### BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

) In the matter of the application of ) ) CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, ) Docket DOT-OST-2012-_____ S.A.P.I. DE C.V. d/b/a VOLARIS ) ) for an exemption from 49 U.S.C. §41301 ) )



### APPLICATION FOR EXEMPTION

Communications with respect to this document should be addressed to: Alfonso Ascencio Triujeque Director Juridico Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V. d/b/a Volaris Av. Prolongacion Paseo de la Reforma 490, Piso 1 Col. Santa Fe Pena Blanca Mexico D.F. 01210 Mexico alfonso.ascencio@volaris.com.mx
DATED: May 23, 2012

### BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

) In the matter of the application of ) ) CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, ) Docket DOT-OST-2012-_____ S.A.P.I. DE C.V. d/b/a VOLARIS ) ) for an exemption from 49 U.S.C. §41301 ) )



### APPLICATION FOR EXEMPTION Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V. d/b/a Volaris (“Volaris”), pursuant to the provisions of Title 49 of the United States Code and Subpart C of the Department of Transportation’s (“Department”) Rules of Practice, hereby requests an exemption from 49 U.S.C. 41301 and from any other provisions of Title 49 and the Economic Regulations of the Department to the extent necessary to permit Volaris to engage in the scheduled foreign air transportation of persons, property and mail between (i) Mexico City, Mexico, and San Francisco, California, and (ii) Mexico City, Mexico, and Denver, Colorado.1 

### Volaris requests an exemption valid for a one-year period, limited and conditioned as described herein. Volaris will commence service on these routes shortly after receipt of the Department’s approval. Volaris submits it is fit, willing and able to perform these services and that the services are clearly consistent with the public interest. In support of its application, Volaris states as follows:

### Application of Concesionaria Vuela Compañía de Aviación,

S.A.P.I. de C.V. d/b/a Volaris Docket DOT-OST-2012-________ May 23, 2012

- 2 - 1. Volaris is a low cost, low fare carrier that provides a high level of service, reliability, and safety for its passengers. Volaris began operations on March 13, 2006, and today serves numerous cities within Mexico with additional domestic and international expansion plans. Volaris’ principal base of operations is Adolfo López Mateos International Airport in the City of Toluca (TLC) in the Estado de México, located approximately 70 kilometers west of Mexico City. Volaris utilizes Airbus A319 and A320 aircraft in all operations. All of Volaris’ aircraft are configured in a single class, with leather seats and generous pitch between seats, and are equipped with V2500 engines manufactured by International Aero Engines. Volaris is a citizen of Mexico. 2. Volaris currently holds numerous exemptions authorizing it to operate charter and various scheduled services to the United States. The Department has previously found that Volaris is operationally and financially qualified to operate charter and scheduled services between the United States and Mexico, and that it is properly licensed by the Government of Mexico to serve the United States. 3. Volaris requests authority from the Department, on a conditional and extrabilateral basis, to engage in scheduled combination foreign air transportation between (i) Mexico City and San Francisco, and (ii) Mexico City and Denver. Volaris will utilize Airbus A319/A320 aircraft on these routes. Volaris requests that the

1 Flights will operate to Chicago (Midway).

### Application of Concesionaria Vuela Compañía de Aviación,

S.A.P.I. de C.V. d/b/a Volaris Docket DOT-OST-2012-________ May 23, 2012

- 3 - Department approve its request on a conditional basis so that Volaris can provide substitute service on these routes until Mexicana Airlines resumes service on them. 4. On December 12, 2005, the United States and Mexico signed an amendment to the Air Transport Agreement of August 15, 1960, broadening air transport services between the two countries and permitting designated Mexican carriers to operate from “a point or points in Mexico to a point or points in the United States.”2 

### While the Mexico City-San Francisco and Mexico City-Denver routes are within the scope of the U.S.-Mexico bilateral, Mexican carrier designations for these routes are not available currently. The designations for these routes are assigned to Mexicana as well as another Mexican carrier. Mexicana has not operated since late August 2010, shortly after it sought bankruptcy protection, and it remains subject to the supervision of the Mexican bankruptcy authorities. Under Mexican law, the Government of Mexico cannot re-assign (even temporarily) any of Mexicana’s designations while it is under the protection of the Concurso Mercantil (which is equivalent to U.S. bankruptcy procedures). As a result, Mexico is unable to substitute another Mexican carrier for temporary service on Mexicana’s routes, leaving a number of U.S.-Mexico routes with substantially decreased competition, fewer service options and higher fares. Volaris therefore requests approvalof its application on a conditional basis allowing it to provide service on the Mexico CitySan Francisco and Mexico City-Denver routes until Mexicana resumes flight operations

### Application of Concesionaria Vuela Compañía de Aviación,

S.A.P.I. de C.V. d/b/a Volaris Docket DOT-OST-2012-________ May 23, 2012

- 4 - on them. The Department previously recognized that approval of similar extrabilateral authority for Volaris is consistent with the public interest.3 

### 5. Included with this application is the Government of Mexico’s letter confirming the Concurso Mercantil’s restrictions and requesting the Department’s assistance and favorable consideration of Volaris’ application under the unique circumstances described above. The Mexican Government’s letter makes clear that any such authorization would be temporary and that it would not result in Mexican carrier operations on any U.S.-Mexico route in excess of the bilateral limit.4 

### 6. Volaris will accept from the Department a condition permitting it to operate in the Mexico City-San Francisco and Mexico City-Denver markets until Mexicana resumes flight operations in those markets. To the extent passengers may hold Volaris tickets for Mexico City-San Francisco or Mexico City-Denver and Volaris is required to cease service on either route, Volaris will accommodate such passengers on another Mexican or U.S. carrier or provide them with full refunds. 7. Volaris is subject to the safety and operational rules of the Government of Mexico. Mexico is a contracting party to the Convention on International Civil Aviation and observes all applicable ICAO standards.

2Annex I(A)2(a) 3 Notice of Action Taken, Docket DOT-OST-2011-0117, July 11, 2011; Notice of Action Taken, Docket DOT-OST-2011-0155, August 25, 2011

4Exhibit A

### Application of Concesionaria Vuela Compañía de Aviación,

S.A.P.I. de C.V. d/b/a Volaris Docket DOT-OST-2012-________ May 23, 2012

- 5 - 8. This exemption application raises no environmental or energy issues. All service will be operated with modern, Stage 3 aircraft that meet all applicable noise abatement requirements. Similarly, approval of this request will not result in a near-term increase in fuel consumption of ten million gallons or more. WHEREFORE, Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V. d/b/a Volaris respectfully requests that it be exempted from 49 U.S.C. 41301 and the Department’s Regulations to the extent necessary to permit Volaris to provide scheduled combination service in foreign air transportation, as more fully described herein. Respectfully submitted, /s/ Alfonso Ascencio Triujeque

______________________________________ Alfonso Ascencio Triujeque Director Juridico Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V. d/b/a Volaris Av. Prolongacion Paseo de la Reforma 490, Piso 1 Col. Santa Fe Pena Blanca Mexico D.F. 01210 Mexico alfonso.ascencio@volaris.com.mx
DATED: May 23, 2012

### CERTIFICATE OF SERVICE
I hereby certify that the foregoing Application for Exemption has this day been served on all persons listed on the attached service list via e-mail, telecopier or first class mail, postage prepaid. /s/ Alfonso Ascencio Triujeque

_________________________________ Alfonso Ascencio Triujeque
DATED: May 23, 2011 sascha.vanderbellen@delta.com; sametta.c.barnett@delta.com; jeff.morgan@delta.com jonathan.linde@united.com; steve.morrissey@united.com; dan.weiss@united.com; lhalloway@crowell.com;rbkeiner@crowell.com; gmurphy@crowell.com patrick.rizzi@hoganlovells.com bob.kneisley@wnco.com msinick@ssd.com howard.kass@usairways.com;benjamin.slocum@usairways.com jhill@dowlohnes.com mlbenge@zsrlaw.com dkirstein@yklaw.com carl.nelson@aa.com pmurphy@lopmurphy.com;pmurphy@ggh-airlaw.com barbara.russell@virginamerica.com

### EXHIBIT A.

# SUB~EC~ETARiA DE

# TRANSPO~~E •. •.· DIRECCION GENERAL DEAERONAUTICACIVIL 

### 4.1. 449

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# - PAULL. GRETCH Director, Office ofInternational Aviation U.S. DepartmentofTransportation 1200 NewJerseyAvenue, SE Washington, DC 20590 SECRETARiA DE COMUNICACIONES Y TRANSPORTES Mexico, D.F., a 27 Me permito hacer referencia al Convenio sabre Transportes Aereos firmado entre [os gobiernos de los Estados Unidos Mexicanos y los Estados Unidos de America el 15 de agosto de 1960, tal como ha sido prorrogado, enmendado y modificado, en donde se establece que cada una de las Partes podra designar hasta dos aerolineas por cada par de ciudades en Ia mayor parte de los casas y hasta tres aerolineas en 14 mercados para Ia operaci6n de los servicios aereos regulares mixtos, especificados en el Anexo I del Convenio. Sabre el particular, y tomando en consideraci6n Ia situaci6n porIaque atraviesa una de las lfneas aereas mexicanas (Compafifa Mexicana deAviaci6n, S.A. de C.V.) que se encuentra designada conforme a dicho instrumento bilateral en diversos pares de ciudades y que en este momenta no le podemos retirar Ia designaci6n y otorgarsela a otra aerolinea para operar en el mismo par de ciudades, mucho le agradecerfa que en el marco de las buenas relaciones de cooperaci6n bilateral y especialrnente en materia de transporte aereo, que siempre han distinguido a nuestros pafses, se otorgue a Ia linea aerea mexicana Concesionaria Vuela Compafifa de Aviaci6n, S.A.P.I. de C.V. "VOLARIS", una autorizaci6n extrabilateral en -las rutas Mexico

- San Francisco y Mexico

- Denver para operar los servicios regulares mixtos, en Ia inteligencia de que dicha autorizaci6n serfa al margen del Convenio antes mencionado y mientras Campania Mexicana de Aviaci6n, S.A. de C.V. no inicie operaciones en dicha ruta. Porlo anterior, en ningun momenta se rebasarfa el limite de operaci6n de dos lfneas aereas porcada par de ciudades o triple, segun sea el caso, por lo que dicha autorizaci6n serfa de caracterextrabilateral y temporal. En espera de una respuesta favorable sabre esta petici6n de caracter especial, aprovecho Ia oportunidad para enviarle un

### ~hill saluda. , 

# S.C.T. 

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LIC. SERGIO ROMERO OROZCO 

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# ~i~Z!c:Zn General deAeronautica Civil.- Oficinas.- Pte. 

# -t:r- ,27 ABR 2012 

# "k**CORRE~PO** ENCIA 

### SUB

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c.c.p.- ConcesionariaVuela Campania deAviaci6n, S.A.P.I. "Volaris".-Avenida Prolongaci6n Paseo de Ia Reforma#490 Piso 1, Col. Santa Fe Pefia Blanca, C.P. 01210.- Pte. 

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### [CERTIFIEDTRANSLATION]
TRANSPORTATION DEPUTY DEPARTMENT GENERAL DEPARTMENT OF CIVILAVIATION 4.1.449 

# 1 0440

PAULL. GRETCH Director, Office of InternationalAviation U.S. DepartmentofTransportation 1200 New JerseyAvenue, SE Washington, DC 20590 Department of Transportation and

Communications [fhe Mexican Coatof Anns reading:] United Mexican States Department of Transportation and Communications" Mexico City, Federal District, April 27, 2012.

I make reference to the Agreement on Air Transportation, executed by the Governments ofthe United Mexican States and the United States ofAmerica on August 15, 1960, as extended, amended and modified, whereby it is established thatthe Parties may designate up to two airlines per each city pair in most cases and up to three airlines in 14 markets to operate the regular mixed airservices specified in Exhibit Ito the Agreement. On that matter, and taking into consideration the conditions that one ofthe Mexican airlines (Compaiiia Mexicana de Aviaci6n, S.A. de C.V.), which is listed in such bilateral instrument in several city pairs is currently suffering, and that we can not withdraw such designation to it and grant it to other airline to operate in the same city pairs, we would really appreciate that in the good relational framework that our countries have always had regarding bilateral cooperation and specially as regards air transportation, the Mexican Airline, Concesionaria Vuela Compaiiia de Aviaci6n, S.A.P.I, de C.V. "VOLARIS", is granted an extra-bilateral authorization for the Mexico

- San Francisco- and Mexico- Denver routes to operate the regular mixed services, provided that such authorization is granted under the abovementioned Agreement and as long as Campania Mexicana de Aviaci6n, S.A. de C.V. does not start operating such route. Due to the foregoing, the limit of operation oftwo airlines would not be exceeded at any time per each city pair or in three cities, as the case may be, because such authorization would be extra-bilateral and temporary. We hope we can receive a favorable answer to such special request, and there being no other matterto dealwith, we remain.

[Illegible Signature] SRRJRGG SINCERELY THE GENERAL DIRECTOR
[Illegible Signature] SERGIO ROMERO OROZCO

cc Felipe Duarte Olvera.- Deputy DirectorofTransport. [A stamped seal reading:] "DEPARTMENTOF TRANS_PORTATION AND COMMUNICATIONS 3ENERAL DEPARTMENT OF CIVIL AVIATION

. APRIL 27, 2012 CORRESPONDENCE REGULAR AVIATION DEPUTY DEPARTMENT DISPATCHED

cc General DepartmentofCivil Aviation.- Offices. cc Concesionaria Vuela Compaflia deAviaci6n, S.A.P.I. "Volaris".- Avenida Prolongaci6n Paseo de Ia Reforma #490 Piso 1, Col. Santa Fe Pefia Blanca, C.P. 01210. ************************************************************************************************************************************** I, Miguel Angel Cardenas C., Expert Translator, authorized by the Supreme Court of Justice of Mexico City, by resolution published in the Official Gazette dated July 13, 2011, DO HEREBY CERTIFY thatthe foregoing translation in 1page is, to the best of my knowledge, true and correct.

Mexico City, May22, 2012. IG 'Z ANGELCARDENAS CEDENO PERITOTRADUCTOR DELTRIBUNALSUPERIOR DE JUSTICIA DELDISTRITO FEDERAL TEL.: 9000-3333