BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

)

In the matter of the application of )

)

CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, ) Docket DOT-OST-2013-_____

S.A.P.I. DE C.V. d/b/a VOLARIS )

)

for an exemption from 49 U.S.C. §41301 )

)

APPLICATION FOR EXEMPTION

Communications with respect to this

document should be addressed to:

Charles F. Donley II

SQUIRE SANDERS (US) LLP

1200 19th Street, N.W., Suite 300

Washington, D.C. 20036

(202) 626-6840

charles.donley@squiresanders.com

Counsel to Concesionaria Vuela Compañía de

Aviación, S.A.P.I. de C.V. d/b/a Volaris

DATED: July 18, 2013
BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

)

In the matter of the application of )

)

CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, ) Docket DOT-OST-2013-_____

S.A.P.I. DE C.V. d/b/a VOLARIS )

)

for an exemption from 49 U.S.C. §41301 )

)

APPLICATION FOR EXEMPTION

Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V. d/b/a Volaris

(“Volaris”), pursuant to the provisions of Title 49 of the United States Code and Subpart

C of the Department of Transportation’s (“Department”) Rules of Practice, hereby

requests an exemption from 49 U.S.C. 41301 and from any other provisions of Title 49

and the Economic Regulations of the Department to the extent necessary to permit

Volaris to engage in the scheduled foreign air transportation of persons, property and mail

between Leon, Mexico, and Los Angeles, California. Volaris requests an exemption

valid for a one-year period, limited and conditioned as described herein. Volaris will

commence service on this route shortly after receipt of the Department’s approval.

Volaris submits it is fit, willing and able to perform this service and that the

service is clearly consistent with the public interest. In support of its application, Volaris

states as follows:
Application of Concesionaria Vuela Compañía de Aviación,

S.A.P.I. de C.V. d/b/a Volaris

Docket DOT-OST-2013-________

July 18, 2013

- 2 -

1. Volaris is a low cost, low fare carrier that provides a high level of service,

reliability, and safety for its passengers. Volaris began operations on March 13, 2006,

and today serves numerous cities within Mexico with additional domestic and

international expansion plans. Volaris’ principal base of operations is Adolfo López

Mateos International Airport in the City of Toluca (TLC) in the Estado de México,

located approximately 70 kilometers west of Mexico City. Volaris utilizes Airbus A319

and A320 aircraft in all operations. All of Volaris’ aircraft are configured in a single

class, with leather seats and generous pitch between seats, and are equipped with V2500

engines manufactured by International Aero Engines. Volaris is a citizen of Mexico.

2. Volaris currently holds numerous exemptions authorizing it to operate

charter and various scheduled services to the United States. The Department has

previously found that Volaris is operationally and financially qualified to operate charter

and scheduled services between the United States and Mexico, and that it is properly

licensed by the Government of Mexico to serve the United States.

3. Volaris requests authority from the Department on a conditional and

extrabilateral basis to engage in scheduled combination foreign air transportation between

Leon and Los Angeles. Volaris will utilize Airbus A319/A320 aircraft on this route.

Volaris requests that the Department approve its request on a conditional basis so that
Application of Concesionaria Vuela Compañía de Aviación,

S.A.P.I. de C.V. d/b/a Volaris

Docket DOT-OST-2013-________

July 18, 2013

- 3 -

Volaris can provide substitute service on this route until Mexicana Airlines resumes

service on it.

4. On December 12, 2005, the United States and Mexico signed an

amendment to the Air Transport Agreement of August 15, 1960, broadening air transport

services between the two countries and permitting designated Mexican carriers to operate

from “a point or points in Mexico to a point or points in the United States.”1 While the

Leon-Los Angeles route is within the scope of the U.S.-Mexico bilateral, Mexican carrier

designations for this route are not available currently. The designations for this route are

assigned to Mexicana as well as another Mexican carrier. Mexicana has not operated

since late August 2010, shortly after it sought bankruptcy protection, and it remains

subject to the supervision of the Mexican bankruptcy authorities. Under Mexican law,

the Government of Mexico cannot re-assign (even temporarily) any of Mexicana’s

designations while it is under the protection of the Concurso Mercantil (which is

equivalent to U.S. bankruptcy procedures). As a result, Mexico is unable to substitute

another Mexican carrier for temporary service on Mexicana’s routes, leaving a number of

U.S.-Mexico routes with substantially decreased competition, fewer service options and

higher fares. Volaris therefore requests approval of its application on a conditional basis

allowing it to provide service on the Leon-Los Angeles route until Mexicana resumes

1 Annex I(A)2(a)
Application of Concesionaria Vuela Compañía de Aviación,

S.A.P.I. de C.V. d/b/a Volaris

Docket DOT-OST-2013-________

July 18, 2013

- 4 -

flight operations on it. The Department previously recognized that approval of similar

extrabilateral authority for Volaris was consistent with the public interest.2

5. Included with this application is the Government of Mexico’s letter

confirming the Concurso Mercantil’s restrictions and requesting the Department’s

assistance and favorable consideration of Volaris’ application under the unique

circumstances described above. The Mexican Government’s letter makes clear that any

such authorization would be temporary and that it would not result in Mexican carrier

operations on any U.S.-Mexico route in excess of the bilateral limit.3

6. Volaris will accept from the Department a condition permitting it to

operate in the Leon-Los Angeles market until Mexicana resumes flight operations in that

market. To the extent passengers may hold Volaris tickets for Leon-Los Angeles and

Volaris is required to cease service on the route, Volaris will accommodate such

passengers on another Mexican or U.S. carrier or provide them with full refunds.

7. Volaris is subject to the safety and operational rules of the Government of

Mexico. Mexico is a contracting party to the Convention on International Civil Aviation

and observes all applicable ICAO standards.

2 Notice of Action Taken, Docket DOT-OST-2011-0117, July 11, 2011

3 Exhibit A. Except for the route description, the letter is identical to previous letters from the DGAC that

DOT has found provide a sufficient basis for approval of Volaris’ requests for extrabilateral operating

authority.
Application of Concesionaria Vuela Compañía de Aviación,

S.A.P.I. de C.V. d/b/a Volaris

Docket DOT-OST-2013-________

July 18, 2013

- 5 -

8. This exemption application raises no environmental or energy issues. All

service will be operated with modern, Stage 3 aircraft that meet all applicable noise

abatement requirements. Similarly, approval of this request will not result in a near-term

increase in fuel consumption of ten million gallons or more.

WHEREFORE, Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V.

d/b/a Volaris respectfully requests that it be exempted from 49 U.S.C. 41301 and the

Department’s Regulations to the extent necessary to permit Volaris to provide scheduled

combination service in foreign air transportation, as more fully described herein.

Respectfully submitted,

/s/ Charles F. Donley II

______________________________________

Charles F. Donley II

SQUIRE SANDERS (US) LLP

1200 19th Street, N.W., Suite 300

Washington, D.C. 20036

(202) 626-6840

charles.donley@squiresanders.com

Counsel to Concesionaria Vuela Compañía de

Aviación, S.A.P.I. de C.V. d/b/a Volaris

DATED: July 18, 2013
CERTIFICATE OF SERVICE

I hereby certify that the foregoing Application for Exemption has this day been

served on all persons listed on the attached service list via e-mail, telecopier or first class

mail, postage prepaid.

/s/ Charles F. Donley II

_________________________________

Charles F. Donley II

DATED: July 18, 2013

sascha.vanderbellen@delta.com; sametta.c.barnett@delta.com;

steve.morrissey@united.com; dan.weiss@united.com;

patrick.rizzi@hoganlovells.com

msinick@ssd.com

bob.kneisley@wnco.com

howard_kass@usairways.com; benjamin.slocum@usairways.com

jhill@dowlohnes.com

mlbenge@zsrlaw.com

dkirstein@yklaw.com

robert.wirick@aa.com; francis.heil@aa.com

pmurphy@lopmurphy.com; pmurphy@ggh-airlaw.com

barbara.russell@virginamerica.com
EXHIBIT A