BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________ ) Application of ) ) AEROLITORAL, S.A. DE C.V. ) D/B/A AEROMEXICO CONNECT ) DOCKET OST-2012- 0114 ) for renewal of exemption authority ) (Hermosillo-Phoenix ) ) __________________________________________)

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

NOTICE: Any person may support or oppose this application by filing an

answer and serving a copy of the answer on counsel for Aerolitoral and upon persons served with this application no later than August 8, 2013.

July 24, 2013BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________ ) Application of ) ) AEROLITORAL, S.A. DE C.V. ) D/B/A AEROMEXICO CONNECT ) DOCKET OST-2012- 0114 ) July 24, 2013 for renewal of exemption authority ) (Hermosillo-Phoenix ) ) __________________________________________)

APPLICATION OF AEROLITORAL, S.A. DE C.V. D/B/A AEROMEXICO CONNECT FOR RENEWAL OF AN EXEMPTION Pursuant to 49 U.S.C. § 40109(c), Aerolitoral, S.A. de C.V., d/b/a Aeromexico Connect (“Aerolitoral”) respectfully requests renewal of the above-captioned exemption, granted by Notice of Action Taken dated August 3, 2012 (the “Notice”), for an additional, one -year period. The Notice permits Aerolitoral to engage in scheduled foreign air transportation of persons, property, and mail between Hermosillo, Mexico and Phoenix, Arizona. Aerolitoral intends to invoke the automatic extension provisions of 5 U.S.C. § 558(c) and Part 377 of the Department's 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- 2 - Aero litoral Renewal Application the United States marketed under the “AM” code of Aerovias de Mexico, S.A. de C.V. (“Aeromexico”). 2. By this application, Aerolitoral seeks renewal of its exemption, a s amended, to engage in scheduled foreign air transportation of persons, property and mail between Hermosillo and Phoenix. The authority is scheduled to expire on August 3, 2013. Aerolitoral currently is serving this route, and it therefore seeks to renew the authority 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 poin t or points in Mexico to a point or points in the United States." Aerolitoral has been designated to serve the route, and it continues to hold DGAC authority to serve the route. 4. Under 49 U.S.C. § 40109(c), the Department may grant an exemption 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

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- 66 at 3

- 4. Given Aero litoral 's designation for this market , such a public interest finding is warranted. Moreover, the benefits which Aeromexico/Aerolitoral services generate for