 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation on January 14, 2004

NOTICE OF ACTION TAKEN -- DOCKET OST 2003-16529

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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).

Application of    Mesa Airlines, Inc.,  filed  11/13/03 for:

XX  Exemption for two years under 49 U.S.C. §40109 to provide the
following service:

Scheduled foreign air transportation of persons, property, and mail
between Phoenix, Arizona, and Mazatlan, Mexico.  

Applicant rep:   Brian S. Gillman (602) 685-4051    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 action above was effective when taken:  January 14, 2004,  through 
January 14, 2006 .

Action taken by:   Paul L. Gretch, Director	

		        Office of International Aviation	

XX  Authority granted is consistent with the aviation agreement between
the United States and the Mexico.

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

XX  Holder’s certificates of public convenience and necessity

XX  Standard Exemption Conditions (attached)

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Special Conditions:  The U.S.-Mexico exemption authority granted is
subject to the dormancy notice requirements set forth in condition 7 of
Appendix A of Order 88-10-2.  Consistent with our policy, the dormancy
notice period will begin April 1, 2004, Mesa’s proposed startup date
for these services.  

Remarks:  United Air Lines, Inc. (United), filed an answer in Docket
OST-2003-16444, requesting that the Department take United’s position
in its answer in Docket OST-2003-16444 into account in ruling on
Mesa’s application here.  In that answer, United notes that Mesa is an
America West commuter and will operate services exclusively for America
West in the subject market.  United argues that, while the Department
has granted similar requests of affiliated carriers, such practice
pre-empts competing carriers from operating their own aircraft in
U.S.-Mexico markets.  We fully appreciate the concerns of United and
have sought Mexican aviation authorities acceptance of the services of
affiliated carriers without the need for separate designations.  Such an
arrangement, however, has not been forthcoming.  Under these
circumstances, we have granted a number of requests similar to the one
presented here.  We have taken such action only in cases where no other
party has expressed interest in serving the market and where no party
has opposed grant of such authority.  While United has opposed the
practice of using two designation opportunities for affiliated services
in the same city-pair market, it does not propose service in the subject
market with its own aircraft.  Given this background, we believe that
the public interest is best served by granting Mesa’s application for
the proposed services while we continue to work on this issue. 
Notwithstanding this, however, should a competing U.S. carrier present a
proposal to provide regularly-scheduled service in the subject city-pair
market with its own aircraft, we would be prepared to reconsider
whether, in the circumstances presented, award of the authority granted
here continues to be in the public interest.

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

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 application 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, 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_aviation.asp

						APPENDIX 

U.S. Carrier Standard Exemption Conditions

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

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

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

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

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

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

(6)  Comply with all applicable requirements of the Federal Aviation
Administration and with all applicable U.S. Government requirements
concerning security.  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 airport, contact its Principal Security Inspector (PSI) to
advise the PSI 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; and

(7)  Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department of Transportation, with all applicable orders and regulations
of other U.S. agencies and courts, and with all applicable laws of the
United States.

The authority granted shall be effective only during the period when the
holder is in compliance with the conditions imposed above.

											8/2003

   Mesa states that, as part of this service, it will place the “HP”
code of America West on Mesa’s flights in the subject market.

   In the matter of the joint application of America West and Mesa for
exemption and code-share authorizations to serve the Phoenix-San Jose
del Cabo/Puerto Vallarta markets.   

   Under the U.S.-Mexico aviation agreement, only two U.S. carriers may
be designated to provide direct carrier service (air transportation with
their own aircraft), on a given city-pair route.  America West currently
holds direct-carrier authority to serve the market (see Notice of Action
Taken dated October 29, 2002, in Docket OST-1995-736).  Thus, one
designation opportunity is available. 

