UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Issued by the Department of Transportation on May 2

, 20 1 2

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 20 0 4

- 19419

_________________ _____________________________________________________________________________ ____________ ___________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be issue d in this matter).

Application of ALASKA AIRLINES , INC. ( Alaska ) filed 3/29/12 for:

XX Renewal of e xemption for two years under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail betwee n Los Angeles , California

, and Loreto

, Mexico. 1

Applicant rep: Marshall S. Sinick (202) 626

- 6651 DOT Analyst: Brett D. Kruger (202) 366

- 8025

D I S P O S I T I O N

XX Granted (subject to conditions, see below)

The above action was effective when ta ken: May 2

, 20 1 2

, through May 2 , 20 1 4

.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the aviation agreement between the United States and

Mexico.

Except to the extent e xempted or waived, this authority is subject to the terms, conditions, and limitations

indicated: XX Holder’s certificates of public convenience and necessity

XX Standard exemption conditions (attached)

Conditions : The U.S.

- Mexico exemption aut hority granted is subject to the dormancy notice requirements set forth in condition 7 of Appendix A of Order 88

- 10

- 2 , and is limited to services provided on a code

- share basis only

.

The code

- share operations conducted under this authorization are subject to the following conditions:

(a) The code

- sharing operations conducted under this authority must comply with 14 C.F.R. 257 and with any amendments to the Department’s regulations concerning code

- share arrangements that may be adopted. Notwithstanding any pr ovisions 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 computer reservation systems and else where; 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; and that the passen ger liability of the operating carrier be unaffected; and

(b) The authority granted here is specifically conditioned so that neither Alaska nor Horizon shall give any force or effect to any contractual provisions between themselves that are contrary to these

conditions.

1 Alaska states that it currently serves the subject market on a code

- share basis only, by placing its code on the Los Angeles

- Loreto flights of Horizon Air Industries, Inc. (Horizon)

.On the basis of data officially noticeable under Rule 24(g) of the Department's regu lations, we found the applicant qualified to provide the exemption services authorized.

Under authority assigned by the Department in its regulations, 14 CFR P art 385, we found that (1) our action was consistent with Department policy; (2) grant of the authority was consistent with the public interest; and (3) grant of the authority would not constitute a major regulatory action under the Energy Policy and

Conse rvation 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 Departm ent 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 p etition for review will not

alter such effectiveness.

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

### Attachment

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating authority from the government of each country served;

(2) Comply with applicable requirements concerning oversales contained in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insurance coverage, and for certifying that coverage to the Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise provided for in a Department Order, comply with the requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable require ments of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U .S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flights) to or from a foreign airport, contact its Principal Security Inspector (PSI) to advise the PSI of its plans and to find out whe ther the Transportation Security Administration has determined that security is adequate to allow such airport(s) to be served ;

(7) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department of Transportation, with all applicable orders and regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

The authority granted shall be effective only during the period when the holder is in com pliance with the conditions imposed above.

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