Aerovias de Mexico, S.A. de C.V. and Transportes Aeromar, S.A. de C.V.

OST-2007-27720 - Exemption and Codeshare Statement of Authorization - Mexico City/San Luis Potosi-San Antonio

March 23, 2007

Joint Application for Exemption and Codeshare Statement of Authorization

Aerovias de Mexico, S.A. de C.V. and Transportes Aeromar, S.A. de C.V. respectfully request that the Department grant the following authorizations to permit the Joint Applicants to expand their Mexico-U.S. code-share/blocked-space services:

1. Exemption authority for one year to Aeromexico to the extent necessary to permit Aeromexico to engage in scheduled foreign air transportation of persons, property and mail between San Luis Potosi, Mexico, and San Antonio, Texas, via its code share agreement with Aeromar.
2. Statement of authorization for an indefinite period to permit Aeromar to display Aeromexico's "AM" designator code on flights operated by Aeromar between Aeromexico and Aeromar Application Mexico City and San Luis Potosi, Mexico, on the one hand, and San Antonio, Texas, on the other.

Aeromexico currently holds exemption authority in the Mexico City-San Antonio market, and serves that market daily with B-737 aircraft. Notice of Action Taken, dated January 11, 2007 in Docket OST-2005-23435. The grant of authority for Aeromar to display AM's designator code on its Mexico City-San Antonio flights will offer Aeromexico the option of serving the route with smaller aircraft.

Aeromar, also a flag carrier of the United Mexican States, holds exemption authority to provide service with small equipment on the Mexico City/San Luis Potosi-San Antonio routes. Notice of Action Taken dated November 2, 2005 (Docket OST-1995-379). On May 24, 2006, Aeromar filed an application to renew that authority. Although the application remains pending, the authority continues in effect under Part 377 of the Department's regulations. Aeromar serves each route twice weekly with ATR aircraft.

Counsel: Herbert Rosenthal, 202-785-9773 for Aeromar / Law Office of John Mietus, William Evans, 410-827-5074 for Aeromexico