BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of ABC AEROLÍNEAS, S.A. de C.V. d/b/a/ INTERJET for an Exemption pursuant to 49 U.S.C. 40109 to engage in Scheduled Foreign Air Transportation of Persons, Property, and Mail (U.S./Mexico) Docket DOT-OST-2011- APPLICATION OF ABC AEROLÍNEAS, S.A. de C.V., d/b/a INTERJET FOR AN EXEMPTION Communications concerning this document may be served upon: Moffett B. Roller ROLLER & BAUER, PLLC Washington Dulles International Airport 45005 Aviation Drive, Suite 200 Dulles, VA 20166 Washington, D.C. 20036-6101 Tel: 202-331-3300 Fax: 202-331-3322 E-mail: airlaw@rollerbauer.com Counsel for ABC Aerolíneas, S.A. de C.V. August 23, 2011 NOTICE: Any person may support or oppose this application by filing an answer and serving a copy of that answer on counsel for ABC Aerolíneas, S.A. de C.V. and upon each person served with this application. ABC Aerolíneas requests expedited processing of this application.
BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of ABC AEROLÍNEAS, S.A. de C.V. d/b/a/ INTERJET for an Exemption pursuant to 49 U.S.C. 40109 to engage in Scheduled Foreign Air Transportation of Persons, Property, and Mail (U.S./Mexico) Docket DOT-OST-2011- APPLICATION OF ABC AEROLÍNEAS, S.A. de C.V. d/b/a INTERJET FOR AN EXEMPTION Pursuant to 49 U.S.C. 40109, ABC Aerolíneas, S.A. de C.V., d/b/a Interjet. (hereinafter Interjet ), hereby applies for an Exemption from 49 U.S.C. 41302 in order to engage in scheduled foreign air transportation of persons, property, and mail on the following routes: (1) Mexico City - San Antonio; (2) Mexico City - New York, and (3) Mexico City - Miami. Interjet requests expedited treatment of this Application and will report to the Department the results of its poll of the parties on the attached Service List. Interjet is a Mexican air carrier that was established in March of 2005 and began operations with a fleet of A320 aircraft in December of 2005. In October of 2008 the Department issued Interjet a foreign air carrier permit authorizing Interjet to perform scheduled and charter operations between the U.S. and
Application of ABC Aerolíneas, S.A. de C.V., Page 2 d/b/a Interjet, for an Exemption Mexico. 1/ DOT Order 2008-10-30, October 30, 2008. Since its founding Interjet has developed into a major Mexican airline, operating scheduled and charter service both domestically and internationally. It serves a broad network of scheduled routes within Mexico, and its numerous charter operations include the operation of charter flights to the United States. By this Application, Interjet requests exemption authority on the basis of comity and reciprocity to operate scheduled service on the Mexico City - San Antonio, Mexico City - New York, and Mexico City - Miami routes. On August 2, 2011, the DGAC granted Interjet authority to operate scheduled service on the foregoing city-pairs. Interjet is attaching as Exhibit 1 copies of the authorization and English translation for each route. As explained by the attached letter dated August 2, 2011, from Mr. Hector González Weeks, the Director General of the DGAC, to Mr. Paul Gretch, Director of the Office of International Aviation, Mexicana currently holds designations from the Government of Mexico to operate scheduled service on the three routes in question, but is currently not operating on any of them. Due to legal considerations related to the bankruptcy and cessation of operations by Mexicana, however, the DGAC cannot revoke the designations held by Mexicana, and the DGAC asks the Department to authorize Interjet to operate 1/ The routes on which Interjet s foreign air carrier permit authorizes it to perform scheduled service are : 1) Toluca, Mexico - Ontario, California; 2) Toluca, Mexico - Houston, Texas; 3) Toluca, Mexico - San Antonio, Texas; 4) Guadalajara, Mexico - Houston, Texas; and 5) Monterrey, Mexico - Houston, Texas.
Application of ABC Aerolíneas, S.A. de C.V., Page 3 d/b/a Interjet, for an Exemption scheduled service on these three routes only so long as Mexicana is not operating them. A copy of the letter from Mr. González and an English translation is attached as Exhibit 2 Approval of this Application is in the public interest because the conditional substitution of Interjet for Mexicana gives effect to the intent of the Air Transport Agreement between the U.S. and Mexico by allowing two Mexican air carriers to operate on each of the three routes as contemplated by the Agreement, but approval will not provide Mexican carriers with any advantage over U.S. carriers. Approval will also serve the public interest by increasing capacity and competition on the three routes from Mexico City to San Antonio, New York, and Miami. Furthermore, in the event that Mexicana resumes service on any of the three routes in question, Interjet (1) will immediately cease its service on that route and (2) will either (a) accommodate on another Mexican or U.S. air carrier any passengers that may hold tickets on Interjet on the route on which Interjet must cease service or (b) provide full refunds to such passengers. Interjet is prepared to accept conditions in its exemption authority that specifically impose these requirements. The request that Interjet is making in this Application is legally equivalent to the request that Volaris, another Mexican airline, made to the Department on June 20, 2011. Application of Concesionaria Vuela Compania de Aviacion, S.A.P.I., d//b/a Volaris, Docket DOT-OST-2011-0117. The Volaris application
Application of ABC Aerolíneas, S.A. de C.V., Page 4 d/b/a Interjet, for an Exemption also sought extrabilateral authority to operate scheduled service on three routes on which Mexicana held the formal designation but on which Mexicana had also suspended operations. In addition, just as in the present case, the DGAC wrote to the Department requesting that the Department authorize Volaris to operate on the routes subject to the reinstatement of Mexicana, and Volaris agreed to accept the same conditions that Interjet also proposes to accept. The Department granted the Volaris Application by Notice of Action Taken issued on July 11, 2011. Conclusion For the foregoing reasons, the Department of Transportation should issue an exemption from 49 U.S.C. 41302 to ABC Aerolineas, S.A. de C.V., d/b/a Interjet, for a period of one year in order to engage in scheduled foreign air transportation of persons, property, and mail between: 1) Mexico City, Mexico, and San Antonio, Texas, 2) Mexico City, Mexico, and Miami, Florida, and 3) Mexico City, Mexico, and New York, New York, as set forth above. Respectfully submitted, Roller & Bauer, PLLC Attorneys for ABC Aerolíneas, S.A. de C.V., d/b/a Interjet By: Moffett B. Roller August 23, 2011
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Subsecretary of Transport Directorate General of Civil Aeronautic 4.1.1906 Exhibit 2 Page 2 of 2 1943: 2011 Year of Tourism in Mexico PAUL L. GRETCH Director, Office of International Aviation U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590 Mexico City, 2 August, 2011 This is in reference to the Air Transportation Agreement dated August 15, 1960 between the Government of The United States of America and The Government of the United Mexican States, its extensions, amendments and modifications, by which it is provided that each of the Parties may designate up to two airlines for each city-pair in most cases, and up to three airlines in 14 markets, for the operation of scheduled combination air services as specified in Annex I of the Agreement. In this regard, and taking into consideration the situation that a Mexican airline (Mexicana de Aviacion), which is designated on various city-pairs in accordance with such Agreement, is undergoing and that we cannot at this moment cancel its designation and give it to another airline to operate on the same city-pairs, I would be grateful if you would consider evaluating the possibility of granting ABC Aerolineas, S.A. de C.V. Interjet, a Mexican airline, an extrabilateral authorization to operate scheduled combination air services on the following routes: Mexico-San Antonio; Mexico-New York; and Mexico-Miami, with the understanding that such authorization will be apart from the aforementioned Agreement and while Mexicana de Aviacion does not start operations on these routes, meaning that at no time will the operation limit of two airlines per city pair or three, whichever is applicable, be exceeded, and that such authorization will be extrabilateral and temporary in nature. Looking forward to a favorable decision to this special request, I take this opportunity to send you my best regards. SINCERELY EFFECTIVE SUFFRAGE, NO RE-ELECTION GENERAL DIRECTOR /S/ MR. HÉCTOR GONZÁLEZ WEEKS. [A stamped seal reading:] S.C.T. Directorate General of Civil Aeronautic 05 Aug 2011 Correspondence Sub-directorate of Regular Aviation Dispatch SSR/RGG cc: Mr. Felipe Duarte Olvera-Sub secretary of Transportation President cc: Directorate General of Civil Aeronautic- Offices President cc: ABC Aerolilneas, S.A. de C.V., Calle Ignacio Longores No. 102 Lote 2, Mz2, Col. Parque Industrial Exportec 1, 50200, Toluca, Edo de México. - President.
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 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 23, 2011 Moffett B. Roller Carl B. Nelson, Jr. Associate General Counsel AMERICAN AIRLINES carl_nelson@aa.com Hershel Kamen Vice President International, Regulatory and Policy CONTINENTAL AIRLINES hershel.kamen@united.com Steven Morrissey Managing Director - Regulatory Affairs & Policy UNITED AIR LINES steve.morrissey@united.com. Alexander Van der Bellen Managing Director Gov t Affairs & Associate General Counsel DELTA AIR LINES, INC. sascha.vanderbellen@delta.com Benjamin Slocum Assistant General Counsel US AIRWAYS benjamin.slocum@usairways.com Marshall S. Sinick Counsel for ALASKA AIRLINES msinisck@ssd.com Joanne W. Young Counsel for SPIRIT AIRLINES jyoung@yklaw.com Ed Faberman Executive Director AIR CARRIER ASSOCIATION OF AMERICA efaberman@wrf.com Jonathan Hill Counsel for JETBLUE jhill@dowlohnes.com Malcolm Benge Counsel for WORLD AIRWAYS mlbenge@zsrlaw.com Pierre Murphy Counsel for USA3000 pmurphy@lopmurphy.com; pmurphy@ggh-airlaw.com Krishna Urs U.S. Department of State UrsKR@state.gov John Allen Federal Aviation Administration john.allen@faa.gov