the total fare savings. Consumer Surplus for new passengers equals fare savings for new passengers x 0.5 (see Appendix 2). Mexican LCCs are excluded due to lack of accurate MIDT data. Source: Travelport Adjusted MIDT and WN internal data, YE Q3 2016.

Appendices

Appendix 1 Detailed Connecting Schedules

Proposed HOU-MEX Flight Schedules (Southbound) Total Trip Time (mins) Orig Flight No. Aircraft Seats Dep. Time Op Days HOU Time Arr. Time Dest Flight No. Aircraft Seats Op Days 555 LAS 3675 73H 175 0935...6. 1440 480 MCI 1499 73C 143 1250 12345.. 1450 480 ABQ 5040 73W 143 1150...7 1455 440 OKC 1174 73W 143 1330...6. 1455 470 ATL 2985 73H 175 1400...7 1505 410 DAL 1552 73W 143 1400...6. 1505 410 DAL 1896 73W 143 1400...7 1505 485 MDW 40 73W 143 1245 12345.. 1520 515 BWI 4577 73C 143 1315...6. 1525 430 ECP 2741 73C 143 1340...7 1525 380 DAL 33 73W 143 1430 12345.. 1535 395 MAF 4546 73W 143 1415...7 1540 495 DCA 3536 73W 143 1335 12345.. 1545 490 DCA 5576 73W 143 1340...7 1550 365 MSY 42 73W 143 1445 12345.. 1555 430 MCO 421 73W 143 1440 12345.. 1600 410 STL 541 73W 143 1400 12345.. 1600 350 DAL 35 73C 143 1500 12345.. 1605 350 DAL 5162 73C 143 1500...7 1605 350 DAL 1533 73W 143 1500...6. 1605 445 MDW 4835 73W 143 1325...6. 1605 365 OKC 4756 73C 143 1445...7 1610 435 MDW 4155 73W 143 1335...7 1615 545 SEA 4834 73W 143 0945...7 1615 390 BNA 2786 73W 143 1420...7 1620 355 OKC 558 73W 143 1455 12345.. 1620 520 PDX 1553 73H 175 1010...7 1620 545 SJU 2988 73H 175 1245...7 1620 385 MCI 2473 73C 143 1425...7 1625 540 SJU 3767 73H 175 1250 12345.. 1625 460 SNA 44 73W 143 1110 12345.. 1625 455 SNA 4883 73W 143 1115...7 1625 315 AUS 3677 73W 143 1535...7 1630 350 PNS 3357 73W 143 1500...6. 1630 315 SAT 5314 73W 143 1535...7 1630 310 AUS 3014 73H 175 1540 12345.. 1635 320 DAL 1649 733 137 1530...7 1635 320 DAL 37 73C 143 1530 12345.. 1635 310 SAT 4169 73W 143 1540 12345.. 1635 380 STL 2728 73C 143 1430...7 1635 380 STL 5501 73W 143 1430...6. 1635 395 DEN 4694 73W 143 1315...7 1640 500 PDX 46 73H 175 1030 12345.. 1640 520 SEA 1536 73W 143 1010 12345.. 1640 455 LAX 1375 73H 175 1115 12345.. 1645 520 SJU 931 73H 175 1310...6. 1645 425 LAS 2013 73W 143 1145...7 1655 320 MAF 732 73W 143 1530 12345.. 1655 375 DEN 2088 73W 143 1335 12345.. 1700 300 MSY 4236 73C 143 1550...7 1700 345 BNA 5538 73C 143 1505...6. 1705 290 DAL 39 73C 143 1600 12345.. 1705 290 DAL 3169 73C 143 1600...6. 1705 290 DAL 1672 73W 143 1600...7 1705 295 MSY 3798 73W 143 1555 12345.. 1705 405 BWI 382 73C 143 1505 12345.. 1715 420 LAX 4345 73W 143 1150...7 1720 405 SNA 4517 73W 143 1205...6. 1720 330 ABQ 1841 73W 143 1420...6. 1725 335 ATL 3371 73C 143 1615 12345.. 1725 415 LAX 2676 73H 175 1155...6. 1725 345 DEN 4205 73H 175 1405...6. 1730 385 LAS 1723 73W 143 1225 12345.. 1730 260 DAL 41 73W 143 1630 12345.. 1735 260 DAL 2033 73W 143 1630...7 1735 380 LAS 4113 73H 175 1230...6. 1735 315 MCI 2653 73H 175 1535...6. 1735 285 TUL 2966 73W 143 1605...7 1735 275 MAF 3846 73W 143 1615...6. 1740 420 OAK 4637 73W 143 1150...6. 1740 245 SAT 2879 73W 143 1645...6. 1740 320 TPA 4228 73W 143 1630...7 1740 240 AUS 3674 73W 143 1650...6. 1745 330 CLT 367 73C 143 1620 12345.. 1745 365 SLC 2266 73W 143 1345...6. 1745 1840 2050 MEX 9001 73W 143 1234567 Note: Only includes points with a maximum connect time of 4 hours. Source: Innovata schedule data, via Diio, for the week of June 5-11, 2017, plus proposed new service. Appendix 1 Page 1 of 8

Proposed HOU-MEX Flight Schedules (Southbound) Appendix 1 Page 2 of 8 Total Trip Time (mins) Orig Flight No. Aircraft Seats Dep. Time Op Days HOU Time Arr. Time Dest Flight No. Aircraft Seats Op Days 380 CLT 643 73H 175 0525 12345.. 0655 285 DAL 1628 733 137 0600...7 0700 285 DAL 1628 73C 143 0600 12345.. 0700 300 TUL 1579 73W 143 0545 12345.. 0715 305 BHM 405 73W 143 0540 12345.. 0720 355 CLT 5106 73W 143 0550...7 0720 260 SAT 2797 73H 175 0625...7 0720 340 TPA 5657 73W 143 0605 12345.. 0720 250 AUS 320 73W 143 0635 12345.. 0725 315 BNA 1875 73C 143 0530...7 0725 315 BNA 441 73W 143 0530 12345.. 0725 285 OKC 4267 73W 143 0600...6. 0725 360 RDU 1093 73H 175 0545 12345.. 0725 315 ATL 1695 73W 143 0630 12345.. 0730 295 BHM 2783 73W 143 0550...6. 0730 310 BNA 2205 73C 143 0535...6. 0730 345 CLT 2971 73H 175 0600...6. 0730 315 MCI 1004 73W 143 0530...7 0730 315 STL 1029 73H 175 0530...7 0730 315 STL 2061 73W 143 0530 12345.. 0730 285 TUL 4600 73W 143 0600...7 0730 240 AUS 4936 73W 143 0645...7 0735 255 DAL 201 733 137 0630 12345.. 0735 255 DAL 1131 73W 143 0630...6. 0735 330 MCO 2576 73W 143 0615...6. 0735 285 MEM 4571 73W 143 0600...7 0735 260 MSY 2050 73W 143 0625 12345.. 0735 350 RDU 4948 73W 143 0555...7 0735 245 SAT 4492 73C 143 0640...6. 0735 325 MCO 1983 73W 143 0620 12345.. 0740 240 SAT 1633 73H 175 0645 12345.. 0740 305 STL 2725 73W 143 0540...6. 0740 255 MSY 4464 73W 143 0630...6. 0745 295 ATL 2280 73W 143 0650...6. 0750 225 AUS 2428 73W 143 0700...6. 0750 270 MEM 2762 73H 175 0615...6. 0750 0840 1045 MEX 9003 73W 143 1234567 Note: Only includes points with a maximum connect time of 4 hours. Source: Innovata schedule data, via Diio, for the week of June 5-11, 2017, plus proposed new service.

Proposed HOU-MEX Flight Schedules (Northbound) Appendix 1 Page 3 of 8 Orig Flight No. Aircraft Seats Dep. Time Op Days HOU Time Arr. Time Dest Flight No. Aircraft Seats Op Days Total Trip Time (mins) MEX 9002 73W 143 0700 1234567 0910 1040 1345 ATL 805 73H 175 12345.. 345 1040 1220 BHM 1106 73C 143 12345.. 320 1040 1445 DCA 1974 73W 143...7 405 1040 1415 FLL 5648 73H 175 12345.. 375 1040 1145 LAS 3155 73H 175...6. 405 1040 1310 MDW 543 73H 175 12345.. 370 1040 1210 MEM 5164 73C 143...7 310 1040 1350 TPA 4557 73H 175...7 350 1045 1350 ATL 5333 73W 143...7 350 1045 1415 CLT 556 73W 143 12345.. 375 1045 1240 MCI 2468 733 137...6. 340 1045 1410 MCO 3847 73H 175...6. 370 1045 1435 PIT 279 73W 143 12345.. 395 1045 1140 SAT 9 73C 143 12345.. 280 1045 1325 SEA 5513 73W 143...6. 505 1045 1355 TPA 957 73W 143 12345.. 355 1050 1430 FLL 709 73H 175...6. 390 1050 1430 FLL 4349 73H 175...7 390 1050 1405 IND 2669 73C 143...7 365 1050 1525 LGA 4357 73H 175...6. 445 1050 1210 OKC 3965 73C 143...6. 310 1050 1310 PDX 2618 73H 175...6. 490 1050 1145 SAT 4634 73C 143...6. 285 1055 1145 AUS 4319 73C 143...6. 285 1100 1405 ATL 4482 73W 143...6. 365 1100 1200 DAL 1432 73C 143...7 300 1100 1200 DAL 20 73W 143 12345.. 300 1100 1220 OKC 1481 73W 143...7 320 1105 1415 TPA 4444 73H 175...6. 375 1125 1230 MSY 4429 73C 143...6. 330 1130 1230 DAL 1524 73H 175...6. 330 1135 1255 OKC 668 73C 143 12345.. 355 1140 1300 DEN 15 73W 143 12345.. 420 1140 1405 MDW 1426 73W 143...6. 425 1145 1305 LAX 1950 73W 143 12345.. 485 1150 1515 MCO 525 73W 143 12345.. 435 1200 1300 DAL 24 73W 143 12345.. 360 1200 1300 DAL 4525 73W 143...7 360 1200 1320 DEN 4204 73H 175...6. 440 1210 1330 LAX 4570 73W 143...7 510 1215 1335 DEN 5092 73W 143...7 455 1215 1410 STL 4309 73C 143...6. 430 1225 1345 MAF 4544 73W 143...7 405 1240 1545 ATL 17 73W 143 12345.. 465 1240 1545 ATL 5019 73W 143...7 465 1255 1400 MSY 171 73C 143 12345.. 420 1300 1400 DAL 1529 73C 143...6. 420 1300 1400 DAL 28 73W 143 12345.. 420 1300 1400 DAL 5541 73W 143...7 420 Note: Only includes points with a maximum connect time of 4 hours. Source: Innovata schedule data, via Diio, for the week of June 5-11, 2017, plus proposed new service.

Proposed HOU-MEX Flight Schedules (Northbound) Appendix 1 Page 4 of 8 Orig Flight No. Aircraft Seats Dep. Time Op Days HOU Time Arr. Time Dest Flight No. Aircraft Seats Op Days Total Trip Time (mins) MEX 9004 73W 143 1140 1234567 1350 1525 1630 MSY 1499 73C 143 12345.. 290 1530 1615 AUS 1174 73W 143...6. 275 1530 1630 DAL 38 73C 143 12345.. 290 1530 1635 MSY 5040 73W 143...7 295 1530 1910 RDU 3675 73H 175...6. 390 1540 2025 BOS 1552 73W 143...6. 465 1540 1905 CHS 1896 73W 143...7 385 1600 1750 BNA 2741 73C 143...7 370 1600 1700 DAL 4577 73C 143...6. 320 1600 1700 DAL 2985 73H 175...7 320 1600 1700 DAL 40 73W 143 12345.. 320 1620 1720 LAS 3536 73W 143 12345.. 460 1625 1750 DEN 4546 73W 143...7 430 1630 1730 DAL 42 73W 143 12345.. 350 1635 1740 MSY 541 73W 143 12345.. 360 1640 1945 ATL 949 73W 143...6. 425 1640 1805 LAX 2940 73W 143...7 505 1640 1835 STL 35 73C 143 12345.. 415 1640 1945 TPA 5162 73C 143...7 425 1645 2210 SJU 1533 73W 143...6. 570 1645 1845 STL 4756 73C 143...7 425 1650 2020 FLL 4155 73W 143...7 460 1655 1755 DAL 1711 73H 175...6. 375 1700 2105 BWI 558 73W 143 12345.. 505 1700 1800 DAL 2473 73C 143...7 380 1700 1800 DAL 44 73W 143 12345.. 380 1705 1805 LAS 3677 73W 143...7 505 1705 1810 MSY 3358 73W 143...6. 390 1710 1755 AUS 2728 73C 143...7 375 1710 2030 MCO 5501 73W 143...6. 470 1710 1935 MDW 1369 73W 143...7 475 1710 1925 OMA 2786 73W 143...7 465 1710 1805 SAT 4883 73W 143...7 385 1715 2200 BOS 2989 73H 175...7 560 1715 1840 DEN 3767 73H 175 12345.. 480 1715 2030 IND 1649 733 137...7 470 1715 2055 RDU 1553 73H 175...7 495 1715 2020 TPA 3248 73C 143 12345.. 460 1720 1845 LAX 4169 73W 143 12345.. 545 1720 1840 OKC 4694 73W 143...7 420 1720 1935 OMA 4171 73W 143 12345.. 475 1725 2035 IND 495 73W 143 12345.. 475 1730 1830 DAL 46 73H 175 12345.. 410 1730 1830 DAL 2013 73W 143...7 410 1730 1855 LAX 931 73H 175...6. 555 1730 1955 MDW 1375 73H 175 12345.. 495 1735 2220 BOS 3014 73H 175 12345.. 580 1735 1840 MSY 2697 73C 143...7 420 1735 1855 OKC 2088 73W 143 12345.. 435 1740 1845 MSY 1147 73W 143 12345.. 425 1740 1910 PNS 39 73C 143 12345.. 450 1740 2045 TPA 5538 73C 143...6. 485 1745 2150 BWI 1672 73W 143...7 550 1750 1925 BHM 3235 73C 143 12345.. 465 Note: Only includes points with a maximum connect time of 4 hours. Source: Innovata schedule data, via Diio, for the week of June 5-11, 2017, plus proposed new service.