UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation on January 7 , 2014



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2012

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T h i s s e r v es a s n o t i ce t o t h e pub l i c o f t h e a c t i on d e sc r i b ed b e l o w

, t a k en by t he D e p a rt m ent o f f i c i al i n d i c a t e d ( no

add i ti o nal co n f i r m i ng o r der w i l l be i ss u ed i n t h i s m a t t e r)

.

A pp l i c a nt: AEROVIAS DE MEXICO, S.A. DE C.V. (“Aeromexico”)

Date F i l ed : December 12, 2013

Relief requested:

Aeromexico requests renewal , for a one

- year period, of its exemption under 49 USC §40109 to allow it to

conduct scheduled combination foreign air transportation on a codeshare

- only basis in conjunction with services

operated by Alaska Airlines, Inc. (“Alaska”) and/ or Horizon Air Industries, Inc. (“Horizon”) on the following

routes:

Los Angeles

- Ixtapa/Zihuatanejo Los Angeles

- San Jose del Cabo

Los Angeles

- La Paz San Diego

- Puerto Vallarta

Los Angeles

- Loreto San Francisco

- Puerto Vallarta

Los Angeles

- Manzanillo San Francisco

- San Jose del Cabo

Los Angeles

- Mazatlan San Jose

- Guadalajara

Los Angeles

- Puerto Vallarta San Jose

- San Jose del Cabo

Aeromexico also requests renewal of its exemption under 49 USC §40109 to provide scheduled foreign air

transportation of persons, property, and mail between points in Mexico and points in the United States and

beyond Aeromexico’s authorized U.S. gateways for transborder services, for the purpose of blind sector code

share services operated between the U.S. gateway points and other points within the United States, on services

operated by Alaska and/or Horizon. Aeromexico further seeks renewal of its special authorization pursuant to

14 CFR Part 216 allowing it to provide blind sector service between its authorized U.S. gateways and points in

third countries, either nonstop or via intermediate points in third countries, for the carriage of Aeromexico’s

authorized Mexico

- U.S. traffic in combination with Mexico

- third country traffic (with no local traffic rights

between the U.S. and third countries).

A pp li c ant r e p resentative: John R. Mietu s, Jr. 202

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DO T An a l y s t : Darren Jaffe

, 202

- 366

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Responsive pleadings: None.

D I S P O S I T I O N

Action: Approved, subject to conditions.

Action date: January 7 , 2014

Effective dates of authority granted: The exemption authority and special authorization granted to Aeromexico are

effective January 7 , 201 4 through January 7 , 2015

.

Basis of approval (bilateral agreement/reciprocity): United States

- Mexico Air Transport Services Agreement.

Except t o t he ex t ent exe m p t ed or w a i v ed, t h i s au t ho r it y i s s u b j ect t o t he t e r m s, c ond i t i ons, a nd li m it a t i ons of our standardexemption conditions (attached as Appendix A), and to the otherwise

- applicable terms, conditions, and limitations of

Aeromexico’s foreign air carrier permit (Order 91

- 5

- 25).

Special conditions/Remarks: The exemption authority granted to Aeromexico is limited t o operations conducted only

through its code

- share arrangement with Alaska and/or Horizon, on flights operated by Alaska and/or Horizon.

A c ti on t a k en b y: P a ul L

. G re t ch, D i r e c t o r , O ff i ce o f I n t e rna t i on a l A v i a ti on

_______________________________________________________________________________________

U nder a u t h o r i t y as s i g ned by t he D ep a rt m ent i n i t s r e g u l a t i o n s, 14 C FR P a r t 3 85, w e f o u nd t hat ( 1 ) our a c ti on w as

c o ns i s t ent w it h D e pa rt m ent p o l i c y ; ( 2 ) the applicants were qualified to perform the proposed operation; (3) g r a n t o f t he

a u t h o r i t y w as co n s i s t e nt w it h t he p ub l i c i n t e r es t ; a n d ( 4 ) g r a nt o f t he a u t h o r i t y w ou l d n o t co n s t i t u t e a m a j o r r e g u l a t o r y

a c ti on und e r t h e Ene r g y Po li cy and C on s e r v a t i on A ct of 1 975. T o t he e x t e n t n o t g r an t ed, w e d en i e d a l l r e q ue s t s i n t he

r e f e r e nc e d D oc k et. We m ay a m end, m od if y , or r e v o k e t he a u t h o r i t y g r an t ed i n t h i s N o t i ce at a n y ti m e w itho u t h e a r in g at

ou r d i s c r e tio n

.

Pe r so n s e n t i t l ed t o p e t i t i on t he D e p a r t m ent f o r r e v i ew of t h e a c t i on s et f o r t h i n t h i s N o t i ce u n der t he D epa r t m en t’ s

r e g u l a ti o n s, 1 4 C FR §385.30, m ay fil e t h e i r pe t i t i o n s wi t h i n se v en (7 ) da y s a f t e r t h e d a t e o f i ss u ance of t h i s N o t i c e.

T h i s a c t i on w as e f f e c ti v e w h e n t a k en, a n d t h e f i l i ng of a pe t i t i on f o r r e v i ew wi l l n ot a l t er such e f f e c ti v ene s s.

An elect ro n ic v e r s i o n o f t h i s do c u m e n t is a v aila b le o n t h e W or ld W i d e W eb at:

w w w .r e g u lati on s

. g o vA pp e nd ix A

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 th e Department;

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

U.S. Government requirements concerning security, the holder shall, before commencing any new service (including

charter flights) from a foreign ai rport that would be the holder’s last point of departure for the United States, contact its

International Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise

the IIR of its plans and to find out whet her 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

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

- 260), Flight Standards

Service (any changes to, or termination of, ins urance 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 co mpetency requirements of its Government for international air services;

(6) Except as specifically exempted 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 immunity, 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 tribu nal in the

United States that are: (a) based on its operations in international air transportation that, according 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 f or

which the contract of carriage was purchased in the United States; or (b) based on a claim under any international

agreement or treaty cognizable in any court or other tribunal of the United States. In this condition, the term

"international air trans portation" means "international transportation" as defined by the Warsaw Convention, except that

all States shall be considered to be High Contracting Parties for the purpose of this definition;

(8) Except as specifically authorized by the Department, or iginate 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 inter est as may be

prescribed by the Department, with all applicable orders or regulations of other U.S. agencies and 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 c ompliance 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.

12/2007