UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on March 10 , 201 5



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2013

- 0141

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

Applicant: CONCESIONARIA VUELA COMPANIA DE AVIACION, S.A. P.I. de C.V. D/B/A

VOLARIS ( Volaris )

Date Filed: July 18, 2013

Relief requested: E xemption from 49 USC §41301 to permit the applicant to engage in scheduled foreign ai r transportation of persons, property, and mail between Leon , Mexico, and Los Angeles, California

.

Volaris states that it requests authority from the Department, on a conditional and extrabilateral basis, to serve the referenced route so that it can provide this service until Compania Mexicana de Aviacion, S.A. de C.V. (Mexicana), a Mexican carrier that is designated for th i s route but not operating and currently in bankruptcy proceedings, is able to

resume service. 1 In support of its request, Volaris states that, under Mexican law, the Government of Mexico is unable to designate another Mexican carrier , even for temporary s ervice

, on Mexicana’s routes while the carrier is protected under bankruptcy proceedings. 2

Applicant representative: Charles F. Donley II, 202

- 626

- 6840 DOT anal yst: David R. Christofano , 202

- 366

- 0584

Responsive pleadings: None

.

DISPOSITION

Action: Approved , subject to conditions (see below) Action date: March 10 , 201 5

Effective dates of authority granted: March 10 , 201 5 , through March 10 , 201 6

.

Basis for approval (bilateral agreement/reciprocity) : The authority granted is consist ent with the overall state of

aviation relations between the United States and Mexico.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached) , and to the ad ditional conditions set forth below

.

Consistent with our previous grants of extra

- bilateral authority in these circumstances, w e will grant the authority subject to the following additional conditions : 1 ) Volaris must immediately cease its services on the route authorized

here in the event that Mexicana resume s service ; and 2) should such resumption of service by Mexicana occur, Volaris

must accommodate on another Mexican or U.S. carrier any passengers that may hold Volaris tickets for the routes on which Volaris must cease service

, or provide such passengers with full refunds. 3

1 Under the United States

- Mexico Air Transport Services Agreement (the Agreement), each party is limited in the number of carriers it may designate in particular city

- pair markets. In the Leon

- Los Angeles city

- pair market for which Volaris seeks authority here, no Mexican carrier designation remains available, and one of the designations is held by Mexicana.

2 Volaris included with its application correspondence from the Government of Mexico requesting the Department’s favorable

consid eration of Volaris’ application under the unique circumstances resulting from Mexicana ’s bankruptcy. Volaris also notes that the correspondence makes clear that any authorization would be temporary and would not result in Mexican carrier operati ons on any U.S.

- Mexico route in excess of the bilateral limit.

3 See

, e.g., Notice s of Actio n Taken dated July 29, 2014, in Docket DOT

- OST

- 2012

- 0083, and July 11, 20 11, in Docket DOT

OST

- 2011

- 0117.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) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consi stent with the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Poli cy and Conservation Act of 1975. To the extent not granted/deferred/dismissed, we denied all requests in the referenced Dock et. 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 Department’s regulati ons, 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 such effectiveness.

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

### 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, th e 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 appl icable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flights) from a foreign airport that would be the holder’s last point of departure for the United States,

contact its Internatio nal Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the I IR 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;

(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

Fo rm 6411, with the Federal Aviation Administration’s Program Management Branch (AFS

- 260), Flight Standards Service (any changes to, or termination of, insurance also shall 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 exemp ted or otherwise provided for in a Department Order, comply with the requirements of 14 CFR Part 203, concerning waiver of Warsaw Convention liability limits and defenses;

(7) Agree that operations under this authority constitute a waiver of sovereign imm unity, 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 the United States that are: (a) based on its operations in international air transportation that, ac cording 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 inte rnational 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 s hall be considered to be High Contracting Parties for the purpose of this definition;

(8) Except as specifically authorized by the Department, originate or 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 may be prescribed by the Department, with all applicable orders or regulations of other U.S. agencies an d 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.

1 2/2007