Order 20 10

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Dep artment of Transportation

on the 5 th day of January, 20 10

Served: March 9, 20 10

Docket DOT

- OST

- 2005

- 22228

ORDER ISSUING CERTIFICATE

Summary

By this order we grant Delta Air Lines, Inc. (referred to as Delta or t he captioned air carrier) consolidated certificate authority to provide combination service in various U.S.

- Mexico markets for which Delta holds economic authority by exemption or certificate.

Background and Consolidation Request

In furtherance of the D epartment’s regulatory streamlining initiative for licensing U.S. air carriers, we announced by Notice on February 13, 2009 (February Notice) our intention to realign the existing non

- open

- skies economic authority held by carriers already holding a blanket open

- skies certificate into new consolidated certificates of public convenience and necessity. 1 We stated that we would realign economic authority involving markets, other than Mexico, that are not open

skies partners of the United States into two certif icates

– an indefinite duration certificate for markets that are not entry

- or frequency

- limited and a five

- year certificate for limited

- entry and

limited

- frequency markets so that all authority in limited

- entry or limited

- frequency markets will

have a com mon expiration date. We stated that we would cover a carrier’s U.S.

- Mexico authority in a separate certificate, as a carrier must obtain new economic authority on a city

- pair basis each time it proposes to add a new city

- pair market to its U.S.

- Mexico ser vices.

1 Notice date d February 13, 2009

, in Docket DOT

- OST

- 2005

- 22228. In the Matter of Consolidated International Route Authority for:

DELTA AIR LINES, INC.

under 49 U.S.C. §41102 for a certificate of public convenience and necessity (U.S.

- Mexico)We invited carriers to request realignment of their economic authority by submitting a letter to the

streamlining docket, Docket DOT

- OST

- 2005

- 22228, identifying the authority to be included in the new certificates. Specifically, the carrier must identify the authority it holds for a particular market, whether it is limited to code

- share services only, whether the market is entry

- or frequency

- limited, the number of the order in which the authority was granted (for previously

issued certificate au thority) and the docket in which it was granted (for exemption authority). We stated that if no issues arise making it impractical to consolidate currently

- held authority as requested by the carrier, we would draft a self

- executing final order designed to issue the non

open

- skies market certificate(s) upon completion of the 49 USC 41307 Presidential review

process.

By letter dated October 1, 2009, Delta requested a consolidated U.S.

- Mexico certificate, and provided a listing of the U.S.

- Mexico city

- pair m arkets for which it seeks consolidation. 2

Decision

Under assigned authority and consistent with our streamlining and consolidated certificate initiative, we have decided to grant Delta’s consolidation request and to reissue Delta’s existing

economic auth ority to serve various city pairs in the U.S.

- Mexico market.

Delta is eligible to receive the consolidated certificate, as described in the February Notice, as it holds a blanket open

- skies certificate. 3

Our action here establishes for the carrier a new route certificate, attached at Appendix A. Each

U.S.

- Mexico city

- pair market is included in the certificate as a route segment. We find that grant of the certificate is consistent with the public convenience and necessity. 4 We find further that the

pen ding consolidated certificate request is not controversial and that it is appropriate to grant the authority at issue here under simplified procedures, as explained in the February Notice. 5

The authority in the attached certificate is consistent with t he aviation agreement between the United States and Mexico, authorizing the use of rights for which the United States has exchanged valuable operating rights. All of the authority conferred here contributes to the variety of price and service options avai lable to travelers and shippers.

We therefore find, under assigned authority, that the public interest warrants granting Delta the consolidated certificate attached at Appendix A, subject to the conditions attached.

2 The city

- pair markets for which Delta seeks a consolidated certificate are listed in Appendix B. This Appendix also

identifies markets that are limited to code

- share services only, and also identifies those markets that may be served on

a seasonal basis.

3 By Order 2007

- 4

- 27, issued April 17, 2007, Delta was issued a Certificate of Public Convenience and Necessity for Route 840, authorizing the carrier to serve the open

- skies partners of the United S tates.

4 Based on officially noticeable data, the Department has found the captioned air carrier fit, willing, and able to engage in foreign scheduled air transportation of persons, property, and mail using large aircraft. See Order

2007

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- 27.

5 In a ccordance with 14 CFR § 302.207, et seq ., we may, in our discretion, omit a tentative decision in proceedings and proceed directly to a final decision.The attached certificate of publ ic convenience and necessity is subject to the standard terms,

conditions, and limitations we consistently impose in the public interest. 6 The certificate holder may request amendment of the certificate to include newly obtained U.S.

- Mexico authority

thro ugh the addition of a new route segment, as described in the February Notice.

Upon effectiveness, the authority granted by this order supersedes any orders previously issued or actions taken by the Department granting the carrier operating rights in the listed markets. For those services currently operated under an exemption, the exemption will terminate upon the effectiveness of the attached certificate of public convenience and necessity.

Findings and Conclusions

In view of the foregoing and all the facts of record, we find and conclude that:

1. It is consistent with the public convenience and necessity to issue the captioned air carrier the certificate attached as Appendix A to this order;

2. On the basis of data officially noticeable under 14 CFR 302.2 4 of the Department’s regulations, the captioned air carrier is a citizen of the United States and is fit, willing, and able to perform properly the foreign air transportation described in the attached certificate and to conform to the provisions of Subtit le VII of Title 49, United States Code (Transportation), and to the Department’s rules, regulations, and requirements;

3. The public interest requires that the exercise of the privileges granted by the attached certificate be subject to the terms, conditions and limitations contained in the attached certificate and to such others required by the public interest as the Department may prescribe;

4. The issuance of the attached certificate to the captioned air carrier does not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975, as defined by section 313.4(a)( 1) of the Department’s regulations; 7 and

5. The public interest does not require an oral evidentiary hearing or a show

- cause proceeding on the application and the actions ta ken here. There are no material, determinative issues of fact requiring such procedures for their resolution.

In view of the above, and acting under authority assigned by the Department in its regulations, 14 CFR Part 385, we find that our action here i s consistent with Department policy.

6 See Appendix A for the type of service (direct carrier (own

- aircraft) vs. code

- share

- only) authorized in each U.S.

- Mexico city

- pair market, including the level of service (year

- round vs. seasonal) the carrier provides in each market. We remind the carrier to follow established procedures for requesting conversions of its direct

- carrier/code

- share

authori ty and/or noticing service level changes.

7 Our finding is based on the fact that the grant of this portion of the application would not result in a near

- term increase in annual fuel consumption in excess of 10 million gallons.ACCORDINGLY,

1

. We issue, as attached in Appendix A, a certificate of public convenience and necessity to Delta Air Lines, Inc., covering U.S.

- Mexico city

- pair markets for which Delta Air Lines, Inc., is authori zed to serve by exemption or certificate;

2. This order supersedes any orders previously issued or actions taken by the Department to the extent such order or action grants the carrier operating rights, by certificate or exemption, in markets covered by t he attached certificate;

3. The certificate issued to Delta Air Lines, Inc., will be effective upon the service date of this order;

4. Unless disapproved by the President of the United States under 49 U.S.C. § 41307, this

order shall become effectiv e upon 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 the Department’s ord er under that section, whichever occurs earlier; 8 and

5. We will serve this order on Delta Air Lines, Inc.; the Ambassador of Mexico in Washington, D.C.; the U.S. Department of State (Office of Aviation Negotiations), and

the Federal Aviation Administrat ion.

By:

PAUL L. GRETCH

Director

Office of International Aviation

(SEAL)

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

8 This order was submitted for section 4130 7 review on January 5, 2010. The 61 st day is March 8, 2010. Since the President or his designee did not disapprove this order before that date, it became effective on March 8, 2010.Appendix A



# Experimental

Certificate of Public Convenience and Necessity

for

ROUTE 901

This Certifies That



# Delta Air Lines, Inc.

is authorized, subject to the provisio ns of Subtitle VII of Title 49 of United States Code, the orders, rules, and regulations issued thereunder, and the attached Terms, Conditions, and Limitations, to engage in foreign air transportation of persons, property and mail.

This certificate is not transferable without the approval of the Department of the Transportation.

By Direction of the Secretary

Issued by Order 20 10

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- 12 Paul L. Gretch

On Jan uary 5, 2010 Director, Office of

Effective on March 8, 2010 International AviationOrder 20 10

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Route 901 Page 1 of 3

Terms, Conditions, and Limitations

Delt a Air Lines, Inc. for Route 901

is authorized to engage in scheduled foreign air transportation of persons, property and mail over the following U.S.

- Mexico city

- pair route segments:

Atlanta

- Acapulco Los Angeles

- Acapulco Nashville

- Cancun

Atlanta

- Ca ncun Los Angeles

- Aquascalientes

Atlanta

- Cozumel Los Angeles

- Cancun New Orleans

- Mexico City

Atlanta

- Guadalajara Los Angeles

- Culiacan

Atlanta

- Mexico City Los Angeles

- Guadalajara New York/Newark

- Mexico City

Atlanta

- Monterrey Los Angeles

- Hermosillo New Y ork/Newark

- Puerto Vallarta

Atlanta

- Puerto Vallarta Los Angeles

- Ixtapa/Zihuatanejo

Atlanta

- San Jose del Cabo Los Angeles

- La Paz Ontario

- Guadalajara Los Angeles

- Leon

Boston

- Cancun Los Angeles

- Loreto Orlando

- Cancun Los Angeles

- Manzanillo Orlando

- Mexi co City Chicago

- Guadalajara Los Angeles

- Mazatlan Chicago

- Mexico City Los Angeles

- Mexico City Phoenix

- Herm o sillo Los Angeles

- Puerto Vallarta

Cincinnati

- Cancun Los Angeles

- San Jose del Cabo Raleigh

- Cancun

Denver

- Mexico City Memphis

- Cancun Salt Lake City

- Cancun Memphis

- Cozumel Salt Lake City

- Guadalajara

Detroit

- Cancun Salt Lake City

- Mexico City

Detroit

- Cozumel Miami

- Merida Salt Lake City

- Puerto Vallarta

Detroit

- Mexico City Miami

- Mexico City Salt Lake City

- San Jose del Cabo

Detroit

- Monte rrey Detroit

- Puerto Vallarta Milwaukee

- Cancun San Antonio

- Mexico City

Detroit

- San Jose del Cabo Minneapolis/St. Paul

- Acapulco San Diego

- San Jose del Cabo

Harford

- Cancun Minneapolis/St. Paul

- Cancun Minneapolis/St. Paul

- Cozumel San Francisco

- M exico City

Houston

- Mexico City Minneapolis/St. Paul

- Ixtapa/Zihuatanejo San Francisco

- Puerto Vallarta Minneapolis/St. Paul

- Manzanillo San Francisco

- San Jose del Cabo Indianapolis

- Cancun Minneapolis/St. Paul

- Mazatlan Minneapolis/St. Paul

- Puerto Vallar ta Seattle

- San Jose del Cabo Las Vegas

- Mexico City Minneapolis/St. Paul

- San Jose del Cabo Las Vegas

- Monterrey Washington, DC

- CancunOrder 20 10

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Route 901 Page 2 of 3

This authority is subject to the following con ditions:

(1) The holder shall at all times conduct its operations in accordance with the regulations prescribed by the Department of Transportation for the services authorized by this certificate, and with such other reasonable terms, conditions, and limi tations as the Department of Transportation may prescribe in the public interest.

(2) The holder shall at all times conduct its operations in accordance with all treaties and agreements between the United States and other countries, and the exercise of th e privileges granted by this certificate is subject to compliance with such treaties and agreements and with any orders of the Department of Transportation issued under them. To the extent that the holder has authority to serve more than one country or po ints in more than one country on the same route segment, that authority does not confer upon the holder any additional rights (including

fifth

- freedom intermediate and/or beyond rights) in limited

- entry markets unless the Department has completed any neces sary carrier selection procedures to determine which carrier(s) should be authorized to exercise such rights and has notified the foreign country(ies) involved that any such selected carrier(s) has the required authority. In such cases, the fact that the carrier may hold authority to serve the countries (points) at issue on the same segment will not be considered as providing any preference to the holder in a carrier selection proceeding.

(3) The exercise of the authority granted here is subject to the holder’s first obtaining from the appropriate foreign governments such operating rights as may be necessary.

(4) The holder’s authority is effective only to the extent that such operations comply with all applicable requirements of the Federal Aviat ion Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government requirement s concerning security, the holder shall, before commencing any new service (including charter flights) to or from a foreign airport, contact its Principal Security Inspector (PSI) to advise the PSI of its plans and to find out whether the Transportation Se curity Administration has determined that security is adequate to allow such airport(s) to be served.

(5) The holder shall at all times remain a “Citizen of the United States,” as required by 49 U.S.C. 40102(a)(15).

(6) The holder shall maintain in ef fect liability insurance coverage as required under 14 CFR Part 205. Failure to maintain such insurance coverage will render a certificate ineffective, and this or other failure to comply with the provisions of Subtitle VII of 49 U.S.C. or the Department’ s regulations shall be sufficient grounds to revoke this certificate.

(7) The holder acknowledges that this certificate is granted to determine if the holder’s projected services, efficiencies, methods, rates, fares, charges, and other projected results w ill, in fact, materialize and remain for a sustained period of time, and to determine whether the holder will provide the innovative and low

- priced air transportation it proposed in its application for this authority.Order 20 10

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Route 901 Page 3 of 3

(8)(a) The holder may combine services on all city

- pair route segments of this certificate and

combine services on this certificate with U.S.

- Mexico combination services authorized by other Department of Transportation cer tificates or exemptions, subject to the conditions below.

(8)(b) The provisions in paragraph (8)(a), above, shall not authorize services which would constitute multiple designations on city

- pair route segments where such multiple designations are

not ag reed to by the United States and Mexico.

(9) The holder shall file a notice with the Department if it discontinues services on a city

- pair route segment for 90 days or longer. This notice shall be given as soon as the decision to discontinue service (ot her than seasonal/intermittent) is made, but in no case later than the 91 st
day of dormancy. Notices shall be filed in the form of a letter addressed to the U.S. Department of Transportation, U.S. Air Carrier Licensing Division, X

- 44, 1200 New Jersey Aven ue, SE, Washington, DC 20590, and shall identify the dormant city

- pair route segment, and the date the market became (or will become) dormant.

(10) Should the holder propose any substantial changes in its o wnership, management, or operations (as that ter m is defined in 14 CFR 204 of the Department’s regulations), it must comply with the requirements of 14 CFR 204.5.

(11) In the event the holder ceases all operations for which it was found “fit, willing, and able,” its authority under this certificate s hall be suspended under the terms of 14 CFR 204.7 and the holder may neither recommence nor advertise such operations unless its fitness to do so has been redetermined by the Department. Moreover, if the holder does not resume operations within one year o f its cessation, its authority shall be revoked for dormancy.

The authority to serve each city

- pair route segment in this certificate shall continue in effect until March 8, 2015 ; notwithstanding the above

, however , the authority to serve any city

- pair ro ute segment shall expire automatically and revert to the Department (a) the 90 th day after the holder discontinues service on that segment, or (b) the holder notifies the Department (as provided in this certificate) that the segment is dormant, whichever o ccurs earlier; unless the Department earlier suspends, modifies, or deletes the authority.Appendix B Page 1 of 2

List of Currently

- Held U.S.

- Mexico Economic Authority

Submitted for Consolidation by Delta

Markets Where Delta is Authorized to P rovide Service Using its Own Aircraft 1

1 We note that the information shown on this list has been copied directly from the carrier’s exhibit in its consolidation request.Appendix B Page 2 of 2

List of Currently

- Held U.S.

- Mexico Economic Authority

Submitted for Consolidation by Delta

Markets Where Delta is Authorized to Provide Service on a Code

- Share Basis Only 2

2 We note that the information shown on this list has been copied directly from the carrier’s exhibit in its consolidation request