UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation on April 25, 2006

NOTICE OF ACTION TAKEN -- DOCKET OST-2002-12209

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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: AEROLITORAL, S.A. de C.V. (Aerolitoral) and 				Date Filed: 
April 5, 2006

	      AEROVIAS de MEXICO, S.A. de C.V.  (Aeromexico)	

Relief requested:  Renewal of exemption from 49 USC § 41301 to permit
the joint applicants to engage in scheduled foreign air transportation
of persons, property, and mail between: 1) Chihuahua, Mexico, and El
Paso, Texas; 

2) Hermosillo, Mexico, and Tucson, Arizona; and 3) Monterrey, Mexico,
and San Antonio, Texas.  Aeromexico proposes to conduct these services
only through a code-share arrangement with Aerolitoral, only on flights
operated by Aerolitoral.  

If renewal, date and citation of last action:  May 13, 2005, in this
Docket.

Applicant representative:  William C. Evans, 202-861-6459	DOT analyst: 
Robert J. Finamore, 202-366-2405

Responsive pleadings:  None.

	DISPOSITION

Action:  Approved.                                                      
                                		     Action date:  April 25, 2006

Effective dates of authority granted:  April 25, 2006, through April 25,
2007.

Basis for approval (bilateral agreement/reciprocity): United
States-Mexico Air Transport Services Agreement.

Except to the extent exempted/waived, this authority is subject to the
terms, conditions, and limitations of our standard exemption and
code-share conditions (attached), to the statement of authorization
granted to Aerolitoral dated January 4, 2002, in this Docket, and to the
otherwise-applicable terms, conditions, and limitations of
Aeromexico’s foreign air carrier permit (Order 91-5-25). 

Special conditions/Remarks:  The exemption authority granted to
Aeromexico is limited to operations conducted on a code-share basis only
with Aerolitoral, only of flights operated by Aerolitoral.  In addition,
Aerolitoral 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.

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) the applicants were qualified to perform the 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 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

FOREIGN CARRIER EXEMPTION CONDITIONS                                    
                              ATTACHMENT

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, including, but not limited to, 14 CFR Parts 129, 91, and
36, and with all applicable U.S. Government requirements concerning
security, including, but not limited to, 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 flights) from a foreign airport that
would be the holder’s last point of departure for the United States,
contact its International Principal Security Inspector (IPSI) to advise
the IPSI 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 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 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 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 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 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 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 holder
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.                    
                                          

												 05/2004

 Aerolitoral/Aeromexico Code-Share Conditions (OST-2002-12209)

The codeshare operations authorized here are subject to the following
conditions:

(a)  The statement of authorization will remain in effect only as long
as (i) Aerolitoral and Aeromexico continue to hold the necessary
underlying authority to operate the codeshare services at issue, and
(ii) the codeshare agreement providing for the codeshare operations
remains in effect. 

(b) Aerolitoral and/or Aeromexico must promptly notify the Department if
the codeshare agreement providing for the codeshare operations is no
longer effective or the carriers decide to cease operating any or all of
the approved codeshare services.    We expect this notification to be
received within 10 days of such non-effectiveness or of such decision. 
Such notices should be filed in docket OST-2002-12209.

(c)  The codesharing operations conducted under this authority must
comply with 14 C.F.R. Part 257 and with any amendments to the
Department’s regulations concerning codeshare arrangements that may be
adopted.  Notwithstanding any provisions in the contract between the
carriers, our approval here is expressly conditioned upon the
requirements that the subject foreign air transportation be sold in the
name of the carrier holding out such service in computer reservation
systems and elsewhere; that the carrier selling such transportation
(i.e., the carrier shown on the ticket) accept responsibility for the
entirety of the codeshare journey for all obligations established in its
contract of carriage with the passenger; and that the passenger
liability of the operating carrier be unaffected.

(d)  The authority granted here is specifically conditioned so that
neither Aerolitoral or Aeromexico shall give any force or effect to any
contractual provisions between themselves that are contrary to these
conditions.

We may amend, modify, or revoke this authority at any time without
hearing, at our discretion.

 

