DOCKET OST-97-2481
This serves as interim notice to the public of the action described below, taken orally by the Department official indicated; the confirming order or other decisional document will be issued as soon as possible.
Applicant: AERO CALIFORNIA, S.A. de C.V.
Date filed: May 7, 1997
Relief requested: Exemption from 49 USC section 41301 to permit Aero California to conduct scheduled, combination services in certain U.S.-Mexico markets (see Attachment 1 of the application), including the following five markets: 1) Loreto-Albuquerque; 2) Mazatlan-Phoenix; 3) Puerto Vallarta-Dallas/Fort Worth; 4) Puerto Vallarta-Phoenix; and 5) San Jose del Cabo-San Francisco. (On May 7, 1997, Aero California and American Airlines filed an undocketed, joint application for approval of their code-sharing arrangement in certain U.S./Mexican markets, including the above five, and American filed in Docket OST-97-2477 an application for underlying exemption authority to implement the arrangement. These requests are pending.)
If renewal, date of last action(s): An exemption to operate in the five U.S.-Mexico markets listed above is new authority.
Applicant representative(s): David H. Coburn, 202-429-8063
Responsive pleadings: Alaska Airlines, United Air Lines, Compania Mexicana and Continental Airlines all filed pleadings in connection with Aero California’s exemption application (and Aero California and American filed joint responses), but none of their submissions registered opposition to Aero California’s request for underlying authority in the subject five markets. Rather, they focused on code-share issues. We will address these issues in a separate order.
DISPOSITION
Action: Approved in part. (See remarks below.)
Action date: June 27, 1997
Effective date of authority granted: June 27, 1997, through June 27, 1998.
Basis for approval: United States-Mexico Air Transport Services Agreement of August 15, 1960, as amended and extended (Agreement).
Except to the extent exempted/waived, this authority is subject to the terms, conditions and limitations of Appendix A.
Remarks: In reaching our decision to grant Aero California authority to serve the five markets, we found that these operations are encompassed by the U.S.-Mexico Agreement, and we noted that the Mexican carrier’s request for underlying authority to conduct these services is unopposed. We determined that the circumstances of this case warranted duration of authority for one year (which is consistent with our usual policy of granting interim exemption authority). Also, we deferred action on Aero California’s request for underlying exemption authority in Docket OST-97-2481 to serve the additional U.S.-Mexico markets.
Action taken by Paul Gretch, Director, Office of International Aviation, under assigned authority (14 CFR 385). (Petitions for review may be filed from now until 10 days after the service date of the confirming order/letter. Filing of a petition shall not stay the effectiveness of this action.)
APPENDIX A
CONDITIONS OF AUTHORITY
In the conduct of the operations authorized, the holder shall:
(1) Not conduct any operations unless it holds a currently effective authorization from its homeland for such operations, and it has filed a copy of such authorization with the Department;
(2) Comply with all applicable requirements of the Federal Aviation Administration, including, but not limited to, 14 CFR Parts 129, 91, and 36;
(3) Comply with the requirements for minimum insurance coverage contained in 14 CFR Part 205, and, prior to the commencement of any operations under this authority, file evidence of such coverage, in the form of a completed OST Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS-260), Flight Standards Service (any changes to, or termination of, insurance also shall be filed with that office);
(4) Not operate aircraft under this authority unless it complies with operational safety requirements at least equivalent to Annex 6 of the Chicago Convention;
(5) Conform to the airworthiness and airman competency requirements of its Government for international air services;
(6) Comply with the requirements of 14 CFR Part 203, concerning waiver of Warsaw Convention liability limits and defenses;
(7) Agree that operations under this authority constitute a waiver of sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with respect to those actions or proceedings instituted against it in any court or other tribunal in the United States that are:
(a) based on its operations in international air transportation that, according to the contract of carriage, include a point in the United States as a point of origin, point of destination, or agreed stopping place, or for which the contract of carriage was purchased in the United States; or
(b) based on a claim under any international agreement or treaty cognizable in any court or other tribunal of the United States.
In this condition, the term "international air transportation" means "international transportation" as defined by the Warsaw Convention, except that all States shall be considered to be High Contracting Parties for the purpose of this definition;
(8) Except as specifically authorized by the Department, originate or terminate all flights to/from the United States in its homeland;
(9) Comply with the requirements of 14 CFR Part 217, concerning the reporting of scheduled, nonscheduled, and charter data;
(10) If charter operations are authorized, comply with the Department's rules governing charters (including 14 CFR Parts 212 and 380); and
(11) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department, with all applicable orders or regulations of other U.S. agencies and courts, and with all applicable laws of the United States.
This authority shall not be effective during any period when the holder is not in compliance with the conditions imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval under Title 49 of the U.S. Code (formerly the Federal Aviation Act of 1958, as amended).