UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on July 28, 2010

 NOTICE OF ACTION TAKEN –

DOCKETS DOT-OST-2010-0168, DOT-OST-2010-0169, and DOT-OST-2010-0170 

___________________________________________________________________________________________________________________________

This serves as notice to the public of the action described below, taken by the Department official indicated (no 

additional confirming order will be issued in this matter).

Applications of VIRGIN AMERICA INC. (Virgin America), filed 6/29/10, for:

XX Exemption authority under 49 U.S.C. 40109 to provide the following service:

(1) Docket DOT-OST-2010-0168: scheduled foreign air transportation of persons, property, and mail between 

San Francisco, California, and Cancun, Mexico; 

(2) Docket DOT-OST-2010-0169: scheduled foreign air transportation of persons, property, and mail between 

Los Angeles, California, and Cancun, Mexico; and 

(3) Docket DOT-OST-2010-0170: scheduled foreign air transportation of persons, property, and mail between 

San Francisco, California, and San Jose del Cabo, Mexico.

Virgin America further seeks to integrate the exemption authority requested in the captioned dockets with its 

existing exemption and certificate authority.1

Applicant rep: Barbara Russell (650) 762-7394 DOT Analyst: Linda L. Lundell (202) 366-2336

D I S P O S I T I O N

XX Granted (subject to conditions, see below)

The above action was effective when taken: July 28, 2010, through July 28, 2012.

Action taken by: Paul L. Gretch, Director

 Office of International Aviation

XX The authority granted is consistent with the aviation agreement between the United States and Mexico.

Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations indicated: 

XX Holder’s certificates of public convenience and necessity 

 XX Standard exemption conditions (attached)

 

1

 Although the captioned exemption applications did not include proposed start-up dates for the subject services, Virgin 

America did provide start-up information in an application filed, in Docket DOT-OST-2010-0167, for corresponding certificate 

authority involving these routes. In this regard, Virgin America states that it intends to institute the San Francisco-San Jose del 

Cabo services “in late 2010,” and the San Francisco-Cancun and Los Angeles-Cancun services “in early 2011” (see

Application for a certificate, et.al., at 1).
Conditions: The U.S.-Mexico exemption authority granted is subject to the dormancy notice requirements set forth 

in condition 7 of Appendix A of Order 88-10-2. Consistent with our standard policy, and in consideration of Virgin 

America’s statements regarding its proposal for the commencement of these services (see footnote 1, above), we 

have determined that the dormancy notice period will begin on December 31, 2010, for Virgin America’s late 2010 

San Francisco-San Jose del Cabo services; and on March 31, 2011, for Virgin America’s “early 2011” San 

Francisco-Cancun and Los Angeles-Cancun services.

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant 

qualified to provide the exemption services authorized. 2

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) grant of the authority was consistent with the public interest; and (3) 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, we denied all requests in the referenced Dockets. We may amend, modify, or revoke the 

authority granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s 

regulations, 14 CFR §385.30, may file 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:

www.regulations.gov

 

2

 By Orders 2007-5-11 and 2007-8-17, we found Virgin America fit, willing, and able to conduct interstate air transportation

of persons, property, and mail. In addition, we recently found Virgin America qualified to provide scheduled foreign air 

transportation between the United States and Canada (see Notice of Action Taken dated April 2, 2010, in Docket DOT-OST2010-0068). The foreign air transportation services authorized here are not markedly different in terms of aircraft size or stage

length from the carrier’s current operations under its existing authority. We, therefore, find that Virgin America is qualified to 

provide the proposed air transportation for the period covered by the exemption. 
ATTACHMENT

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating authority from the government of each country served;

(2) Comply with applicable requirements concerning oversales contained in 14 CFR 250 (for scheduled 

operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insurance coverage, and for certifying that coverage to the 

Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise provided for in a Department Order, comply with the 

requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable requirements of the Federal Aviation Administration, the Transportation 

Security Administration, and with all applicable U.S. Government requirements concerning security, 

including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. 

Government requirements concerning security, the holder shall, before commencing any new service 

(including charter flights) to or from a foreign airport, contact its Principal Security Inspector (PSI) to 

advise the PSI 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;

(7) Comply with such other reasonable terms, conditions, and limitations required by the public interest 

as may be prescribed by the Department of Transportation, with all applicable orders and regulations of 

other U.S. agencies and courts, and with all applicable laws of the United States.

The authority granted shall be effective only during the period when the holder is in compliance with the 

conditions imposed above.

 

1/2008