UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Issued by the Department of Transportation on September 30 , 20 1 1

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2011

- 0179

______________ ________________________________________________________________________________ ____________ ___________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be is sued in this matter).

Application of FEDERAL EXPRESS CORPORATION (F ed E x E xpress ) filed 9/19/11

, for:

XX E xemption for two years under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of property and mail (1) betwee n Memphis, Tennessee, and Mobile, Alabama, on the one hand, and Queretaro, Mexico, on the other hand; and (2) between Indianapolis, Indiana, and Guadalajara, Mexico. 1 2

Applicant rep: Courtney E. Felts ( 901 ) 434

- 8632 DOT Analyst: Brett D. Kruger (202) 366

- 8025

D I S P O S I T I O N

XX Granted exemption authority requested (subject to conditions, see below)

XX Deferred on the carrier’s request for certificate authority ( see footnote 2)

The above action granting exemption authority was effective when taken: September 30 , 20 1 1

, through September 30 , 20 1 3

.

The above action deferring on the carrier’s request for certificate authority was effective when taken: September 30 , 20 11

.

Action taken by: Paul L. Gretch, Director

Office o f International Aviation

XX The authority granted is consistent with 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:

X X Holder’s certificate of public convenience and necessity

XX Standard exemption conditions (attached)

_____________________________________________________________________________________ Remarks : We acted on this application without awaiting exp iration of the 15

- day answer period with the consent of all parties served with the application.

Conditions: The U.S.

- Mexico exemption 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 October 17 , 2011, the applicant ’ s proposed start

- up date for the subject services.

1 FedEx Express pla ns to begin these services on October 17, 2011.

2 FedEx Express included a request to amend its U.S.

- Mexico certificate so that it would provide for authority to serve between “a point or points in the United States and a point or points in Mexico,” or, in the alternative, so that it would include the new points requested here under exemption authority. We will handle the certificate request separately.On the basis of data officially noticeable under Rule 24(g) of the Department's regu lation s, 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 authorit y was consistent with the public interest; and (3) 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 or deferred , 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 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 docum ent is available on the World Wide Web at: http://www.regulations.gov

### 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 country 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 for 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 Depart ment 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 n ew service (including charter flights) to or from a foreign airport, contact 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 t o allow such airport(s) to be served ;

(7) Comply with such other reasonable 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 States.

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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