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 approval

of 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.

2 Annex 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

4 Exhibit 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 DE AERONAUTICA CIVIL 

4.1. 449 _

1

-.f)/d <<jc/ 

- ,t,~tzcro- -

PAULL. GRETCH 

Director, Office of International Aviation 

U.S. Department of Transportation 

1200 New Jersey Avenue, 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 porIa que atraviesa 

una de las lfneas aereas mexicanas (Compafifa Mexicana de Aviaci6n, 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 

extra bilateral 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. Por lo anterior, en ningun momenta se rebasarfa el limite de 

operaci6n de dos lfneas aereas por cada par de ciudades o triple, segun sea el caso, por lo 

que dicha autorizaci6n serf a de caracter extrabilateral 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. 

I ! DIRECCION GENEAAL DE : > . 

T A T E AERONAUTICA Cl;flt' -

TO ERAL 

LIC. SERGIO ROMERO OROZCO 

\iR c.c~lipe ~ Duarte Olvera.- Subsecretario de Transporte.- Pte. 

c.ct:= ~i~Z!c:Zn General de Aeronautica Civil.- Oficinas.- Pte. 

-t:r- ,27 ABR 2012 "k 

CORRE~PO ENCIA SUB . llE 

AVIAC REGUI..AR 

S A-·L 1- o·-A 

c.c.p.- Concesionaria Vuela Campania de Aviaci6n, S.A.P.I. "Volaris".- Avenida Prolongaci6n Paseo 

de Ia Reforma# 490 Piso 1, Col. Santa Fe Pefia Blanca, C.P. 01210.- Pte. 

I 

r 

r 

I 

l 

l 

l 

II ., 

i 

. I 

I i 
[CERTIFIED TRANSLATION] 

TRANSPORTATION DEPUTY DEPARTMENT 

GENERAL DEPARTMENT OF CIVIL AVIATION 

4.1.449 1 0440 

PAULL. GRETCH 

Director, Office of International Aviation 

U.S. Department of Transportation 

1200 New Jersey Avenue, SE 

Washington, DC 20590 

Department of 

Transportation and 

Communications 

[fhe Mexican Coat of 

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 of the United Mexican States and the United States of America on August 15, 1960, 

as extended, amended and modified, whereby it is established that the 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 air services specified in Exhibit I to the Agreement. 

On that matter, and taking into consideration the conditions that one of the 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 of two 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 matter to deal with, we remain. 

[Illegible Signature] SRRJRGG 

SINCERELY 

THE GENERAL DIRECTOR 

[Illegible Signature] 

SERGIO ROMERO OROZCO 

cc Felipe Duarte Olvera.- Deputy Director of Transport. 

[A stamped seal reading:] 

"DEPARTMENT OF 

TRANS_PORTATION AND 

COMMUNICATIONS 

3ENERAL DEPARTMENT OF CIVIL 

AVIATION 

. APRIL 27, 2012 

CORRESPONDENCE 

REGULAR AVIATION 

DEPUTY DEPARTMENT 

DISPATCHED 

cc General Department of Civil Aviation.- Offices. 

cc Concesionaria Vuela Compaflia de Aviaci6n, 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 that the foregoing translation 

in 1 page is, to the best of my knowledge, true and correct. 

Mexico City, May 22, 2012. 

IG 'Z ANGEL CARDENAS CEDENO 

PERITO TRADUCTOR 

DEL TRIBUNAL SUPERIOR DE JUSTICIA 

DEL DISTRITO FEDERAL 

TEL.: 9000-3333