UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on August 13 , 201 2



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 201 2

- 01 31

________________________________________________________________________________________________ ________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be i ssued in this matter).

Joint Applicant s : AEROVIAS de MEXICO, S.A. de C.V. (Aeromexico) and AEROLITORAL, S.A. de C.V. D/B/A Aeromexico Connect (Aerolitoral)

Date Filed: July 30 , 201 2

Relief requested: E xemption under 49 USC § 40109 to permit Aerolitoral to engage in scheduled foreign air transportation of persons, property, and mail between Mexico City

, Mexico

, and Dallas/Ft

. Worth , Texas.

Exemption under 49 USC §40109 to permit Aeromexico to engage in scheduled foreign air transportation of persons, property, and mail between Mexico City , Mexico, and Dallas/Ft

. Worth, Texas. Aeromexico proposes to conduct these services only through a code

- share arrangement with Aerolitoral.

Statement of authorizat ion under 14 CFR 212 for an indefinite period to permit Aerolitoral to display the (AM*) designator code of Aeromexico on flights operated by Aerolitoral between Mexico City , Mexico, and Dallas/Ft

. Worth , Texas

.

Applicant representative: John R. Mietus, Jr. , 202

- 747

- 5212

DOT analyst: Catherine C. Brown , 202

- 366

- 2 390

Responsive pleadings: None.

DISPOSITION

Action: Approved. Action date: August 13 , 2012 1

Effective dates of authority granted: The exemption authority granted to Aerolit o ral and Aero mexico is effective from August 13 , 2012 , through August 13 , 2013

. Aerolitoral’s statement of authorization is effective August 13

, 2012

, and

w ill remain in effect indefinitely , subject to conditions

.

Basis for approval (bil ateral agreement/reciprocity): United States

- Mexico A ir Transport Services Agreement.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached as Appendix A), code

- share conditions (attached as Appendix B), and to the

otherwise

- applicable terms, conditions, and limitations of Aeromexico’s foreign air carrier permit (Order 91

- 5

- 25).

Special conditions/Remarks: The exemption authority granted to Aeromexico is limited to operations conducted only

on a code

- share basis with Aerolitoral , on flights operated by Aerolitoral.

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

_____________________________________________________________________________________________________ Under authority assigned by the De partment 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 the proposed operations; (3) grant of the authority was consistent

1 The Department is acting on the request s of Aerolitoral and Aeromexico for exemption authority prior to the expiration of the

15

- day answer period with the consent of all parties served. With respect to Aerolitoral’s request for a statement of authorization, we note that the answer period for that request has been completed and no objections were received.with the public interest; and (4) 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/deferred/dismissed, 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 regulati ons, 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 a t: http://www.regulations.gov

### Appendix 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 applicable requirements of the Federal Aviation Administration, the Transportation Sec urity 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 1546 or 1550, as applicable. To assure compliance with all applicable U.S. Governme nt 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 point of departure for the United States,

contact its International Industry Represe ntative (IIR) (formerly referred to as International Principal Security Inspector) to advise the IIR of its plans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such airport(s) to be ser ved;

(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, file evidence of such coverage, in the form of a completed OST Form 6411, with the F ederal Aviation Administration’s Program Management Branch (AFS

- 260), Flight Standards Service (any changes to, or termination of, insurance also shall be filed with that office);

(4) Not operate aircraft under this authority unless it complies with oper ational 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 purchased in the United States; or (b) based on a claim under any international

agr eement or treaty cognizable in any court or other tribunal of the United States. In this condition, the term "international air transportation" means "international transportation" as defined by the Warsaw Convention, except

that all States shall be consi dered 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/from 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 aviation 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 imposed above. Moreover, this authority cannot be sold or otherwise transferred without ex plicit Department approval

under Title 49 of the U.S. Code.

12/2007Appendix B

Aerolitoral/Aeromexico Code

- Share Conditions ( DOT

- OST

- 2012

- 0131 )

The code

- share operations authorized here are subject to the following conditions:

(a) The statement of authorization will remain in effect only as long as (i) Aerolitoral and Aeromexico continue to hold the necessary underlying authority to operate the code

- share services at issue, and (ii) the

code

- share agreement providing for the co de

- share operations remains in effect.

(b) Aerolitoral and/or Aeromexico must promptly notify the Department if the code

- share agreement providing for the code

- share operations is no longer effective or the carriers decide to cease operating any or all of the approved code

- share services. We expect this notification to be received within 10 days of such non

- effectiveness or of such decision. Such notices should be filed in docket DOT

- OST

2012

- 0131

.

(c) The code

- sharing operations conducted under th is authority must comply with 14 C.F.R. Part 257 and with any amendments to the Department’s regulations concerning code

- s hare arrangements that may be adopted. Notwithstanding any provisions in the contract between the carriers, our approval here is expressly conditioned upon the requirements that the subject foreign air transportation be sold in the name of the carrier holding out such service in computer reservation systems and elsewhere; that the carrier selling such transportation ( i.e., the carri er shown on the ticket) accept 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 auth ority granted here is specifically conditioned so that neither Aerolitoral n or Aeromexico shall give any force or effect to any contractual provisions between themselves that are contrary to

these conditions.

(e) We may amend, modify, or revoke this auth ority at any time without hearing, at our discretion.