UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on September 11 , 2014



### NOTICE OF ACTION TAKEN

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________________________________________________________________________________________________________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be i ssued in this matter).

Applicant: CONCESIONARIA VUELA COMPANIA DE AVIACION, S.A. P.I. de C.V. D/B/A

VOLARIS ( Volaris )

Date Filed: July 31, 2014

Relief requested: E xemption from 49 USC §41301 to permit the applicant to engage in scheduled foreign a ir transportation of persons, property, and mail between the Mexican coterminal points Guadalajara, Cancun, and Mexico City, Mexico, on the one hand, and Fort Lauderdale, Florida, on the other hand.

Applicant representative: Charles F. Donley II, 202

- 626

- 6840

DOT anal yst: David R. Christofano , 202

- 366

- 0584

Responsive pleadings: American Airlines, Inc. (American) filed an answer in opposition to Volaris’ application.

Volaris and t he City of Houston (Houston) filed replies.

American states that Volaris does not have final approval or designation from the Mexican Direcci ó n General de

Aeron á utica Civil (DGAC) to operate the proposed Ft. Lauderdale

- Mexico City route. American also raises a number

of concerns it has with the U.S.

- Mexico Agreement (the Agreement)

.

Volaris contends that it has been properly authorized and designated by the DGAC to provide service on all of the routes for which it has requested authority. It further contends that all necessary documentation to support it s application has been received by the Department 1 and that approval of its request is clearly within the scope of the Agreement

.

The City of Houston concurs with American’s concerns with the Agreement and expresses its hope that bilateral negotiations with Mexico will result in a complete liberalization of all third

- and fourth

- freedom passenger designations

.

D I SPOSITION

Action: Approved

. Action date: September 11 , 201 4

Effective dates of authority granted: September 11 , 201 4 , through September 11 , 201 5

.

Basis for approval (bilateral agreement/reciprocity): United States

- Mexico Air Transport Services Agreement (the Agreement)

.

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

1 Volaris states that its designation for the Mexico City

- Ft. Lauderdale route was issued by the Mexican Government on September 23, 2011, and received shortly thereafter by the Department. Its designations for Cancun

- Ft. Lauderdale and Guadalajara

- Ft.

Laud erdale were received by the Department on August 11, 2014.Special Conditions/Remarks: We have decided to approve Volaris’ application. We note that the applicant has been

authorized and designated by the Government of Mexico to conduct its proposed services. Furt hermore, the authority requested by Volaris is provided for in the Agreement. With respect to the concerns raised regarding certain limitations of the Agreement, these matters will be appropriately addressed in the context of future bilateral negotiations

.

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 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

### 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 ho meland 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, a nd 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 I IR of its plans and to find out whether the Transpor tation 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 u nder 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 requiremen ts 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 Sta tes 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 "inter national 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 condit ions imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval

under Title 49 of the U.S. Code.

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