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

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)

.

J o i n t A pp l i c a nts: ALASKA AIRLINES, INC. ( “ Alaska ” )

, HORIZON AIR INDUSTRIES, INC

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

Date F i l ed : November 29 , 2012

Relief requested:

Aeromexico requests an exemption pursuant under 49 USC §40109 to allow s cheduled combination foreign air transportation on a codeshare

- only basis only in conjunction with services ope rated 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 Franci sco

- 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

servic es 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 prov ide 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 coun try traffic (with no local traffic rights between the U.S. and third countries).

Alaska and Horizon seek s tatement s of authorization und e r 14 CFR Part 212 t o d isplay 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 transport ing 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).

A pp li c ant r e p resentatives : Charles F. Donley II and Marshall S. Sinick, 202

- 626

- 6600 ( Alaska/Horizon) ; and John R.

Mietus, Jr. 202

- 747

- 5212 (Aeromexico)

DO T An a l y s t : 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 , 2012 2

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

December 13 , 2012 through December 13

, 2013. The statement s 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 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 standard exemption conditions (attached as Appendix A ), code

- share conditions (attached as Appendix B), 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 on ly 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 v

2 The Depar tment 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.A 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 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 sha ll, 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 Internationa l 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 th e 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 respec t 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 Unite d 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 t ribunal 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 purpos e 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.

12/2007Appendix B

The Statement s of Authorization granted are subject to the following conditions:

(a) The statement s 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 De partment (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 c arrier 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 requirement s 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

respons ibility 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 perm it

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 immedia tely, 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