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

– DOCKET S DOT

- OST

- 20 10

- 0 1 6 8 , DOT

- OST

- 2010

- 016 9, and DOT

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- 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).

Application s 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

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- 2010

- 0168: s chedu led foreign air transportation o f persons, property, and mail between San Francisco, California, and Cancun, Mexico ;

(2) Docket DOT

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- 2010

- 016 9: scheduled foreign air transportation of persons, property, and mail between Los Angeles, Calif

ornia, and Cancun, Mexico ; and

(3) Docket DOT

- OST

- 2010

- 01 70: 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 au thority requested in the captioned dockets with its existing exemption and certificate authority. 1

Applicant rep : B a rbara Russell ( 650 ) 762

- 7 394 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 w as effective when taken: July 28

, 20 10

, 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 exempti on 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 s ervices; 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 provid e 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 Docket s

. 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 Noti ce of Action Taken dated April 2, 2010, in Docket DOT

- OST

2010

- 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 aut hority. 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 governme nt 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 re quirements 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, conce rning 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 concerni ng 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 a irport, 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