BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________ ) Application of ) ) AEROLITORAL, S.A. DE C.V. ) D/B/A AEROMEXICO CONNECT ) DOCKETS OST- 2007 -29208 ) OST-2012-0203 for renewal of exemption authority ) (various Mexico-U.S. markets) ) __________________________________________)

APPLICATION OF AEROLITORAL, S.A. DE C.V. D/B/A AEROMEXICO CONNECT FOR RENEWAL OF EXEMPTIONS 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 AEROLITORAL, 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 Aero litoral and upon persons served with this application no later than J anuary 18, 2014.

January 3, 2014BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________ ) Application of ) ) AEROLITORAL, S.A. DE C.V. ) D/B/A AEROMEXICO CONNECT ) DOCKETS OST- 2007 -29208 ) OST-2012-0203 for renewal of exemption authority ) January 3, 2014 (various Mexico-U.S. markets) ) __________________________________________)

APPLICATION OF AEROLITORAL, S.A. DE C.V. D/B/A AEROMEXICO CONNECT FOR RENEWAL OF EXEMPTIONS

Pursuant to 49 U.S.C. § 40109(c), Aerolitoral, S.A. de C.V. ("Aerolitoral") d/b/a Aeromexico Connect respectfully requests renewal of its exemption authority to engage in scheduled foreign air transportation of persons, property, and mail in the following Mexico

- U.S. markets (the “Operating Markets”) as granted by the Notice s of Action Taken listed below : Operating Market Docket (OST-) Notice of Action Taken Hermosillo-Las Vegas 2007

- 29208 January 17, 2013 Guadalajara/Mexico City- Phoenix 2012

- 0203 January 10, 2013 Aerolitoral requests that exemption authority for these markets be renewed for an additional, one-year period, and it intends to invoke the automatic extension provisions of 5 U.S.C. § 558(c) and Part 377 of the Department's- 2 - Aerolitoral Renewal Application Special Regulations. In support of this application, Aerolitoral states as follows:

1. Aerolitoral is a flag carrier of the United Mexican States and currently holds exemption authority which authorizes U.S.-Mexico charter service and scheduled service between Mexico and several U.S. points. Pursuant to that authority, Aerolitoral operates service between Mexico and the United States marketed under the “AM” code of Aerovias de Mexico, S.A. de C.V.

2. By this application, Aerolitoral seeks renewal of its exemption authority to serve the markets listed above. Exemption authority for these markets is scheduled to expire in the coming weeks. As to each Operating Market , Aerolitoral either is serving the market with nonstop flights or wishes to maintain authority so that it can resume nonstop service should conditions warrant. Aerolito ral’s services in Mexico

- U.S. markets provide significant b enefits to the traveling public . Consequently, Aerolitoral seeks to renew th e authority to serve these markets for an additional year.

3. Annex 1 to the 1960 Air Transport Agreement, as amended, between the United Mexican States and the United States provides that a carrier designated by the Government of Mexico is entitled to operate "[f]rom a point- 3 - Aerolitoral Renewal Application or points in Mexico to a point or points in the United States." Aerolitoral understands t hat it remains designated to serve the Operating Markets, and it continues to hold DGAC authority to provide service in those markets. 1 /

4. Under 49 U.S.C. § 40109(c), the Department may grant exemption authority 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 Carrier Ltda., Permit Amendment , Order 82

- 2

- 66 at 3

- 4. Given Aerolitoral 's designation for th e Operating M arkets , such a public interest finding is warranted. Moreover, the benefits which Aerolitoral /Aeromexico’s services generate for business travelers, tourist s, and shippers alike further demonstrate that renewal of the exemption authority is consistent with the public interest.

1 / Should a designation in any Operating M arket have been withdrawn, however, Aerolitoral requests that the Department defer action on the renewal request for that market while proceeding to renew the remaining authority.