The Transportation Department (DOT) is holding a quick hearing by e-mail to determine which airline, Frontier or Southwest/AirTran, will replace the Chicago-Cancun service operated for Apple Vacations by its soon-to-close airline affiliate, USA 3000.
Apple, as reported, decided to shut down the airline on or about Jan. 31.
Frontier already has been authorized by the DOT to replace USA 3000 from Chicago to two other points in Mexico, Puerto Vallarta and Los Cabos, but not Cancun.
As it happens, the U.S.-Mexico bilateral air agreement permits only three U.S. airlines on the Chicago-Cancun route (American, United and USA 3000), and if one carrier drops out, the law requires the DOT to consider all competing applications for the vacancy and to pick a winner based on public-interest factors.
AirTran, soon to be a part of Southwest, filed for the Cancun route shortly after Frontier did, telling the DOT that Frontier’s private agreement with Apple Vacations should have little bearing on the matter.
AirTran and Southwest said their proposal to operate the service from Midway would create a major low-fare alternative to the American and United services at O’Hare, adding that the route would get substantial support and connecting feed from Southwest’s Midway hub.
They argued that Frontier, by contrast, has no presence and no feed traffic at O’Hare, where it would be going up against two established hub carriers.
Frontier responded that it is a “proven low-cost, low-fare carrier” that will operate with 168-seat A320 aircraft, offering 23% more seats than Southwest/Air Tran.
It also said it would have feed traffic from dozens of points “through interline connections,” whereas Southwest’s network “offers no connectivity” with other airlines.
Frontier also said its Cancun services would be more broadly available to the public “through GDS, travel agents and online travel agents” than Southwest, which Frontier called a “significant” factor for international service.
The DOT has set Jan. 31 as the date for the airlines to file their final arguments on the matter, after which DOT said it hopes to issue a “prompt” decision.
In the interim, Frontier said it intends to operate Chicago-Cancun charter flights for Apple until the DOT decides which carrier will get the route for scheduled service.