Application of: 

BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

) 

) 

~fPARTMENT OF -) \lSPORTATION 

·/FT OPERATIONS 

AIR PALACE, S.A. de C.V. ) Docket OST-2008-02S6 

) 

for a renewal of an exemption (MEXICOUS) under 49 U.S.C. Section 40109 

) 

) 

APPLICATION FOR A RENEWAL OF AN EXEMPTION 

FILED BY AIR PALACE, S.A. de C.V. 

FOR A PERIOD OF TWO YEARS 

We are relying on the automatic extension provisions of Federal Law 

Specifically 5 USC 558(c), as implemented by 14 CFR Part 377, to 

keep our exemption authority in effect, pending final department 

action on this renewal application. 

It should be noted that no changes have occurred in the company 

management, stock holders, their nationality, aircraft or aircraft 

crews. 

This carriers Ops Specs are managed at the Fort Worth, Tx, 

FAA/FSDO, and the aircraft have fewer than 30 seats. 

COMMUNICATIONS WITH RESPECT TO THIS DOCUMENT SHOULD BE ADDRESSED 

TO: 

Mr. Eugene E. Smith 

7717 Village Oak 

San Antonio, Tx. 78233 

Tel (210) 590-1630 

Fax (210) 653-9281 

Agent for Service in the U.S. for: 

AIR PALACE, S.A. de C.V. 

21 SEP 2010 
In support of this application, and pursuant to the 

Department's Procedural Regulations, AIRPAL states the following: 

1. AIRPAL, incorporated in Mexico In 2000, is a privately held 

corporation that is 100% owned and controlled by Mexican 

citizens. Name, citizenship and percentage of ownership of 

AIRPAL are enumerated in Exhibit A. 

The full name and corporate address of AIRPAL is: 

AIR PALACE, S.A. de C.V. 

Blvd. Kukulcan, KM 14.5 

Zona Hotelera 

Cancun, Quintana Roo 

77500 

MEXICO 

2. The name and official address of the government alr transport 

authority in Mexico having regulatory jurisdiction over AIRPAL 

is: 

Secretaria de Comunicaciones y Transportes 

Direccion General de Aeronautica Civil ("DGAC") 

Av. Providencia No. 807, Piso 1-7 

Colonia del Valle 

Delegacion Benito Juarez 

Mexico, D.F. 03100 

MEXICO 

3 . As noted above t AIRPAL is seeking transborder charter 

authority to engage in foreign air transportation of persons and 

their belongings without the need for prior Department approval 

of each flight, or series of flights. AIRPAL is also requesting 

stopover privileges. 

2 
4. AIRPAL is operationally and financially qualified to perform 

the service for which authority is requested herein. As evidence 

thereof: 

(a) The Mexican DGAC has issued a permit authorizing 

AIRPAL to conduct non-scheduled, international air taxi 

transportation of passengers in the North and South American 

Continents. This permit is valid indefinitely and is attached as 

Exhibit B. 

(b) In 2004, AIRPAL received its DGAC permits and 

commenced commercial flight operations. From its base in Cancun, 

Quintana Roo, AIRPAL provides air transportation to domestic and 

international passengers, consisting of members of the following 

institutions which form part of the governing body, owners, and 

stock holders of AIRPAL: 

AIR PALACE, S.A. de C.V. 

Future operations, including its proposed u.S. service, are 

likely to be a continuation of this type of operation. AIRPAL 

estimates that it will operate 30 to 40 round trip flights 

3 
annually between Mexico and the United States with an average 

load of three passengers per flight; all of which will originate 

in Mexico. 

(c) AIRPAL owns and operates a 6 passenger Beechcraft 

King Air C90GT Turbo Prop aircraft with Mexican registration 

XA-CPR; and an 8 passenger Cessna Citation C550 Jet aircraft with 

Mexican registration XA-CAP. 

(d) AIRPAL maintains its aircraft pursuant to a 

maintenance service agreement with Hawker Beechcraft and Centro 

de servici Avemex, an aircraft repair station in Toluca, Mexico; 

and with Hawker Beechcraft in Houston Texas; the latter is a FAA 

certificated service Center; and in accordance with an 

airworthiness program approved by the Mexican DGAC in compliance 

with ICAO Annexes 1,6 (Part I) and 7. 

(e) AIRPAL has established a well qualified management 

team with the necessary experience in providing domestic and 

international air taxi services. 

Mr. Jose Antonio Chapur Z. has served as General 

Director of AIRPAL since the founding of the company in November 

2000. 

4 
Pilot Capt. Alfonso Tonatiuh Hernandez G . received his 

Pilot's License in 1997. Joined AIRPAL in 2006, received his 

Unlimited Commercial pilot's License in 1998 and has accumulated 

over 5,000 hours of flight during his 10 years of aviation 

experience, with over 1200 hours in the Citation and over 340 

hours on the King Air. Capt. Hernandez is licensed to operate 

the company's King Air and Citation and attends annual training 

courses, at Flight Safety in Orlando Fl. and Wichita Kansas. 

Capt. Hernandez serves as Chief Pilot for AIRPAL. 

Pilot Capt. Fernando R. Marroquin Medrano received his 

pilot's License in 1996. Joined AIRPAL in 2004, received his 

Unlimited Commercial pilot's License in 1997 and has accumulated 

over 5000 hours of flight during his 10 years of aviation 

experience, with over 460 hours in the Citation and over 900 

hours in the King Air. Capt. Marroquin is licensed to operate 

the company's King Air and Citation and attends annual training 

courses, at Flight Safety in Orlando Fl. and Wichita Kansas. 

Capt. Marroquin serves as Chief of Security for AIRPAL. 

Pilot Capt. Leopoldo Bustillos Sanchez received his Pilot's 

License in 1996. Joined AIRPAL in 2004, received his Unlimited 

Commercial Pilot's License in 1999 and has accumulated over 3800 

5 
hours of flight during his 12 years of aviation experience, with 

over 500 hours in the Citation and over 875 hours in the King 

Air. Capt. Bustillos is licensed to operate the company's King 

Air and Citation; and attends annual training courses, at Flight 

Safety in Orlando Fl. and Wichita Kansas. 

Pilot Capt. Alfonso Loera Carrillo received his Pilot's License 

in 2005. Joined AIRPAL in 2007, received his Unlimited Commercial 

Pilot's License in 2007 and has accumulated over 3300 hours of 

flight during his 10 years of aviation experience, with over 450 

hours in the Citation and over 600 hours in the King Air. Capt. 

Carrillo is licensed to operate the company's King Air and 

Citation and attends annual training courses, at Flight Safety In 

Orlando Fl. and Wichita Kansas. 

A composite of AIRPAL's key personnel is shown in Exhibit C. 

(f) AIRPAL' s financial statement for calendar year 

2007, up to April of 2008 is Exhibit D. As can be seen, AIRPAL 

has been self-sufficient and fully capable to continue providing 

transportation services to the companies enumerated in Paragraph 

4 (b) . 

(g) A copy of OST form 6411, Foreign Air Carriers 

Certificates of Insurance, are attached as Exhibit E. As shown 

therein, AIRPAL complies with the limits of liability of the 

6 
requirements of 14 CFR Part 205. 

(h) AIRPAL has not been involved in any safety 

violations, tariff violations or fatal accidents since its 

inception. 

(i) AIRPAL does not have any agreement or cooperative 

working arrangements with any U. S. air carrier affecting its 

proposed services to the United States 

5. AIRPAL's proposed U.S. services are consistent with the public 

interest for the following reasons: 

(a) AIRPAL will be carrying executives to the U.S. on 

business, thereby fostering commerce between Mexico and the 

United States consistent with the objectives of the North 

American Free Trade Agreement (NAFTA) 

(b) AIRPAL's request for stopover privileges is 

consistent with the need of the executives using its services 

will, from time to time, need to stop at two or more places in 

the U.S. as part of their round trip itineraries. AIRPAL submits 

that no regulatory purpose would be served by preventing AIRPAL 

from responding to the stopover needs of its customers. 

7 
WHEREFORE r AIRPAL respectfully requests exemption authority 

to engage in charter foreign air transportation of persons and 

their accompanying baggage with small aircraft as set forth 

herein r and such other relief as may be in the public interest. 

Aero Partsr Ltd 

Agent for Service in the u.S. for: 

AIR PALACE, S.A. de C.V. 

21 September 2010 

8 
OWNERSHIP 

of 

AIR PALACE, S.A. de C.V. 

SHAREHOLDER CITIZENSHIP 

AIRPAL 

EXHIBIT A 

PORCENTAGE 

============================================================ 

SR. ROBERTO CHAPUR ZAHOUL MEXICAN 50.00 % 

SR. J.ANTONIO CHAPUR ZAHOUL MEXICAN 50.00 % 

CERTIFIED TRUE 

EUGENE SMITH 

AGENT FOR SERVICE for: 

AIR PALACE, S.A. de C.V. 
INTERNATIONAL AIR TAXI PERMIT 

of 

AIR PALACE, S.A. de C.V. 

AIRPAL 

EXHIBIT B 
SFCRIFAAIA aE COMtlNICAC16NEs 

y 

xaanseOR1ES 

AIR PALACE, S.A. DE C.V. 

BLVD. KUKULCAN KM. 14.5. 

ZONA HOTELERA. 

C.P. CANCUN, Q. ROO. 

c .. ;:;,.j. ~ 

DIRECCI6N GENERAL DE AERONAuTICA CIVIL. 

OFICIO No. 4.1.1 62.306,- 2352 

ASUNTO: Se concede permiso para establecer y explotar 

un servicio publico de transporte no regular de taxi aereo 

internacional de pasajeros. 

OPERADOR MEXICANO. 

Mexico, D. F. a 

En relacion a su escrito recibido el 16 de julio del presente, me perm ito informarle que con 

fundamento en los articulos 30, fraccion VI de la Ley de Vias Generales de Comunicacion, 60, 

fracci6n II, y 11 fracci6n III, de la Ley de A viaci6n Civil, en relaci6n con el articulo 18, fracci6n VI del 

Reglamento Interior de la Secretaria de Comunicaciones y Transportes, esta Direcci6n General de 

Aeronautica Civil, otorga a la empresa AIR PALACE, S.A. DE C.V., PERMISO para el 

establecimiento y explotacion de un servicio publico de Transporte no Regular de Taxi Aereo 

Internacional de Pasajeros, desde su base de operaciones en Merida, Yuc. 

En tal virtud, y de conformidad con 10 dispuesto en los artfculos 3°, fracciones II, VIII, IX, XII Y XIII, 

49,51, 120 Y 121 de la Ley de Vias Generales de Comunicaci6n; 1 °.,30.,4°.,5°., fracci6n 1 inciso 

a), 6°., fracciones 1, 11, XI, Y XII, 7°,12,14,15,17,18,23,24,32,35,42,44,47, fracciones II, IV y 

V,6 1 ,62,70,74,76,84, y demas aplicables de la Ley de Aviaci6n Civil, 1 ° , 2°, 10, I 1,25,26,28,32 

Y 193 de su Reglamento, el presente permiso estara sujeto a los siguientes requisitos y condiciones: 

1).- EL PERMISO SE OTORGA POR PLAZO INDEFINIDO, EN BASE AL 

ARTicULO 11 DE LA LEY DE AVIACION CIVIL, MISMO QUE SE DAM POR 

TERMINADO CUANDO EL PERMISIONARIO INCURRA EN ALGUNA DE LAS 

CAUSALES PREVISTAS EN LOS ARTicULOS 14 Y 15 DE LA PROPIA LEY. 

II): El presente permiso se expide en base al permiso de operador de un servicio publico de 

transporte de taxi aereo nacional no regular de pasajeros, TAN-TN-743 otorgado mediante oficio 

No. 00618 de fecha 27 de enero dee 2004. 

EQUIPO AUTORIZADO A OPERAR HACIA EL CONTINENTE AMERICANO: 

CESSNA 5508 XA-CAP. RAYTHEON KING AIR C -9OGT XA-CPR. 

III).- EI presente permiso debera ser inscrito en el Registro Aeronautico Mexicano, conforme al 

articulo 47 de la Ley de A viaci6n Civil. 

IV).- La(s) aeronave( s) ser:i(n) utilizada(s) solamente para prestar servicio de taxi aereo 

internacional no regular de pasajeros. 

DGAC-PE-03-DTG 1-FE201 

I 
(,1G C G 1~ A 

DIRECCION GENERAL DE AERONAuTICA CIVIL. 

OFlelO No. 4.1.102.306.- 2352 

SECRETARIA UE L'UMUNICAI:IONES 2 

INANSPNNIES 

VI).- El personal de vuelo de laCs) aeronave(s) debe contar con el certificado de comg 

vigente, expedido por la Direcci6n General de Aeronautica Civil. 

VII).- Dicha(s) aeronave(s) saldra(n) de territorio nacional, por cualquiera de los Aeropuertos 

Internacionales de la Republica Mexicana autorizados por la Secretaria de Comunicaciones y 

Transportes, donde cumplinin las formalidades y requisitos de aduana, migraci6n y sanidad. 

VIII).- Para la operaci6n del(os) vuelo(s) internacional(es) que se autoriza(n) esa Empresa queda 

obligada a mantener vigente en todo momento, su Certificado de Explotador Aereo, asf como las 

Limitaciones a dicho Certificado, expedidas por esta Direcci6n General de Aeronautica Civil, sin 

cuya vigencia 0 documento que acredite la misma, no podra realizar operaciones al amparo del 

presente permiso, con base en la NOM-008-SCT3-2002. 

IX).- La Empresa debera seguir las vias aereas previamente establecidas por la Secretaria de 

Comunicaciones y Transportes. 

X).- Obtener de esta Secretaria, la aprobaci6n y/o registro de las tarifas y sus elementos de 

aplicaci6n correspondientes, segun sea el caso. 

XI).- La Empresa queda obligada a presentar un informe estadfstico mensual ala Direcci6n General 

de Aeronautica Civil (Departamento de Programaci6n y Estadfsticas), en la forma DGAC-1857-L 

XII).- La Empresa debera contratar y mantener vigente un seguro que cubra las responsabilidades 

por los dafios a pasajeros y equipaje, asf como dafios a personas 0 cosas que se encuentren en la 

superficie de territorio mexicano en terminos de los Artfculos 70, 72 y 74 de la Ley de Aviaci6n 

Civil, 64, 65, 66, 67, 68, 69, 70, 71 Y 72 de su Reglamento. 

XIII).- Con fundamento en 10 dispuesto en los Artfculos 62 y 74 de la Ley de Aviaci6n Civil, esa 

Empresa debe garantizar el pago de la indemnizaci6n por dafios que pudieran causar a pasajeros y 

equipaje fuera de territorio mexicano, por las cantidades que establece el Convenio de Varsovia, 

modificado por el Protocolo de la Haya 0 por cualquier regimen vigente en el pais 0 paises de 

destino de los vuelos internacionales por el tiempo a que este sujeto este permiso. 

I ~XIV).- Previarnente al lnicio de sus vuelos al extranjero deberan solicitar y recabar el permiso 

~'cqr-respondiente de cada una de las autoridades aeronautic as del (os) pais (es) citado (s) en la 

resente autorizaci6n y, paralelamente, presentar en esta Dependencia copia (s) de dicho (s) 

rmiso (s) para acreditar que se cumpli6 con este requisito. 

. .. ./3 

DGAC-PE-03-DTG I-FE201 
Forma C G- 1. a 

DIRECCION GENERAL DE AERONAuTICA CIVIL. 

OFICIO No. 4.1.102.306.- 2352 

SECRETARIA DE COMUNICACIONES 

TRANSPORTES 3 

XV).- La Empresa no podni ceder, hipotecar, gravar, transferir 0 enajenar el presente permiso, 

los derechos en el conferidos, a algun gobierno 0 Estado extranjero. 

XVI).- La Empresa no podra ceder, hipotecar, gravar, transferir 0 enajenar el presente permi 

los derechos en el conferidos, a otros particulares, nacionales 0 extranjeros sin autorizaci6Vde la 

Secretaria. 

XVII).- La Empresa queda obligada a presentar este permiso a las autoridades aeronautic as de los 

aeropuertos internacionales que utilicen para salir y entrar a territorio mexicano. 

XVIII).- La Secretaria de Comunicaciones y Transportes podra dictar las modalidades y 

caracteristicas conforme a las cuales se preste el servicio publico en las vias generales de 

comunicacion y medios de transporte. 

Asimismo, la Secreta ria tendra la facultad, en cualquier tiempo, de verificar el cumplimiento de las 

Leyes de Vias Generales de Comunicaci6n y de Aviacion Civil, sus reglamentos y demas 

disposiciones aplicables. Para tal efecto, Ia permisionaria estara obligada a permitir el acceso a los 

verificadores a sus instalaciones, a transportarlos en sus equipos para que realicen la verificacion y, 

en general, a otorgarles todas las facilidades para estos fines, asi como a proporcionar a la 

Secretaria los informes con los datos que permitan conocer la operaci6n y exploraci6n de los 

servicios de transporte aereo. 

XIX).- La navegacion en e1 espacio aereo sobre territorio nacional se rige por 10 previsto en 1a Ley 

de Aviacion Civil y por los tratados, y a falta de disposicion expresa, se aplicaran los ordenamientos 

legales previstos en el articulo 4° de la propia Ley de Aviacion Civil y su Reglamento, motivo por el 

cualla permisionaria deb era cumplir con todas y cada una de las disposiciones contenidas en dicha 

normatividad. 

XX).- Para la navegacion en el espacio aereo, sera obligatorio utilizar los servicios de transito 

aereo, radioayudas, meteorologia, telecomunicaciones e informacion aeronauticas, as! como los 

demas auxilios a la navegacion aerea que presta el organo Desconcentrado denominado Servicios a 

la Navegacion en el Espacio Aereo Mexicano, 

XXI)-- En la prestaci6n de los servicios de transporte aereo, la permisionaria por iniciativa propia 0 

a instancias de 1a Secretaria, debera adoptar las medidas necesarias para garantizar las condiciones 

aximas de la seguridad dela aeronave y de su operaci6n, a fin de proteger la integridad fisica de 

as personas, equipaje y terceros. 

.14 

GAC·PE-03-0TG 1-FE201 

J 
'., .. " .. ,." ; .. :' "~' :" '" 

. ' " 

.. 

DIlRECCION GENERAL DB'RER 

OFICIO No. 4.I..IOL.306s- P 

SECRETARIA DE COMUNICACIONES 

Y - 4 . 

\ 

\ 

TRANSPORTES 

x =--'ratkrnnipilimiento .del perm{s@onaria comandante 0 piloto a cualgdiera de iObtigaciones 

condfcibnes" tableT idas en la Ley de A viacien Civil, en sus reglaniRl y en este permiso, se 

sancionara enterminos de los"artfculos 86, 87, 88 , 89 y'90 del ordenamiento legad citado en primer 

termino: 

XXIII) El permrslorrarro deber proceder al pago y, por consiguiente, acreditar ante esta Secretaria 

de Co unicaciones y Tr I ot sU r ToCipr a1 entero de los derechos previstos en los 

artfculos 159, fracci6n I U Ie Ley I de ere€hes alas eantidades de 

$I 1,350.0 JAM.N. Y concepto d' mtO e este per iso e inscripci6n 

en el Registre.Aer auti ro, los Cll rath eUble i 'krrrellr taireeibaede ,pago de fecha 

09 de febrero ,si 07. 'or " ,. , ,' . . . ,'. (,; -l! -.~ . -:ot. ' '- \ . ' . T ",;:r 

Por otra pa 'f el~~ ~rmjjSio.~J~i~~~~~ ~~f.;; edjante recibo oficial, el pago 

de los der e1ps cor f . ~~~~~~'\..~~ en.ca.er i-'e vigente el permiso, 

de confltl Id co -' ~?l~t!iF¥~~~I!i~r:s~v~el ~IVII, 193tde su Reglamento 

y 155, de'la.Ley Fede"ra1 Ji ~~'G:1(4~~~ert~f i J:_ '. ' .. ~:: .... . .' . '\".: / ' ( :: , ' " I' " .~ . 0. ',.. l!'-• • , '. '. ,. ' , 

EI acredi arria 0 de P ?&ti de los derrliPi.$}1 debera, ver!fl caase sir npas tardar, dentro de los 25 dias 

nato es sigwi r4 s aylafeua de otmr ~~I le'gst perrrJ\lsoy,'e el. elSO de los an os subsecuentes, 

el pplaz ' {e ,pago se, €mji~ ~ parJir de la feef: de'la eual, se haya otorgado dicho 

.' :i;,~ .. , '\.. .... :\;,\. .It VI: > ' ' "\ , ',' ~ " ' 

l. ~ .. ~~ ,- " '... " , 

."" . ' ': .. ' 

. " j. 

: ...... " 

DEOCA. 

Vuelta ... 

· ,; ....... . , . 
LIST OF KEY PERSONNEL 

AIRPAL 

EXHIBIT C 

N~E POSITION CITIZENSHIP TELEPHONE 

===================================================================== 

ING. JOSE A. CHAPUR Z. GEN DIRECTOR MEXICAN 

CPA A. TONATIUH HERNANDEZ CHIEF PILOT MEXICAN 

CPA A. TONATIUH HERNANDEZ CHIEF OPS. MEXICAN 

CPA FERNANDO R. MARROQUIN CHIEF AIRSEC MEXICAN 

COMPANY ADDRESS FOR ABOVE PERSONNEL IS: 

AIR PALACE, S.A. de C.V. 

BLVD. KUKULCAN, KM 14.5 

ZONA HOTELERA 

CANCUN, QUINTANA ROO 77500 

MEXICO 

01152999-930-3900 

01152999-930-3900 

01152999-930-3900 

01152999-930-3900 
FINANCIAL STATEMENT 

of 

AIR PALACE, S.A. de C.V. 

AIRPAL 

EXHIBIT D 
tr 

AIR PALACE, S. A. DE C. V. 

Balances Generales 

31 de diciembre de 2007 

. (Pesos de pede. adquisitivo conWlnlc al 31 de dicicmbre de 2007) 

Acth'O 

Activo circuiante: 

Erective 

Cucntas por cobrar: 

hnpuest6 at valoragregadopor recupe,ar 

0U:as 

Total de c~ntaa pot cobrnr 

Pages anticipados. 

Total del aelivo circulante 

Equipo detransporte aereo, incluyo deprcciaci6n 

acumulada de Si4,173,o76y $19.921,801 en 

2006 y 2007, rcspectivnmcnte 

Dtr05 activos,nelos (nota 3(d)) 

Impuesto sobrela renta difl:rido(nota.7) 

Ver notas adjuntas a lo~ cstados financieros. 

S 483,653 

347,989 

14$,653 

493,642 

129,S29 

1,107,124 

83.098,223 

133,150 

1,025,519 

S 85,364,016 

Pasivo y Capital Confable 

Pasivo circulante: 

Cu~tas por pagar y pasivcs.1l()U!Uu!ados 

Compailias tenedorn y reJacionadasi(notaG) 

Total del pasivo 

Capital contable (nota 8): 

Capiflll social 

Deficit 

Totaldcl capiflll confllhle 

Contingcncias y compromisos (nota 9) 

S 3,593,481 

51.326,507 

54,919.988 

34,608,401 

(4,164,373) 

30.444,028 

$ 85,364,016 

C.P. Victor M. Herreta.Mendoza 

Director Financiero Corporativo 
AIR PALACE~S. A. DE C. V. 

Estadp de.Resultados 

Ano tenninndo eI 31 de diciembre de 2007 

(pesos de poder ruiquisitivoconstante a1 31 de dieiembre de 2(07) 

Ingresos par servicios generales (nota 6) 

Costos y gastos de opernci6n~ 

Reparaci6n y mnnte:nimiento 

Transponaci6n Aerea (nota 6) 

Administraci6n 

Depreciaci6n 

ToW de castos y gasros de ¢perncion 

tJtilidad de opernci6n 

Otros gastos; neto 

Costo. integr~ de.fln/Utciamiento; 

Gasto par intereses (nota S) 

Ingreso pot mtereses 

Utilidad (perdida) en CIUllOios. nela 

Efedo monetario favorable 

Costo integra1de firianciamiento, neto 

Utilidadantes de impUestos a la ntilidttd 

hnpnestos n In utilid.ad{nota 7): 

Comente 

Diferido: 

Efecto atasas fisca1es vigentes 

$ 25,973,356 

2,315,16& 

8,773,397 

J,879,849 

5,748,725 

18,717,139 

7,256):17 

(19,740) 

(4,680,397) 

265 

(38,S25) 

2,065,031 

(2,653,926) 

4,582,551 

(50;531 ) 

(1,008,799) 

Efecto por disminuci.6n de tasas fiscales futuras 

Total diferido 

Total de UnpUest05 a 1a utilidad 

(perdida) utilidad. neta 

(1,008,799) 

(1,059,330) 

$ 3,523,221 

C.P. Victor M·Herrem Mendoza 

Director Financiero C6rporativo 
AIR PALACE, S. A. DE C. v. 

Estados de Variaciones en e1 Capital Contable 

Ai'ios terminados e131 de diciembre de 2006 y 2007 

(Pesos de poder adquisitivo constante al 31 de dJciembre de 2007) 

Saldos al 31 de diciernbre de 2005 

Perdida integral (nota 71:» 

Satdos al 31 de diciembre de 2006 

Utilidad integral (nota 7b) 

Suldos al 31 de diciembre de 2007 

Capital 

social 

$ 34,608,318 

34,608,318 

$ 34,608~318 

Vel' notas adjuntas a los estados financieros. 

(Deficit) 

resultados 

llcumulados 

27,082 

(7.714.676) 

(7)687,594) 

3,523,221 

(4,164,373) 

Total del 

cupit~ll 

contable 

34,635,400 

(7,714,676) 

26,920,724 

3,523,221 

30A43,945 

Director Financiero Corporativo 
AIRPALACE,S. A. DEC. V. 

Estado de Cambios en Ja Situaci6n Financiera 

Ailo terminado eI 31 de diciembre de 2007 

(pesos depoderadquisitivQ consiante at 31 de diciembre de 2007) 

Actividades de operaci6n: 

Utili dad, neta 

Mas cargos (menos creditos) a resultados que no 

requieren (PNPorcionan).recursos: 

Perdidaen venta de activofijo 

Impuesto sobre Ia renta diferido 

Depreciaci6n yamortizaci6n 

Recursos generados porIa operaci6n 

Fjnanciarniento neto (inversion neta) de operaci6n; 

Cuerttas por cobrar,neto 

Pagos anticipados 

Cuentaspor pagar y pasivos acumulados 

Compailias relacionadas 

Recursos generados poractividad~ de cperaci6n 

Recursos utilizados en actividades definanciamiento conPaJace 

Holding, S, A de C. V. (compaiiia tenedora) 

Aumento de efectivo 

Efectivo: 

Al principio del ana 

AI fin del ana 

Ver notas adjuntas a los estados financieros. 

$ 3,523,221 

1,008,799 

5,831,225 

10,363,245 

(254,275) 

23,692 

541,016 

10,673,678 

(10,340,674) 

333,004 

150,649 

483,653 

Ing. Jose A. Chapur oul 

Director General Ej ecutivo 

c_p, Victor M. Herrera Mendoza 

Director Financiero Corporativo 
'jZ 

Am PAl-ACESA. DE c.v. 

Balance General 

AI 30 de abril de lO()S 

(Pesos de poder adquisitiv{) ~On$lan(c aJ 30 de abril de 2008) 

Activo 

Activo circuJamc: 

Efc):tivo y equivalcntes S 

Cuemas por cobmr: 

Imp\t~stoal Vllior agregadQ.p<lf recupcrar 

Deudorcs diversos 

Otros 

Total de euenms por cobra! 

Pagos alltkipados 

TOlal del IIclh'o<:irculantc 

Equipo lk \ran$porte aerea, (incluye deprcciacion 

acumulada deS21.6IS,6S7) (no1ll3c) 

OtfOS activo,$, Ul!tos (nota 3d) 

fmpuesto sabre la rel1tadiferido (nola 6) 

412,305 

611,621 

142.643 

3599 

757.863 

183,925 

1.354,093 

81.401.306 

107,263 

t,025,519 

$ !lJ.S88,J81 

Vcr Il(.tas a<.ljunl1\s a los cstl\dos finan<:lcros. 

Pastvo y Capital Contablc 

PasiVQ circulllllte: 

CUenllls por pugnr $ 

Rcservadc gas lOS 

Palace Holding S. A de C.V .(compaiHn tcnedom) (nota 5) 

TOlal del pas iva 

Capital oomable (nota 7) 

Capital social 

Deficit 

Total del capital conlahle 

Conlingencins y cnmpromisos (no(a 8) 

Dir';:Ch)r FlnanClero (\)rponuin) 

$ 

52(),857 

3,051,522 

50,329.700 

53,908,079 

34,{)08,3IS 

(4;628,216) 

29,980,102 

83,888,181 
AIR PALACE, S.A. DE C.V. 

Estado de Resultados 

Periodo terminado el 30 de abril de 2008 

(Pesos de poder adquisitivo constante a1 30 deabrif de 2008) 

lngresos par servici~g (nota 3h) $ 5,858,466--

Costos ygastos de operacion: 

Reparaci6n y mantenimiento 1,275,115 

Transportaci6n aerea 3,602,140 

Administraci6n 612,048 

Depreciaci6n J,696,918 

Total de costas y gastos de operaci6n 7,186,22 J 

Perdida de operacion (J,327,755) 

Producto integral definanciamiento: 

Intereses a cargo (l ,I 02,318) 

Utllidad en camblos, neta 1,966,230 

Total de productointegral de financiamiento (nota 3j) 863,912 

Perdida nota $ (463,843 ) 

Vernotas adjuntas a fos estados financieros. 

Director 

[ng~~OUI General Ejecutivo Director Financiero Corporativo 
AIR PALACE, S. A. DE C. V. 

Estado de Variaciones en el Capital Contable 

Periodo terminado el 30 de abril de 2008 

(Pesos de poder adquisitivo constante al 30 de abril de 2008) 

Saldos al 31 de diciembre de 2007 $ 

Perdida integral (nota 7b) 

Saldos al 30 de abril de 2008 

Ver notas adjuntas a los estados financieros. 

Capital 

~ 

34,608.318 

34,608,318 

Resultados 

acumulados 

(4.164.373) 

(463,843) 

(-1,628,216) 

Director Financiero Corporativo 

Total del 

capital 

contable 

30.443.945 

(463,843) 

29,980,102 
AIR PALACE; S.A. DE C.V. 

Estado de Cambio:; en la Situaci6nFinanciera 

Periodo terminado el 30: de abril de 2008 

(Pesos de poder adquisitivo constante al 30 de abril de 200S) 

Actividadesde operaci6n: 

Perdida neta $ (463,843) 

Mas cargos (menos crt!ditos) a resultados que no 

requieren (proporcionan) recurros: 

Depreciaciones yamortizaciones 1,722,804 

Recursosgenemdos por la operacion 1,258,961 

Financfantiento oeto (inversion neta) de operaci6n: 

Cuentas por cobrar y pages anticipados (319,341) 

Cucntas por pagar (14,161) 

CompaiHas tenedora y relacionadas (996,807) 

Recursos utiIizados en actividades de operacion (71,348) 

Disminuci6h de efective (71,348) 

Efectivo y equivalentes: 

AI principio del periodo 483,653 

AJ final del perfodo $ 412,305 

Ver notas adjuntas a los estadosf'inancieros, 

lng. Jose A. Chapur Zahoul 

Director General EJecutivo Director Financiero Corporativo 
FOREIGN AIR CARRIERS 

CERTIFICATE OF INSURANCE 

OST FORM 6411 

of 

AIR PALACE, S.A. de C.V. 

AIRPAL 

EXHIBIT E 
AGENCY DISPLAY OF ESTIMATED BURDEN 

The public reporting burden for this collection of information is estimated to average 30 minutes per ;8sponse. If you wish 

to comment on the accuracy of the estimate or make. suggestions for reducing this burden, please drrecl your comments to: 

U.S. Department of Transportation, Office of Aviation Analysis, X-56, 40071/1 St., SW,., Washi~gton, D.C. 20590 .. According 

to the Paperwork Reduction AC.t of 1995, no persons are requfredto respond to a collection of mformatlon unless It dIsplays 

a valid OMB control number. 

n nic,' 0 r the Secretary 

(\1' Transportation NOTE; For information on where to fife completed copies of this fotm, see FlUNG INSTRUCTIONS below. 

OMS No. 2106-003GExpires 9-30·2007 

FOREIGN AIR CARRIERS - CERTIFICATE OF INSURANCE 

POLICIES OF INSURANCE FOR AIRCRAFT ACCIDENT BOD1L Y INJURY 

AND PROPERTY DAMAGE LIABILITY 

FILING INSTRUCTIONS: file a signed Original of this fonnwith the Federal Aviation Administration, Air Transportatio.n Diy., AFS-260, 800 

Independence Ave., SW., Washington, DC 20591. (See EXCEPTION below.) . '. 

EXCEPTION: If Section 2A Is filled in because the insured is a Canadian Charter Air Taxi operataI', file an original of thIS form With the U.S. 

Department 

ofTransportation, Special Authorities Division {X-46), 400 7th Street, SW, Washington. D.C. 20590 

(Please type information. except Signatures.) 

THIS CERTIFIES THAT: MAPfRE iEPEYAC; S.A 

(Name .of Insurer) 

has issued a policy Of policies of Aircraft Liability Insurance to _...!A:l!l.!2R~P:!.A:l!LA::!l:>C::t!E",!...::S~.AD'-" D~E..:::C,,-.v~t'--________________ _ 

Bl.VD. KUKULCAN KM. 14;5 INT. HQTEL CANCUN PALACE. ZONA HOTElERA 77500 CANCUN; QUINTANA ROO 

'--________ ~ __ F AA Certificate Number~ __ -:7::-:--"'-_-:-_:-:-_""""':::--::-----"-:--C::---:--:-

(Name, address an~FAA Certificate number of Insured Foreign Air Carrier) 

effective from FEBRUARyal1\ 2008 until ten (10) days after written notice from the insurer or carrier of tile intent 

to terminate coverage is received by the Department of Transportation. 

NOTE: Part 205 of the Departmeni:s RegUlations does not allow for a predetermIned termination date, and a certifi:cate shOWing such a date is 

unacceptable. 

1. The Insurer (Check One): 

is licensed to issue aircraft insurance policies Intlle United States; 

is licensed Of approved by the govemmentof MEXICO .to issue aircraft insurance policies; or 

is an approved SUrplUS line. inSU!'Elf in the $tate(s} of 

2. The insurer assumes, under the policy or policies listed below. aircraft acCident liability insured to minimums at teast equal to the folfowing during 

operation, maintenance, oruseef aircraft in "foreign air transportation' as thatterm is defined in 49 U.S.C_ 40102_ 

(Complete 8pplicable section A. B, or C below): 

A. CANADIAN CHARTER AIR TAXI OPE-RA TORS WITH PART 294 AUTHORITY ONLY 

The aircraft covered by thj~ poli.cy have: (1) 30 or fewer passenger Seats. and a maximum payload capacity of 7,500 pounds or less; andlor 

(2) a maximum authorized takeoff weight on wheelsefno more than 35,000 pounds. (Complete separate or combined coverage as 

appropriate): . 

Separate Coverages: 

Policy No. Type of Liability 

Combined Bodily Injury (Excluding Passengers other 

than cargo attendants) and Property Damage Liability 

Passenger Bodily Injury 

Minimum Umil 

Each person. Each Qccummce 

$75,000 

$75,000 

$2,Ooo,Ooo"'(Seanote) 

$75,000 x 75% of 

total number of 

passenger seats 

installed in aircraft 

Combined Coverage: This combined coverage is a single limit of liability for each Occurrence at least equal to the required minimums 

stated above for bodily injury (e;<cluding passengers), property damage, and passenger bodily injury. 

Policy No. Arnountof Coverage U.S. DoHars 

This policy covers CARGO operations only and excludes passenger liabHity insurance. 

NOTE: If the aircraft covered by this policy have .. l119re than 30 passenger seats or more than a maximum payload capacity of 7,500 

pounds, the minimum limit per occurrence shall be $20;000,000. 

OST Form 5411 
-----.-- ~---------------------------------"I 

8. FOREIGN AIR CARRIERS OPERATING SMALL AIRCRAFT 

The. aircraft covered by this policy are SMAU AIRCRAFT (i.e., with 60 or fewer passenger seats or with a maximum payload 

capacity of 18,000 pounds or less). (Complete separate or combIned coverage as appropriate): 

Separate Coverages: 

Policy No. Type of Uabifily 

__ -,3~6~00c><:' 8",""O:!!:0~Ooo=0,-!1-i.1_--:-_Combit)ed Bodlfy Injury (Excluding Pass:engers other 

than cargo attendants) aOO Property Damage Liability 

Passenger Bodily Injury 

Minimum Umit 

Eaqhperson 

$300,000 

$300,000 

Each Occurrence 

$2,000,000 

$300,000 x 75% of 

total number of 

passenger seats 

instafled in aircraft 

Combined Coverage: This combined coverage is a sIngle limit Of liabillfy for each occurrence at least equal to the required minimums 

stated above for bodlly injury (excluding passengers), property damaged, and passenger bodily injury. . 

Policy No. 3600800000011 Amount of Coverage $50'000.000:00 U.S. DoHars 

ThiS policycovEl~ CARGO operations only and excludes passenger liability insurance, 

C. FOREIGNAIR CARRIERSOPERATlNGLARGEA1RCRAFT 

The aircraft covere~ by this policy are LARGE AIRCRAFT (I.e., with more than 60 passenger seats or with a maximum payload capacity of 

more than 18,000 pounds). (Complete separate or combined.covefAAe as appfoeriale): 

Separate Coverages: Minimum Limit 

PolicyNQ. Type of U?bility 

Combined Bodily Injury (Excluding Pa~sengers other 

than cargo attendants) and Property Damage Liability 

Pas$enger Bodily InjUry 

Each per SOil 

$300,000 

$300,000 

Eacil Occurrence 

$20,000,000 

$300,000 x 75% of 

total number of 

passenger seats 

installed in aircraft 

Combined Coverage: This combined coverage is a single li01itoftiability fQreacn OCCUrrence at least equal to the required minimums 

stated above for bodily injory (excluding passengers), property dClOl;;'ged,and passenger bodily injury. 

Policy No,, ________ ~ ______ _ Amount ofCoverage _______ ..,,-___ U.S. Dollars 

This polIcy covers CARGO operations dnlyand excludes passenger liability insurance. 

3. The policy or policies listed in this certificate Insure(s) {Check One): 

Operations conducted with all aircraft operated by the Insured 

Operations conducted with the following types of aircraft: 

Make and Model 

CESSNA f 550 I 55()"1 070 

FAA or Foreign Rag 

Registration No. 

XA-CAP 

Operations with thefollowingairoraft (Use additional page if neC8S$ary) 

4. Each policy listed iii thls.certificate meets or exceeds the requiremenlsln 14CFR PartZ05. 

MAeFRE TEPEYAC, SA 

(Name of fnsurer) 

aL VQ, MAGNOCENTRO#5, CENTRO URBANO 

(Address) 

52760 XurXQUfLUCAN .. Eoo. DE MEXICO, 

(City, State, Zip COde) 

J1.C. JUAN JAIMES ESPINOZA 

Contact (person who can wi' 

LAFON Y ASOCIADaS AGENTE DE SEGUROS Y DE FIANZAS, SA 

(Name of Broker, if applicable) 

DESCARTES NO. 54 P/SO 6 COL NUEVA ANZURES 

(Address) 

11590 MEXICO,O.F. 

(City, Stater Zip Code) 

Lie. 
t'" ~(~ ~~o! 

om..,e (lfthe Secretary 

or T runsportatiot) 

AGENCY DIspLAY OF ESTIMATED BURDEN 

The public reporting burden for this collection of information is estimated to average 30 minutes per !esponse. If you wish 

to commenton the accuracy anne estimate, or make suggestiOns for reducing this burden, please direct your comments ~o: 

u.s. Department of Transportatio~ Office of AViation Analysis, X.:.ss, 400 7!J1 St., SW,., Washington. D.C. 20590. According 

to the Paperwork Reduction Acto! 1995, no persOns are required to respond to a Collection of information unless it displays 

a validOMB control number. ' 

NOTE: For information on where to ft!ecompleted copies of thls form, see FILING INSTRUCTIONS below. 

OMs No. 2106-0030 Expires 9-30-2007 

FoREIGN AIR CARRIERS - CERTIFICATE OF INSURANCE 

POUCIES OF INSURANCE FORAIRCRAFT ACCIOEmaOOILY INJURY 

AND PROPERTY OAMAGELlABILITY 

FILING INSTRUCTIONS; ,Fil~ a $lgned origInal ,of thiS form with the Federal Aviation Administration. Air Transportati?o Div., AFS-260, 800 

Independence Ave., SW" Washhigtoo, DC 20591. (See EXCt:P110Nbelow.) " 

EXCEPTION: jf Section 2.A. is filled in because the insured. is a Canadian Charter Air Taxi operator. file an otiginalof (hts formwith the U,S. 

Department 

of Transportation, Special Authorities DivisiOn (X;.46). 400 1lI\ Street. SW, Washington, D.C. 20590 

(Ple8se type information, except signeiures.) 

THIS CERTIFIES THAT; MAPF'RE TEPEYAC, S.A 

(Name of Insuter) 

has issued a poliCy or policies of Aircraft liabitity Insurance to _.!.A:!lIR~,;'!'PLA!.=LA~C:.=E,,-, S~.A!.:.., ..!::D:.=E~C:!;:..v~. __________ -------

BLVD. KUKULCANKM, 14.51NJ,HbTELCANGUN PALACE; tONAHOTaERA 775QQCANCUN. QUINTANA ROQ 

~ _______ ~~_F,AA CertificateNumber,-,..~,..."._--"_".--.,..,--_..,...,,,._:--..,..,.--::--,-_ 

(Narne, adaf~sand FM certificate numt;>er of Insured Foreign Air Carrier) 

e ffactive from FESRUARYSTHq 2008 ," . until ten ,(10) days af"terWlittel1 notice from the insurer or carrier of the intent 

to terminate coverage is received by the Department ofTransportation. 

NOTE Part 205 of the Department's ReglJlations 006S not altowfor a predetermined termination date, and a certificate shOwing such a date is 

unacceptable. 

1. The Insurer {Check One}: 

is licensed 10 issue aircraft Insurance policies in the United States; 

is licensed or approved by theg9v~tnei1tof MEXICO to issue aircraft insurance policies; or 

is an approved !iurplus Jlh~ inSurer in the State($)of 

2. The insurer assumes. underthe policy or policies listedbelow,aircraftaGCi,dent liability insured to minimums at least equal to the following during 

operation, maintenance. or use of aircraft In "foreign air transportatIon' as that term is defined in 49 U.S.C. 40102. 

(Qamp/ete appf/gaQle section A. Be or Cbe/ow): 

A CANADIAN CHARTER AIRTAXI OPERATOR$ Win. ~ART 294,AlJTHO~1TY ONLY 

The aircraft covered by this policy have: (1)30 odew'er passenger seats and a maximum payload capacity of 7,500 pounds or less; and/or 

(2) a maximum authorized takeoff weight. On wheels. ohio more than 35,000 pounds, (CGn?p/efe saMrale or combined coverage as 

8RPropriale): 

Separate Coverages; 

PoIieyNo, Type- of Uabilify 

Combined Bodily lnj~ry (Excluding Pas:sengers other 

than cargo attendants) and Property Damage Liability 

Passenger Bodily Injury 

Minimum Umit 

Each person Each QcgurrenOQ 

$75,000 

$75,000 

$2;OOO,Ooo·CSee note) 

$75,000 X 75% of 

total number of 

passenger seats 

installed in aircraft 

Combined Coverage; This combined coverage iss single limit of liability for ea.ch occurrence at least equal to the required minimums 

staled above for bodily Injury (excluding passengers). property damage, and passenger bodily injury, 

Policy No. Amount of Coverage U.S. Dollars 

This policy Covers CARGO operationson/y and excludes passenger liability insurance_ 

NOTE: If the aircraft i:;(Jvered by 1his policy have more than 30 passenger seats or more than a maximum payload capacity of 7,500 

pounds, the minimum limit per occurrence shall be $20.000,000. 

OST Form 6411 
B. FOREIGN AIR CARRIERS OPERATING' SMALL AIRCRAFT 

The aircraft covered by this policy are SMALL AIRCRAFT (i.e .• With 60 or fewer passenger seats or with a maximum payload 

capacity of 18,000 pounds· or less). (CompleleSePfJrate or combined coverage- as appropriate ): 

Separate Coverages: 

Policy No. Type of Liability 

___ 3~6",,00~80~O~OOOO~o!.J1C2.1_.......,.,._Combihed Booily Injury (EXClUding passengers other 

than cargo attenqants) and Property bamage Liabflity 

Passenger Bodily Injury 

Minimum Limit 

Each person 

$300,000 

$300,000 

Each OccufTlJnce 

$2,000,000 

$300,000 x 75% of 

total number of 

passenger se<)ts 

installed in aircraft 

Combined Covert\ge: This cotnbinedcoverage is a sjhg!elimit of liabjlity for eilch o~umilnce at least equal to' the Iequired minimums 

stated above for bodily injury {exclUding passengers;, propertY damaged, and passenger bexlily injury. . 

Policy No. 360080oooQ011 AmO'unt of Coverage $50'000.000.00 U.s. Dollars 

This policy cove,s CARGOppera~ons·onty and. 6)(c;ItJc.J(#Spassenger liability insurance. 

C. FOREIGN AIR CARRIERS OPERAl'fN~LARGE' AIRCRAFT 

The aircraft covered by this policy are.LARGEA1RCRAFT (te., with more than 60 passenger seats or with a maximum Payload capacity of 

more than 18,000 pounds). (Complete separate or combi{?$d cOveffJg§8sappropriate}: 

Separate Coverages; 

PoffcVNo. 

Minimum Limit 

Each Qel"Son Each OccufTlJoce 

Combine<i ,Bp!:llIylnlury (I:XCluQin!lPass~n~~ other 

than eargoattendants) arntPropeity Damag~ Uabillty $300;000 

$300,000 

$20,000,000 

$300.bOO x 75% of 

total number .of Passenger Bodlly Injury 

passenger seats 

installed in ai(ct<jft 

Combined Coverage: This combined coverage is a .single limit of Hability for ea9h occurten~ at least equal to the required minimums 

slated above for bodily injury (exdudingPassengers), property damaged, and passenger bodUy injury. 

Policy No. _____________ _ Amount of COverege, _______ --·U.S. Dollars 

This policy covers CARGO openitionson/y and ISxclacJes passenger Wabllityinsurance. 

3. The policy or policies listed in this certificate lnsure{s) (Check 0ne): 

Operations cond~ptedwIthallaj(Graft .opera~ by the insured 

Operations conducted with the followinl1 types of airereft: 

Mak~ and Model 

RAYTHEON! C-90-GT I LJ"1758 

FAA or Foreign Flag 

Registration No. 

Operations with the followihg afrchifC (Useaaaitiona~ pageifnecessaryj 

,t. r t 

4. Each policy listed in thiscertlficatemeefs or exceeds the requirements in 1'4 CFRPart 205, 

MAPFRE TEPEYAC, SA 

(Name of Insurer) 

BLVD. MAGNOCENTRO#5, CENTRO· URBANO 

. (Adtiress) 

52760 XUlXQUlLt)CAN, £pO. DEMEXtCO, 

(Cify, Sf ate, Zip C6de) 

(Date) 

he coverage) 

LAFON YASOCIADOS AGENTE DE SEGURO$ Y DE FlANZAS, SA 

(Naine of Broker, if applicable) 

PESCARTES NO. 54 PISO 6 COL. NUEVA ANZURES 

(Address)