BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of ABC AEROLÍNEAS, S.A. de C.V. d/b/a/ Interjet for a Foreign Air Carrier Permit pursuant to 49 U.S.C. 41302 and for an Exemption pursuant to 49 U.S.C. 40109 to engage in Foreign Air Transportation of Persons, Property, and Mail (U.S./Mexico) Docket DOT-OST-2008-0191 APPLICATION OF ABC AEROLÍNEAS, S.A. DE C.V., D/B/A INTERJET FOR AMENDMENT OF FOREIGN AIR CARRIER PERMIT AND FOR AN EXEMPTION Communications concerning this document may be served upon: August 19, 2016 Moffett B. Roller ROLLER & BAUER, PLLC 45005 Aviation Drive; Suite 200 Dulles, VA 20166 Tel: 202-331-3300 Fax: 202-331-3322 email: mroller@rollerbauer.com Attorneys for ABC Aerolíneas, S.A. de C.V., d/b/a Interjet NOTICE: Any person may support or oppose this Application by filing an answer in this docket and serving a copy of that answer upon counsel for ABC Aerolíneas, S.A. de C.V., and upon each person on the attached Service List. Applicant requests expedited processing of this Application and will report to the Department the results of its poll of the U.S. air carriers on the Service List.
BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of ABC AEROLÍNEAS, S.A. de C.V. d/b/a/ Interjet for a Foreign Air Carrier Permit pursuant to 49 U.S.C. 41302 and for an Exemption pursuant to 49 U.S.C. 40109 to engage in Foreign Air Transportation of Persons, Property, and Mail (U.S./Mexico) Docket DOT-OST-2008-0191 APPLICATION OF ABC AEROLÍNEAS, S.A. DE C.V., D/B/A INTERJET FOR AMENDMENT OF FOREIGN AIR CARRIER PERMIT AND FOR AN EXEMPTION Pursuant to 49 U.S.C. 40109 and Subparts B and C of the Rules of Practice of the Department of Transportation, ABC Aerolíneas, S.A. de C.V., d/b/a Interjet, applies for an amendment to its Foreign Air Carrier Permit pursuant to 49 U.S.C. 41302 and for an Exemption pursuant to 49 U.S.C. 40109 to authorize Interjet to engage in scheduled and charter foreign air transportation of persons, property, and mail to the full extent of the authority granted to Mexican air carriers by the new Air Transport Services Agreement between the United States and Mexico that goes into effect on August 21, 2016. In specific, Interjet requests scheduled authority on the following routes that Paragraph 2 of Annex I to the new Agreement grants to Mexican carriers: a. From a point or points in Mexico to a point or points in the United States; b. From Acapulco, Hermosillo, Mexico City, Toluca, Monterrey, Oaxaca, Puerto Escondido, Tampico, Veracruz, Villahermosa, and lxtapa/
Page 2 Zihuatanejo to Chicago, Kansas City, Minneapolis/St. Paul, and St. Louis, and beyond to Canada; c. From Acapulco, Chihuahua, Guadalajara, Guaymas, Hermosillo, Huatulco, La Paz, Loreto, Manzanillo, Mazatlan, Mexico City, Toluca, Monterrey, Puerto Escondido, Puerto Vallarta, San Jose del Cabo, and lxtapa/ Zihuatanejo to Cleveland, Detroit, Philadelphia, Washington, and Baltimore and beyond to Canada; d. From Acapulco, Guadalajara, Huatulco, Loreto, Manzanillo, Mazatlan, Mexico City, Toluca, Monterrey, Puerto Vallarta, San Jose del Cabo, and lxtapa/ Zihuatanejo to Boston and New York, and beyond to Europe; e. From Cancun, Cozumel, Guadalajara, Merida, Mexico City, Toluca, and Monterrey to Houston and New Orleans, and beyond to Canada and Europe; f. From Guadalajara, Huatulco, Merida, Mexico City, Toluca, and Oaxaca to Miami, and beyond; and g. From a point or points in Mexico, via an intermediate point or points, to a point or points in the United States, and beyond. 1/ Interjet additionally requests the Department to grant it the following charter authority in accordance with Annex II to the new Agreement: a. between any point or points in Mexico and any point or points in the United States; and b. from a point or points in Mexico, via an intermediate point or points, to any point or points in the United States, and beyond. 2/ Interjet requests that the Department grant the requested exemption authority for a period of at least one year while the Department processes 1/ Paragraph 2(g) of Annex I and Paragraph 1(b) of Annex II each provide that any scheduled or charter service to beyond points shall be subject to the mutual agreement in writing by the aeronautical authorities of both countries. On May 28, 2015, however, DOT and the DGAC of Mexico exchanged letters in which each agency agreed to give positive consideration to applications for beyond authority submitted by airlines of the other country. This exchange of letters effectively negates the prior approval requirements for beyond operations as set forth in Annex I and Annex II. 2/ See the preceding footnote.
Page 3 Interjet s Application for Amendment of its Permit. Interjet also requests expedited treatment of this application and will report to the Department the results of a telephone poll of the parties on the attached Service List. Interjet is a Mexican air carrier that started operations within Mexico in December of 2005 with a fleet of A320 aircraft. In addition to developing an extensive Mexican domestic network over the past eleven years, Interjet initiated scheduled operations to the United States in December of 2011 with service to San Antonio, Texas. Interjet now operates to eight major U.S. destinations from a variety of points within Mexico. 3/ Upon receipt of the Open Skies authority granted by the new Air Transport Agreement, Interjet anticipates steady expansion of its U.S. operations in order to accommodate the burgeoning demand on both sides of the border for air transportation from one country to the other. In support of this exemption application and pursuant to the Department s Rules of Practice, Interjet states as follows: 1. ABC Aerolineas, S.A. de C.V., d/b/a Interjet, was incorporated in Mexico on March 9, 2005. The full name and corporate address of Interjet is: ABC Aerolineas, S.A. de C.V., d/b/a Interjet Boulevard Puerto Aéreo S/N Colonia Zona Federal del Aeropuerto Internacional, "Benito Juárez Ciudad de México" (AICM) Delegación Venustiano Carranza C.P. 15620, México, D.F. MÉXICO 3/ Interjet currently operates to Dallas, Houston, Los Angeles, Los Vegas, Miami, New York (JFK), Sanford-Orlando International Airport, and San Antonio.
Page 4 Although Interjet maintains its corporate offices in Mexico City, Interjet s operational base is at Aeropuerto Internacional de Toluca, the airport for Toluca, Mexico, approximately 50 miles west of Mexico City. 2. The name and official address of the air transport authority in Mexico that has regulatory jurisdiction over Interjet is: Secretaría de Comunicaciones y Transportes Dirección General de Aeronáutica Civil (DGAC) Boulevard Adolfo López Mateos No 1990 Alvaro Obregón Alpes Tlacopac C.P. 01010, México, D.F. MÉXICO 3. Interjet is a privately held Mexican corporation that is owned and controlled by Mexican citizens. OWNERSHIP OF ABC AEROLINEAS, S.A. de C.V., d/b/a Interjet SHAREHOLDER CLASS I SHARES CLASS II SHARES PERCENTAGE OF CLASS II SHARES Miguel Alemán Velasco 9,000 7,497,524 23.75% Miguel Alemán Magnani 1,000 6,190,512 19.59% Estate of Mrs. Beatriz Alemán Velasco de Girón 4,149,882 13.13% Estate of Mr. Jorge Alemán Velasco 2,076,498 6.57% Francisco Javier Mondragón Alarcón 1,561,336 4.94% José Luis Garza Álvarez 158,000 0.50% Galem, S.A. de C.V. 9,962,208 31.52% TOTAL 10,000 31,595,990 100.00%
Page 5 SHAREHOLDER OWNERSHIP OF GALEM, S.A. DE C.V. NUMBER OF SHARES HELD PERCENTAGE OF SHARES Miguel Alemán Velasco 450 90 % Miguel Alemán Magnani 50 10 % All of the shareholders listed above are citizens of Mexico. Jorge Alemán Velasco and Beatriz Alemán Velasco de Girón were the brother and sister of Miguel Alemán Velasco. Miguel Alemán Velasco and Miguel Alemán Magnani are father and son. 4. Interjet holds necessary and appropriate authority issued by the Mexican DGAC to enable Interjet to conduct international transportation of passengers, property and mail on the scheduled and charter routes that the new Agreement grants to Mexican airlines. 5. The Government of Mexico has designated Interjet as a Mexican air carrier under the new Agreement. 6. Interjet s fleet has grown substantially over recent years, and Interjet currently operates over 40 A320 aircraft and over 20 Sukhoi SuperJet 100 aircraft. 7. Interjet maintains its aircraft in accordance with an airworthiness program approved by the Mexican DGAC in compliance with ICAO Annexes 1, 6 (Part I) and 7, as well as the maintenance programs of the aircraft manufacturers.
Page 6 8. Interjet has an experienced and well-qualified management team with extensive experience in providing domestic and international scheduled passenger services. 9. Interjet has been profitable for many years, operating as an independent, privately-owned airline. The Government of Mexico does not have any ownership or financial interest in Interjet, and Interjet has not received any financial assistance from the Government of Mexico. 10. Interjet maintains a valid Form 6411, Foreign Air Carriers Certificate of Insurance, on file with the FAA. 11. Interjet has not been involved in any tariff violations or fatal accidents in the past five years. 12. Interjet has a codesharing agreement with American Airlines under which Interjet displays the AA* code of American on certain of Interjet s domestic Mexican flights that connect with flights operated by American between the U.S. and Mexico. The Department has issued a statement of authorization to Interjet and an exemption to American to engage in this codesharing arrangement. 4/ Interjet does not have any other agreements or cooperative working agreements with any U.S. or foreign air carrier affecting its proposed services to the United States. 13. Interjet has executed the Montreal Agreement (OST Form 4523; Waiver of Liability Limits under the Warsaw Convention), and a signed copy was 4/ Notice of Action Taken, January 16, 2015; Docket DOT-OST-2014-0227.
Page 7 attached as Exhibit K to Interjet s Exhibits to its initial Application for a Foreign Air Carrier Permit filed in this docket on June 19, 2008. 14. Issuance of the authority requested by this Application is in the public interest. The issuance of the requested authority will implement the new Air Transport Agreement that establishes an open skies aviation relationship between the United States and Mexico. The liberalized relationship will enable the carriers of both countries to undertake a substantial expansion of U.S.- Mexico air service. Approval will enable Interjet to serve more U.S.-Mexico routes and expand the options available to the public for travel between these major countries. CONCLUSION For the foregoing reasons, the Department of Transportation should issue an amended foreign air carrier permit and an exemption to ABC Aerolineas, S.A. de C.V., d/b/a Interjet, to engage in the scheduled and charter foreign air transportation of persons, property, and mail between the United States and Mexico as set forth above. Respectfully submitted, Roller & Bauer, PLLC Attorneys for ABC Aerolineas, S.A. de C.V., d/b/a Interjet August 19, 2016 By: Moffett B. Roller
CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing Application of ABC Aerolíneas, S.A. de C.V., d/b/a Interjet, for Amendment of Foreign Air Carrier Permit and for an Exemption was this day served by email upon the parties listed below. No indication was received that any transmission by electronic mail had failed. August 19, 2016 Howard Kass Robert Wirick American Airlines Moffett Roller howard.kass@aa.com robert.wirick@aa.com Daniel A. Weiss United Air Lines dan.weiss@united.com Chris Walker Alex Krulic Robert Kneisley Leslie Abbott Jeremy Ross David Heffernan Joanne W. Young David Kirstein Evelyn Sahr Drew M. Derco Reese Davidson Nancy S. Sparks Bailey Leopard Anita Mosner Jennifer Nowak Delta Air Lines Southwest Airways Alaska Airlines Spirit Airlines JetBlue FedEx UPS chris.walker@delta.com alex.krulic@delta.com bob.kneisley@wnco.com leslie.abbott@wnco.com jeremy.ross@alaskaair.com dheffernan@cozen.com jyoung@yklaw.com dkirstein@yklaw.com esahr@eckertseamans.com dderco@eckertseamans.com rdavidson@eckertseamans.com nssparks@fedex.com gbleopard@fedex.com anita.mosner@hklaw.com jennifer.nowak@hklaw.com Stephen Cristina US State Department cristinasa@state.gov John Duncan FAA Flight Standards john.s.duncan@faa.gov