UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on December 28, 20 1 1



### N OTICE OF ACTION TAKEN

– DOCKET S DOT

- OST

- 200 0

- 7708 and DOT

- O ST

- 1997

- 3289

_____________________________________________________________________________________________________________________________ ___ This serves as notice to the public of the action described below, taken by the Department official indicate d (no additional confirming order will be issued in this matter).

Joint Applicant s : AEROVIAS de ME XICO, S.A. de C.V. (Aeromexico) and EXPRESSJET AIRLINES, INC. (f/k/a ATLANTIC SOUTHEAST AIRLINES, INC. ) 1

Date Filed: December 19, 2011

Relief requested: Renewal of e xemption from 49 USC § 41301 to permit Aeromexico to engage in scheduled foreign air transportation of persons, property, and mail between Detroit, Michigan and Monterrey, Mexico by displaying its “AM” designator code on flig hts operated by Pinnacle Airlines, Inc. (Pinnacle) , and a mendment of that e xemption to also permit Aeromexico to engage in scheduled foreign air transportation on the Detroit

- Monterrey route by displaying its “AM” designator code on flights operated by Atlantic Southeast Airlines, Inc. (ASA) as Delta Connection.

S tatement of authorization pursuant to 14 C.F.R. Part 212, to allow ASA to display Aeromexico’s “AM” designator code

on Delta Connect ion flights that ASA operates between Detroit, Michigan and A tlanta, Georgia, on the one hand, and Monterrey, Mexico, on the other hand

.

The joint applicants also request waiver of the 45

- day advance filing requirement under 14 C.F.R. Part 212.

If renewal, date and citation of last action: February 25, 2011, in these Dockets. 2

Applicant representative s : John R. Mietus, Jr. (Aer omexico ), ( 202 ) 747

- 5212 and Gerald F. Murphy ( ASA ), (202) 624

- 2500

DOT analyst: Robert J. Finamore , 202

- 366

- 2405

Responsive pleadings: None

DISPOSITION

Action: Approved , subject to attached conditions ; see also footnote 1, below

.

Action date: December 28 , 20 1 1

1 The joint applicant s state that, effective January 1, 2012, Atlantic Southeast Airlines, Inc. will have acquired and been merged with ExpressJet Airlines, Inc. (ExpressJet) , and will also formally have changed its name to “ExpressJet Airlines, Inc.” T he j oint a pplicants ask that the requested authorities be issued in the name of ExpressJet Airlines, Inc. (f/k/a Atlantic Southeast Airlines, Inc.). We will grant the request as the Department orally approved the request for registration of name change and trade names on a pendente lite basis, effective December 27, 2011, in Docket DOT

- OST

- 2011

- 0232

. 2 Our February 25, 2011 action also granted to Aer omexico : 1) e xemption authority to the extent necessary to permit it to engage in scheduled foreign air transportation of persons, property, and mail between Atlanta, Georgia, on the one hand, and Monterrey, Cozumel, and Guadalajara, Mexico, on the other h and, by displaying its “AM” designator code on flights operated by Pinnacle; 2) e xemption authority t o the extent necessary to permit it to engage in scheduled foreign air transportation of persons, property, and

mail between its authorized U.S. gateway points and other points within the U.S. for the purpose of blind

- sector code sharing services between the U.S. gateway points and other points in the U.S. o n flights operated by Pinnacle; and 3) a special authorization pursuant to 14 C.F.R. Part 216 to per mit it to commingle traffic not moving in foreign air transportation between Mexico and Canada on the same services that carry traffic in foreign air transportation between Mexico and the United States and between the United St ates and Canada, in conjuncti on with its blind

- sector code

- share services on Pinnacle’s U.S.

- Canada operations. These authorities are currently in effect through February 25, 2012 , and may be renewed

.Effective dates of authority granted : Our action granting renewal and amendment of Aeromexico’s Detroit

- Monterrey exemption authority is effective December 28 , 20 1 1

, through December 28 , 2012

. The statement of authorization granted

to ASA is effective December 28 , 201 1 , and will remain in effect for an indefinite duration , subject to conditions

. Our action granting the request of the joint applicants for waiver of the 45

- day advance filing requirement under 14 C.F.R.

Part 212 is effective December 28 , 2011.

Basis for approval (bilateral agreement/reciprocity): United States

- Mexico Air Transport Services Agreement

.
Except to the extent exempted/waive d , this authority is subject to the terms, conditions, and limitations of our standard foreign air carrier exemption conditions attached as Appendix A

, and code

- share conditions attached as Appendix B

.

Action taken by: Paul L. Gretch, Director Office of International Aviation

_________________________________________________________ ___________________________________________________ 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) the applicant s were qualified to perform their proposed operations; (3) grant of the authority was consistent with the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Poli cy and Conservation Act of 1975. To the extent not granted, we den ied all requests in the referenced Docket s . 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 document is available on the World Wide Web at: http://www.regulations.govAppendix A



### 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 app licable 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, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1 546 or 1550, as applicable. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flights) from a foreign airport that would be the holder’s last p oint of departure for the United States, contact its International Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the IIR of its plans and to find out whether the Transportation Security Adminis tration has determined that security is adequate to allow such airport(s) to be served;

(3) Comply with the requirements for minimum insurance coverage contained in 14 CFR Part 205, and, prior to the commencement of any operations under this authority, f ile 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 of fice);

(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 actions 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 point of origin, point of destination, or agreed stopping place, or for which the contract of carriage was p urchased 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 transpo rtation" as defined by the Warsaw Convention, except that all States shall be considered to be High Contracting Parties for the purpose of this definition;

(8) Except as specifically authorized by the Department, originate or terminate all flights to/fro m 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 av iation agreement, comply with the Department's rules governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable 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 im posed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval under Title

49 of the U.S. Code.

12/2007Appendix B

The Statement of Authorization granted is subject to the following conditi ons:



### (a) The statement of authorization for ExpressJet w ill remain in effect only as long as (i) ExpressJet and Aeromexico continue to hold the necessary underlying authority to operate the code

- share services at issue, and (ii) the code

share agreement p roviding for the code

- sha re operations remains in effect;

( b ) ExpressJet

, Delta , and/or Aeromexico , as appropriate, must notify the Department immediately if the code

- share

agreement under which these code

- share services are operated is no longer in effect or if the carriers decide to cease operating all or a portion of the approved code

- share services. Such notice should be filed in Docket s DOT

- OST

- 200 0

- 7708 and DOT

- OST

- 1997

- 3289 ; 1

( c ) The code

- sharing operations conducted under this authority must comply with 14 CFR 257 and with any amendments to the Department’s regulations concerning code

- share arrangements that may be adopted. Notwithstanding any provisions in the contract between the carriers, our approval here is expressly conditioned upon th e requirements that the subject foreign air transportation be sold in the name of the carrier holding out such service in the computer reservation systems and elsewhere; that the carrier selling such transportation ( i.e., the carrier shown on the ticket) a ccept responsibility for the entirety of the code

- share journey for all obligations established in its contract of carriage with the

passenger; and that the passenger liability of the operating carrier be unaffected ;

( d ) The authority granted here is spec ifically conditioned so that neither ExpressJet , Delta, nor Aeromexico shall g ive any force or effect to any contractual provisions between themselves that a re contrary to these conditions;

( e ) We may amend, modify, or revoke the authority granted at any time wi thout hearing at our discretion.

Persons entitled to petition the Department for review of this action under the Department’s regulations, 14 CFR §385.30, should file their petitions within seven days of the date of this action. This action is ef fective immediately, and the filing of a petition for review will not alter its effectiveness.

1 We expect this notification to be received within 10 days of such non

- effectivene ss or of such decision.