 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on December 23, 2002

NOTICE OF ACTION TAKEN -- DOCKET OST 2001-10958

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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 issued in this matter).

Applicant:  AEROMODELO, S.A. de C.V.                                    
                            Date Filed:  October 25, 2001

Relief requested:  Exemption from 49 USC section 41301 to permit the
applicant to conduct passenger charter operations between Mexico and the
United States, and other passenger charter operations in accordance with
14 CFR Part 212, using small equipment.

If renewal, date and citation of last action:  New authority.

Applicant representative:  James E. Ramsey, 816-474-0777     DOT
analyst:  Allen F. Brown, 202-366-2405

Responsive pleadings:  None.

	DISPOSITION

Action:  Approved.                                                      
                                           Action date:  December 23,
2002

Effective dates of authority granted:  December 23, 2002, through
December 23, 2003.

Basis for approval (bilateral agreement/reciprocity):  United
States-Mexico Air Transport Services Agreement of August 15, 1960, as
amended and extended (Agreement).

Except to the extent exempted/waived, this authority is subject to the
terms, conditions, and limitations indicated:  Standard exemption
conditions.     

Special conditions/Partial grant/Denial basis/Remarks:  We found that
Aeromodelo, S.A. de C.V., is operationally and financially qualified to
conduct its proposed operations and is properly licensed by its
homeland.  Also, the FAA advised us that it knows of no reason to
withhold this authority.

Although Mexican nationals control Aeromodelo, some of its stock is
owned by non-Mexican citizens.  In that connection, Aeromodelo requested
the Department to waive, to the extent necessary to grant the authority
requested, its standard requirement that a foreign carrier be
substantially owned and effectively controlled by citizens of the
licensing homeland.  We concluded that such waiver was warranted,
finding nothing in the ownership and control of the applicant that would
be inimical to U.S. aviation policy or interests.

In the conduct of these operations, the carrier may only use aircraft
capable of carrying no more than 60 passengers and having a maximum
payload capacity of no more than 18,000 pounds (small equipment).  The
above grant includes authority to conduct Third and Fourth Freedom
charter operations.  While we have subjected, consistent with the
provisions of the Agreement, Mexican carriers conducting charter
operations with large aircraft to prior approval or submission of notice
for their Third and Fourth Freedom charters, we determined that any such
requirement was not necessary on public interest grounds in this case,
since the carrier will be conducting these operations solely with small
aircraft.  (Other charter operations to/from the United States under
this authority, however, are subject to prior approval under 14 CFR Part
212.)

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

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Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) our action was consistent with Department
policy; (2) grant of the authority was consistent with the public
interest; and (3) grant of the authority would not constitute 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 regulations, 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://dms.dot.gov//reports/reports_aviation.asp

