UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued by the Department of Transportation on October 30

, 20 1 3


### N OTICE OF ACTION TAKEN

– DOCKET S DOT

- OST

- 2013

- 0062, DOT

- OST

- 2013

- 0063 , DOT

- OST

- 1997

- 3289, and DOT

- OST

- 2000

- 7708

_____________________________________________________________________________________________________________________________ ___ 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 s : AEROVIAS de ME XICO, S.A. de C.V. (Aeromexico) ; DELTA AIR LINES, INC. (Delta) ; and COMPASS AIRLINES, LLC (Compass)

1. Docket DOT

- OST

- 2013

- 0062

Date Filed: March 22, 2013 Date of last action: April 16, 2013

Relief Requested: S tatement of authorization pursuant to 14 C.F.R. Part 212 to permit Delta to display the “AM” designator code of Aerovias de Mexico, S.A. de C.V. (Aeromexico) on flights operated by Delta between Detroit, Michigan, and Monterrey, Mexico. 1

2. Docket DOT

- OST

- 2013

- 0063

Date Filed: March 27, 2013 Date of last action: April 16, 2013

Relief requested: S tatement of authorization pursuant to 14 C.F.R. Part 212 to permit Compass to display the “AM” designator code of Aeromexico on flights operated by Compass between (1) Atlanta, Georgia, and Monterrey, Mexico; and (2) Detroit, Michigan, and Monterrey, Mexico. 2

3. Dockets DOT

- OST

- 1997

- 3289 and DOT

- OST

- 2000

- 7708

Dates filed: March 22, 2013; and March 27, 2013 Date of last action : April 16, 2013

Relief requested: Amendment of exemption for Aeromexico from 49 USC § 41301 to permit Aeromexico to conduct scheduled foreign air transportation of persons, property, and mail by displaying its “AM” designator code on flights operated by Delta and Compass between Detroit, Michigan, and Monterrey, Mexico. Aeromexico requests that this exemption be granted for a period of at least one year. 3

Applicant representative s : John R. Mietus, Jr. (Aer omexico ), 202

- 747

- 5212 ; Alexander Van der Bellen ( Delta ), 202

- 842

- 4184; and Lisa A. Harig (Compass), 703

- 247

- 5487

DOT analyst: Brett D. Kruger , 202

- 366

- 8025
Responsive pleadings: None

1 Our present action addresses the remaining portion of Delta’s pending March 22, 2013 application in the referenced Docket , on which the Department previously deferred action. See Remarks below.
2 Our present action addresses a portion of Com pass’ pending March 27, 2013 application in the referenced Docket, on which the Department previously deferred action . See Remarks below.
3 Our present action addresses the remaining portion of Aeromexico’s pending March 22, 2013, and March 27, 2013 appli cations in the referenced Dockets , on which the Department previously deferred action

. See Remarks below.DISPOSITION

Action: Approved , in part (subject to conditions), remainder deferre d ( s ee Remarks below )

.

Action date: October 30 , 2013

Effective dates of authority granted : The statements of authorization granted to Delta and Compass are effective October 30 , 2013, and will remain in effect indefinitely, subject to conditions.

The amended exemption authority granted to Aeromexico is effective October 30 , 2013

, through October 30

, 2014

. Basis for approval (bilateral agreement/reciprocity): United States

- Mexico Air Transport Services Agreement

. Except to the extent exempted/waive d , this authority is subject to the terms, conditions, and limitations of our standard foreign air carrier exemption conditions attached as Appendix A ; the code

- share conditions attached as Appendix B; and, as to the authority granted to Aeromexico, to the otherwise

- applicable terms, conditions, and limitations of Aeromexico’s foreign air carrier permit (Order 91

- 5

- 25).

Special conditions/Remarks: Our present action addresses the remaining portion of the March 22, 2013 application of Delta in Docket DOT

- O ST

- 2013

- 0062, on which the Department previously deferred action ; and part of the remaining portion of the March 27, 2013 application of Compass in Docket DOT

- OST

- 2013

- 0063 , on which the Department previously deferred action . By Notice of Action Taken dat ed April 16, 2013, among other things, we granted the request of Delta for exemption authority under 49 USC §40109 to engage in scheduled foreign air transportation of persons, property, and mail between Detroit, Michigan, and Monterrey, Mexico ; and the re quest of Compass for exemption authority under 49 USC §40109 to engage in scheduled foreign air transportation of persons, property, and mail between (1) Atlanta, Georgia, and Monterrey, Mexico; and (2) Detroit, Michigan, and Monterrey, Mexico. At that ti me, we noted that we had not yet received notification from the Government of Mexico that it had authorized Aeromexico to conduct code

- share services by displaying its code on Delta flights in the Detroit

- Monterrey market and on Compass flights in the Atla nta

- Monterrey and Detroit

- Monterrey markets. W e, therefore, deferred action on Delta’s and Compass’ request s for
statement s of authorization and the related request of Aeromexico in Dockets DOT

- OST

- 1997

- 3289 and DOT

- OST

- 2000

- 7708 for amended exemption aut hority.

We have now received notification from the Government of Mexico that it has authorized Aeromexico to conduct code

share services by displaying its code on Delta and Compass flights in the Detroit

- Monterrey market . We have not yet received notif ication from the Government of Mexico that it has authorized Aeromexico to conduct code

- share services by displaying its code on Compass flights in the Atlanta

- Monterrey market. T herefore, we are now granting statement s of authorization to permit Delta an d Compass to display the “AM” code in the Detroit

- Monterrey market, and the related request of Aeromexico for amended exemption authority . We will continue to defer action on the March 27, 2013 request of Compass for a statement of authorization to displa y the “AM” code in the Atlanta

- Monterrey market. 4

Action taken by: Paul L. Gretch, Director Office of International Aviation

_________________________________________________________ ___________________________________________________ Under authority as signed by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent with Department policy; (2) the applicant s w ere qualified to perform their proposed operations; (3) grant of the authority was consistent with the pub lic 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 or deferred , 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 regulati ons, 14 CFR §385.30, may file thei r 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 alter such effectiveness.

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

4 Aeromexico already holds exemption authority to engage in foreign air transportation of persons, property, and mail between Monterrey and Atlanta b y displaying its code on flights operated by Delta and/or Delta Connection carriers. See Docket DOT

- OST

2001

- 10369.Appendix A



### Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant(s) shall:
(1) Not conduct any operations unl ess 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, the Transportat ion Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1546 or 1550, as applicable. To assure compliance with all applicable U.S. G overnment requirements concerning security, the holder shall, before commencing any new service (including charter flights) from a foreign airport that would be the holder’s last point of departure for the United States, contact its International Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the IIR of its plans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such airport(s) to be served;
(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, wit h 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 wi th 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) Except as specifically exempted or ot herwise provided for in a Department Order, 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, f or 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 internatio nal 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 b e 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 1 4 CFR Part 217, concerning the reporting of scheduled, nonscheduled, and charter data;
(10) If charter operations are authorized, except as otherwise provided in the applicable aviation agreement, comply with the Department's rules governing charters (inc luding 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 co urts, 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 with out explicit Department approval under Title 49 of the U.S. Code.

12/2007Appendix B

The Statement s of Authorization granted is subject to the following conditions:



### (a) The statement s of authorization w ill remain in effect only as long as (i ) Aeromexico, Compass, and Delta continue to hold the necessary underlying authority to operate the code

- share services at issue, and (ii) the code

share agreement providing for the code

- sha re operations remains in effect;

(b) Aeromexico, Compass, and/or Delta as appropriate, must notify the Department immediately if the code

- share agreement under which these code

- share services are operated is no longer in effect or if the carriers decide to cease operating all or a portion of the approved code

- share serv ices. Such notice should be filed in Docket DOT

- OST

2013

- 0 062 or DOT

- OST

- 2013

- 0063, as appropriate ; 1



### (c) The code

- sharing operations conducted under this authority must comply with 14 CFR 257 and with any amendments to the Department’s regulations concer ning code

- share arrangements that may be adopted. Notwithstanding any provisions in the contract between the carriers, our approval here is expressly conditioned upon the requirements that the subject foreign air transportation be sold in the name of the carrier holding out such service in the computer reservation systems and elsewhere; that the carrier selling such transportation (i.e., the carrier shown on the ticket) accept responsibility for the entirety of the code

- share journey for all obligations es tablished in its contract of carriage with the passenger; and that the passenger liability of the operating carrier be unaffected;

(d) The authority granted here is specifically conditioned so that neither Aeromexico, Compass, nor Delta shall give any for ce or effect to any contractual provisions between themselves that are contrary to these conditions;

(e) We may amend, modify, or revoke the authority granted at any time without hearing at our discretion.

Persons entitled to petition the Department for review of this action under the Department’s regulations, 14 CFR §385.30, should file their petitions within seven days of the date of this action. This action is effective immediately, and the filing of a petition for review will not alter its effective ness.

1 We expect this notification to be received within 10 days of such non

- effectiveness or of such decision.