UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on August 5 , 201 1

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 20 11

- 0130

_________________________________________________________________________________________________________ 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 of VIRGIN AMERICA , INC. ( Virgin America )

, filed 7/14 /11 for :

XX E xemption under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail between San Francisco,

California , and Puerto Vallarta , Mexico , and to combine this authority with its existing economic authority. 1

Applicant rep: Barbara Russell ( 650 ) 762

- 7394 DOT Analyst: Brett D. Kruger (202) 366

- 8025

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: August 5 , 201 1

, through August 5 , 201 3

.

Action take n 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 The holder’s certificates of p ublic convenience and necessity

XX Standard exemption conditions (attached)

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, the dormancy notice period will begin on December 2 , 2011, the applicant ’ s proposed start

- up date for the subject services.

The route integration authority granted is subject to the condition that any service provided under this exemption shall be consistent w ith all applicable agreements between the United States and the foreign countries involved. Furthermore, (a) nothing in award of the route integration authority granted should be construed as conferring upon Virgin America rights (including fifth

- freedom interme diate and/or beyond rights) to serve markets where U.S. carrier entry is limited unless Virgin America notifies the Department of its intent to serve such a market and unless and until the Department has completed any necessary carrier selection procedures to det ermine which carrier(s) should be authorized to exercise such rights;

1 Virgin American states that it will serve this market five times weekly, beginning December 2, 2011.and (b) should there be a request by any carrier to use the limited

- entry route rights that are included in Virgin America ’s authority by virtue of the route integration exemption granted here, but that are not then being used by Virgin America , the holding of such authority by route integration will not be considered as providing any preference for Virgin America in a competitive carrier selection proceeding.

______________________________________________________________________________ O n 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.

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. We may amend, modify, or revoke the authority granted in this Notice at any time witho ut 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 th is 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.govATTACHMENT

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 serve d;

(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 i nsurance 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 Pr incipal 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 term s, 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 a uthority granted shall be effective only during the period when the holder is in compliance with the conditions imposed above.



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