BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) , * Application of * * TRANSPORTES AEROMAR, S.A. de C.V. * * DOCKET OST-1995-379 for amendment and renewal * §40109(c) exemptions * *

))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) -

APPLICATION OF TRANSPORTES AEROMAR, S.A. de C.V. FOR RENEWAL AND AMENDMENT OF ITS TEMPORARY SECTION 40109(c) EXEMPTION TO OPERATE SCHEDULED AND CHARTER SERVICE BETWEEN THE UNITED STATES AND MEXICO

(Part 377 Automatic Extension Requested)

[NEW AUTHORITY REQUESTED ] Communications with respect to this application should be addressed to:

HERBERT A. ROSENTHAL, ESQ. HERBERT A. ROSENTHAL, CHARTERED 5101 WISCONSIN AVENUE, NW, #210 WASHINGTON, DC 20016 PHONE: 202-785-9773 FAX: 202-659-3526 Attorney for TRANSPORTES AEROMAR

NOTICE: Answers in support of or in opposition to this

application must be filed at the Department of2 Transportation's Docket Section on or before JULY 19, 2013, and a copy served upon the applicant and each person listed on the service list contained in this application.

July 9, 20133 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) , * Application of * * TRANSPORTES AEROMAR, S.A. de C.V. * * DOCKET OST-1995-379 for renewal and amendment of its * §40109(c) exemptions * *

))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) ))) - FILED: July 9, 2013

APPLICATION OF TRANSPORTES AEROMAR, S.A. de C.V. FOR RENEWAL AND AMENDMENT OF ITS TEMPORARY SECTION 40109(c) EXEMPTION TO OPERATE SCHEDULED AND CHARTER SERVICE BETWEEN THE UNITED STATES AND MEXICO

(Part 377 Automatic Extension Requested)

NEW AUTHORITY REQUESTED

Pursuant to 49 U.S.C. §40109(c) and the Department's Regulations and pursuant to Part 377 of the Department's Regulations and 5 U.S.C. §558(c), Transportes Aeromar, S.A. de C.V., ("Aeromar") submits this application: (a) To renew all of its exemption authority as renewed and awarded by Notice of Action taken on MAY 9, 2013, for a period of at least one year; AND (b) To add new scheduled service routes as listed below:4

On July 2, 2013, the Mexican DGAC authorized Transportes Aeromar to operate several new Mexico to US routes. A light copy of that designation is an appendix to this application. The routes are as follows:

Aguascalientes--McAllen, TX Leon (El Bajio)--McAllen, TX Merida--Fort Lauderdale, FL Merida--Orlando, FL Monterrey--Brownsville, Texas Monterrey--Laredo, Texas Monterrey--McAllen, Texas Queretaro--McAllen, Texas Reynosa--Houston, TX San Luis Potosi--McAllen Veracruz--McAllen, TX TRANSPORTES AEROMAR would operate these routes using ATR 42 and CRJ200 aircraft--all such aircraft would have fewer than 60
seats.

The first of these new routes to receive service would be San Luis Potosi--McAllen, Texas. Aeromar would like to begin service about November 15, 2013, and desires approval of this applicationApplication of Transportes Aeromar for Amendment and Renewal of Exemption Authority, Docket OST-95-379

5 by early August 2013 so that marketing and other logistical and regulatory processes can commence.

I. RENEWAL OF EXISTING AUTHORITY 1. By Notice of Action Taken dated May 9, 2013, the Department granted Aeromar an exemption to operate scheduled services between San Luis Potosi/Saltillo/Manzanillo, Mexico, on the one hand, and San Antonio, Texas, on the other; and to/from Saltillo/Tampico/Ciudad Victoria, Mexico, on the one hand, and Harlingen/McAllen, Texas, on the other; and from Mexico City to/from McAllen, Texas; and Mexico City--Austin, TX; and to engage in charter services. Pursuant to Part 377 of the Department's Regulations and 5 U.S.C. §558(c) [last sentence thereof], Aeromar invokes these automatic renewal provisions to continue the licenses issued, inter alia, by the Notice dated May 9, 2013, in Docket OST-1995-379, until the Department acts on this renewal and amendment application or until the Department acts on Aeromar's permit application in Docket 46770. 2. Aeromar has been operating transborder flights between the points awarded in Notice of Action taken on December 13, 2012.Application of Transportes Aeromar for Amendment and Renewal of Exemption Authority, Docket OST-95-379

6 The Mexico City-McAllen, Texas, service is more successful thananticipated. Aeromar is currently operating a network of intraMexico flights and the McAllen flights with its fleet of ATR's and Regional Jets (CRJ 200). Aeromar seeks renewal of all previously authorized segments -- even where it may not be operating direct service at this time. 3. Aeromar wishes to expand its exemption authority to include the DGAC's July 2, 2013, additional designations to Transportes Aeromar: Aguascalientes--McAllen, TX Leon (El Bajio)--McAllen, TX Merida--Fort Lauderdale, FL Merida--Orlando, FL Monterrey--Brownsville, Texas Monterrey--Laredo, Texas Monterrey--McAllen, Texas Queretaro--McAllen, Texas Reynosa--Houston, TX San Luis Potosi--McAllen Veracruz--McAllen, TXApplication of Transportes Aeromar for Amendment and Renewal of Exemption Authority, Docket OST-95-379

7 The carrier plans to commence initially the San Luis Potosi -- McAllen service in mid November of 2013 using a regional jet CRJ200 (of which Aeromar has two) and/or its ATR-42 aircraft with four roundtrips per week initially. Starting later in 2013 or early 2014, Aeromar will begin implementing the other routes contained in the July 2, 2013, Mexican DGAC designation. Aeromar desires approval of this new authority by the middle of August 2013 so that it can begin marketing and coordination with US authorities as soon as possible. This will not be a code share.

4. The routes Aeromar seeks to renew or expand into are within the 1991 U.S.-Mexico Bilateral as amended and the January 1999 Memorandum of Consultations and recent licenses from the Mexican DGAC. And on July 2, 2013, the Mexican DGAC expanded the number of transborder routes authorized to Aeromar. A copy of Aeromar's Mexican license for the routes was attached to the October 18, 1995, application and was given the number Exhibit AER-2602. As shown on the attachments hereto and those attached to previous applications, the Mexican D.G.A.C. has designated Aeromar for all the routes it is seeking to renew or add to its exemption authority in this application. Aeromar's Mexican license was renewed in May 2012 and a copy of it has previouslyApplication of Transportes Aeromar for Amendment and Renewal of Exemption Authority, Docket OST-95-379

Aeromar operates fourteen ATR-42-320's and ATR-42-500's. It 1 also operates two CRJ-200's with sixty seats. None is on the U.S. Registry.

Aeromar also relies on the economic and fitness data 2 contained in its initial Docket 46770/46771 applications and its June 25, 1992, October 14, 1993, October 25, 1994, August 7, 1995, and July 19, 2001 applications. See, also, Notices of Action Taken February 11, 1991, October 23, 1992, August 28, 1995, and Order 96-1-45, and Notice of Action taken August 27, 2002.

Exhibit references below AER-1000 were filed with the 49 3 U.S.C. §41301 permit application or with previous exemption applications. Exhibit references in the AER-2000 to AER-2499 range were attached to the October 25, 1994 application. Exhibits in the AER-2600 range were submitted with the October 18, 1995, filing. Exhibits AER-2700 through AER-2705 were attached to its October 29, 1997, application. On June 1 and June 2, 2005, Aeromar filed additional information to respond to DOT staff questions.

8 been furnished to the Department. Aeromar will be using ATR-42/72 commuter size aircraft (46, 48, or 50 or 60 seats) and regional jets that it leases or acquires (60 or fewer seats) to operate the current and the proposed new service (AER-2700; attached to an earlier application). Aeromar has been operating domestic Mexico 1 commuter services since January 1987, and has a full schedule of intra-Mexico operations now. It has had no serious accidents or safety violations. 2 5. Aeromar is wholly owned and managed by citizens of Mexico (Exhibit AER-2001 and 2504). The company and its key 3 personnel (with one minor exception) have no interest in any U.S.Application of Transportes Aeromar for Amendment and Renewal of Exemption Authority, Docket OST-95-379

Hangar 1, Zona D, Terminal Aviacion General, 15620 4 Mexico, D.F., Mexico. 9 or non-U.S. carrier, common carrier, or person substantially engaged in aeronautics (Exhibit AER-2001 and 2504). The company began service in January 1987. Aeromar is headquartered at Mexico City's Juarez International Airport , and has multi-lateral and 4 bilateral agreements with IATA and several Mexican and non-Mexican carriers. (Exhibit AER-2505.) 6. The Mexican government agencies which regulate Aeromar are: Direccion General de Aeronautica Civil (D.G.A.C.) and the Secretaria de Communicaciones y Transportes (Ministry of Communications and Transportation), Providencia 807, Colonia del Valle, 03100 Mexico, D.F., Mexico. The government of Mexico has previously or recently authorized Aeromar to operate all routes for which renewal or new authority is sought. (See attachment for the July 2, 2013, designations).

WHEREFORE, Transportes Aeromar, S.A. de C.V. requests the Department of Transportation to: (1) Renew its §40109(c) exemption to engage in scheduled service and charter services (as renewed in Notice of Action taken May 9, 2013) for a period of at least one year; Aeromar invokesApplication of Transportes Aeromar for Amendment and Renewal of Exemption Authority, Docket OST-95-379

10 the provisions of Part 377 of the Department's Regulations for the automatic extension of all of its previously issued and unexpired exemption licenses including charter authority; (2) Grant it new exemption authority for a period of at least one year to operate scheduled services between: Aguascalientes--McAllen, TX Leon (El Bajio)--McAllen, TX Merida--Fort Lauderdale, FL Merida--Orlando, FL Monterrey--Brownsville, Texas Monterrey--Laredo, Texas Monterrey--McAllen, Texas Queretaro--McAllen, Texas Reynosa--Houston, TX San Luis Potosi--McAllen Veracruz--McAllen, TX

(3) For other relief which is just and proper. Respectfully submitted,

/s/ Herbert A. RosenthalApplication of Transportes Aeromar for Amendment and Renewal of Exemption Authority, Docket OST-95-379

11 HERBERT A. ROSENTHAL, ESQ. HERBERT A. ROSENTHAL, CHARTERED Attorney for TRANSPORTES AEROMAR July 9, 2013 i:\aeromar\applicat.02312 CERTIFICATE OF SERVICE I certify that I have mailed or emailed a copy of this exemption application renewal to the following persons:

UNITED AIRLINES HERBERT A. ROSENTHAL, ESQ. DAN.WEISS@UNITED.COM HERBERT A. ROSENTHAL, CHTD. STEVE.MORRISEY@UNITED.COM 5101 WISCONSIN AVENUE, NW, #210 WASHINGTON, DC 20016 202 785 9773 HERBERT@HERBERTROSENTHAL.COM
DELTA AIRLINES POLAR AIR CARGO JECHMALIAN@HHLAW.COM KEVIN.MONTGOMERY@POLARAIRCARGO.COM PRRIZZI@HHLAW.COM sascha.vanderbellen@delta.com WORLD AIRWAYS, INC. MLBENGE@ZSRLAW.COM MCMILLIN@WOA.COM CJSIMPSON@ZSR.COM

CARL B. NELSON, JR., ESQ. R. BRUCE KEINER, JR., ESQ. AMERICAN AIRLINES, INC. CROWELL & MORING 1101-17TH STREET, N.W., #600 1001 PENN. AVE., N.W., 10TH FL. WASHINGTON, DC 20036 WASHINGTON, DC 20004-2505 (202-857-4228) (CONTINENTAL/EMERY) CARL.NELSON@AA.COM rbkeiner@crowell.com lhalloway@crowell.com gmurphy@crowell.com TOM LYDON john.palo@EVERGREENaviation.COM MR. KENT G. ELLIS (PIO) DFW INT'L FIELD OFFICE DFW IFO FLORIDA WEST FEDERAL AVIATION ADMINISTRATION MSINICK@SSD.COM 1431 GREENWAY DEIVE, #230 IRVING, TEXAS 7503813 972-714-7700 KENT.G.ELLIS@FAA.GOV14 ROBERT P. SILVERBERG, ESQ. BAGILEO, SILVERBERG & GOLDMAN 1101 30TH STREET, N.W., #120 WASHINGTON, DC 20007 RSILVERBERG@SgbDC.COM

UNITED PARCEL SERVICE DFISHER@KELLEYDRYE.COM KELLEY DRYE & WARREN 1200--19TH STREET, N.W. WASHINGTON, DC 20036 (UNITED PARCEL SERVICE) PH: 342-8462 FAX:

JAMES DAVIS, ESQ SOUTHWEST AIRLINES FEDERAL EXPRESS bob.kneisley@wnco.com 901 434 8488 JADAVIS@FEDEX.COM anbird@fedex.com JOHN L. RICHARDSON, ESQ. AIRLINE INFORMATION RESEARCH 2700 CALVERT STREET, NW, info@airlineinfo.com WASHINGTON, DC 20008 (AMERIJET) JRICHARDSON@JOHNLRICHARDSON.COM JCANNEY@AMERIJET.COm

MARSHALL S. SINICK, ESQ. WILLIAM H. CALLAWAY, JR., ESQ. SQUIRE, SANDERS & DEMPSEY ZUCKERT, SCOUTT & RASENBERGER 1201 PENNSYLVANIA AVE., N.W. 888-17TH ST., N.W., #600 SUITE 400 WASHINGTON, DC 20006-3959 WASHINGTON, DC 20004 (CHALLENGE) (ALASKA AIRLINES) (MEXICANA) MLBENGE@ZSRLAW.COM MSINICK@SSD.COM

U.S. DEPARTMENT OF STATE ATLAS AIR CARGO OFFICE OF AVIATION NEGOTIATIONS RPOMMER@ATLASAIR.COM ROOM 3425, EDB/TRA/AN 2201 C STREET, N.W. WASHINGTON, DC 205201516

FLIGHT STANDARDS SERVICE CHARLIE DONLEY AFS-200 CDONLEY@SSD.COM FEDERAL AVIATION ADMIN. WASHINGTON, DC 20591 JOHN.ALLEN@FAA.GOV

WILLIAM C. EVANS, ESQ. US AIRWAYS BILL@MIETUSLAW.COM HOWARD.KASS@USAIRWAYS.COM COUNSEL FOR AEROMEXICO BENJAMIN.SLOCUM@USAIRWAYS.COM

MARK W. ATWOOD, ESQ. JOANNE YOUNG, ESQUIRE JYOUNG@YKLAW.COM (AMERICAN INT'L AIRLINES AND TRANS CONTINENTAL AIRLINES) MATWOOD@COZEN.COM JAMES TELLO, ESQUIRE JAMESTELLO@EARTHLINK.NET
CAPITAL CARGO jonathan.blank@klgates.com /S/ Herbert A. Rosenthal
HERBERT A. ROSENTHAL July 9, 2013 i:\aeromar\application.023