UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on April 2, 2010

NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2010-0068

_________________________________________________________________________________________________________ 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).

Application of VIRGIN AMERICA, INC. (Virgin America)

, filed 3/18/10 , for:

XX Exemption under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, propert y, and mail between a point or points in the United States and a point or points in Canada

. 1

Applicant rep: David H. Pflieger, Jr. (650) 762-7115 DOT Analyst: Linda L. Lundell (202) 366-2336

D I S P O S I T I O N

XX Granted (subject to conditions, see below)

The above action was effective when taken: April 2, 2010

, through April 2, 2012

.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the avi ation agreement between the United States and Canada.

Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations indicated:

XX Holder’s certificate of public convenience and necessity

XX Standard exemption conditions (attached)

Remarks: We have acted on this application without awaiti ng expiration of the 15-day answer period with the consent of all parties served.

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant qualified to provide the exemption services authorized. 2

Under authority assigned by the Department in its regula tions, 14 CFR Part 385, we found that (1) our action was consistent with Department policy; (2) grant of the authorit y was consistent with the public interest; and (3) grant of the authority would not constitute a major regulatory acti on under the Energy Policy and Conservation Act of 1975.

1 Virgin America states that it plans to institute service in the Los Angeles-Toronto and San Francisco-Toronto markets in June

2010.

2 By Orders 2007-5-11 and 2007-8-17, we fo und Virgin America fit, willing, and able to conduct interstate scheduled air transportation of persons, property, and mail. The foreign air tr ansportation services authorized here are not markedly differ ent in terms of aircraft size or stage length from the carrier’s current operations unde r its existing authority. We, therefore, f ind that Virgin America is qualified to provide the proposed air transportation for the period covered by the exemption.To the extent not granted or deferred, 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 thei r petitions within seven (7) days after th e 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

### ATTACHMENT

U.S. Carrier Exemption Conditions

In the conduct of the operations authori zed, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating author ity from the government of each country served;

(2) Comply with applicable requirements concerni ng oversales contained in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements fo r reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insuran ce coverage, and for certifying that coverage to the Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise pr ovided for in a Department Order, comply with the requirements of 14 CFR 203, concerni ng waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable requirements of th e Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flights) to or from a foreign airpor t, contact its Principal Security Inspector (PSI) to advise the PSI of its plans and to find out whet her the Transportation Security Administration has determined that security is adequate to allow such airport(s) to be served;

(7) Comply with such other reasonable terms, c onditions, and limitations requi red by the public interest as may be prescribed by the Department of Transporta tion, with all applicable or ders and regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

The authority granted shall be eff ective only during the period when th e holder is in compliance with the conditions imposed above.

1/2008