UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on August 3 , 2012



### NOTICE OF ACTION TAKEN

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________________________________________________________________________________________________ ________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be i ssued in this matter).

Applicant : AEROLITORAL, S.A. de C.V. D/B/A AEROMEXICO CONNECT (Aerolitoral)

Date Filed: July 10, 2012

Relief requested: 1) E xemption under 49 USC § 40109 for one year to permit the applicant to engage in scheduled foreign air transportation of persons, property, and mail between Hermosillo

, Mexico, a nd Phoenix, Arizona ; and 2 ) Statement of authorization under 14 CFR Part 212 for an indefinite period to permit Aerolitoral to display the “AM” designator code of Aerom exico on flights operated by Aerolitoral between Hermosillo , Mexico, and Phoenix, Arizona

.

Applicant representative: John R. Mietus, Jr.

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- 5212 DOT analyst: Darren Jaffe, 202

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Responsive pleadings: None.

DISPOSITION

Action: Approved. A ction date: August 3 , 2012

Effective dates of authority granted: The exemption authority granted to Aerolitoral is effective August 3 , 2012

, through August 3, 2013

. The statement of authorization granted to Aerolitoral is effective August 3 , 2012

, and shall

remain in effect for an indefinite period , subject to conditions

.

Basis for approval (bil ateral agreement/reciprocity): United States

- M exico A ir Transport Services Agreement.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption and code

- share conditions (attached)

.

Action taken by: Paul L. Gretch, Director, Office of International Aviation

_____________________________________________________________________________________________________ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consis tent with Department policy; (2) the applicant w as qualified to perform the proposed operations; (3) grant of the authority was consistent with the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Ene rgy Policy and Conservation Act of 1975. To the extent not granted/deferred/dismissed, we denied all requests in the referenced Docket. 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 regulati ons, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was eff ective 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.gov

### Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant(s) shall:

(1) Not conduct any operations unless it holds a currently effective authorization from its homeland for such operations,

and it has filed a copy of such authorization with the Department;

(2) Comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, in cluding, but not limited to, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1546 or 1550, as applicable. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (includin g charter flights) from a foreign airport that would be the holder’s last point of departure for the United States, contact its International Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the I IR 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;

(3) Comply with the requirements for minimum insurance coverage contained in 14 CFR Part 20 5, and, prior to the commencement of any operations under this authority, file evidence of such coverage, in the form of a completed OST Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS

- 260), Flight Standards Service (an y changes to, or termination of, insurance also shall be filed with that office);

(4) Not operate aircraft under this authority unless it complies with operational safety requirements at least equivalent to Annex 6 of the Chicago Convention;

(5) Conform to the airworthiness and airman competency requirements of its Government for international air services;

(6) Except as specifically exempted or otherwise provided for in a Department Order, comply with the requirements of 14 CFR Part 203, concer ning waiver of Warsaw Convention liability limits and defenses;

(7) Agree that operations under this authority constitute a waiver of sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with respect to those actions or proceedings institu ted against it in any court or other tribunal in the United States that are: (a) based on its operations in international air transportation that, according to the contract of carriage, include a point in the United States as a point of origin, point of d estination, or agreed stopping place, or for which the contract of carriage was purchased in the United States; or (b) based on a claim under any international agreement or treaty cognizable in any court or other tribunal of the United States. In this co ndition, the term "international air transportation" means "international transportation" as defined by the Warsaw Convention, except that all States shall be considered to be High Contracting Parties for the purpose of this definition;

(8) Except as spe cifically authorized by the Department, originate or terminate all flights to/from the United States in its homeland;

(9) Comply with the requirements of 14 CFR Part 217, concerning the reporting of scheduled, nonscheduled, and charter data;

(10) If cha rter operations are authorized, except as otherwise provided in the applicable aviation agreement, comply with the Department's rules governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable terms, conditions, an d limitations required by the public interest as may be prescribed by the Department, with all applicable orders or regulations of other U.S. agencies and courts, and with all applicable laws of the United States

. This authority shall not be effective dur ing any period when the holder is not in compliance with the conditions imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval

under Title 49 of the U.S. Code.

12/2007Code

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The code

- share operations authorized here are subject to the following conditions:

(a) The statement of authorization will remain in effect only as long as (i) Aerolitoral and Aeromexico continue to hold the necessary underlying authority to operate the code

- share services at issue, and (ii) the

code

- share agreement providing for the code

- share operations remains in effect.

(b) Aerolitoral and/or Aeromexico must promptly notify the Depa rtment if the code

- share agreement providing for the code

- share operations is no longer effective or the carriers decide to cease operating any or all of the approved code

- share services. We expect this notification to be received within 10 days of such non

- effectiveness or of such decision. Such notices should be filed in docket DOT

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(c) The code

- sharing operations conducted under this authority must comply with 14 C.F.R. Part 257 and with any amendments to the Department’s regulations concerning code

- share arrangements that may be adopted. Notwithstanding any provisions in the contract between the carriers, our approval here is expressly conditioned upon the requirements that the subject foreign air transportation be sold in the name o f the carrier holding out such service in computer reservation systems and elsewhere; that the carrier selling such transportation ( i.e., the carrier shown on the ticket) accept responsibility for the entirety of the code

- share journey for all obligations established in its contract of carriage with the passenger; and that the passenger liability of the operating carrier be unaffected.

(d) The authority granted here is specifically conditioned so that neither Aerolitoral n or Aeromexico shall give any forc e or effect to any contractual provisions between themselves that are contrary to

these conditions.

We may amend, modify, or revoke this authority at any time without hearing, at our discretion.