			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on May 19, 2003

NOTICE OF ACTION TAKEN -- DOCKET OST 1996-1257

________________________________________________________________________
________________________________________________________

This serves as notice to the public of the action described below, taken
by the Department official indicated (no additional confirming order
will be issued in this matter).

Applicant:  SERVICIOS AEREOS INTERESTATALES, S.A. de C.V.
           Date Filed:  April 15, 2003

Relief requested:  Exemption from 49 USC section 41301 to permit the
applicant to continue to conduct passenger charter operations between
Mexico and the United States, and other passenger charters in accordance
with 14 CFR Part 212, using small equipment.

If renewal, date and citation of last action:  May 8, 2002, in this
Docket.

Applicant representative:  Arturo Rodriguez Mata, 011-52-818152-50-00
DOT analyst:  Allen Brown,<PHONE_NUMBER>

Responsive pleadings:  None.

	DISPOSITION

Action:  Approved
                                               Action date:  May 19,
2003

Effective dates of authority granted:  May 19, 2003, through May 19,
2004

Basis for approval (bilateral agreement/reciprocity):  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 indicated:

     X  Standard exemption conditions.

Special conditions/Partial grant/Denial basis/Remarks:  In the conduct
of these operations, the carrier must adhere to all applicable
provisions of the U.S.-Mexico Agreement.  In the conduct of these
operations, the carrier may only use aircraft capable of carrying no
more than 60 passengers and having a maximum payload capacity of no more
than 18,000 pounds (small equipment).  The above grant includes
authority to conduct Third and Fourth Freedom charter operations.  While
we have subjected, consistent with the provisions of the Agreement,
Mexican carriers conducting charter operations with large aircraft to
prior approval or submission of notice for their Third and Fourth
Freedom charters, we determined that any such requirement was not
necessary on public interest grounds in this case, since the carrier
will be conducting these operations solely with small aircraft.  (Other
charter operations to/from the United States under this authority,
however, are subject to prior approval under 14 CFR Part 212.)  Further,
we are continuing to allow Mexican carriers conducting passenger
charters using small equipment to make stopovers in the United States in
the conduct of such operations.

Action taken by:   Paul L. Gretch, Director

		      Office of International Aviation

________________________________________________________________________
________________________________________________________

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) our action was consistent with Department
policy; (2) the applicant was qualified to perform its proposed
operations; (3) grant of the authority was consistent with the public
interest; and (4) grant of the authority would not constitute a major
regulatory action under the Energy Policy and Conservation Act of 1975.
To the extent not granted/deferred/dismissed, we denied all requests in
the referenced Docket.  We may amend, modify, or revoke the authority
granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR
§385.30, may file their petitions within seven (7) days after the date
of issuance of this Notice.  This action was effective when taken, and
the filing of a petition for review will not
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Appendix II – Documentation of the Emission Benefit Estimates for the
Performance of IM on Light Duty Diesel Vehicles

Calculation Methodology – See EXCEL Spreadsheet for Numeric Results
and References

The preferred methodology for estimating emission benefits of increasing
the stringency of an IM program is to use the federal MOBILE6.2 model.
However, the MOBILE6.2 model does not contain the capability to model IM
programs for diesel vehicles. The NJDEP Bureau of Motor Vehicle
Inspection and Maintenance (BMVIM) has developed the following
methodology for estimating benefits for an IM program for light duty
diesel vehicles (LDDV) that involves OBDII testing and smoke testing
components.

The first step is to obtain estimates of  LDDV counts from the New
Jersey Motor Vehicle Commission (MVC) registration database quarterly
extract from December 2007 data. Then estimate the projected inspection
failures that will result from each of the new IM program components.
The projected failures for LDDVs were estimated by considering current
failure rates for gasoline vehicles undergoing a similar inspection
test.  The smoke test failure rate was for vehicles that failed for
smoke only, i.e., vehicles that failed for smoke and some other test
were not included.  In addition, the failure rates and test volumes were
adjusted to account for the differing age distributions between light
duty gasoline and light duty diesel vehicles.  Emission benefits were
then calculated by multiplying the total benefits from the current
analogous gasoline IM program by the ratio of the projected new LDDV
failures to the current gasoline vehicle failures.

OBDII testing of Light Duty Diesel Vehicles:

Adding these vehicles currently untested for emissions to the IM program
will result in an estimated 4,190 new inspections per year with an
additional 356 failures. This represents about 0.3% of the current
program OBDII failure rate. The true impact will be driven by technology
changes implemented by the manufacturers and diesel vehicle sales in the
ensuing years.

Smoke testing of Light Duty Diesel Vehicles:

Adding these vehicles currently untested for emissions to the IM program
will result in an estimated 9,399 new inspections per year with an
additional 9 failures. This represents an added 0.008% to the overall
emission failure rate. Potential failure rates for Smoke tests on
vehicles equipped with new diesel particulate filter technology is still
an unknown. The true impact will be driven by technology changes
implemented by the manufacturers and diesel vehicle sales in the ensuing
years.

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