Order 2011-9-4

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 12th day of September, 2011

 Served: September 12, 2011

 Docket DOT-OST-2011-0076

 

 

 Docket DOT-OST-2005-22228

ORDER TO SHOW CAUSE 

Summary

By this order we propose to modify certain regulatory procedures for U.S. carriers serving or, in the 

case of small aircraft operations, seeking to serve the U.S.-Mexico market.

Background

The U.S.-Mexico air services agreement (the agreement) limits the number of U.S. carriers that may 

provide non-stop service, with their own aircraft or via code-share arrangements, in all U.S.-Mexico 

city-pair markets.1 Before a U.S. carrier holding underlying economic authority from the Department 

to provide scheduled combination or all-cargo service may commence service with its own aircraft, it 

must be designated to provide service in that city-pair market.2 Similarly, before a U.S. carrier 

holding underlying economic authority from the Department to provide scheduled combination or allcargo service pursuant to a code-share arrangement with a U.S. or Mexican carrier may commence 

service, the Department must transmit a “code-share notification” to the Mexican Civil Aviation 

 1

 A “U.S.-Mexico city-pair market” refers to a trans-border route segment between a point in the United States and a point 

in Mexico where international air transportation services can be provided since the necessary facilities are available. 2 Pursuant to the agreement, designations are transmitted via diplomatic note between the U.S. and the Mexican 

governments.

U.S.-Mexico Procedures for U.S. Carriers

(MEXICO PROCEDURAL DOCKET)

In the Matter of Consolidated International Route Authority 

for:

 

 AMERICAN AIRLINES, INC.

 AMERICAN EAGLE AIRLINES, INC.

 CONTINENTAL AIRLINES, INC.

 AND/OR UNITED AIR LINES, INC.

 DELTA AIR LINES, INC.

 FRONTIER AIRLINES, INC.

 JETBLUE AIRWAYS CORPORATION

 PINNACLE AIRLINES, INC.

Under 49 U.S.C. §41102 for a certificate of public convenience 

and necessity (U.S.-Mexico only)
Authority indicating that the carriers are authorized to provide that service in a given city-pair market. 

Under the agreement, scheduled small-aircraft3 and large-aircraft services are treated identically with 

respect to these requirements. In some cases, U.S. carriers may hold underlying economic authority, 

but may need to request a designation or a code-share notification before they may commence service.

Present Action

We propose to address in this proceeding a number of informal U.S.-Mexico-related filing 

arrangements.

4 These informal arrangements have been used by U.S. carriers seeking operational 

flexibility to adjust, delay, or temporarily cease services, or seeking the designation necessary to 

provide small-aircraft services in the U.S.-Mexico market.5 Because these arrangements have been 

developed largely by accretion, certain inconsistencies and inefficiencies have resulted. They have 

also suffered from a lack of transparency. 

We tentatively find that we can best address and improve the situation by changing to a more 

transparent, centralized, user-friendly approach. Specifically, we propose to establish a Mexico 

Procedural Docket (the “Mexico Procedural Docket”), in Docket DOT-OST-2011-0076, where U.S. 

carrier requests and notices, previously filed informally (and generally undocketed), would be filed and 

where related Department actions would be posted. We believe that this approach would enhance 

industry and public awareness of newly-available route opportunities, pending requests, and our action 

on those requests, and would significantly improve administrative efficiency.6 

For administrative clarity, and to provide easy identification of submissions for Departmental action 

and/or interested parties’ use, we tentatively propose that the following titles be used when submitting 

requests/notices to the Mexico Procedural Docket, as follows: (1) Small-Aircraft Designation; 

(2) Small-Aircraft Code-Share Authorization; (3) Waiver to Extend Start-Up Deadlines; (4) Temporary 

Waiver of Dormancy Conditions; (5) Conversion of Authorized Service;7 (6) Reactivation of Dormant 

Exemption Authority;

8 (7) Notice of Service-Level Change(s);9 and (8) Notice of Dormancy.10 

Filing Fees: There will be no filing fees associated with the above requests/notices filed in the Mexico 

Procedural Docket. 

 3

 Under Part 298.2 of the Department’s regulations, “small-aircraft” is defined as any aircraft originally designed to have 

a maximum passenger capacity of 60 seats or less or a maximum payload capacity of 18,000 pounds or less.

4

 We are not considering in this proceeding our formal licensing procedures and policies pertaining to U.S.-Mexico 

operating authority. For more information on policies and procedures, see, e.g., Orders 88-10-2, 88-7-43, 88-10-30, 96-11-

24, 98-8-18, 99-6-6, 2000-5-31, 2006-10-13, and 2008-3-12.

5

 Generally, these informal/undocketed U.S.-Mexico licensing practices call for U.S. carriers to file U.S.-Mexico-related 

requests and notices in the form of a letter addressed to the U.S. Air Carrier Licensing Division at the U.S. Department of 

Transportation. Once filed, these requests/notices are summarized in the Department’s Weekly List of Applications Filed

published at the end of each week. Where applicable, answer dates to the submissions are also noted. 

6

 To eliminate unnecessary duplication, the Weekly List of Applications Filed would no longer include the various types 

of requests and notices covered here. 7

 Requests to convert direct-carrier service to code-share service, or vice versa. 8

 We note that only dormant U.S.-Mexico authority granted by exemption may be reactivated. U.S.-Mexico authority 

granted in a Certificate of Public Convenience and Necessity is not eligible for reactivation once dormant since it reverts to 

the Department ninety (90) days after a service ceases. Carriers are reminded that they are obligated to inform the 

Department when they cease operations on any U.S.-Mexico route. 9

 Notices to advise that a carrier has changed its level of service in a U.S.-Mexico city-pair market (from year-round 

service to seasonal service, or vice versa). We note that these notices serve to, among other things, ensure that the 

Department applies dormancy conditions appropriately, depending on the level of service provided. For information on the 

application of dormancy conditions with respect to identified seasonal or intermittent services, see, e.g., Orders 96-11-24, at 

3-5, and 2000-5-31, at 4. 10 We remind carriers that the requirement to file dormancy notices is applicable whether the carrier is serving the market 

with its own aircraft or on a code-share basis only (see Order 2000-5-31, at 3).
Cover Page, Docket Requirement(s), and Required Service: We propose that all submissions, as 

identified above, filed in the Mexico Procedural Docket include: a cover page with a caption for the 

Mexico Procedural Docket and, where applicable, a caption for the docket where the filing carrier’s 

underlying exemption or certificate authority to serve the subject U.S.-Mexico city-pair route 

segment(s) was awarded; the title of the type of submission being filed; the name and address of the 

filing carrier; the name, address, telephone number, and e-mail address of the filing carrier’s 

representative, and the date of the filing. All submissions should be served on all U.S. carriers 

providing scheduled air transportation service in the U.S.-Mexico market, with a copy also served on: 

esta.rosenberg@dot.gov, brett.kruger@dot.gov, and brian.hedberg@dot.gov. We tentatively find that 

the proposed content of the cover page closely mirrors the type of information currently being 

provided.

Answers and Replies to Submissions Requiring Department Approval: We propose to establish a 

period of 15 days for answers/objections to submissions filed, and seven calendar days for replies to 

answers/objections filed. We tentatively conclude that a uniform standardized response date for all 

submissions requiring Department approval will virtually eliminate response- and action-date 

ambiguities that exist under our current informal licensing arrangements, while providing an adequate 

opportunity for interested parties to respond. 

Criteria for Approval of Submissions: For those submissions requiring Department approval, we 

propose to continue our practice of granting approvals where good cause is shown, no objections are 

filed, and our action is consistent with the aviation agreement.

11 We believe that this basis for 

approvals has worked well to serve the public interest and we tentatively see no need to alter our 

approval criteria in this matter. We note that requests that are controverted may require disposition 

through other Department procedures.

Notices: Notices on service-level changes or dormancy on U.S.-Mexico city-pair route segments have 

not, and will not, require Departmental action. These notices will continue to provide vital U.S.-

Mexico service information, including immediate notification of newly-available route opportunities in 

the market.

Consolidated U.S.-Mexico Certificates – Docket DOT-OST-2005-22228

We will also continue our practice to grant, to qualified U.S. air carriers, consolidated U.S.-Mexico 

certificate authority pursuant to, and consistent with, the procedures described in the Department’s 

February 13, 2009 Notice, in Docket DOT-OST-2005-22228. However, in furtherance of our 

continued streamlining measures, and consistent with our centralization efforts here, we have 

tentatively decided: (1) to move previously-issued consolidated U.S.-Mexico certificates in Docket 

DOT-OST-2005-22228 to the Mexico Procedural Docket in Docket DOT-OST-2011-0076; (2) to 

require that all future requests for consolidated U.S.-Mexico certificates be filed in the Mexico 

Procedural Docket, and served on all U.S. carriers providing scheduled air transportation in the U.S.-

Mexico market, with a copy also served on: esta.rosenberg@dot.gov, brett.kruger@dot.gov and 

brian.hedberg@dot.gov; and (3) to require that all future U.S.-Mexico-related requests/notices 

involving Mexico authority granted in Docket DOT-OST-2005-22228 that fall into the earlierdescribed categories be filed in the Mexico Procedural Docket 12 – a docket pertaining exclusively to 

U.S.-Mexico licensing matters.

 11 See, e.g., Orders 2008-3-12, at 2-3; 2000-5-31, at 3; and 88-10-30, at 6-7. 12 These submissions should also be served on all U.S. carriers providing scheduled air transportation in the U.S.-Mexico 

market, with a copy also served on: esta.rosenberg@dot.gov, brett.kruger@dot.gov, and brian.hedberg@dot.gov. 
ACCORDINGLY,

1. We direct all interested parties to show cause why we should not make final the tentative actions set 

forth in the text of this order;

2. We direct any interested parties having objections to the tentative actions set forth in this order to 

file their objections in Dockets DOT-OST-2011-0076 and DOT-OST-2005-22228 (with a courtesy 

copy also to esta.rosenberg@dot.gov, brett.kruger@dot.gov, and to brian.hedberg@dot.gov) no later 

than 15 calendar days from the date of service of this order; with answers to objections due no later 

than 10 calendar days thereafter;13

3. If timely and properly supported objections are filed, we will afford full consideration to the matter 

or issues raised by the objections before we take further action;14

4. In the event that no objections are filed, we will deem all further procedural steps to be waived and 

we will enter an order finalizing our tentative actions; and

5. We will serve this order by electronic mail on all U.S. certificated and commuter air carriers; the 

National Air Carrier Association; the Air Transport Association; the Regional Airline Association; and

the Cargo Airline Association.

By:

SUSAN L. KURLAND

Assistant Secretary for 

Aviation and International Affairs

(SEAL)

An electronic version of this document is available on the World Wide Web at:

http://www.regulations.gov

 13 Filers are encouraged to use the electronic filing submission capability available at the following web site: 

http://www.regulations.gov. 14 Because we are providing for the filing of objections to our tentative decisions in this order, we will not entertain 

petitions for reconsideration of this order.