OST-96-1836 / Aero California / Exemption Renewal, Mexico-US / October 9, 1997

Notice: Pursuant to 14 C.F.R. 302.406, any person may support or oppose this application by filing an answer and serving a copy on all persons served with this application. The due date for answers is October 24, 1997.

for an exemption from 49 U.S.C. § 41301

Pursuant to 49 U.S.C. § 40109, Aero California S.A. de C.V. (Aero California) hereby submits this application for renewal of the exemptions from 49 U.S.C. § 41301, issued in Docket OST 96-1836, allowing it to conduct scheduled foreign air transportation of persons, property and mail. The specific routes for which Aero California seeks renewal of its authority are as follows:

(1) between the coterminal points Loreto and San Jose de Cabo, Mexico and the terminal point Los Angeles, California;

(2) between Culiacan, Mexico, on the one hand, and Los Angeles, California, on the other;

(3) between Hermosillo, Mexico, on the one hand, and Los Angeles, California, on the other;

(4) between La Paz, Mexico, on the one hand, and Los Angeles, California, on the other;

(5) between Manzanillo, Mexico, on the one hand, and Los Angeles, California, on the other;

(6) between San Jose del Cabo, Mexico and the terminal point Phoenix, Arizona.

(7) between Hermosillo, Mexico, on the one hand, and Tucson, Arizona, on the other;

(8) between the coterminal points Mazatlan, Guaymas and Tijuana, Mexico, on the one hand, and the terminal point Los Angeles, California, on the other; and

(9) between Durango, Mexico, on the one hand, and Los Angeles, California, on the other. /1

Aero California was granted exemption authority for a one-year term to provide service on the above routes in Docket OST 96-1836, issued October 18, 1997. It hereby requests that

1/ As in the case of its October 2, 1996 application for renewal, Aero California hereby relies upon the provisions of 5 U.S.C. § 558(c) as implemented by Part 377 of the Department Is Special Regulations, 14 C.F.R. § 377, to continue in effect all of its exemption authority pending final action on this application.

this authority be renewed for a period of one year or until 90 days following the Department's grant of its permit application, whichever occurs first. /2 In support of this application, Aero California submits the following:

1. Aero California is a corporation organized and existing under the laws of Mexico. It has continuously and successfully engaged in transporting persons, property and mail within Mexico since 1967. Aero California is headquartered at La Paz, Baja California Sur International Airport. With its fleet of DC-9 aircraft, Aero California currently provides service between points throughout the Baja California Peninsula and numerous other points within Mexico, on the one hand, and points in the United States, on the other.

2. On October 4, 1995, DOT issued a Notice of Action Taken ("NOAT") in Docket OST-95-696 granting exemption authority to Aero California to provide scheduled combination services between Hermosillo, Mexico and Tucson, Arizona through October 4, 1996. This NOAT was confirmed in Order 95-11-24.

3. On October 18, 1995, DOT issued an NOAT in Docket OST-95-701 renewing exemption authority under which Aero

2/ Aero California's application for issuance of a foreign air carrier permit, Docket 42012, was originally filed on February 21, 1984. That application, as amended, is still pending before the Department.

California is authorized to provide scheduled combination services, inter alia, as follows:

This exemption authority was granted through October 18, 1996 and

was confirmed by order 95-11-24.

4. on November 22, 1995, DOT issued an NOAT in Docket OST-95-790 granting exemption authority to Aero California to provide scheduled combination services between the coterminal points Mazatlan, Guaymas and Tijuana, on the one hand, and Los Angeles, California, on the other, through November 22, 1996. This NOAT was confirmed in Order 96-1-45.

5. On July 9, 1996, DOT issued an NOAT in Docket OST-96-1519 granting exemption authority to Aero California to provided scheduled combination services between Durango, Mexico, on the one hand, and Los Angeles, California, on the other, through July 9, 1997. This NOAT was confirmed in Order 96-8-36.

6. On October 18, 1996, DOT issued an NOAT in Docket No. 96-1836 renewing the exemption authority described in paragraphs 2 through 5 above for a period of one year. DOT has also issued additional exemption authority to Aero California in other dockets. See OST-97-2446, OST-97-2481 and OST-97-2791. Aero California will, by separate applications, seek renewal of these other exemption authorities.

8. Renewal of Aero California's exemption authority issued in Docket OST 96-1836 is warranted pursuant to the Air Transport Agreement for the same reasons recognized by the Department in granting Aero California's original exemption applications and subsequent renewals thereof. Aero California continues to be licensed by the Mexican Ministry of

3/ Formally adopted November 21, 1991.

Communications and Transportation to perform these services. Renewal of Aero California's exemption authority will enable it to continue to provide valuable transportation service to the public on U.S./Mexico routes. Accordingly, grant of this amended application will benefit the traveling and shipping public and further the public interest.

WHEREFORE, for the reasons stated above, Aero California respectfully requests the Department of Transportation to renew its exemption authority issued in Docket 96-1836 for the routes described herein for a period of at least one year or until 90 days following the Department's approval of Aero California's application for a foreign air carrier permit in Docket 42012, whichever occurs first.

Respectfully submitted,

David H. Coburn

STEPTOE & JOHNSON LLP

1330 Connecticut Avenue, N.W.

Washington, D.C. 20036

(202) 429-8063

Attorney for Aero California S.A. de C.V.

Dated: October 9, 1997