UN I TE D S TATE S O F A M ER I CA

DE P ART M EN T O F TRAN SP O RTAT I O N

O F F I C E O F T H E S ECRETAR Y

W A S H I NGT O N

, D

. C.

I ssued by t he D epa r t m ent o f T r a nsp o rt a t i on on June 30

, 2014



### NO T ICE OF AC T ION T A K E N

- - DO C K E T D O T

- O ST

- 2011

- 0117

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 il l be iss u ed i n t h i s m a t t e r)

.

A pp li c an t : C O NCE SI O N AR IA VUEL A C O M P A N IA D E AV I AC I O N , S. A

. P.I. de C

. V

. D/B / A

V O LAR IS ( V o l a r i s)

D a t e F il e d: June 10, 2014

Relief requested: Amendment and r enewal of exemption from 49 USC §41301 to permit the applicant to engage

in scheduled foreign air transportation of persons, property, and mail between: 1) Monterr ey, Mexico, and

Chicago , Illinois; 2) Mexico City, Mexico, a nd Las Vegas, Nevada; and 3) Mexico City, Mexico, and Los

Angeles, California. 1 2

If renewal, date and citation of last action: July 3 , 201 3 , in this Docket.

A pp li c ant r e p r e se n t a t i v e: Charles F. Donley II, 202

- 626

- 6840 DO T an a l y s t : Darren Jaffe, 202

- 366

- 2512

R espon s i v e p l e ad i n g s: None.

DISPOSI T I O N

A c ti o n : A p p r o v ed, su b j e ct t o co n d i ti o n s ( see be l o w ) A c t i on d a t e : June 30 , 20 1 4

E ff e c t i v e da t e s o f a u t ho r it y g r an t e d : June 30 , 201 4

, t hr ou g h June 30

, 201 5

.

B as i s f o r ap p r o v al ( b i l a t e ra l a g r ee m en t / r e c i p r o c it y ) : The a u t ho r it y g r an t ed i s co ns i s t ent w it h t h e o v e r a l l s t a t e of

a v i a t i on r e l a t i ons b e t w e en t he U n i t ed S t a t es and M ex i c o.

Except t o t he e x t e n t exe m p t e d / w a i v ed, t h i s au t ho r it y i s su b j e c t t o t h e t e r m s, cond it i ons, and l i m it a ti o n s of our s t an d a r d

exe m p ti on c ond i t i ons ( a tt ac hed), and t o t h e a d d i ti o n al c ond i ti o n s s e t f o r t h be l o w

.

Spec i al co n d iti o n s /R e m a rk s: We fi nd t hat g r a n t of V o l a r i s ’ r equ e st f o r renewal and amendment of this e x t r ab i l a t e r al

a u t ho r it y

, as con d i t i o n e d

, is c ons i s t e nt w it h t he pu b li c i n t e r es t

. W e will grant Volaris’ present request for authority

subject to t h e same con diti o ns we place d upon it in granting its initial request. Specifically, 1) V o l a ri s m ust

imm ed i a tel y cea s e it s se rvi c e s on any r ou t e a ut h oriz ed h e r e o n w h i ch Me xi c a na r esu m es s e rvi c e ; and 2 ) shou l d s u ch

r e s u m p ti on o f s e rvi ce b y Mex i ca n a o c cu r

, V o lari s m ust acco mm oda t e on a no th er Me xi can or U .S. c arrie r any

passen g e r s t h a t m ay ho l d V o l a ri s ti c k e t s fo r t he r ou t es on w h i ch Vol a ri s m ust c ea s e s ervi ce, o r pr o vi de s uch p as s e ng e r s

wit h ful l r e f unds

.

A c ti on t aken b y: P a ul L

. G re t ch, D i r e c t o r, O ff i c e o f I n t ern a ti o nal A v i a t i on

U n d er a u t h or i t y a s s i gn ed b y t h e De p a r t m e n t i n its r e g u lati o ns

, 1 4 C FR P a r t 385

, w e f oun d t h at (1 ) o u r acti o n w as c on s i s te n t w i th

De p a r t m e n t po li c y ; (2 ) t h e a pp lica n t w as q u a li f ied to p e r f o r m its propo s ed op e r ati o ns ; (3 ) g r a n t o f t h e a u t h or i t y w as c on s i s t e nt

1 Volaris notes that the Department granted its original request for this extrabilateral authority so that it can provide servi ce in these

markets on an interim basis until Compania Mexicana de Aviacion, S.A. de C.V.

, a Mexican carrier that is designated for these routes

but not operating and currently in bankruptcy proceedings, is able to resume service. Volaris states that all of the factors that

originally led the D epartment to grant Volaris’ original request continue at the present time , and it requests renewal of this exemption

for a one

- year period on its existing terms and conditions.

2 Volaris ’ current exemption for this route specifies Monterrey, Mexico

- Chicago (Midway), Illinois. Volaris requests that the route

des cription be amended to state Monterrey, Mexico

- Chicago, Illinois, to allow flexibility to serve Midway and/or O ’ Hare.w i t h t h e p u b lic i n te r e s t; a n d (4 ) g r a n t o f t h e a u t h or i t y w o u ld n o t c o ns t i t u te a m a j o r r e gu lat or y ac t i o n u n d er t h e E n e rg y P o l i c y a n d

C o ns e r v ati o n A c t o f 1975

. T o t h e e x t e n t n o t g r a n te d / d e f e rr e d / d i s m i s s e d

, w e d e n ied all r e q u e s t s in t h e r e f e r e n ced D o c k e t

. W e

m a y a m e n d

, m od i f y

, o r r e v ok e t h e a u t h or i t y g r a n ted i n t h is N o tice at a n y t i m e w i t h o u t h e a r i n g at o u r d i s c r eti o n

.

P e r s o n s e n titled to p etiti o n t h e De p a r t m e n t f o r r e v i e w o f t h e acti o n s et f or th i n t h i s N o tice un d er t h e De p a r t m e n t ’ s r e g u l a ti o ns

, 14

C F R §385. 3 0

, m a y f ile t h eir p etiti o n s w i t h in s e v e n (7 ) d a y s a f ter t h e d ate o f i s s u a n ce o f t h is N o tice. T h is acti o n w as e f f ecti v e

w h e n ta k e n

, a n d t h e f i l i n g o f a p etiti o n f o r r e v i e w w i l l n o t al t er su ch e f f ect i v e n e ss

.

A n elect r on ic ve rs i o n o f t h is d o c u me n t is a v a il ab le o n t h e W o r ld W i d e W eb a t:

h tt

p: // www

. r e gu l a ti on s .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 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 require ments 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 commenc ing 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 Securi ty 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 coverag e 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 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 acti ons 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 p oint 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 defin ition;

(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 reason able 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.

12/2007