Airline Volaris Costa Rica had presented its application to be allowed to operate in airports in the United States a while back, however, their petition had met the objection of Southwest Airlines; however, the US’ Department of Transportation issued this September 21 an order that provides temporary authorization to Volaris Costa Rica for operations between these two countries.

The official document states:

“We have decided to grant the applicant’s request for exemption authority, as described below and subject to conditions, and tentatively to grant, subject to show-cause procedures, its request for a foreign air carrier permit, also subject to conditions. In reaching this determination, we have considered the arguments put forth by Southwest, but find no persuasive reason to deny Volaris Costa Rica the bilaterally authorized rights it seeks”.

The order also grants “Any interested person objecting to the issuance of an order making final our tentative findings and conclusions with respect to the applicant’s request for a foreign air carrier permit”, 21 calendar days to file a statement of objections, along with evidence, testimony and statistical data to support the objections“. The Department of Transportation will answer to objections within 7 calendar days and then make then reach a final conclusion.

Southwest Airlines objections at this point have been based on the fact that Volaris Costa Rica is not owned by Costa Rican citizens as required by the US-Costa Rica Air Transport Agreement, but instead by a Mexican company, and therefore, they consider that the company is looking to gain special privileges through its Costa Rican subsidiary, a situation that would put US carriers at a competitive disadvantage.

On the other hand, Volaris Costa Rica has acknowledged that it is wholly owned by Mexican interests, but was able to prove that “effective control” of Volaris Costa Rica lies with Costa Rican citizens, it has a place of business in Costa Rica, “is licensed by and subject to the regulatory authority of the Costa Rican Civil Aviation Authority, has a Costa Rican management team, and a Board of Directors that is controlled by Costa Rican citizens”.

“Volaris Costa Rica notes that, at present, there are six U.S. carriers serving the U.S.-Costa Rica market — Southwest, United, American, Delta, Spirit, and JetBlue, contrasted with only a single Costa Rican carrier, LACSA. Volaris Costa Rica submits that authorization of a second Costa Rican carrier to serve the market, and the ultra-low cost services provided by Volaris Costa Rica, would be beneficial, not inimical, to the interests of travelers and consumers of both countries, and to the broader U.S. aviation interest, as well as to the U.S.-Costa Rica aviation relationship”.

The City of Houston Department of Aviation and the Washington Airports Task Force both filed in support of Volaris Costa Rica’s application.

We will now have to wait to find out what the reaction of Southwest will be to this decision. If you wish to read the entire resolution you can here.