UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on July 24 , 2013

NOTICE OF ACTION TAKEN

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_________________________________________________________________________________________________________ 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).

Application of VIRGIN AMERICA , INC. ( Virgin America )

, filed 7/ 12/13 for :

XX Renewal of e xemption under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail between San Francisco,

California , and Puerto Vallarta , Mexico , and to combine this authority with its existing economic authority.

Applicant rep: Barbara Russell ( 650 ) 762

- 7394 DOT Analyst: Brett D. Kruger (202) 366

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D I S P O S I T I O N

XX Granted (subject to conditions, see below)

XX Granted sua sponte waiver of advance filing requirement under Part 377 1

The above action was effective when taken: July 24 , 2013

, through July 24 , 2015

.

Action take n by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the aviation agreement between the United States and

Mexico.

Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations

indicated:

XX The holder’s certificates of public convenience and necessity

XX Standard exemption conditions (attached)

Remarks: We acted on this application without awaiting expiration of the 15

- day answer period with t he consent of all parties served with the application.

Conditions: The U.S.

- Mexico exemption authority granted is subject to the dormancy notice requirements set forth in condition 7 of Appendix A of Order 88

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The route integration authority granted is subject to the condition that any service provided under this exemption shall be consistent with all applicable agreements between the United States and the foreign countries involved. Furthermore, (a) nothing in award of the route integration authority granted should be

1 Virgin America’s renewal application was not timely filed under the terms of 14 CFR 377.10(c). In the circumstances presented, including the absence of opposition to the application, we will grant the carrier a waiver of the advance filing requirement.construed as conferring upon Virgin America rights (including fifth

- freedom intermediate and/or beyond rights) to serve markets where U.S. carrier entry is limited unless Virgin America notifies t he Department of its intent to serve such a market and unless and until the Department has completed any necessary carrier selection procedures to determine which carrier(s) should be authorized to exercise such rights; and (b) should there be a request by any carrier to use the limited

- entry route rights that are included in Virgin America’s authority by virtue of the route integration exemption granted here, but that are not then being used by Virgin America, the holding of such authority by route integra tion will not be considered as providing any preference for Virgin America in a competitive carrier selection proceeding.

______________________________________________________________________________ O n the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant qualified to provide the exemption services authorized.

Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent with Departme nt policy; (2) grant of the authority was consistent with the public interest; and (3) grant of the authority would not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975. To the extent not granted, we denied all req uests 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

De partment’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 effective when taken, and the filing of a petition for review will

not alter such effectiveness.

An electron ic version of this document is available on the World Wide Web at: http://www.regulations.govATTACHMENT

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating authority from the government of each country served;

(2) Comply with applicable requirements concerning oversales contained in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insurance coverage, and for certifying that coverage to the Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise provided for in a Department Order, comply with the requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable requirements of the Federal Aviation Administration, the

T ransportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government requirements concerning security, th e holder shall, before commencing any new service (including charter flights) to or from a foreign airport, contact its Principal Security Inspector (PSI) to advise the PSI 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;

(7) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department of Transportation, with all appl icable orders and regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

The authority granted shall be effective only during the period when the holder is in compliance with the conditions imposed above.



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