UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on February 2 , 2012



### NOTICE OF ACTION TAKEN

-- DOCKETS DOT

- OST

- 1995

- 379 & DOT

- OST

- 2005

- 20954

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

Joint Applicants: TRANSPORTES AEROMAR, S. A . de C.V. (Aeromar) and AEROVIAS de MEXICO, S.A. de C.V. (Aeromexico)

Date Filed: May 24, 2006, as supplemented July 2 0 , 2006

, December 16, 2011

, January 25 , 2012

, and February 1, 2012

Relief requested: Renewal of exemption from 49 USC § 41301 to permit Aeromar to conduct, using small equipment, scheduled foreign air transportation of pers ons, property, and mail between the Mexican coterminal points San Luis

Potosi/Manzanillo and San Antonio, Texas

.

Aeromar also requests a new exemption from 49 USC § 41301 to permit Aeromar to conduct, using small equipment, scheduled foreign air transportation of persons, property, and mail between Saltillo, Mexico, and San Antonio, Texas.

Aeromar further requests renewal of its exemption from 49 U.S.C. § 41301 to permit it to conduct , using small equipment, charter foreign air transportation of persons, property, and mail between Mexico and the United States, and

other charters in accordance with 14 C.F.R. Part 212.

D ate and citation of last action s : June 2 2, 2005, in Docket DOT

- OST

- 2005

- 20954, and November 2, 2005, in Docket

DOT

- OST

- 1995

- 379

. 1

Applicant representatives: Herbe rt A. Rosenthal , 202

- 785

- 9773 (Aeromar) and John R. Mietus, Jr., 202

- 747

- 5212 (Aeromexico)

DOT analyst: Robert J. Finamore, 202

- 366

- 2405

Responsive pleadings: None.

DISPOSITION

Action: Approved. 2 Action date: February 2 , 2012

Effective dates of authority granted: February 2 , 2012 , through February 2 , 2013

.

Basis for approval (bilateral agreement/reciproci ty): United States

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

1 These actions also granted other authorities to Aeromar and Aeromexico that the carriers have advised us they no longer wish to renew. Specifically, Aeromar was granted exemption auth ority to serve the Guadalajara

- San Antonio

, Mexico City

- Laredo/ San

Antonio , Monterrey

- Corpus Christi, Reyonsa

- Corpus Christi, and Reynosa

- San Antonio markets with its own aircraft. Aeromar was also granted exemption authority to serve between Mexico Cit y and the U.S. coterminal points Atlanta, Miami, Houston, and New York, by placing its designator code on flights operated by Aeromexico, and Aeromexico was also granted a statement of

authorization for those services. The carriers have advised us that th ose code

- share operations have ceased.

2 In its July 20 , 2006 supplement, Aeromar requests that we consolidate its pending requests in the referenced Dockets and issue a single Notice of Action Taken to address them. As a result of our action here, Aeromexico no longer holds authority in Docket

DOT

- OST

- 2005

- 20954 and all of Aeromar’s remaining authority is now consolidated in Docket DOT

- OST

- 1995

- 379. A ny future

Aeromar renewal requests need be filed only in that Docket.Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached).

Special conditions /Remarks: In the conduct of the authorized operations, Aeromar must adhere to all applicable provisions of the Agreement and may only use aircraft designed to have a maximum passenger capacity of not more than 60 seats and a maximum payload capacity of no t more than 18,000 pounds.

The above grant includes authority for Aeromar to conduct Third and Fourth Freedom charter operations. 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 or Fourth Freedom charters, we determine d that any such requirement is not necessary on public interest grounds, in this case, since the carrier will be conducting these operations s olely with small aircraft. 3 (Other charter operations to/from the United States under this authority, however, are subject to prior approval under 14 C.F.R. Part 212.) Further, we are continuing to allow Mexican carriers conducting passenger charters usi ng small equipment to make stopovers in the United States in the conduct of such operations.

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) Aeromar was qualified to perform their 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 Policy an d Conservation Act of 1975. To the extent not granted/deferre d/dismissed, we denied all requests in the referenced Docket s

. 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 fo rth 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 s uch effectiveness.

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

3 We note, however, that the applicants must meet any reporting requirements set forth in their FAA Operations Specifications.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, including, 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 (including charter flights) from a foreign airport that woul d 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 IIR of its plans and to find out whether the Transpo rtation 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 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 (any changes to, or termination of, insurance also sha ll 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 a nd 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 other tribunal in th e 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 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 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 Department, originate o r 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 interest as ma y 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.

12/2007