UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on March 20 , 2015



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2015

- 0056

________________________________________________________________________________________________________ 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: ABC AEROLINEAS, S.A. de C.V. d/b/a INTERJET (Interjet)

Date Filed: March 1 3 , 2015

Relief requested: E xemption from 49 USC §41301 to permit the applicant to engage in scheduled foreign air transportation of persons, p roperty, and mail between Houston, Texas, and Mexico City, Mexico.

Applicant representative: Moffett B. Roller 202

- 331

- 3300

DOT anal yst: Robert J. Finamore , 202

- 366

- 8025

Responsive pleadings: None

.

DISPOSITION

Action: Approved Action date: March 20 , 2015 1

Effective dates of authority granted: March 20 , 2015 , through March 20 , 201 6

.

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 otherwise

- applicable terms, conditions, and limitations of Interjet’s foreign air carrier permit (Order 2008

- 10

- 30)

.

Background : U nder the U.S.

- Mexico aviation agreement, two carriers from each country may be designated to provide scheduled foreign air transportation of persons, property, and mail between Houston and Mexico City. Currently, Aerovias de Mexico, S.A. de C.V. and Aerolitoral, S.A. de C.V. d/b/a Aeromexico Connect are the Mexican

carriers designated to provide service between Houston and Mexico City, leaving that market fully subscribed for

Mexican c arriers

.

Interjet acknowledges this and states that it seeks this authority based on the recent understanding reached by the Department and the Dirección General de Aeronáutica Civil (DGAC) of Mexico under which each agency agreed to authorize, on the basis of comity and reciprocity, an additional carrier from the other country to operate between Houston, Texas, and certain points in Mexico. Interjet further states that i n accordance with this recent agreement, the Department issued a Notice of Action Taken on March 10, 2015, that granted Southwest Airlines Co. (Southwest) an exemption on the basis of comity and reciprocity to operate as the third U.S. carrier between Houston and Mexico City

. Interjet states that it seeks its exemption here on the basi s of comity and reciprocity for extrabilateral authority to operate as the third Mexican carrier between Houston and Mexico City in addition to the two Mexican carriers that Mexico has already designated on that city

- pair. 2

1 The Department is acting on the application of Interjet prior to the expiration of the 15

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

2 Interjet included in its application a letter issued by the DGAC that authorizes Interjet to operate on the Mexico City

- Houston

route for an indefinite period.Decision: We have decided to approve Interjet’s request for exemption authority. In doing so

, we note that the DGAC

has agreed to favorably consider Southwest’s request to serve two Houston

- Mexico markets, including Houston

Mexico City

, on an extrabilateral basis. 3 In light of these circumstances , we find that the public interest warrants our approval of Interje t’s application.

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 w ith Department policy; (2) the applicant was qualified to perform its proposed operatio ns; (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/dismissed, we de nied 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 effectiveness.

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

3 See Notice of Action Taken dated March 10, 2015, in Docket DOT

- OST

- 2014

- 0222.

### 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 o f 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 applic able. 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 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 co verage, 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 se rvices;

(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 operation s 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 t he 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

it s 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

w ith 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 o rders 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 auth ority cannot be sold or otherwise transferred without explicit Department approval

under Title 49 of the U.S. Code.

1 2/2007