UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Issued by the Department of Transportation on February 27 , 20 1 5

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2015

- 0022

_______________ _______________________________________________________________________________ ____________ ___________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be iss ued in this matter).

Application of MESA AIRLINES, INC. (Mesa ) filed 2/6/15 for:

XX 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 between (1) Dallas/F t. Worth,

Texas , and Monterrey , Mexico ; and (2) Dallas/Ft. Worth, Texas, and San Luis Potosi, Mexico. 1

Applicant rep resentatives : Robert E. Cohn and Patrick R. Rizzi ( 202 ) 637

- 4999 DOT Analyst: Brett D. Kruger (202) 366

- 8025

D I S P O S I T I O N

XX Gr anted (subject to conditions, see below)

The above action was effective when taken: February 27 , 20 1 5

, through February 27 , 20 1 7

.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

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

Mexico.

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

indicated:

XX Holder’s certificate of public convenience and necessity

XX S tandard exemption conditions (attached)

Background: Under the U.S.

- Mexico aviation agreement, three U.S. carriers may be designated to provide scheduled foreign air transportation of persons, property, and mail between Dallas/Ft. Worth and Monterrey. Two U.S. carriers may be designated to provide scheduled foreign air transportation of persons, property, and mail between Dallas/Ft. Worth and San Luis Potosi. Currently American and Envoy Air Inc. (Envoy) 2 are designated to provide service between Dal las/Ft. Worth and Monterrey; and Envoy is designated to provide service between Dallas/Ft. Worth and San Luis Potosi, leaving one available designation for each market. In its application, Mesa states that current plans call for Mesa to substitute for Env oy on the Dallas/Ft. Worth

Monterrey market and to operate the Dallas/Ft. Worth

- San Luis Potosi service previously provided by Envoy. Mesa requests that the Envoy designations for these markets be re

- designated to Envoy.

Responsive Pleadings: On Februar y 13, 2015, the Envoy Air Pilots Master Executive Council of the Air Line Pilots Association, International (the Envoy MEC) filed an answer in opposition. The Envoy MEC states that Envoy pilots have not been consulted on these plans, and that the proposed substitution is highly detrimental and disruptive. The Envoy MEC states that Envoy should retain its designations, and that

1 Mesa states that it intends to provide service under the “American Eagle” brand beginning on or about March 29,

2015

. 2 By Order 2014

- 4

- 13, the Department revised the certificate and exemption authority held by American Eagle Airlines, Inc. to reflect the corporate name change to Envoy Air Inc.transferring the designations to Mesa unnecessarily forecloses future opportunities for Envoy to serve the

markets. The Envoy MEC urges the Department to deny Mesa’s request for exemption authority.

Mesa filed a r epl y , stating that Envoy the carrier holds the designations, and whether or not the Envoy MEC was consulted has no bearing on Mesa’s application. Mesa states that America n determines which carrier it wants to fly for its branded operations and, in this case, American has asked Mesa to start operating service

in these markets.

Decision : We have decided to approve Mesa’s requests for Dallas/Ft. Worth

- Monterrey and Dallas /Ft.

Worth

- San Luis Potosi exemption authority. In reaching this decision, we note that both city

- pair markets have one available designation and there are no competing proposals to provide these services. With respect to the issues raised by the Envoy M EC , we are not inclined to interfere with the commercial decision of American Airlines as to which regional partner it wishes to use on the routes in question. We see no basis on the record to conclude that American does not intend to use Mesa as its regi onal partner as indicated in Mesa’s application. In these circumstances, we do not find that the concerns raised by the Envoy MEC provide a basis that would warrant our withholding of the authority requested by Mesa. 3

Conditions : The U.S.

- Mexico exempti on authority granted is subject to the dormancy notice requirements set forth in condition 7 of Appendix A of Order 88

- 10

- 2

. Consistent with our standard policy, the dormancy notice period will begin on March 29, 2015, Mesa’s proposed start

- up date for th e subject services.

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 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 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 al l obligations established in its contract of carriage with the passenger; and that the passenger liability of the operating carrier be unaffected; and

(b) The authority granted here is specifically conditioned so that neither Mesa nor American shall give

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

conditions.

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 Part 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 t he 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 No tice 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: http://www.regulations.gov

3 We will address the designation requests for the se markets through normal diplomatic channels, consistent with our established practice.

### 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 c ountry 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 f or 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 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, 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, cont act its Principal Security Inspector (PSI) to advise the PSI 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 ;

(7) Comply with such other reason able 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 State s.

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

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