BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

__________________________________________ ) Application of ) ) AEROVIAS DE MEXICO, S.A. DE C.V. ) DOCKET OST-2011-0042 ) for renewal of exemption authority ) (various Mexico-U.S. markets) ) __________________________________________)

APPLICATION OF AEROVIAS DE MEXICO, S.A. DE C.V. FOR RENEWAL OF AN EXEMPTION

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 Aeromexico and upon persons served with this application no later than February 24, 2012.

February 9, 2012BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

__________________________________________ ) Application of ) ) AEROVIAS DE MEXICO, S.A. DE C.V. ) DOCKET OST-2011-0042 ) February 9, 2012 for renewal of exemption authority ) (various Mexico-U.S. markets) ) __________________________________________)

APPLICATION OF AEROVIAS DE MEXICO, S.A. DE C.V. FOR RENEWAL OF AN EXEMPTION

Pursuant to 49 U.S.C. § 40109(c), Aerovias de Mexico, S.A. de C.V. ("Aeromexico") respectfully requests renewal, for an additional, one-year period, of the exemption authority granted by Notice of Action Taken dated March 4, 2011 (the “Notice”) to engage in scheduled foreign air transportation of persons, property, and mail in the Guadalajara-Fresno, GuadalajaraSacramento, and Monterrey-Chicago markets. Aeromexico intends to invoke the automatic extension provisions of 5 U.S.C. § 558(c) and Part 377 of the Department's Special Regulations. Ae romexico does not seek renewal of authority granted in the Notice to se rve the Guadalajara-San Francisco and Morelia-San Francisco routes. In suppo rt of this application, Aeromexico states as follows: 1. Aeromexico is a flag carrier of the United Mexican States and currently holds a permit, Order 91-5-25, and various exemptions which- 2 - Aeromexico Renewal Application authorize service between Mexico and nu merous U.S. points. Pursuant to this authority, Aeromexico provid es extensive tran sborder service. 2. By this application, Aeromexi co seeks renewal of its exemption authority to serve the Guadalajara- Fresno, Guadalajara-Sacramento, and Monterrey-Chicago markets. The author ity is scheduled to expire on March 4, 2012. Aeromexico currently is serv ing the Guadalajara-California markets above with nonstop service that provides significant benefits to the traveling public. Aeromexico also serves the Monterrey-Chicago route with on-line connecting service and wishes to retain its authority to operate the service on a nonstop basis should conditions warrant. 3. Annex 1 to the 1960 Air Transpor t Agreement, as amended, between the United Mexican States and the Unit ed 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." Aeromexico has been designated to serve the routes and continues to hold DGAC authority to do so. 4. Under 49 U.S.C. § 40109(c), the Department may grant an exemption 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