BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

)

In the matter of the application of )

)

CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, ) Docket DOT-OST-2012-_____

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:

Alfonso Ascencio Triujeque

Director Juridico

Concesionaria Vuela Compañía de Aviación,

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

Av. Prolongacion Paseo de la Reforma 490, Piso 1

Col. Santa Fe Pena Blanca

Mexico D.F. 01210 Mexico

alfonso.ascencio@volaris.com.mx

DATED: June 14, 2012
BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

)

In the matter of the application of )

)

CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, ) Docket DOT-OST-2012-_____

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 Mexico City, Mexico, and Orlando, Florida. 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-2012-________

June 14, 2012

- 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 Mexico City and Orlando. Volaris will utilize Airbus A319/A320 aircraft on

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

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

Docket DOT-OST-2012-________

June 14, 2012

- 3 -

so that 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

Mexico City-Orlando 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 Mexico City-Orlando route until

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-2012-________

June 14, 2012

- 4 -

Mexicana resumes 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 Mexico City-Orlando market until Mexicana resumes flight operations in

that market. To the extent passengers may hold Volaris tickets for Mexico City-Orlando

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
Application of Concesionaria Vuela Compañía de Aviación,

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

Docket DOT-OST-2012-________

June 14, 2012

- 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/ Alfonso Ascencio Triujeque

______________________________________

Alfonso Ascencio Triujeque

Director Juridico

Concesionaria Vuela Compañía de Aviación,

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

Av. Prolongacion Paseo de la Reforma 490, Piso 1

Col. Santa Fe Pena Blanca

Mexico D.F. 01210 Mexico

alfonso.ascencio@volaris.com.mx

DATED: June 14, 2012
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/ Alfonso Ascencio Triujeque

_________________________________

Alfonso Ascencio Triujeque

DATED: June 14, 2012

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

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

efaberman@wrf.com

msinick@ssd.com

howard.kass@usairways.com; benjamin.slocum@usairways.com

jhill@dowlohnes.com

mlbenge@zsrlaw.com

dkirstein@yklaw.com

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

james.kaleigh@aa.com

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

[CERTIF1EDTRANSLATION]

TRANSPORTATION DEPUTY DEPARTMENT

GENERAL DEPARTMENT OF CIVIL AVIATION

4.1, 0773

PAUL L. GRETCH

Director, Office of Internationa! Aviation

U.S. Department of Transportation

1200 New Jersey Avenue, SE

Washington, DC 20590

001497

Department of

Transportation and

Communications

[The Mexican Coat of

Arms reading:]

United Mexican States

Department of

Transportation and

Communications"

México City, Federal District, June 13, 2012.

I make reference to the Agreement on Air Transportation, executed by the

Governments of the United Mexican States and the United States of America on August 15, 1960,

as extended, amended and modified, whereby it ¡s estabüshed that the Parties may desígnate up to

two airlines per each city pair in most cases and up to three airlines ¡n 14 markets to opérate the

regular míxed air services specified in Exhibit I to the Agreement.

On that matter, and taking into consideration the conditions that one of the Mexican

airlines {Compañía Mexicana de Aviación, S.A. de C.V.), which is Usted in such bilateral instrument

in severa! city pairs ¡s currently suffering, and that we can not withdraw such designation to it and

grant it to another airline to opérate in the same city pairs, we would appreciate that in the good

relational framework that our countries have always had regarding bilateral cooperation and

especially regarding air transportation, the Mexican Airline, Concesionaria Vuela Compañía de

Aviación, S.A.P.l, de C.V. "VOLARIS", is granted an extra-bilateral authorization for the México City

- Orlando route to opérate the regular mixed services, provided that such authorization is granted

under the abovementioned Agreement and as long as Compañía Mexicana de Aviación, S.A. de

C.V. does not start operating such route. Due to the foregoing, the limit of operation of two airlines

would not be exceeded at any time per each city pair or in three cities, as the case may be,

because such authorization would be extra-bilateral and ternporary.

We hope we can receive a favorable answer to such special request, and wíth no

other matters to deal with, we send our regards.

SINCEREL Y

THE GENERAL DIRECTOR

[Astamped sea] reading:]

"DEPARTMENT OF

TRANSPORTATION AND

COMMUNICATIONS

GENERAL DEPARTMENT OF CIVIL

AViATION

JUNE 13, 2012

CORRESPONDENCE

REGULAR AVIATION DEPUTY

DEPARTMENT

DISPATCHED

[Illegible Signature]

SALVADOR RETANA

ROZANO

Whoever signs Ir¡ absence and by agreement of the

General Director of Civil Aviation, Sergio Romera

Orozco, Issued through dociirnení No. 4.1-707.1,

dated June 3, 2012, and under the provisions of

artides 14, 18 of the Organic Law of the Federal

Public Administration, 2 section XVI, subsection XVI.l,

21 and 50 of the Intemal Regulations of the

Communications and Transportation Ministry,

published ¡n the Federal Officlal Gazette on January 8,

[I Ilegible Sígnature] 2009, and amended on July 31, 2009.

RGG

ce Felipe Duarte Olvera.- Deputy Director ofTransport.

ce General Department of Civil Aviation.- Offices. _

ce Concesionaria Vuela Compañía de Aviación, S.A.P.1. "Volaris".- Avenida Prolongación Paseo de la Reforma

#490 Piso 1, Col. Santa Fe Peña Blanca, C.P. 01210.

1^^;t^;Hr*^*;frHrt*^^^*^**^^

I, Miguel Ángel Cárdenas C., Expert Translaíor, authorized by the Supreme Court of Justice of México City, by resolution

published in the Official Gazette dated July 13, 2011, DO HEREBY CERTIFY that the foregoing translation in 1 page is; to

the best of my knowledge, true and correct. , , 

LIC. MIGUEL ÁNGEL CÁRDENAS CEDEN.

PER'TO TRADUCTOR

DEL TRIBUNAL SUPERIOR DE JUSTICIA

DEL 0|STR1TO FEDERAL

TEL.: 9000-3333

México City, June 13, 2012.