BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

__________________________________________ ) Application of ) ) AEROVIAS DE MEXICO, S.A. DE C.V. ) DOCKET OST-1996-1304 ) for renewal of exemption authority ) (Mexico City-Phoenix) ) __________________________________________)

APPLICATION OF AEROVIAS DE MEXICO, S.A. DE C.V. 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 AEROVIAS DE MEXICO, S.A. DE C.V.

NOTICE: Any person may support or oppose this application by filing an answer and serving a copy of the answer on counsel for Aeromexico and upon persons served with this application no later than February 24, 2012.

February 9, 2012BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

__________________________________________ ) Application of ) ) AEROVIAS DE MEXICO, S.A. DE C.V. ) DOCKET OST-1996-1304 ) February 9, 2012 for renewal of exemption authority ) (Mexico City-Phoenix) ) __________________________________________)

APPLICATION OF AEROVIAS DE MEXICO, S.A. DE C.V. FOR RENEWAL OF AN EXEMPTION Pursuant to 49 U.S.C. § 40109(c), Aerovias de Mexico, S.A. de C.V. ("Aeromexico") respectfully reques ts renewal of the above-captioned exemption, granted by Notice of Action Taken dated February 11, 2011 (the “Notice”), for an additional, one-year period. The Notice permits Aeromexico to engage in scheduled foreign air tran sportation of persons, property, and mail between Mexico City, Mexico and Phoenix, Arizona. Aeromexico intends to invoke the automatic extension provisio ns of 5 U.S.C. § 558(c) and Part 377 of the Department's Special Regulation s. In support of this application, Aeromexico states as follows: 1. Aeromexico is a flag carrier of the United Mexican States and currently holds a permit, Order 91-5-25, and various exemptions which authorize service between Mexico and nu merous U.S. points. Pursuant to this authority, Aeromexico provid es extensive tran sborder service.- 2 - Aeromexico Renewal Application

2. By this application, Aeromexico seeks renewal of its exemption to serve the Mexico City-Phoenix market. The authority is scheduled to expire on February 11, 2012. Aeromexico toda y serves the market with on-line connecting service and wishes to retain its authority to operate nonstop service should conditions warrant. 3. Annex 1 to the 1960 Air Transpor t Agreement, as amended, between the United Mexican States and the Unit ed States provides that a carrier designated by the Government of Mexico is entitled to operate "[f]rom a point or points in Mexico to a point or points in the United States." Aeromexico has been designated to serve the route and continues to hold DGAC authority to do so. 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 82-2-66 at 3-4. Given Aeromexico's designation for this route, such a pub lic interest finding is warranted. Moreover, the benefits which the servic e generates for business travelers,