UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on September 26 , 201 2



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

VOLARIS ( Volaris )

Date Filed: August 7 , 2012

Relief requested: Renewal of 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. 1

If renewal, date and citation of last action: August 25, 2011, in this Docket

Applicant representative: Charles F. Donley II, 202

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DOT anal yst: Brett D. Kruger , 202

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Responsive pleadings: None

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DISPOSITION

Action: Approved , subject to conditions (see below) Action date: September 26 , 201 2

Effective dates of authority granted: September 26 , 201 2 , through September 26 , 201 3

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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

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Special conditions/Remarks: We find that grant of Volaris’ request for renewal of this extrabilateral authority, as conditioned, remains consistent with the public interest. We will grant Volaris’ request for renewal of it authority subject to the same con ditions we placed upon it in granting its initial request. Specifically, 1) Volaris must immediately cease its services on the route authorized here in the event that Mexicana resumes service; and 2) should such resumption of service by Mexicana occur, Vol aris 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.

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 it h 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 constitute a major regulatory action under the Energy Poli cy and

1 Volaris notes that the Department granted its original request for this extrabilateral authority so that it can provide servi ce in th i s market on an interim basis until Compania Mexicana de Aviacion, S.A. de C.V. (Mexi cana) , a Mexican car rier that is designated

for this route but not operating and currently in bankruptcy proceedings, is able to resume service. Volaris states that all of the factors that originally led the Department to grant Volaris’ original request co ntinue at the present time, and it requests renewal of this exemption for a one

- year period on its existing terms and conditions.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 effec tive

w hen 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

### Foreign Carrier Exe mption 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, bu t 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 f lights) 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 p lans 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, prio r 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 airwo rthiness 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 s topping 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

"inter national 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 t he 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 author ized, 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 ho lder 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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