UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on August 25 , 2011



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 20 11

- 0 1 55

________________________________________________________________________________________________________ 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).

Applicant: CONCESIONARIA VUELA COMPANIA DE AVIACION, S.A. P.I. de C.V. D/B/A

VOLARIS ( Volaris )

Date Filed: August 17 , 2011

, as supplemented August 24 , 2011

Relief requested: E xemption from 49 USC §41301 to permit the applicant to engage in scheduled foreign air transportation of persons, property, and mail between Mexico City , Mexico, and Chicago (Midway), Illinois.

Volaris states that it requests authority from the Department, on a conditional and extrabil ateral basis, to serve the referenced route so that it can provide this service until Compania Mexicana de Aviacion, S.A. de C.V. (Mexicana), a Mexican carrier that is designated for th is route but not operating and currently in bankruptcy proceedings, is able to

resume service. 1 In support of its request, Volaris states that, under Mexican law, the Government of Mexico is unable to designate another Mexican carrier , even for temporary service

, on Mexicana’s routes while the carrier is protected

under bank ruptcy proceedings. 2

Applicant representative: Alfonso Ascencio Triujeque

DOT anal yst: Brett D. Kruger , 202

- 366

- 8025

Responsive pleadings: None

.

DISPOSITION

Action: Approved , subject to conditions (see below) Action date: August 25

, 2011 3

Effective dates of authority granted: August 25 , 2011 , through August 25 , 2012

.

Basis for approval (bilateral agreement/reciprocity) : The authority granted is consistent with the overall state of

aviation relations between the United States and Mexico.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached) , and to the additional conditions set forth below

.

Consistent with our previous grants of ex tra

- bilateral authority in these circumstances, w e will grant the authority subject to the following additional conditions : 1 ) Volaris must immediately cease its services on the route authorized

here in the event that Mexicana resume s service ; and 2) shoul d such resumption of service by Mexicana occur, Volaris

1 Under the United States

- Mexico Air Transport Services Agreement (the Agreement), each party is limited in the number of carriers it may designate in particular city

- pair markets. In the Mexico City

- Chicago city

- pair market for which Volaris seeks authority here, no Mexican carrier designation remains available, and one of the designations is held by Mexicana.

2 Volaris included with its application correspondence from the Governmen t of Mexico requesting the Department’s favorable

consid eration of Volaris’ application under the unique circumstances resulting from Mexicana’s bankruptcy. Volaris also notes that the correspondence makes clear that any authorization would be temporary and would not result in Mexican carrier operations on any U.S.

- Mexico route in excess of the bilateral limit.

3 The Department is acting on the application of Volaris prior to the expiration of the 15

- day answer period with the consent of all parties se rved.must accommodate on another Mexican or U.S. carrier any passengers that may hold Volaris tickets for the routes on which Volaris must cease service

, or provide such passengers with full refunds. 4

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

________________________________________________________________________________________________________ Under authority assigned by the Department in its regulations, 14 CFR Pa rt 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 consist ent with the public interest; and (4) grant of the authority would not con stitute 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 at: http://www.regulations.gov

4 See Notice s of Action Taken dated July 11, 20 11, in Docket DOT

- OST

- 2011

- 0117; and August 24, 2011, in Docket DOT

- OST

2011

- 0156.

### 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 homelan d 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, a nd 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 I IR of its plans and to find out whether the Transpor tation 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 u nder 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 requiremen ts 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 Sta tes 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 "inter national 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 da ta;

(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.

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