UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation on December 13, 2012

NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2012-0202

This serves as notice to the public of the action described below, taken by the Department official indicated (no 

additional confirming order will be issued in this matter).

Joint Applicants: ALASKA AIRLINES, INC. (“Alaska”), HORIZON AIR INDUSTRIES, INC. (“Horizon”) and 

AEROVIAS DE MEXICO, S.A. DE C.V. (“Aeromexico”)

Date Filed: November 29, 2012

Relief requested:

Aeromexico requests an exemption pursuant under 49 USC §40109 to allow scheduled combination foreign air 

transportation on a codeshare-only basis only in conjunction with services operated by Alaska and/or Horizon on 

the following routes:1

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 an 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 codeshare 

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

operated by Alaska and/or Horizon. To the extent necessary, Aeromexico further seeks a 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). 

Alaska and Horizon seek statements of authorization under 14 CFR Part 212 to display Aeromexico’s “AM*” designator 

code on flights operated by Alaska and/or Horizon between (i) points in the United States; (ii) points in the United States 

and points in Mexico; and (iii) points in the United States and points in third countries (either nonstop or via intermediate

points in third countries), for the purpose of transporting persons, property and mail under Aeromexico’s code in foreign 

air transportation between Mexico and the United States, and between Mexico and third countries. 

Alaska and Horizon also request a waiver of the 45-day advance filing requirement under 14 CFR 212.10(d)(2). 

Applicant representatives: Charles F. Donley II and Marshall S. Sinick, 202-626-6600 (Alaska/Horizon); and John R. 

Mietus, Jr. 202-747-5212 (Aeromexico)

DOT Analyst: Darren Jaffe, 202-366-2512

Responsive pleadings: None. 

 1 Aeromexico already holds permit authority, issued by Order 91-5-25, for the other transborder routes included in this application 

(Los Angeles-Guadalajara/Mexico City),
D I S P O S I T I O N

Action: Approved, subject to conditions.

 

Action date: December 13, 20122

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

December 13, 2012 through December 13, 2013. The statements of authorization granted to Alaska and Horizon are 

effective December 13, 2012 and will remain in effect for an indefinite duration, subject to conditions. Our action granting 

Alaska and Horizon a waiver of the 45-day advance filing requirement under 14 CFR Part 212 is effective December 13, 

2012.

Basis of approval (bilateral agreement/reciprocity): United States- Mexico Air Transport Services Agreement.

Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations of our standard 

exemption conditions (attached as Appendix A), code-share conditions (attached as Appendix B), and to the otherwiseapplicable 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 to operations conducted only 

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

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 with Department policy; (2) the applicants were qualified to perform the proposed operation; (3) grant of the

authority was consistent with the public interest; and (4) grant of the authority would not constitute a major regulatory

action under the Energy Policy and Conservation Act of 1975. To the extent not granted, we denied all requests in the 

referenced Docket. 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

regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice.

This action was effective 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:

www.regulations.gov

 2 The Department is acting on the application of exemption requests of Aeromexico prior to the expiration of the 15-day answer period 

with the consent of all parties served. 
Appendix 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 the 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 airport 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 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 

Form 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 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 tribunal 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 for 

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 transportation" 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, 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 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 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.

12/2007
Appendix B

The Statements of Authorization granted are subject to the following conditions:

(a) The statements of authorization will remain in effect only as long as Alaska, Horizon, and Aeromexico continue to 

hold the underlying authority to operate the codeshare services at issue, and the codeshare agreement providing for the 

codeshare operations remains in effect.

(b) Alaska, Horizon, and/or Aeromexico, as appropriate, must promptly notify the Department (Office of International 

Aviation) if the codeshare agreement is no longer effective or if the carriers decide to cease operating all or a portion of 

the approved codeshare services.3 (Such notice should be filed in Docket OST-2012-0202.)

(c) Alaska, Horizon, and/or Aeromexico, as appropriate, must notify the Department no later than 30 days before they 

begin any new code-share service under the code-share services authorized here. Such notice shall identify the market(s) 

to be served, which carrier will be operating the aircraft in the code-share market added, and the date on which the 

service will begin. Such notice should be filed in Docket DOT-OST-2010-0202.

4

(d) The code-sharing operations conducted under this authority must comply with 14 CFR 257 and with any amendments 

to the Department’s regulations concerning code-share arrangements that may be adopted. Notwithstanding any 

provisions in the contract between the carriers, our approval here is expressly conditioned upon the requirements that the 

subject foreign air transportation be sold in the name of the carrier holding out such service in the computer reservation 

systems and elsewhere; that the carrier selling such transportation (i.e., the carrier shown on the ticket) accept 

responsibility for the entirety of the code-share journey for all obligations established in its contract of carriage with the 

passenger; that the passenger liability of the operating carrier be unaffected; and that the operating carrier shall not permit 

the code of its U.S. code-sharing partner to be carried on any flight that enters, departs, or transits the airspace of any area 

for whose airspace the Federal Aviation Administration has issued a flight prohibition.

(e) The authority granted here is specifically conditioned so that Alaska, Horizon, and Aeromexico shall not give any 

force or effect to any contractual provisions between themselves that are contrary to these conditions. 

(f) We may amend, modify, or revoke the authority granted at any time without hearing at our discretion.

Persons entitled to petition the Department for review of this action under the Department’s regulations, 14 CFR 

§385.30, should file their petitions within seven days of the date of this action. This action is effective immediately, and 

the filing of a petition for review will not alter its effectiveness.

 3 We expect this notification to be received within 10 days of such non-effectiveness or of such decision. 4 See Appendix C for initial code-share routes and operating carrier.
Appendix C

 Initial Codeshare Markets

Route Operator

Las Vegas, NV 

(LAS)

Portland (PDX) Alaska

Las Vegas, NV 

(LAS)

Seattle (SEA) Alaska

Los Angeles, CA 

(LAX)

Anchorage, AK (ANC) Alaska

Los Angeles, CA 

(LAX)

Guadalajara, MX (GDL) Alaska

Los Angeles, CA 

(LAX)

Ixtapa/Zihuatanejo, MX 

(ZIH)

Alaska

Los Angeles, CA 

(LAX)

La Paz, MX (LAP) Horizon

Los Angeles, CA 

(LAX)

Loreto (LTO) Horizon

Los Angeles, CA 

(LAX)

Manzanillo, MX (ZLO) Alaska

Los Angeles, CA 

(LAX)

Mazatlán, MX (MZT) Alaska

Los Angeles, CA 

(LAX)

Mexico City, MX (MEX) Alaska

Los Angeles, CA 

(LAX)

Portland, OR (PDX) Alaska

Los Angeles, CA 

(LAX)

Puerto Vallarta, MX 

(PVR)

Alaska

Los Angeles, CA 

(LAX)

San Jose, CA (SJC) Horizon

Los Angeles, CA 

(LAX)

San José del Cabo, MX 

(SJD)

Alaska

Los Angeles, CA 

(LAX)

Seattle, WA (SEA) Alaska

Los Angeles, CA 

(LAX)

Vancouver, BC (YVR) Alaska

Sacramento, CA 

(SMF)

Seattle, WA (SEA) Alaska

San Diego, CA 

(SAN)

Puerto Vallarta, MX 

(PVR)

Alaska

San Francisco, CA 

(SFO)

Portland, OR (PDX) Alaska/Horizon

San Francisco, CA 

(SFO)

Puerto Vallarta, MX(PVR) Alaska
San Francisco, CA 

(SFO)

San José del Cabo, MX 

(SJD)

Alaska

San Francisco, CA 

(SFO)

Seattle, WA (SEA) Alaska

San Jose, CA (SJC) Guadalajara, MX (GDL) Alaska

San Jose, CA (SJC) San José del Cabo, MX 

(SJD)

Alaska