1E9Ct5D

In accordance with the Civil Aviation Law (Ley de Aviación Civil), Mexican air space isa general means of communication subject to national domain and to federal regulationand jurisdiction. The SCT regulates civil aviation and it has the authority to plan, formulate,and direct regulatory policy and programs for air transportation services; grantconcessions and permits for participation in different air transportation services; issuematriculation and flight-worthiness certificates; establish and verify the system of airroutes within national air space, as well as maintain the Mexican Aeronautical Registry.Air transportation services are divided into the following subcategories: air transportationservice to the public, which can be national or international, regular or irregularpassenger, cargo or postal shipping; and private air transportation services, which canbe commercial or non-commercial.2.2.1. Air transportation services to the publica) Regular air transportation services to the public. The SCT must grant a concession toprovide this service, which can only be granted to Mexican companies. In thisrespect, foreign investment is very limited because the Foreign Investment Lawdictates that foreign participation in such a Mexican company cannot exceed 25percent of the company’s total capital. To obtain such a concession, interested partiesmust show:i) That they possess the technical, financial, legal and administrative capacity toprovide the service;ii) The availability of aircraft and other relevant equipment that complies with theestablished requirements;iii) The availability of hangers, maintenance facilities, personnel and all of theremaining structures necessary for their operations.These concessions are granted for a term of 30 years, which can be extendedfor one or more terms of 30 more years.Those who obtain a concession to provide regular national air transportationservices to the public can also provide regular international air transportation servicesto the public if the SCT authorizes the corresponding routes;b) Irregular national air transportation services to the public. The SCT must grant a permitto provide this service, which can take the following forms:i) Charter services, through which the permit holder provides the partial or completeservice of one or more aircraft. Charter services for passengers can be:1) In the form of a tourist or excursion package where the services are sold tothe public with group or individual fares, a round trip is made, and lodgingand land transportation services are included;2) In the form of round-trip transportation of a group for special events for aspecified time period;257Regulated Activities