BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. mi XT 18 A 11: a9 APPLICATION OF. Rules of Practice in Proceedings, AEROTRANSPORTES RAFILHER,

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1 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. mi XT 18 A 11: a9 AEROTRANSPORTES RAFILHER S.A. de C.V. ) ) Docket OST I for a one year exemption (MEXICO-US) under 49 U.S.C. Section ) 1 1 ).- APPLICATION OF AEROTRANSPORTES RAFILHER, S.A. de C.V. FOR AN EXEMPTION Pursuant to 49 U.S.C and Subpart D of the Department's Rules of Practice in Proceedings, AEROTRANSPORTES RAFILHER, S.A. de C.V. (RAFILHER), A mexican air taxi operator of small aircraft, requests an exemption from 49 U.S.C to authorize RAFILHER to engage in charter foreign air transportation of persons and their accompanying baggage between Mexico and the United States. RAFILHER also requests stopover privileges and relief from the requirement to obtain advance approval for each Mexico-U.S. flight. RAFILHER requests that this exemption be granted for a period of at least one year. 1

2 In support of this application, and pursuant to the Department's Procedural Regulations, RAFILHER states the following: 1. RAFILHER, incorporated in Mexico in 1990, is a privately held corporation that is 100% owned and controlled by Mexican citizens. Name, citizenship and percentage of ownership of RAFILHER are enumerated in Exhibit A. The full name and corporate address of RAFILHER is: AEROTRANSPORTES RAFILHER, S.A. de C.V. Carretera a Mexico No. 120 Fraccionamiento Capricornio San Luis Potosi, S.L.P MEXICO 2. The name and official address of the government air transport authority in Mexico having regulatory jurisdiction over RAFILHER is : Secretaria de Comunicaciones y Transportes Direction General de Aeronautica Civil ("DGAC" Av. Providencia No. 807, Piso 1-7 Colonia del Valle Delegacion Benito Juarez Mexico, D.F MEXICO authority to engage in foreign air transportation of persons and 2

3 their belongings without the need for prior Department approval of each flight, or series of flights. RAFILHER is also requesting stopover privileges. 4. RAFILHER is operationally and financially qualified to perform the service for which authority is requested herein. As evidence thereof: (a) The Me ican DGAC has issued a permit authorizing RAFILHER to conduct non-scheduled, international air taxi transportation of passengers in the North and South American Continents. This permit is valid indefinitely and is attached as Exhibit B. (b) In 1996, RAFILHER received its DGAC permits and commenced commercial flight operations. From its base in San Luis Potosi, S.L.P., RAFILHER provides air transportation to domestic and international passengers, consisting of members of the following institutions which form part of the governing body, owners, and stock holders of RAFILHER: AEROTRANSPORTES RAFILHER, S.A. de C.V. 3

4 Future operations, including its proposed U.S. service, are likely to be a continuation of this type of operation. RAFILHER estimates that it will operate 20 to 25 round trip flights annually between Mexico and the United States with an average load of three passengers per flight; all of which will originate in Mexico. (c) RAFILHER owns and operates a single 8 passenger Beechcraft King Air C90A Turbo Prop aircraft with Mexican registration XA-RFH. (d) RAFILHER maintains its aircraft pursuant to a maintenance service agreement with Raytheon Aircraft Services de Mexico, an aircraft repair station in Toluca, Mexico; and with Hawker beechcraft in Houston Texas; the latter is a FAA certificated Service Center; and in accordance with an airworthiness program approved by the Mexican DGAC in compliance with ICAO Annexes 1,6 (Part I) and 7. (e) RAFILHER has established a well qualified management team with the necessary experience in providing domestic and international air taxi services. L.A.E. Filibert R. Herrera Andres has served as General 4

5 Manager of RAFILHER since the founding of the company in March He graduated in 1982 with a Degree in Business Administration and Accounting from the Universidad Nacional Autonoma de San Luis Potosi, in San Luis Potosi, Mexico. Pilot Capt. Jorge M. Almaraz received his Pilot's License in Joined RAFILHER in 1990, received his Unlimited Commercial Pilot's License in 1979 and has accumulated over 10,000 hours of flight during his 20 years of aviation experience, with over 2800 hours in the King Air. Capt. Alamaraz is licensed to operate the company's King Air and attends annual training courses, at Flight Safety in St. Louis, Missouri. Capt. Almaraz serves as Chief Pilot for Rafilher. Copilot Capt. Reynaldo Zamora Martinez received his Pilot's License in Joined RAFILHER in 1998, received his Unlimited Commercial Pilot's License in 1992 and has accumulated over 6100 hours of flight during his 7 years of aviation experience, with over 850 hours in the King Air. Capt. Zamora is licensed to operate the company's King Air and attends annual training courses, at Flight Safety in St. Louis, Missouri. Capt. Zamora serves as Chief of Operations for Rafilher. 5

6 A composite of RAFILHER's key personnel is shown in Exhibit C. (f) RAFILHER's financial statement for calendar year 2007, up to May of 2007 is Exhibit D. As can be seen, RAFILHER has been self-sufficient and fully capable to continue providing transportation services to the companies enumerated in Paragraph 4 (b). (g) A copy of OST form 6411, Foreign Air Carriers Certificate of Insurance, is attached as Exhibit E. As shown therein, RAFILHER complies with the limits of liability of the requirements of 14 CFR Part 205. (h) RAFILHER has not been involved in any safety violations, tariff violations or fatal accidents since its inception. (i) RAFILHER does not have any agreement or cooperative working arrangements with any U.S. air carrier affecting its proposed services to the United States 5. RAFILHER's proposed U.S. services are consistent with the public interest for the following reasons: (a) RAFILHER will be carrying executives to the U.S. on business, thereby fostering commerce between Mexico and the 6

7 United States consistent with the objectives of the North American Free Trade Agreement (NAFTA). (b) RAFILHER's request for stopover privileges is consistent with the need of the executives using its services will, from time to time, need to stop at two or more places in the U.S. as part of their round trip itineraries. RAFILHER submits that no regulatory purpose would be served by preventing RAFILHER from responding to the stopover needs of its customers. WHEREFORE, RAFILHER respectfully requests exemption authority to engage in charter foreign air transportation of persons and their accompanying baggage with small aircraft as set forth herein, and such other relief as may be in the public interest. Uro-Parts, Ltd Agent for Service in the U.S. for: AEROTRANSPORTES RAFILHER, S.A. de C.V. 17 September

8 RAFILHER EXHIBIT A OWNERSHIP of AEROTRANSPORTES RAFILHER, S.A. de C.V. LIC. FILIBERTO R. HERRERA A. MEXICAN % ING. CARLOS G. LOPEZ M. MEXICAN % LIC. RAFAEL F. HERRERA A. MEXICAN 3.00 % CERTIFIED TRUE EUGENE SMITH AGENT FOR SERVICE for: AEROTRANSPORTES RAFILHER, S.A. de C.V.

9 RAFILHER EXHIBIT B of AEROTRANSPORTES RAFILHER, S.A. de C.V.

10 ._.. AEROXRANSFORTES RAFltHER, S A DE C,V, CARRETERA A MEXICO No FRACC. CAPRICORNIO. C.P , SAN LUIS PDTOSi, S.C.P. 2006, Aiio del Bicentcnariu del natalicio del Benern6rito de las Amdricas, Don Benito JlsCtree Garcia. Mexico, G F a Or! de. agosto del 2006 n sci cariicter de Ma DE TAXI En relacibn a su escr permisionaria de UTI AEREO 1NTERNA Potosi, S.L.P., atcrg induir en srr equipo d XA-RFK, asi mistvo, ING ALR C90A MAVR~CULA XA-RFN. At respecto, esta D1 Xfl y Xllr, 49, 5 I y! 20 de ia Ley de Vias Generaies de Corrwlicacion; -2-33nciso a), 60., fracciones IV, V, XI y >.!I, 7 fracciones If, lv y V, fif., 70., 74., 76 el articulo 18 f r x es y Transpoi-tes, a r lo que con esra fecha se r de fecha 2 ZADB A OPERAW Ell NG AIR C9QA Esta modificagon-&eapegafset kestabi 320=c8739 de-f5cha23 de octubre de&!-% Para la operacion de lo(s) vuelo(s) international( -se-auroriza(n), esa empresa queda. obligada a mantener vigente-en todo momento;-sacer-tificadcrde-operador Aereo, asi corno-l Limitaciones a dicho Certificado, expe a1 de Aeronhutica Civil, si cuya vinencia o documento que acred peraciones al amparo d

11 Esta rnodificaci6n causa derechos pot-!$ 2,5dY.00 M.N. (DOS M!L QUlNiENTCS TRECE PESOS OO/lOQ); de acuerdo d articwto 159, fracci6n I1 y por registro, $ M.N. (CUATRQCiENTOS DOS PESO ai articulo 153, fracci6n IX, de la Ley Federal de Derechos, la cuaf D 7 de julio del n I de - Aeropuertos

12 RAFILHER EXHIBIT C LIST OF KEY PERSONNEL NAME POSITION CITIZENSHIP TELEPHONE _ _ SR. FILIBERTO R. HERRERA A. GEN MANAGER MEXICAN CP. OLIVIA PONCE ARAUJO ADMINISTRATOR MEXICAN CAPT. JORGE M. ALMARAZ CHIEF PILOT MEXICAN SR. FILIBERTO R. HERRERA CHIEF OPS. MEXICAN COMPANY ADDRESS FOR ABOVE PERSONNEL IS: AEROTRANSPORTES RAFILHER, S.A. de C.V. CARRETERA A MEXICO # 120 FRACCIONAMIENTO CAPRICORN10 SAN LUIS POTOSI, SLP MEXICO

13 RAFILHER EXHIBIT D FINANCIAL STATEMENT of AEROTRANSPORTES RAFILHER, S.A. de C.V.

14 ... E I. 0 w M

15 DE : GM"M0TRIZ NO.DE FRX JUL. 2@871@:21PM P3 1 1,468, , , ,274, , ,253,51,3.03 1,170, ,659.28

16 NO.DE FRX : JUL :22PM P4 357, ,879, , , REBAJAS Y DEVOJ..WCIONES S/COLPUS PJ~DIDA DE OPER~CION GASTOS FINANCEROS ,060.'17 157, , ,245.97

17 RAFILHER EXHIBIT E FOREIGN AIR CARRIERS CERTIFICATE OF INSURANCE OST FORM 6411 of AEROTRANSPORTES RAFILHER, S.A. de C.V.

18 ~~ U.S. Department of Transportation Office of the Secretary of Transportation I AGENCY DISPLAY OF ESTIMATED BURDEN The public reporting burden for this collection of information is estimated to average 30 minutes per response. if you wish to comment on the accuracy of the estimate or make suggestions for reducing this burden, please direct your comments to the Department of Transportation at the following address: US. Department of Transportation Office of Aviation Analysis, X th Street, SW. Washington, DC FOREIGN AIR CARRIERS CERTIFICATE OF INSURANCE POLICIES OF INSURANCE FOR AIRCRAFT ACCIDENT BODILY INJURY AND PROPERTY DAMAGE LIABILITY OMB NO FILING INSTRUCTIONS: File an original of this form with the Special Authorities Division, X-57, Office of Aviation Analysis, Dept. of Transportetion, 400 7th St., SW., Washington, DC (Please type information, except signatures.) THIS CERTIFIES THAT: CHUBB DE MEXICO, CIA. DE SEGUROS, S.A. DE C.V. (Name of Insurer) has issued a policy or policies of Aircraft Liability Insurance to AEROTRANSPORTES RAFILHER, SA. DE C.V. CARRETERA A MEXICO N0.120 FRACCIONAMIENTO CAPRICORN SAN LUIS POTOSI, S.L.P. (Name and address of Insured Foreign Air Carrier) effective from JULY 14TH, 2006 until ten (IO) days after written notice from the insurer or carrier of the intent to terminate coverage is received by the Department of Transportation. NOTE: Part 205 of the.department s Regulations does not allow for a predetermined termination date, and a certificate showing such a date is unacceptable. 1. The Insurer (Check One): is an approved surplus line insurer in the State@) of 0 is licensed or approved by the government of MEXICO is an approved surplus line insurer in the State@) of to issue aircraft insurance policies; or 2. The insurer assumes, under the policy or policies listed below, aircraft accident liability insured to minimums at least equal to the following during operation, maintenance, or use of aircraft in foreign air transportation as that term is defined in the Federal Aviation Act. (Complete applicable section(s) below): A. CANADIAN CHARTER AIR TAXI OPERATORS WITH PART 294 AUTHORITY ONLY The aircraft covered by this policy have (1) 30 or fewer passenger seats and a maximum payload capacity of 7,500 pounds or les: and/or (2) a maximum authorized takeoff weight on wheels of no more than 35,000 pounds. (Check separate or combined coverage as appropriate): 0 Separate Coverages: Minimum Limit Policy No. Type of Liability Each person Each Occurrence Combined Bodily Injury (Excluding Passengers other than cargo attendants) and Property Damage Liability $ 75,000 $2,000,000 (*) see not Passenger Bodily Injury Liability $ 75,000 $75,000 x 75% of total number of passenger seats installed in aircraft 0 Combined Coverage: This combined coverage is a single limit of liability for each occurrence at least equal to the required minimums stated above for bodily injury (excluding passengers), property damaged, and passenger bodily injury. Policy No. Amount of Coverage This policy covers CARGO operations only and excludes passenger liability insurance. NOTE: If the aircraft covered by this policy have more than 30 passenger seats or more than a maximum payload capacity of 7,500 pounds, the minimum limit per occurrence shall be $20,000,000. OST Form 6410

19 (3 B.,.FOREIGN AIR CARRIERS OPERATING SMALL AIRCRAFT The aircraft covered by this policy are SMALL AIRCRAFT (Le., with 60 or fewer passenger seats or with a maximum payload capability of 18,000 pounds or less). (Check separate or combined coverage as appropriate): 0 Separate Coverages: Minimum Limit Policy No. Type of Liabilify Each person Each Occurrence AV Combined Bodily Injury (Excluding Passengers other than cargo attendants) and Property Damage Liability $300,000 $2,000,000 Passenger Bodily Injury $300,000 $300,000 x 75% of total number of passenger seats installed in aircraft IxI Combined Coverage: This combined coverage is a single limit of liability for each occurrence at least equal to the required minimums stated above for bodily injury (excluding passengers), property damaged, and passenger bodily injury. Policy No. AV Amount of Coverage $. US , This policy covers CARGO operations only and excludes passenger liability insurance. C. FOREIGN AIR CARRIERS OPERATING LARGE AIRCRAFT The aircraft covered by this policy are LARGE AIRCRAFT (i.e., with more than 60 passenger seats or with a maximum payload capacity of more than 18,000 pounds). (Check separate or combined coverage as appropriate): 0 Separate Coverages: Minimum Limit Policy No. Type of Liabilify Each person Each Occurrence Combined Bodily Injury (Excluding Passengers other than cargo attendants) and Property Damage Liability $300,000 $20,000,000 Passenger Bodily Injury $300,000 $300,000 x 75% of total number of passenger seats installed in aircraft 0 Combined Coverage: This combined coverage is a single limit of liability for each occurrence at least equal to the required minimums stated above for bodily injury (excluding passengers), property damaged, and passenger bodily injury. Policy No. Amount of Coverage 0 This policy covers CARGO operations only and excludes passenger liability insurance. ~~~~~ ~~ ~~ ~ 3. The policy or policies listed in this certificate insure(s) (Check One): Make and Model 0 Operations conducted with all aircraft operated by the insured Operations conducted with the following types of aircraft: RAYTHEON AIRCRAFT CO / 0 Operations with the following aircraft: (Use additional page if necessary) C90A / LJ-1741 FAA or Foreign Flag Reqistration No XA-RFH 4. Each policy listed in this certificate meets or exceeds the requirements in 14 CFR Part 205. CHUBB DE MEXICO, CIA. DE SEGUROS, S.A. DE C.V. (Name of Insurer) LAFON Y ASOCIADOS AGENTE DE SEGUROS Y DE FIANZAS,S.A. (Name of Broker, if applicable) Prol. Paseo de la Reforma 600 PB, Santa Fe Petia Blanca (Address) 01210, Mexico, D.F. (City, State, Zip Code) Lic. Miguel Angel Macias Contact (person who can / / , Ysignature, if app/ic@e) / JULY 12TH, (Date) Descartes No. 54 Piso 6 Col. Nueva Anzures (Address) Mexico. D.F. (City, State, Zip Co Lic. Georges A. Lafon de Min - ~ [Officer or authorized~prasentative) / / (Area Code, Phone Nu$nbe&J/@rea - C de, &$&umber) WY >