Order 201 2 - 1 - 30 UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued by the Department of Transportation on the 31 st day of January , 201 2 Served: January 31 , 201 2 Docket DOT - OST - 2011 - 0076

Docket DOT - OST - 2005 - 22228

FINAL ORDER Summary By this order, we finalize our tentative actions proposed in Order 2011 - 9 - 4, issued September 12, 2011 , by modifying certain regulatory procedures for U.S. carriers serving or, in the case of small aircraft operations, seeking to serve the U.S. - Mexico market. Background By Order 2011 - 9 - 4, we proposed to address a number of informal U.S. - Mexico - related filing arrangements. These informal arrangements have been used by U.S. carriers seeking operational flexibility to adjust, delay, or temporarily cease services, or seeking the designation necessary to provide small - aircraft services in the U.S. - Mexico market. 1 Specifically, we proposed to establish a Mexico Procedural Docket (the “ Mexico Procedural Docket ”), in Docket DOT - OST - 2011 - 0076, where U.S. carrier requests and noti ces, previously filed informally (and generally undocketed) , would be filed and where related Department actions would be posted. We tentatively found that by using a 1 We did not consider in this proceeding our formal licensing procedures and policies pertaining to U.S. - Mexico operating authority. For more information on these policies and procedures, s ee, e.g., Orders 88 - 10 - 2, 88 - 7 - 43, 88 - 10 - 30, 96 - 11 - 24, 98 - 8 - 18, 9 9 - 6 - 6, 2000 - 5 - 31, 2006 - 10 - 13, and 2008 - 3 - 12. U.S. - Mexico Procedures for U.S. Carriers

(MEXICO PROCEDURAL DOCKET) In the Matter of Consolidated International Route Authority for:

AMERICAN AIRLINES, INC. AMERICAN EAGLE AIRLINES, INC. CONTINENTAL AIRLINES, INC. AND/OR UNITED AIR LINES, INC. DELTA AIR LINES, INC. FRONTIER AIRLINES, INC. JETBLUE AIRWAYS CORPORATION PINNACLE AIRLINES, INC. Under 49 U.S.C. §41102 for a certificate of public convenience and necessity ( U.S. - Mexico only )more transparent, centralized, and user - friendly approach, as proposed, we would enhance industry and public awareness of newly - available route opportunities, pending requests, and our action on those requests, and would significantly improve administrative efficiency . 2 No answers or comments were filed in response to our proposals. Decisio n We have decided to make final the actions proposed in Order 2011 - 9 - 4 , and will begin implementing the revised procedures upon issuance of this final order . 3 We now establish the Mexico Procedural Docket , in Docket DOT - OST - 2011 - 0076, and direct U.S. carriers to file U.S. - Mexico - related requests and notices in that Docket, as more fully described below. F or administrative clarity, and to provide easy identification of submissions for Departmental action and/or interested parties’ use, U.S. carriers shall use the following titles when submitting requests/notices to the Mexico P rocedural Docket , as follows: (1) Small - Aircraft Designation ; (2) Small - Aircraft Code - Share Authorization; (3) Waiver to Extend Start - Up Deadlines; (4) Temporary Waiver of Dormancy Conditions; (5) Conversion of Authorized Service; 4 (6) Reactivation of Dorman t Exemption Authority ; 5 (7) Notice of Service - Level Change(s); 6 and (8) Notice of Dormancy. 7 Filing Fees : There will be no filing fees associated with the above requests/notices filed in the Mexico P rocedural D ocket . Cover Page, Docket Requirement(s), and Required Service : A ll submissions, as identified above, filed in the Mexico P rocedural Docket shall include : a cover page with a caption for the Me xico P rocedural D ocket and, where applicable, a caption for the docket where the filing carrier’s underlying exemption or certificate authority to serve the subject U.S. - Mexico city - pair route segment(s) was awarded; the title of the type of submission bei ng filed; the name and address of the filing carrier; the name, address, telephone number, and e - mail address of the filing carrier’s representative, and the date of the filing. All submissions should be served on all U.S. carriers providing scheduled air transportation service in the U.S. - Mexico market, with a copy also served on: esta.rosenberg@dot.gov , brett.kruger@dot.gov , and brian.hedberg@dot.gov . 2 Generally, these informa l/ undocketed U.S. - Mexico licensing practices called for U.S. carriers to fi le U.S. - Mexico - related requests and notices in the form of a letter addressed to the U.S. Air Carrier Licens ing Division at the U.S. Department of Transportation. Once filed, these requests/notices were summarized in the Department’s Weekly List of Applications Filed published at the end of each week and, t o eliminate unnecessary duplication, we proposed that the Weekly List of Applications Filed would no longer include the various types of requests and notices covered here . Upon issuance of this final order the types of requests and notices covered here wi ll no longer be included in the Weekly List of Applications Filed . 3 As we provided for the submission of views in response to our proposed modifications, we will not entertain petitions for reconsideration of this order. 4 Requests to convert direct - ca rrier service to code - share service, or vice versa. 5 We note that only dormant U.S. - Mexico authority granted by exemption may be reactivated. U.S. - Mexico authority granted in a Certificate of Public Convenience and Necessity is not eligible for reactiv ation once dormant since it reverts to the Department ninety (90) days after a service ceases. Carriers are reminded that they are obligated to inform the Department when they cease operations on any U.S. - Mexico route . 6 Notices to advise that a carri er has changed its level of service in a U.S. - Mexico city - pair market (from year - round service to seasonal service, or vice versa). We note that these notices serve to, among other things, ensure that the Department applies dormancy conditions appropriate ly, depending on the level of service provided. For information on the application of dormancy conditions with respect to identified seasonal or intermittent services, see , e.g., Order s 96 - 11 - 24, at 3 - 5, and 2000 - 5 - 31, at 4. 7 We remind carriers that th e requirement to file dormancy notices is applicable whether the carrier is serving the market with its own aircraft or on a code - share basis only ( see Order 2000 - 5 - 31, at 3).Answers and Replies to Submission s Requiring Department Approval : We establish a period of 15 days for answers/objections to submissions filed, and seven calendar days for replies to answers/objections filed. We conclude that this uniform standardized response date for all submissions requiring Department approval will virtually eliminate response - and action - date ambiguities that exist under our current informal licensing arrangements, while providing an adequate opportunity f or interested parties to respond. Criteria for Approval of Submissions : For those submissions requiring Department approval, we will continue our practice of granting approvals where good cause is shown , no objections are filed, and our action is con sistent with the aviation agreement . 8 We find that this basis for approvals has worked well to serve the public interest and w e find no basis for alter ing our approval criteria. We note that requests that are controverted may require disposition through other Department procedures. Notices : Notices on service - level changes or dormancy on U.S. - Mexico city - pair route segments have not, and will not, require D epartmental action. These notices will continue to provide vital U.S. - Mexico service information , including immediate notification o f newly - available route opportunities in the market. Consolidated U.S. - Mexico Certificates – Docket DOT - OST - 2005 - 22228 We will also continue our practice to grant, to qualified U.S. air carriers, consolidated U.S. - Mexico certificate authority pursuant to, and consistent with, the procedures described in the Department’s February 13, 2009 Notice , in Docket DOT - OST - 2005 - 2222 8. However, in furtherance of our continued streamlining measures, and consistent with our c entralization efforts here , we have decided: (1) to move previously - issued consolidated U.S. - Mexico certificate authority posted in Docket DOT OST - 2005 - 22228 to th e Mexico P rocedural Docket in Docket DOT - OST - 2011 - 0076; 9 (2) to require that all future requests for consolidated U.S. - Mexico certificate s be filed in the Mexico P rocedural Docket , and served on all U.S. carriers providing scheduled air transportation in t he U.S. - Mexico market, with a copy also served on: esta.rosenberg@dot.gov , brett.kruger@dot.gov and brian.hedberg@dot.gov ; and (3) to require that all future U.S. - Mexico - related requests/notices involving U.S. - Mexico certificate authority previously issued in Docket DOT - OST - 2005 - 22228 that fall into the earlier - described categories be filed in the Mexico P rocedural Docket 10

– a docket pertaining exclusively to U.S. - Mexico licensing matters . ACCORDINGLY, 1. We finalize the tentative decisions set forth in Order 2011 - 9 - 4 and establish Docket DOT - OST 2011 - 0076 as the “ Mexico Procedural Docket ; ” 2. We direct U.S. carriers to file requests and notices in the Mexico Procedural Docket , DOT - OST 2011 - 0076, as well as any other affected docket in which the carrier’s underlying economic au thority was granted other than D O T - OST - 2005 - 22228, as described in this Order ;

8 Se e, e.g., Orders 2008 - 3 - 12, at 2 - 3; 2000 - 5 - 31, at 3; and 88 - 10 - 30, at 6 - 7. 9 See the attached Appendix for a list of Orders currently posted in Docket DOT - OST - 2005 - 22228 that will be placed in Docket DOT - OST - 2011 - 0076. 10 These submissions should also be served on all U.S. carriers providing scheduled air transportation in the U .S. - Mexico market, with a copy also served on: esta.rosenberg@dot.gov , brett.kruger@dot.gov , and brian.hedberg@dot.gov . These submissions need not be filed in Docket DOT - OST - 2005 - 22228.3 . We will place consolidated U.S. - Mexico certificates of public convenience and necessity previously issued in Docket DOT - OST - 2005 - 22228 , in the Mexico Procedural Docket in Docket DOT - OST 2011 - 0076 ; and 4 . We will serve this order by electronic mail on all U.S. certificated and commuter air carriers; the National Air Carrier Association; the Air Transport Association; the Regional Airline Association; and the Cargo Airline Association. By:
SUSAN L. KURLAND Assistant Secretary for Aviation and International A ffairs (SEAL) An electronic version of this document is available on the World Wide Web at: http://www.regulations.govAppendix The table below lists consolidated U.S. - Mexico certificates of public convenience and necessity previously issued in the streamlining docket, Docket DOT - OST - 2005 - 22228 , and which will now be posted in the Mexico Procedural Docket in Docket DOT - OST - 2011 - 0076 . Route Number Order Number Date Issued Auth orized Carrier 895 2009 - 9 - 4 * September 9, 2009 JetBlue Airways Corporation 897 2010 - 1 - 2 * January 4, 2010 Pinnacle Airlines, Inc. 901 2010 - 3 - 12 March 9, 2010 Delta Air Lines, Inc. 902 2010 - 5 - 17 May 13, 2010 United Air Lines, Inc. 903 2011 - 6 - 11 June 9, 2011 American Airlines, Inc. 904 2011 - 6 - 12 June 9, 2011 Frontier Airlines, Inc. 906 2011 - 11 - 19 November 16, 2011 American Eagle Airlines, Inc. * This order issued economic authority other than U.S. - Mexico authority. Carriers should continue to rely upon Docket DOT - OST - 2005 - 22228 for submissions pertaining to non - U.S. - Mexico matters.