Order 2014-12-16

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 29th day of December, 2014

Served: December 29, 2014

Joint Application of

ALITALIA- COMPAGNIAAEREA ITALIANA S.P.A

and

 Docket DOT-OST-2014-0210

ALITALIA- SOCIETÀ AEREA ITALIANA S.P.A. 

for an exemption under 49 U.S.C. §40109 and transfer of

foreign air carrier permit under 49 U.S.C. §41303 

In the Matter of

ALITALIA- COMPAGNIAAEREA ITALIANA S.P.A

and

ALITALIA- SOCIETÀ AEREA ITALIANA S.P.A.

and

AEROVÍAS DE MÉXICO S.A. DE C.V., 

SOCIÉTÉ AIR FRANCE, S.A.,

DELTA AIR LINES, INC. 

and C.A.I. First, S.p.A.

for statements of authorization to conduct certain 

code-share and/or wet lease operations

 

 

Dockets DOT-OST-2002-12482

 DOT-OST-2002-12896

 

 DOT-OST-2002-13985

 DOT-OST-2001-10417

 Undocketed
2

ORDER GRANTING EXEMPTION AND TO SHOW CAUSE

Summary

By this order we (1) grant the request of Alitalia – Società Aerea Italiana S.p.A. (Alitalia 

Società) for an exemption under 49 U.S.C. §40109, subject to conditions;1 (2) grant the request 

of Alitalia Società for transfer and reissuance of statements of authorization previously granted 

to Alitalia – Compagnia Aerea Italiana S.p.A. (Alitalia) to conduct certain code-share operations 

with Aerovías de Mexico, S.A. de C.V. (Aeromexico), Société Air France, S.A. (Air France), 

and Delta Air Lines, Inc. (Delta); (3) grant the request of Alitalia Società for transfer and 

reissuance of the statement of authorization previously granted to Alitalia to engage in long-term 

wet lease operations to Alitalia subsidiary C.A.I. First, S.p.A. (C.A.I. First); and (4) tentatively 

grant the application of Alitalia and Alitalia Società (collectively the Joint Applicants) for the 

transfer of Alitalia’s foreign air carrier permit to Alitalia Società.

Application

By application filed December 1, 2014 (as supplemented December 15, 2014, and December 23, 

2014), the Joint Applicants, foreign air carriers of Italy, request (i) exemption authority under 49 

U.S.C §40109 for Alitalia Società to enable it to engage in the operations authorized by Alitalia’s 

foreign air carrier permit pending transfer of such permit to Alitalia Società, and (ii) transfer and 

reissuance of Alitalia’s foreign air carrier permit under 49 U.S.C. §41303 from Alitalia to 

Alitalia Società.

2 Alitalia’s current foreign air carrier permit authorizes it to engage in the 

following services:

a. Foreign scheduled and charter air transportation of persons, property, and mail from any 

point or points behind any Member State(s) of the European Union via any point or 

points in any Member State and via intermediate points, to any point or points in the 

United States and beyond; 

b. Foreign scheduled and charter air transportation of persons, property, and mail between 

any point or points in the United States and any point or points in any member of the 

European Common Aviation Area; 

c. Foreign scheduled and charter cargo air transportation between any point or points in the 

United States and any other point or points;

 1 The conditions are attached as Appendix A.

2 The Joint Applicants state that, effective immediately upon completion of the transaction implementation 

agreement (the Transaction) between Alitalia and Etihad Airways P.J.S.C. (Etihad Airways), a foreign air carrier of 

the United Arab Emirates, most of Alitalia's assets and liabilities related to Alitalia's air transport services will be 

transferred to Alitalia Società through a contribution process under Italian law, which effectively entails the 

continuation by Alitalia Società of Alitalia' s business operations without interruption. The Joint Applicants further 

state that upon the closing of the Transaction, Alitalia, which is majority owned by EU Member State interests, will 

ultimately hold a 51% controlling equity stake in Alitalia Società. The Alitalia-Etihad Airways Transaction will 

close on or about December 31, 2014, at which time Alitalia Società will assume Alitalia's air transport services.
3

d. Other charters pursuant to the prior approval requirements set forth in 14 CFR Part 212 

of the Department’s regulations; and

e. Transportation authorized by any additional route rights made available to European 

Union carriers in the future. 

The Joint Applicants also request transfer from Alitalia to Alitalia Società of the following 

statements of authorization granted to Alitalia for code-sharing operations with Aeromexico, Air 

France, and Delta,

3 and wet lease operations with C.A.I. First:

• Statement of authorization for an indefinite duration to display the AM* designator code 

of Aeromexico on flights operated by Alitalia between (1) Rome and New York, (2) 

Rome and Miami, and (3) Milan and New York. See Department actions dated January 

14, 2009 in Docket DOT-OST-2002-12482 and DOT-OST-2002-12896.

• Blanket statement of authorization for an indefinite duration to display the AF* 

designator code of Air France on transatlantic flights operated by Alitalia. See 

Department action dated January 9, 2009, in Docket OST-2002-13958.

• Blanket statement of authorization for an indefinite duration to display the DL* 

designator code of Delta on flights operated by Alitalia between (1) any point or points in 

Italy and any point or points in the United States (either nonstop or via intermediate 

points), (2) any points in Italy, and (3) between any point or points in Italy or the United 

States and any point or points in any third country. See Notice of Action Taken in 

Docket OST-2001-10417 on December 23, 2008.

• Undocketed statement of authorization previously issued by the Department on April 12, 

2013, with an expiration date of April 16, 2015, which allows Alitalia to engage in a 

long-term west lease of various aircraft to its subsidiary C.A.I. First for use in certain 

code-sharing operations with Delta. See Undocketed Department action 2013-148.

The Joint Applicants state that Alitalia's wholly-owned subsidiaries C.A.I. First and CityLiner, 

S.p.A. (CityLiner) will become wholly-owned subsidiaries of Alitalia Società upon the closing of 

the Transaction and ask that the underlying exemptions issued to C.A.I. First and CityLiner be 

permitted to continue in force and effect upon the closing of the Transaction.

4

 

 3 The Joint Applicants incorporate by reference all notices of additional code-sharing previously filed in the captioned 

dockets.

4 C.A.I. First holds an exemption under 49 U.S.C. §40109 to the extent necessary to permit it to display the DL*

designator code of Delta on C.A.I. First flights within the European Union. See Notice of Action Taken in Docket 

DOT-OST-2001-10417 on April 10, 2013. CityLiner holds an exemption under 49 U.S.C. §40109 to the extent 

necessary to permit it to display the DL* designator code on CityLiner flights within the European Union and 

between the European Union and points in third countries. See Notice of Action Taken in Docket DOT-OST-2012-

0038 on April 9, 2014. C.A.I. First and CityLiner will continue to utilize these exemptions to the extent necessary 

for the display of the DL* designator code on flights they operate upon closure of the Transaction. The Joint 

Applicants note that the exemption authority held by C.A.I. Second, S.p.A. (C.A.I. Second), another Alitalia 

subsidiary, expired on March 18, 2013, and no action is requested with respect to C.A.I. Second at this time.
4

The Joint Applicants provided evidentiary materials required by 14 CFR Part 211 of our 

regulations to support their requests for authority. In their December 15, 2014 supplemental 

filing, the Joint Applicants provided the Department with Alitalia Società’s draft homeland 

economic license and Air Operator’s Certificate, as well as clarification on its request for 

transfer. On December 23, 2014, the Joint Applicants provided Alitalia Società’s final homeland 

economic license and Air Operator’s Certificate.

We received no answers to the application.5

Decision

We have decided to grant to Alitalia Società’s requests for exemption authority and statements of 

authorization, as described below and subject to conditions. We have also tentatively decided to 

grant, subject to show-cause procedures, transfer of Alitalia’s foreign air carrier permit to 

Alitalia Società, as described below and subject to conditions.

Specifically, we will grant Alitalia Società exemption authority for the services set forth in 

ordering paragraph 1 below. We will also grant Alitalia Società code-share statements of 

authorization so that it may conduct its proposed code-share operations with Aeromexico, Air 

France, and Delta, subject to conditions.6 We grant the request of Alitalia Società for transfer 

and reissuance of the statement of authorization previously granted to Alitalia to engage in longterm wet lease operations to Alitalia subsidiary C.A.I. First. We will tentatively transfer and 

reissue Alitalia’s foreign air carrier permit to Alitalia Società, as discussed below.

As an additional matter, Alitalia Società requested that we grant it, in addition to authority 

currently contained in the U.S.-EU Agreement, authority to conduct scheduled and charter 

transportation authorized by any additional route rights made available to EU carriers in the 

future. We are granting the request of Alitalia Società for this authority by exemption. We are 

requiring Alitalia Società, before it commences any new service under this authority, to provide 

us with evidence that it holds a homeland license for that new service, unless it has already 

provided such evidence.7

With respect to the applicant’s request for exemption authority, we find that grant of this 

authority, as conditioned, is consistent with the public interest. We also find that the applicant is 

financially and operationally qualified to perform the services authorized, and that it is 

substantially owned and effectively controlled in a manner consistent with the provisions of the 

U.S.-EU Agreement.8

 We also find that the authority sought by the applicant is encompassed by 

the U.S.-EU Agreement. 

 5 The Joint Applicants included in their application a motion for a shortened answer period of December 8, 2014. 

On December 5, 2014, the Department issued a Notice that shortened the answer period for this application to 

December 8, 2014, with replies to answers due December 11, 2014. 6 See Appendix B. 7 See Orders 2007-6-19 and 2007-10-1, and Orders 2007-7-13 and 2007-10-16, where we granted this authority to 

British Airways Plc. and Virgin Atlantic Airways Ltd., respectively.

8 We make this finding based on Article 2 (Reciprocal Recognition of Regulatory Determinations with Regard to 

Airline Fitness and Citizenship) of the Protocol to amend the U.S.-EU Air Transport Agreement, signed 

June 24, 2010. 
5

Further, we note that the applicant is properly licensed by its homeland to perform the proposed 

services. In addition, on December 24, 2014, the Federal Aviation Administration advised us 

that it knew of no reason why we should act unfavorably on the Joint Applicants’ requests. We 

have verified the applicant’s compliance with 14 CFR Parts 203 (Warsaw liability waiver), and 

205 (insurance requirements).

In view of the above, we find that grant of the requested exemption authority, as conditioned, for 

a two-year term, or until the requested permit authority becomes effective, whichever occurs 

earlier, is warranted.

Tentative Findings and Conclusions--Foreign Air Carrier Permit Transfer

We tentatively find and conclude that the public interest warrants granting the Joint Applicants’ 

request for transfer of Alitalia’s foreign air carrier permit to Alitalia Società, in the form attached 

as Appendix C and subject to the conditions attached.9

 In particular, we tentatively find and 

conclude that the factors which support our grant of exemption authority to Alitalia Società, as 

discussed above, also warrant granting the transfer of Alitalia’s foreign air carrier permit to 

Alitalia Società.

In view of the foregoing and all facts of record and acting under authority assigned by the 

Department in its regulations, 14 CFR Part 385, we tentatively find and conclude that:

1. It is in the public interest to transfer the foreign air carrier permit of Alitalia to Alitalia Società

in the form attached; 

2. Alitalia Società is fit, willing and able properly to perform the foreign air transportation 

described in the attached permit and to conform to the provisions of Title 49 of the U.S. Code, 

and to our rules, regulations, and requirements;

3. Alitalia Società is substantially owned and effectively controlled in a manner consistent with 

the provisions of the U.S.-EU Agreement;

4. The public interest requires that the exercise of the privileges granted by the permit should be 

subject to the terms, conditions, and limitations contained in the attached permit, and to such 

other reasonable terms, conditions, and limitations required by the public interest as we may 

prescribe;

5. The issuance of this foreign air carrier permit will not constitute a major regulatory action 

under the Energy Policy and Conservation Act of 1975, as defined in 14 CFR §313.4(a)(1) of our 

regulations;10

 9 The Joint Applicants’ request for transfer of foreign air carrier permit and related authorizations was summarized 

in the Department’s published weekly list of applications filed. This notice described the authority sought and gave 

interested persons an opportunity to submit evidence and objections to the transfer of this foreign air carrier permit 

authority. As discussed above, we received no objections.

10 This finding is based on the fact that the grant of this permit will not result in a near-term net annual change in 

aircraft fuel consumption of 10 million gallons or more.
6

6. The public interest does not require an oral evidentiary hearing on the application; and

7. Our action with respect to this foreign air carrier permit should, unless disapproved by the 

President of the United States under §41307 of Title 49 of the U.S. Code, become effective on 

the 61st day after its submission for §41307 review, or upon the date of receipt of advice from 

the President or his designee under Executive Order 12597 and implementing regulations that he 

or she does not intend to disapprove this portion of the Department’s decision under that section, 

whichever occurs earlier.

In view of the above, and acting under authority assigned by the Department in its regulations, 

14 CFR Part 385, we find that 1) our actions are consistent with Department policy; and 2) with 

respect to the exemption authority we are conferring on Alitalia Società, it is qualified to perform 

those operations, and that grant of the exemption authority is consistent with the public interest 

and would not constitute a major regulatory action under the Energy Policy and Conservation 

Act of 1975. 

ACCORDINGLY,

1. We grant the request of Alitalia – Società Aerea Italiana S.p.A. for an exemption under 49 

U.S.C. §40109 for the services set forth below: 11

a. Foreign scheduled and charter air transportation of persons, property, and mail from any 

point or points behind any Member State of the European Union via any point or points 

in any Member State and via intermediate points to any point or points in the United 

States and beyond; 

b. Foreign scheduled and charter air transportation of persons, property, and mail between 

any point or points in the United States and any point or points in any member of the 

European Common Aviation Area; 

c. Foreign scheduled and charter cargo air transportation between any point or points in the 

United States and any other point or points; 

d. Other charters pursuant to the prior approval requirements set forth in 14 CFR Part 212 of 

the Department’s economic regulations governing charters; and

e. Transportation authorized by any additional route rights made available to European 

Union carriers in the future.

2. Alitalia – Società Aerea Italiana S.p.A. shall, before it commences any new service under 

subparagraph (e) of ordering paragraph 1 above, provide the Department in Docket DOT-OST2014-0210 with evidence that it holds a homeland license for that new service, unless it has 

already provided such evidence to the Department;

 11 We acted on the request for exemption authority prior to the expiration of the answer period with the consent of 

all parties served.
7

3. The exercise of the privileges granted above is subject to compliance by Alitalia – Società 

Aerea Italiana S.p.A. with the conditions listed in Appendix A;

4. Our action granting the exemption authority described herein, subject to the provisions of the 

ordering paragraphs above, is effective immediately, for a period of two years from the issue 

date of this order, or until the attached permit becomes effective, whichever is earlier;

5. We may amend, modify, or revoke the exemption authority set forth herein at our discretion 

at any time and without hearing;

6. To the extent not acted upon above, we dismiss all requests for exemption authority in the 

referenced docket (DOT-OST-2014-0210);

7. We grant Alitalia – Società Aerea Italiana S.p.A., subject to the conditions attached as 

Appendix B, statements of authorization under 14 CFR Part 212 to permit:

(a) the display of the AM* designator code of Aerovías de Mexico, S.A. de C.V. for an 

indefinite duration on flights operated by Alitalia – Società Aerea Italiana S.p.A. between (1) 

Rome and New York, (2) Rome and Miami, and (3) Milan and New York;

(b) the display of the AF* designator code of Société Air France, S.A. for an indefinite 

duration on transatlantic flights operated by Alitalia – Società Aerea Italiana S.p.A.;

(c) the display of the DL* designator code of Delta Air Lines, Inc. for an indefinite duration 

on flights operated by Alitalia – Società Aerea Italiana S.p.A. between (1) any point or points 

in Italy and any point or points in the United States (either nonstop or via intermediate points), 

(2) any points in Italy, and (3) any point or points in Italy or the United States and any point 

or points in any third country; and

(d) the long-term west lease of various aircraft to its subsidiary C.A.I. First, S.p.A. for use in 

certain code-sharing operations with Delta Air Lines, Inc., effective through April 16, 2015;

8. With respect to the Joint Applicants’ request for approval of the transfer of the foreign air 

carrier permit held by Alitalia – Compagnia Aerea Italiana S.p.A. to Alitalia – Società Aerea 

Italiana S.p.A. in this proceeding, we direct all interested persons to show cause why our 

tentative decision on that application, set forth above, should not be made final;

9. Any interested person objecting to the issuance of an order making final our tentative findings 

and conclusions with respect to the Joint Applicants’ request for transfer of the foreign air carrier 

permit shall, no later than twenty-one (21) calendar days after the date of service of this order, 

file with the Department and serve on the parties to this proceeding, a statement of objections 

specifying the part or parts of the tentative findings and conclusions objected to, together with a 

summary of testimony, statistical data, and concrete evidence to be relied upon in support of the 

objections; if objections are filed, answers to objections are due no later than seven (7) calendar 

days thereafter;
8

10. If timely and properly supported objections are filed, we will give further consideration to 

the matters and issues raised by the objections before we take further action;

11. In the event no objections are filed, all further procedural steps shall be deemed waived, and 

the Department will enter an order which will (subject to Presidential review under §41307 of 

Title 49 of the U.S. Code) make final our tentative findings and conclusions set forth in this 

order; and

12. We will serve a copy of this order on Alitalia – Compagnia Aerea Italiana S.p.A.; Alitalia –

Società Aerea Italiana S.p.A.; Aerovías de Mexico, S.A. de C.V., Société Air France, S.A., 

Delta Air Lines, Inc.; the Embassy of Italy in Washington, D.C.; the Department of State; and 

the Federal Aviation Administration.

By:

PAUL L. GRETCH

Director 

Office of International Aviation 

(SEAL)

Appendices

An electronic version of this document is available on the World Wide Web at:

http://www.regulations.gov
Foreign Air Carrier Exemption Conditions Appendix A

In the conduct of the operations authorized, the foreign carrier applicant 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, the Transportation 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. Government 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, 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) Except as specifically exempted or otherwise 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, 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 

a Member State of the European Union;

(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, except as otherwise provided in the applicable aviation agreement, 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.

EU carrier 01/2008
Appendix B

Statement of authorization to permit Alitalia Società to display the AM* designator code of Aeromexico on 

flights operated by Alitalia Società between (1) Rome and New York, (2) Rome and Miami, (3) Milan and 

New York, and (4) Milan and Miami.

The statement of authorization granted is subject to the following conditions: 

(a) The statement of authorization will remain in effect only as long as (i) Alitalia Società and Aeromexico

continue to hold the necessary underlying authority to operate the code-share services at issue, and (ii) the codeshare agreement providing for the code-share operations remains in effect; 

(b) Alitalia Società /or Aeromexico 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 services. Such notices should be filed in Dockets DOT-OST-2002-12482 and 

DOT-OST-2002-12896.1

(c) The code-sharing operations conducted under this authority must comply with 14 CFR Part 257 and with any 

amendments to the Department's regulations concerning 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 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 established 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 Alitalia Società nor Aeromexico shall give 

any force or effect to any contractual provisions between themselves that are contrary to these conditions; and 

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

 1 We expect this notification to be received within 10 days of such non-effectiveness or of such decision.
Blanket statement of authorization to permit Alitalia Società to display the AF* designator code of 

Air France on transatlantic flights operated by Alitalia Società.

The statement of authorization granted is subject to the following conditions: 

(a) The statement of authorization will remain in effect only as long as (i) Alitalia Società and Air France 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-share operations remains in effect; 

(b) Alitalia Società and/or Air France must notify the Department no later than 30 days before they begin any new 

code-share service under the code-share services authorized here. Such notice shall identify the market(s) to be 

served, which carrier will be operating the aircraft in the added code-share market, and the date on which the 

service will begin. Such notice should be filed in Docket DOT-OST-2002-13958.

(c) Alitalia Società and/or Air France 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 services. Such notices should be filed in Docket DOT-OST-2002-13958.

1

(d) The code-sharing operations conducted under this authority must comply with 14 CFR Part 257 and with any 

amendments to the Department's regulations concerning 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 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 established in 

its contract of carriage with the passenger; and that the passenger liability of the operating carrier be unaffected; 

(e) The authority granted here is specifically conditioned so that neither Alitalia Società nor Air France shall give 

any force or effect to any contractual provisions between themselves that are contrary to these conditions; and 

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

 1 We expect this notification to be received within 10 days of such non-effectiveness or of such decision.
Blanket statement of authorization to permit Alitalia Società to display the DL* designator code of 

Delta on flights operated by Alitalia Società between (1) any point or points in Italy and any point 

or points in the United States (either nonstop or via intermediate points), (2) any points in Italy, and 

(3) between any point or points in Italy or the United States and any point or points in any third 

country.

The statement of authorization is subject to the following conditions: 

(a) The statement of authorization will remain in effect only as long as (i) Alitalia Società 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-share operations remains in effect; 

(b) Alitalia Società and/or Delta must notify the Department no later than 30 days before they begin any new codeshare service under the code-share services authorized here. Such notice shall identify the market(s) to be served, 

which carrier will be operating the aircraft in the code-share market added, and the date on which the service will 

begin. Such notices should be filed in Docket DOT-OST-2001-10417; 

(c) Alitalia Società and Delta 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 services. Such notices should be filed in Docket DOT-OST-2001-10417; 1

(d) The code-sharing operations conducted under this authority must comply with 14 CFR Part 257 and with any 

amendments to the Department's regulations concerning 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 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 established in 

its contract of carriage with the passenger; that the passenger liability of the operating carrier be unaffected; and 

that the operating carrier shall not permit the code of its U.S. code-sharing partner to be carried on any flight that 

enters, departs, or transits the airspace of any area for whose airspace the Federal Aviation Administration has 

issued a flight prohibition.

(e) Any service provided shall be consistent with the provisions of the U.S.-EU agreement, and all applicable 

agreements with other foreign countries involved. Furthermore, (i) nothing in the award of the blanket statement of 

authorization to Delta should be construed as conferring upon Delta rights (including code-share, fifth-freedom 

intermediate and/or beyond rights) to serve markets where U.S. carrier rights are limited unless Delta notifies us of 

its intent to serve such market and unless and until the Department has completed any necessary carrier selection 

procedures to determine which carrier(s) should be authorized to exercise such rights;2 and (ii) should there be a 

request by any carrier to use the limited-entry route rights that are included in Delta’s authority by virtue of the 

blanket statement of authorization granted here, but that are not being used by Delta the holding of such authority 

will not be considered as providing any preference for Delta in a carrier selection proceeding to determine which 

carrier(s) should be entitled to use the authority at issue.

(f) The authority granted here is specifically conditioned so that neither Alitalia Società nor Delta shall give any 

force or effect to any contractual provisions between themselves that are contrary to these conditions; and 

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

 1 We expect this notification to be received within 10 days of such non-effectiveness or of such decision. 2 The notice referenced in condition (b) above may be used for this notification.
Appendix C

Issued by

Order 2014-X-XX

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

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PERMIT TO FOREIGN AIR CARRIER

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ALITALIA- SOCIETÀ AEREA ITALIANA S.P.A.

A Foreign Air Carrier of Italy 

is authorized, subject to the following provisions, the provisions of Title 49 of the U.S. Code, and the 

orders, rules, and regulations of the Department of Transportation, to engage in:

Foreign scheduled and charter air transportation of persons, property, and mail from any 

point or points behind any Member State of the European Union via any point or points in 

any Member State and via intermediate points to any point or points in the United States 

and beyond; 

Foreign scheduled and charter air transportation of persons, property, and mail between 

any point or points in the United States and any point or points in any member of the 

European Common Aviation Area; 

Foreign scheduled and charter cargo air transportation between any point or points in the 

United States and any other point or points;

Other charters pursuant to the prior approval requirements set forth in 14 CFR Part 212 of 

the Department’s economic regulations governing charters; and

Transportation authorized by any additional route rights made available to European Union 

carriers in the future; provided, that the holder shall, before it commences any new service 

under such additional route rights, provide the Department with evidence that it holds a 

homeland license for that new service (unless it has already provided such evidence to the 

Department). Such evidence shall be filed in Docket DOT-OST-2014-0210.

This permit and the exercise of the privileges granted in it shall be subject to the terms, conditions and 

limitations in both the order issuing this permit and the attachment to this order, and to all applicable 

provisions of any treaty, convention or agreement affecting international air transportation now in effect, 

or that may become effective during the period this permit remains in effect, to which the United States 

and the holder’s homeland are or shall become parties.

This permit shall be effective on Month XX, 2014. Unless otherwise terminated at an earlier date 

pursuant to the terms of any applicable treaty, convention or agreement, this permit shall terminate (1) 

upon the dissolution or liquidation of the holder to whom it was issued; (2) upon the effective date of any 
treaty, convention, or agreement or amendment, which shall have the effect of eliminating the right for the 

service authorized by this permit from the service which may be operated by airlines of the European 

Union and its Member States (or, if the right is partially eliminated, then the authority of this permit shall 

terminate in like part); or (3) upon the termination or expiration of the applicable air services agreement 

between the United States and the European Union and its Member States. However, clause (3) of this 

paragraph shall not apply if prior to such termination or expiration, the foreign air transportation 

authorized herein becomes the subject of another treaty, convention or agreement to which the United 

States and the European Union and its Member States become parties.

The Department of Transportation has executed this permit and affixed its seal on Month XX, 2014.

By:

PAUL L. GRETCH 

Director 

Office of International Aviation 

(SEAL)
Foreign Air Carrier Permit Conditions

In the conduct of the operations authorized, the foreign carrier applicant 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, the Transportation 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. Government 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, 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) Except as specifically exempted or otherwise 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, 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 

a Member State of the European Union;

(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, except as otherwise provided in the applicable aviation agreement, 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.

EU carrier 1/2008