BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________ ) Application of ) ) AEROVIAS DE MEXICO, S.A. DE C.V. ) DOCKETS OST-1996-1303 ) OST-1996-1304 for renewal of exemption authority ) OST-2006-24083 (various Mexico-U.S. markets) ) OST-2011-0042 __________________________________________)

APPLICATION OF AEROVIAS DE MEXICO, S.A. DE C.V. FOR RENEWAL AND MODIFICATION OF EXEMPTIONS
Communications with respect to this document should be sent to: John R. Mietus, Jr. Law Office of John Mietus, LLC 6701 Democracy Blvd., Suite 300 Bethesda, MD 20817- 7500 (202) 747-5212 (240) 396-5362 fax john@mietuslaw.com Counsel for AEROVIAS DE MEXICO, S.A. DE C.V.

NOTICE: Any person may support or oppose this application by filing an

answer and serving a copy of the answer on counsel for Aero mexico and upon persons served with this application no later than March 12, 2013.
February 25, 2013BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________ ) Application of ) ) DOCKETS OST-1996-1303 AEROVIAS DE MEXICO, S.A. DE C.V. ) OST-1996-1304 ) OST-2006-24083 for renewal of exemption authority ) OST-2011-0042 (various Mexico-U.S. markets) ) February 25,2013 __________________________________________)

APPLICATION OF AEROVIAS DE MEXICO, S.A. DE C.V. FOR RENEWAL AND MODIFICATION OF EXEMPTIONS

Pursuant to 49 U.S.C. § 40109(c), Aerovias de Mexico, S.A. de C.V. ("Aeromexico") respectfully requests renewal of its exemption authority to engage in scheduled foreign air transportation of persons, property, and mail in the following Mexico

- U.S. markets (the “Operating Markets”) as granted by the Notice s of Action Taken listed below : Operating Market Docket (OST-) Notice of Action Taken Hermosillo-Phoenix 1996

- 1303 2/29/2012 Mexico City-Phoenix 1996

- 1304 2/29/2012 Monterrey-Las Vegas 2006

- 24083 2/29/2012 Guadalajara-Fresno 2011

- 0042 2/29/2012 Guadalajara-Sacramento 2011

- 0042 2/29/2012 Aeromexico further requests that its exemption authority to engage in scheduled foreign air transportation of persons, property, and mail in the following market (the “Code

- Share Market”) be renewed, but limited to- 2 - Aeromexico Renewal Application services conducted by displaying the “AM” designator code on flights operated by Aerolitoral, S.A. de C.V. d/b/a Aeromexico Connect: Code-Share Market Docket (OST-) Notice of Action Taken Monterrey-Chicago 2011

- 0042 2/29/2012
Aeromexico requests that exemption authority for these markets be renewed for an additional, one-year period. Aeromexico intends to invoke the automatic extension provisions of 5 U.S.C. § 558(c) and Part 377 of the Department's Special Regulations. In support of this application, Aeromexico states as follows:
1. Aero mexico is a flag carrier of the United Mexican States and currently holds a permit, Order 91

- 5

- 25, and various exemp tions which authorize service between Mexico and numerous U.S. points. Pursuant to this authority, Aeromexico provides extensive transborder servi ce.
2. By this application, Aeromexico seeks renewal of its exemption authority to serve the markets listed above. Exemption authority for these markets is scheduled to expire on March 1, 2013 . As to each Operating Market , Aeromexico either is serving the market with nonstop flights or wishes to maintain authority so that it can resume nonstop service should conditions warrant. Aeromexico also is serving the Code

- Share Market by placing its “AM” designator code on Aerolitoral , which h olds the necessary authority by Notice of Action Taken dated November 21, 2012 in Docket OST

2012

- 0188. Aeromexico’s services in Mexico

- U.S. markets provide significant- 3 - Aeromexico Renewal Application b enefits to the traveling public . Consequently, Aeromexico seeks to renew th e authori ty to serve all of these markets for an additional year.
3. Annex 1 to the 1960 Air Transport Agreement, as amended, between the United Mexican States and the United States provides that a carrier designated by the Government of Mexico is entitled to operate "[f]rom a point or points in Mexico to a point or points in the United States." Aero mexico understands that it remains designated to serve the Operating Markets, and it continues to hold DGAC authority to provide service in those markets. 1 / Renew al of modified exemption authority in the Code

- Share Market also is consistent with the Agreement and with Department code

- sharing policies set forth in Order 99

- 6

- 6.

4. Under 49 U.S.C. § 40109(c), the Department may grant exemption authority if it finds that a grant is consistent with the public interest. Designation of a carrier by its homeland government is the most significant factor in determining whether grant of an application is in the public interest. See, e.g., Bluebird Cargo Ltd. , Order 2004

- 8

- 24 at 3

- 4; Fast Air Carrier Ltda., Permit Amendment , Order 82

- 2

- 66 at 3

- 4. Given Aeromexico's designation for th e Operating M arkets and code

- share authorization in the Code

- Share Market, such a public interest finding is warranted. Moreove r,

1 / Should a designation in any Operating M arket have been withdrawn, however, Aeromexico requests that the Department defer action on the renewal request for that market while proceeding to renew the remaining authority.