UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on August 24 , 2011



### NOTICE OF ACTION TAKEN

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________________________________________________________________________________________________ ________ 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 : AEROVIAS de MEXICO , S.A. de C.V. (A ero m exico ) Date Filed: August 17 , 2011

Relief requested: E xemption from 49 USC § 41301 to permit the applicant to engage in s cheduled foreign air transportation of persons, property, and mail between : 1) Guadalajara , Mexico, and Las Vegas, Nevada; and 2) Zacatecas, Mexico, and Chicago, Illinois

.

Aeromexico states that it requests authority from the Department for a one

- year term

, or u ntil Compania Mexicana de Aviacion, S.A. de C.V. (Mexicana), a Mexican carrier that is designated for these routes but not operating and is currently in bankruptcy proceedings, is able to resume its service s. 1 In support of its request, Aeromexico states its understanding that, under Mexican law, the Government of Mexico is unable to designate another Mexican carrier on Mexicana’s routes while the carrier is protected under bankruptcy proceedings. 2

Applicant representative: William C. Evans, 410

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- 5074 DOT analyst: Robert J. Finamore , 202

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Responsive pleadings: None.

DISPOSITION

Action: Approved. A ction date: A ugust 24

, 2011 3

Effective dates of authority granted: A ugust 24 , 2011 , through A ugust 24 , 2012

.

Basis for approval (bil ateral 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), to the otherwise

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

- 5

- 25) , and to the additional conditions set forth below

.

Consistent with our previous grant of extra

- bilateral authority in these circumstances, w e will grant the authority subject to the following additional conditions : 1 ) Aeromexico must immediately cease its services on any route
authorized here in which Mexicana resumes service; and 2) should such resumption of service by Mexicana occur,

Aeromexi c o must accommodate on another Mexican or U.S. carrier any passengers that may hold Aer omexico tickets

for the routes on which Aeromexico must cease service

, or provide such passengers with full refunds. 4

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

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 each of the city

- pair markets for which Aeromexico seeks authority here, no Mexican carrie r designation remains available, and one of the designations is held by Mexicana.

2 Aeromexico included with its application correspondence from the Government of Mexico requesting the Department’s favorable consideration of Aeromexico’s application for ex tra

- bilateral authority under the unique circumstances resulting from Mexicana’s bankruptcy.

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

- day answer period with the consent of all parties served.

4 See Not ice of Action Taken dated July 11, 2011, in Docket DOT

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- 0117._________________________________________________________ _______________________________________________ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent w ith 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 Poli cy and Conservation Act of 1975. To the extent not granted/deferred/dismisse d, 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 effec tive when taken, and the filing of a petition for review will not alter such effecti veness.

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

### Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, th e 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 appli cable 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 154 6 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 poi nt 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 Transportation Security Administr ation 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, fil e 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 offi ce);

(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 o perations 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 pu rchased 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 transpor tation" 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 avi ation 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 Departme nt, 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 ab ove. 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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