OST-97-2933 / AeroMexico / Guadalajara-Dallas / September 24, 1997
NOTICE: Any person may support or oppose this application by filing an answer and serving a copy of the answer on counsel for Aerovias de Mexico, S.A. de C.V., and upon persons served with this application no later than October 9, 1997.
Application of
AEROVIAS DE MEXICO, S A DE C.V.
for an Exemption from 49 U.S.C. 41302 (Guadalajara-Dallas)
APPLICATION OF
AEROVIAS DE MEXICO, S.A. DE C V.
FOR AN EXEMPTION FROM 49 U.S.C. 41302
Pursuant to 49 U.S.C. 40109(c), Aerovias de Mexico, S.A. de C.V. ("Aeromexico"), respectfully requests an exemption from the provisions of 49 U.S.C 41302 to the extent necessary to permit it to engage in scheduled foreign air transportation of persons, property and mail between Guadalajara, Mexico, and Dallas, Texas. Aeromexico anticipates instituting the service on or about November 1, 1997 Since certain preparatory actions must be taken to promote and publicize the service, Aeromexico is requesting that the Department act expeditiously on this application. The exemption is requested for one year. In support of this application, Aeromexico states as follows:
1. Aeromexico is a flag carrier of the United Mexican States and currently holds a foreign air carrier permit which authorizes service between Mexico and numerous U.S. points. Order 91-5-25. Pursuant to its permit and various
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exemption authorities, Aeromexico provides extensive service between Mexico and the United States.
2. By this exemption request, Aeromexico seeks authority to engage in scheduled foreign air transportation of persons, property and mail between Guadalajara, Mexico, and Dallas, Texas The service initially will consist of one weekly DC-9S round trip to be operated on Fridays. Aeromexico will offer first competitive nonstop service in the market and therefore will provide significant benefits for U S.-Mexico passengers. Consequently, the proposal is pro-competitive.
3. Annex 1 to the 1960 Air Transport Agreement, as amended, between the United Mexican States and the United States, provides that a carrier designated by the Government of Mexico is entitled to operate "[f]rom a point or points in Mexico to a point or points in the United States." By Note dated February 2, 1996, Aeromexico was designated for the route in question. Aeromexico holds authority from the DGAC to serve the route.
4. Under 49 U.S.C. 40109(c), the Department may grant an exemption if it finds that such is consistent with the public interest. It is clear that the designation of a carrier by its homeland government is the most significant factor in determining whether grant of an application is in the public interest. For example, in Linea Aerea Nacional
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de Chile. Foreign Permit, 26 CAB. 604 (1958), the Civil Aeronautics Board stated as follows:
Where, as here, the applicant has shown that it holds the appropriate designation under an effective bilateral agreement to operate the route embraced by the application, the applicant has presented highly significant evidence bearing on the public Interest. See also Application of Aerovias Venezolanas S.A., Order 868-88 at 3 (provision for authority in a bilateral is prima facie evidence that grant thereof is in the public interest); Aerolineas Peruanas Foreign Permit, 31 C.A.B. 181 (1960). The same findings are warranted here, where Aeromexico has been designated for the route in question.
Moreover, the benefits which the new service will generate for business travelers and tourists alike further demonstrate that the exemption is consistent with the public interest. The proposed service will improve the available air service and facilitate travel in the Mexico-U.S. market to the benefit of the public.
5. Given the fact that Aeromexico will be designated for the authority requested herein and the fact that the exemption will only be effective for one year, the request is limited in scope and should be noncontroversial.
Aerovias de Mexico, S.A.
Application -4-
WHEREFORE, Aerovias de Mexico, S A. de C V respectfully requests that the Department grant the exemption sought herein.
DATED: September 24, 1997
Respectfully submitted,
William C. Evans
VERNER, LIIPFERT, BERNHARD, McPHERSON AND HAND, CHARTERED
Suite 700
901 - 15th Street, N.W.,
Washington, D.C. 20005
(202) 371-6030
Counsel for Aerovias de Mexico, S.A. de C.V.