UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on October 5 , 2011



### NOTICE OF ACTION TAKEN

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________________________________________________________________________________________________ ________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be i ssued in this matter).

Joint Applicant s : AEROVIAS de MEXICO, S.A. de C.V. (Aeromexico) and AEROLITORAL, S.A. de C.V. D/B/A Aeromexico Connect (Aerolitoral)

Date Filed: September 22, 2011

Relief requested: E xemption under 49 USC § 40109 to permit Aeromexico to engage in scheduled foreign air transportation of persons, property, and mail between Monterrey , Mexico, and Brownsville, Texas. Aeromexico proposes to conduct these services only through a code

- share arrangement with Aerolitoral.

Statement of authorization under 14 CFR Part 212 to permit Aerolitoral to display the (AM*) designator code of

Aeromexico on fli ghts ope rated by Aeroli toral between Monterrey, Mexico, and Brownsville, Texas

. 1

Applicant representative s : John R. Mietus, Jr. and William C. Evans, 410

- 827

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DOT analyst: Robert J. Finamore , 202

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Responsive pleadings: None.

DISPOSITION

Action: Approved. Action date: October 5 , 2011 2

Effective dates of authority granted: Aero mexico ’s exemption authority is effective from October 5 , 2011 , through

October 5 , 2012

. Aerolitoral’s statement of authorization is effective October 5 , 2011

, and will remain in effect indefinitely , subject to conditions

.

Basis for approval (bil ateral agreement/reciprocity): United States

- Mexico A ir Transport Serv ices Agreement.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached as Appendix A), code

- share conditions (attached as Appendix B), and to the

otherwise

- applicable terms, conditions, and limitations of Aeromexico’s foreign air carrier permit (Order 91

- 5

- 25).

Special conditions/Remarks: The exemption authority granted to Aeromexico is limited to operations conducted only

on a code

- share basis w ith Aerolitoral, on flights operated by Aerolitoral.

Action taken by: Paul L. Gretch, Director, Office of International Aviation

_____________________________________________________________________________________________________ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent with Department policy; (2) the applicant s were qualified to perform the proposed operations; (3) grant of the authority was consistent with the pub lic interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975. To the extent not granted/deferred/dismissed, we denied all requests in the referenced Docket. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

1 We note that Aerolitoral holds exemption authority to serve the Monterrey

- Brownsville market. See Notice of Action Taken dated June 17, 2011 in Docket DOT

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- 0116.

2 The Department is acting on the request of Aeromexico for exemption authority prior to the expiration of the 15

- day answer period with the consent of all parties served. With respe ct to Aerolitoral’s request for a statement of authorization, we note that the answer period for that request has been completed and no objections were received.Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulati ons, 14 CFR §385.30, may fi le their petitions within seven (7) days after the date of issuance of this Notice. This action was effective when taken, and the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

### Appendix A

Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant(s) shall:

(1) Not conduct any operations unless it holds a currently effective authorization from its homeland for such operations, and it has filed a copy of such authorization with the Department;

(2) Comply with all applicable requirements of the Federal Aviation Administration, t he Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1546 or 1550, as applicable. To assure compliance with all

app licable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flights) from a foreign airport that would be the holder’s last point of departure for the United States,

contact its Internati onal Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the IIR of its plans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such airport(s) to be served;

(3) Comply with the requirements for minimum insurance coverage contained in 14 CFR Part 205, and, prior to the commencement of any operations under this authority, file evidence of such coverage, in the form of a completed OST Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS

- 260), Flight Standards Service (any changes to, or termination of, insurance also shall be filed with that office);

(4) Not operate aircraft under this authority unless it complies with operational safety requirements at least equivalent to Annex 6 of the Chicago Convention;

(5) Conform to the airworthiness and airman competency requirements of its Government for international air services;

(6) Except as specifically exempted or otherwise provided for in a Department Order, comply with the requirements of 14 CFR Part 203, concerning waiver of Warsaw Convention liability limits and defenses;

(7) Agree that operations under this authority constitute a waiver of soverei gn immunity, for the purposes of 28 U.S.C. 1605(a), but only with respect to those actions or proceedings instituted against it in any court or other tribunal in the United States that are: (a) based on its operations in international air transportation t hat, according to the contract of carriage, include a point in the United States as a point of origin, point of destination, or agreed stopping place, or for which the contract of carriage was purchased in the United States; or (b) based on a claim under any international agreement or treaty cognizable in any court or other tribunal of the United States. In this condition, the term "international air transportation" means "international transportation" as defined by the Warsaw Convention, except

that all States shall be considered to be High Contracting Parties for the purpose of this definition;

(8) Except as specifically authorized by the Department, originate or terminate all flights to/from the United States in its homeland;

(9) Comply with the re quirements of 14 CFR Part 217, concerning the reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise provided in the applicable aviation agreement, comply with the Department's rules governin g charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department, with all applicable orders or regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

This authority shall not be effective during any period when the holder is not in compliance with the conditions imposed above. Moreover, this authority cannot be sold or otherwise t ransferred without explicit Department approval

under Title 49 of the U.S. Code.

12/2007Appendix B

Aerolitoral/Aeromexico Code

- Share Conditions ( DOT

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The code

- share operations authorized here are subject to the following conditions:

(a) The statement of authorization will remain in effect only as long as (i) Aerolitoral and Aeromexico continue to hold the necessary underlying authority to operate the code

- share services at issue, and (ii) the

code

- share agreeme nt providing for the code

- share operations remains in effect.

(b) Aerolitoral and/or Aeromexico must promptly notify the Department if the code

- share agreement providing for the code

- share operations is no longer effective or the carriers decide to cease operating any or all of the approved code

- share services. We expect this notification to be received within 10 days of such non

- effectiveness or of such decision. Such notices should be filed in docket DOT

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.

(c) The code

- sharing operati ons conducted under this authority must comply with 14 C.F.R. Part 257 and with any amendments to the Department’s regulations concerning code

- s hare arrangements that may be adopted. Notwithstanding any provisions in the contract between the carriers, our approval here is expressly conditioned upon the requirements that the subject foreign air transportation be sold in the name of the carrier holding out such service in computer reservation systems and elsewhere; that the carrier selling such transportatio n ( i.e., the carrier shown on the ticket) accept responsibility for the entirety of the code

- share journey for all obligations established in its contract of carriage with the passenger; and that the passenger liability of the operating carrier be unaffect ed.

(d) The authority granted here is specifically conditioned so that neither Aerolitoral n or Aeromexico shall give any force or effect to any contractual provisions between themselves that are contrary to

these conditions.

(e) We may amend, modify, o r revoke this authority at any time without hearing, at our discretion.