OST-96-1249 / Mas de Carga / Renewal and Amendment of Exemption / May 7, 1998

NOTICE: In the filing of this Application, MAS de CARGA, invokes the automatic extension provision of the Administrative Procedure Act, 5 U.S.C. Section 558 (c), as implemented by 14 C.F.R part 377. Any person may file answer in support of, or in opposition to this Application within fifteen days of this date.

In the matter of the Application of

Docket OST 96-1249

For Renewal and Amendment of Exemption Authority under 49 U.S.C. section 40109 (former Section 41 6(b)) of the Federal Aviation Act of 1958, as amended.

On February 1, 1993, the Department of Transportation (the "Department") issued Order 932-1 granting exemption authority to Aerotransportes MAS de Carga, S.A. de C.V. ("MAS de Carga") to perform scheduled foreign air transportation of property and mail between Cancun, Mexico and Miami, Florida (the "Cancun-Miami Authority"). In that order, the Department also granted exemption authority to MAS de Carga to perform scheduled foreign air transportation of property and mail between Mexico City, Mexico (including Toluca) and Los Angeles, California (the "Mexico-Los Angeles Authority"). Both the Cancun-Miami Authority and the Mexico City-Los Angeles authority were renewed by Orders 954-30, 96-8-36, and 97-8-18. The most recent renewal expires on June 18, 1998.

In accordance with the Federal Aviation Act of 1958, as amended, (the "Act"), application is hereby made by Aerotransportes MAS de Carga, S.A. de C.V. ("MAS de Carga"), for renewal and amendment of its exemption from the requirements of Section 402 of the Act and any such other provisions of the Act and Economic Regulations of the Department of Transportation ("DOT") so as to authorize MAS de Carga to continue to perform scheduled foreign air transportation of property and mail between (1) Mexico City, Mexico and Los Angeles, California, and (2) Cancun, Mexico and Miami, Florida, and to begin performing scheduled foreign air transportation of property and mail between (1) Guadalajara, Mexico and Los Angeles, California, (2) Guadalajara, Mexico and Miami, Florida, (3) Mexico City, Mexico and New York New York (4) Merida, Mexico and Miami, Florida, and (Sj Merida, Mexico and New York, New York.

The basis for the grant of these Authorities has been reaffirmed in the recent United States-Mexico Air Transportation Services Agreement. Reciprocity on the part of the Government of Mexico continues to provide additional justification for the approval of this operating authority. In light of these circumstances, MAS de Carga holds that renewal and amendment of its exemption authority is clearly mandated under established policies of the Department. In further support of its request for amendment, MAS de Carga states as follows:

1. MAS de Carga currently operates scheduled round trip flights each week on the Cancun-Miami route and the Mexico City-Los Angeles route.

2. MAS de Carga currently, and for some time now, operates charter flights for the newly requested routes under assigned authority from the Department pursuant to 14 CFR Part 212 of the Department's regulations.

3. MAS de Carga's fitness remains beyond question. MAS de Carga has continued its pattern of successful operations between all the requested routes. These services have been performed without accident or incident.

4. On November 21, 1991, the United States and Mexico signed an Amendment to the Air Transport Agreement of August 15, 1960 broadening air transport services between the two countries and permitting designated Mexican carriers to operate from "a point or points in Mexico to a point or points in the United States." All the requested routes are clearly within the scope of the amendments to the Air Transport Agreement between the United States and Mexico. MAS de Carga continues to be authorized and designated by the Government of Mexico to perform scheduled allcargo service between (a) Cancun and Miami and (b) Mexico City and Los Angeles. In addition, MAS de Carga has recently been authorized and designated by the Government of Mexico to provide scheduled all-cargo service between (1) Guadalajara and Los Angeles, (2) Guadalajara and Miami, (3) Mexico City and New York (4) Merida and Miami, and (5) Merida and New York (see attached Exhibit A- Document from Director General of Mexican Civil Aeronautical Directorate evidencing the designated authority; and Exhibit B- Diplomatic Note from the Mexican Embassy in Washington D.C. to the U.S. Department of Transportation granting MAS de Carga authority to operate the aforementioned newly designated routes). The Department, and the Civil Aeronautics Board before it, have long recognized that the inclusion of a particular service in a bilateral aviation agreement to which the United States is a party and designation of a qualified foreign air carrier for that service is, by itself, a prima facie indication of the public interest in operations on that route.

5. This application for renewal and amendment raises no environmental or energy issues. MAS de Carga has performed its services between the aforementioned routes entirely with modern aircraft that meet all noise requirements applicable to operations at all the respective airports. Since MAS de Carga is seeking authorization for scheduled service in markets where it already operates, the incremental environmental impact of such authorization can truly be said to be de minimus. For the same reason, approval of this amended request will not result in a near term increase in fuel consumption of 10 million gallons or more.

WHEREFORE, Aerotransportes MAS de Carga, S.A. de C.V. respectfully requests that the Department of Transportation grant MAS de Carga, by expedited process, exemption under 49 U S.C. Section 41301 and amend Docket No. OST 96-1249 to allow MAS de Carga to engage in foreign air transportation of property and mail as requested herein and grant such other and further relief as DOT may consider appropriate under the circumstances.

Respectfully submitted,

Celestino Pena, Esq.

Law Offices of Celestino Pena & Associates

1000 Brickell Avenue, Suite 480

Miami, Florida 33131

Attorneys for Aerotransportes MAS de Carga, S.A. de C.V.

DATED: May 7,1998