UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on April 10 , 20 1 2



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 1999

- 5804

________________________________________________________________________________________________________ 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: AERONAVES TSM, S.A. de C.V. (Aeronaves) Date Filed: February 16, 2012

Relief requested: Renewal of exemption for two years from 49 USC §41301 to permit the applicant to conduct passenger charter operations between Mexico and the United States, and other passenger charters in accordance with 14 CFR Part 212, using small equipment. The applicant also requests renewal of its stopover privileges and continued

relief from the requirement to provide advance notice of each flight, or series of flights, between Mexico and the

United States.

The applicant further requests amendment of that exemption to include the operation of all

- cargo charter flights utilizing large aircraft.

Applicant representative: Jeff Swain

, (786) 213

- 3136

DOT anal yst: Brett D. Kruger

, ( 202 ) 366

- 8025

Responsive pleadings: None.

DISPOSITION

Action: Approved in part, remainder (request for longer

- term authority) dismissed. 1 Action date: April 10 , 20 1 2

Effective dates of authority granted: April 10 , 20 1 2 , through April 10 , 201 3

.

Basis for approval (bilateral agreement/reciprocity): United States

- Mexico Air Transport Services Agreement (“the Agreement”).

Except to the extent exempted/waived, this autho rity is subject to the terms, conditions, and limitations of our standard exemption conditions (attached).

Special conditions/Remarks: In the conduct o f the operations authorized above, Aeronaves must adhere to all applicable provisions of the Agreement

. With respect to its passenger charter operations, Aeronaves may only use aircraft capable of carrying no more than 60 passengers and having a maximum payload capacity of no more than 18,000 pounds (small equipment). The above grant includes authority to operate Third and Fourth Freedom charters. While we have subjected, consistent with the provisions of the Agreement, Mexican carriers conducting charter operations with large aircraft to prior approval or submission of notice for their Third and Fourth F reedom charters, we determined that any such requirement was not necessary on public interest grounds for the applicant’s passenger charter operations because the carrier will be conducting those operations solely with small aircraft. 2 Further, we are

con tinuing to allow Mexican carriers conducting passenger charters using small equipment to make stopovers in the United States in the conduct of such operations.

1 The one

- year duration of the authority we granted to Aeronaves is consistent with our usual policy of granting exemption authority in the circumstances presented. We therefore, dismissed the application to the extent that it sought authority for a longer period.

2 We note, however, that the applicant must meet any reporting requirements set forth in its FAA Operations Specifications.Other charter operations to/from the United States, including the large air craft all

- cargo charter operations authorized here, are subject to prior approval under 14 CFR Part 212. I n accordance with 14 CFR §212.9(d), the applicant shall not perform any all

- cargo charter flights with large aircraft to or from the United States un less the Department has granted a statement of authorization for such operations. 3

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 consistent w ith Department policy; (2) the applicant was qualified to perform its 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 Energy Poli cy 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 regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effec tive 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

3 See , e.g. , Order 91

- 5

- 25, where the Department placed this condition on the foreign air carrier permit granted to Aerovias de Mexico, S.A. de C.V. We note, however, that the Department has granted blanket exemption authority to existing and future

Mexican carriers , relieving them of this prior approval requirement for third and fourth freedom charter operations if they submit to the Department advance notice of their charter operations as described in Orders 98

- 4

- 2 and 99

- 7

- 23.

### Foreign Carrier Exemption Con ditions

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 authori zation 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, including, but not limite d 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 (including 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 205, and, prior to the

com mencement 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 (any changes to, or termina tion 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, concerning 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 instituted against it in any court or oth er 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 destination, or agreed stopping plac e, 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 condition, 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 specifically authorized by the Departmen t, 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 charter 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, and limitations required by the public i nterest 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 during 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.

1 2/2007