UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation on May 4, 2010 

NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2008-0386 

____________________________________________________________________________________________ 

This serves as notice to the public of the action described below, taken by the Department official indicated (no 

additional confirming order will be issued in this matter). 

Applicant: AEROLINEAS REGIONALES, S.A. de C.V. D/B/A REGIONALCARGO (Regional) 

Date Filed: December 9, 2008, as supplemented April 2, 2009 

Relief requested: Exemption under 49 USC § 41301 to permit the applicant to conduct charter foreign air 

transportation of property between points in Mexico and points in the United States, and other cargo charters in 

accordance with 14 CFR Part 212. 

Applicant representative: Herbert A. Rosenthal, 202-785-9773 DOT analysts: Thuy H. Cooper, 202-366-5423 

 Robert J. Finamore, 202-366-2405 

DISPOSITION

Action: Approved. Action date: May 4, 2010 

Effective dates of authority granted: May 4, 2010, through May 4, 2011. 

Basis for approval (bilateral agreement/reciprocity): United States-Mexico Air 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). 

Special conditions/Remarks: Based on the record in this case, we found that the applicant is operationally and 

financially qualified to conduct its proposed operation, and that it is substantially owned and effectively controlled 

by citizens of its homeland.1

 We also note that the applicant is properly licensed by its homeland to perform the 

proposed services. Furthermore, the FAA advised us that it knows of no reason to withhold this authority. 

In accordance with 14 CFR §212.9(d), Regional shall not perform any charter flights to or from the United States 

unless the Department has granted a statement of authorization for such operations.2

 

Action taken by: Paul L. Gretch, Director 

 Office of International Aviation 

Responsive pleadings: The City of Houston and the Greater Houston Partnership filed an answer in support of 

Regional’s application. 

 

1

 The record indicates that 99.99% of Regional’s shares are held by the Mexican company RegionalCargo Holdings, S.A. de 

C.V. (RegionalCargo), with the remaining .01% of its shares held by a Mexican citizen. In turn, Mexican citizens hold 

approximately 91.44% of the shares of RegionalCargo. The applicant states that its Director General and all of its key 

management personnel are citizens of Mexico. 

2 See, e.g., Order 91-5-25, where the Department placed this condition on the foreign air carrier permit granted to Aerovias de 

Mexico, S.A. de C.V. We note, however, that the Department has granted blanket exemption authority to existing and future 

Mexican carriers, relieving them of this prior approval requirement for third and fourth freedom charter operations if they 

submit to the Department advance notice of their charter operations as described in Orders 98-4-2 and 99-7-23. 
Amerijet International, Inc. (Amerijet) filed an answer and supplemental response objecting to the application of 

Regional. Regional and Capital Cargo International Airlines, Inc. (Capital Cargo) filed replies. Amerijet, 

Regional, and Capital Cargo also filed additional responsive pleadings.3

Amerijet asserts that Regional and its affiliates have held out and operated scheduled all-cargo services in the 

Merida-Miami market using aircraft leased by Capital Cargo, without holding any economic authority from the 

Department required to engage in such services. Amerijet contends that those services are a clear violation of law 

and that the Department should therefore conclude that Regional does not possess the necessary favorable 

compliance disposition required for its application to be approved. In response, Regional and Capital Cargo assert 

that Amerijet’s allegations are incorrect. Regional maintains that it acts as a foreign air freight forwarder for cargo 

it solicits, and that it does not currently hold itself out as a direct air carrier. Capital Cargo states that it holds the 

necessary economic authority to operate charter service between Miami and Merida and that space on these charter 

flights is sold by several entities, including Regional, acting in its capacity as a Mexican freight forwarder. 

Decision: Based on the totality of the record, and in the circumstances presented, we are not disposed to withhold 

the bilaterally-provided-for economic authority requested by Regional. We have referred Amerijet’s assertions 

concerning Regional to the Department’s Office of Aviation Enforcement and Proceedings (Enforcement Office). 

Our action here does not serve to insulate Regional from any enforcement action that the Enforcement Office may 

take in the future. 

______________________________________________________________________________________________________ 

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 was qualified to perform its 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 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 

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.gov

 

3

 Certain pleadings were accompanied by motions to late-file. In the interest of ensuring a complete record, we will grant the 

various motions. 
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 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 1546 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 point 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 Administration 

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, file 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 office); 

(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 purchased 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 transportation" 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/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 explicit Department 

approval under Title 49 of the U.S. Code.

 1/2008