UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on September 26 , 2012



### NOTICE OF ACTION TAKEN

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- 3289 and DOT

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

additional con firming order will be issued in this matter).

Applicant : AEROVIAS de MEXICO , S.A. de C.V. (A ero m exico ) Date Filed: February 21, 2012

Relief requested: Renewal of e xemption from 49 USC § 41301 to permit the applicant to conduct scheduled foreign air transportation of persons, property, and mail by displaying its “AM” designator code on flights operated by Pinnacle Airlines, Inc. (Pinnacle) : 1) between Atlanta, Georgia, on the one hand, and Monterrey, Cozumel, and Guadalajara, Mexico, on t he other; and 2) between Aeromexico’s authorized U.S. gateway points and other points within the U.S. for the purpose of blind

- sector code

- sharing services between the U.S. gateway points and other U.S. points

.

Aeromexico also seeks renewal of its specia l authorization pursuant to 14 C.F.R. Part 216 to permit it to commingle traffic not moving in foreign air transportation between Mexico and Canada on the same services that carry traffic in foreign air transportation between Mexico and the United States a nd between the United States and Canada, in conjunction with Aeromexico blind

- sector code

- share services on Pinnacle’s U.S.

- Canada operations.

If renewal, date and citation of last action: February 25, 2011 , in this Docket. 1

Applicant representative: John R. Mietus, Jr., 202

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- 5212 DOT analyst: Robert J. Finamore , 202

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Responsive pleadings: None.

DISPOSITION Action: Approved. Action date: September 26 , 2012

Effective dates of authority granted: September 26 , 2012 , through September 26 , 2013

.

Basis for approval (bil ateral agreement/reciprocity): United States

- Mexico Air Transport Services Agreement

.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached), and to the otherwise

- applicable terms, conditions, and limitations of Aeromexico’s foreign air carrier permit (Order 91

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- 25).

Action take n 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 applicant was qualified to perform its proposed operations; (3) grant of the authority was consist ent 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/deferred/dismissed, 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 regulati ons, 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

1 Our February 25, 2011 action also granted Aeromexico exemption authority to serve the Detroit

- Monterrey market by displaying its “AM” designator code on flights operated by Pinnacle . That authority was renewed by Notice of Action Taken dated December 28, 2011, in the above

- referenced Dockets.

### 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 s uch 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 req uirements 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 com mencing 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 Se curity Inspector) to advise the I IR 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 cov erage 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

- 2 60), 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 act ions 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 defi nition;

(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 reaso nable 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.

1 2/2007