UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on July 30

, 20 1 3



### N OTICE OF ACTION TAKEN

– DOCKET S DOT

- OST

- 2013

- 0127 and DOT

- OST

- 2013

- 0115

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

Applicant s : A EROLITORAL, S.A. de C.V. d/b/a AEROMEXICO CONNECT (Aerolitoral); A EROVIAS de

ME XICO, S.A. de C.V. (Aeromexico) ; and DELTA AIR LINES, INC. (Delta)

1. Docket DOT

- OST

- 2013

- 0127

Date Filed: July 1, 2013

Date of last act ion: New authority

Relief Requested: Exemption for Aerolitoral pursuant to 49 USC §40109, to permit Aerolitoral to engage in scheduled foreign air transportation of persons, property, and mail between Leon/Guan a juato, Mexico, and Atlanta, Georgia.

Ae rolitoral further requests a statement of authorization pursuant to 14 C.F.R. Part 212 to permit Aerolitoral to display the “AM” designator code of Aeromexico and the “DL” designator code of Delta on flights operated by Aerolitoral between Leon/Guanajuato, Mexico, and Atlanta, Georgia.

2. Docket DOT

- OST

- 2013

- 0 115

Dates Filed: May 30, 2013 and July 1, 2013

Date of last action: June 19, 2013, in this Docket.

Relief requested: Amendment of e xemption for Delta pursuant to 49 USC §40109, authorizing Delta to engage in scheduled foreign air transportation of persons, property, and mail between Atlanta, Georgia, and Leon/Guanajuato

, Mexico , by placing its code on flights operated by Aerolitoral

. 1

Exemption for Aeromexico pursuant to 49 USC §40109, authorizi ng Aeromexico to engage in scheduled foreign air transportation of persons, property, and mail between Atlanta, Georgia, and Leon/Guanajuato, Mexico, pursuant to

Aeromexico’s code

- share arrangement with Delta, by placing its designator code on flights oper ated by Ex pressJet d/b/a

Delta Connection ; or by placing its designator code on flights operated by Aerolitoral. 2

Statement of authorization for ExpressJet under 14 CFR Part 212 to permit ExpressJet to display Aeromexico’s “AM” designator code on ExpressJ et

- operated flights between Atlanta, Georgia, and Leon/Guanajuato, Mexico.

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

- 747

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

- 842

- 4184

DOT analyst: Brett D. Kruger , 2 02

- 366

- 8025

1 Delta’s current exemption authority in Docket DOT

- OST

- 2013

- 0115 permits Delta to engage in scheduled foreign air transportation of persons, property, and mail between Atlanta, Georgia, and Leon/Guanajuato, Mexico, by displaying its code on flights opera ted by ExpressJet Airlines, Inc. (ExpressJet). See Notice of Action Taken dated Ju ne 19, 2013.

2 Aeromexico has a pending request in Docket DOT

- OST

- 2013

- 0115, for exemption authority to engage in scheduled foreign air transportation of persons, property, and mail between Atlanta, Georgia, and Leon/Guanajuato, Mexico, pursuant to Aeromex ico’s

code

- share arrangement with Delta, by placing its designator code on flights operated by ExpressJet. Aeromexico amends its pending request to permit it to also place its designator code on flights operated by Aerolitoral.Responsive pleadings: None

DISPOSITION

Action: Approved in part (exemption authority and statements of authorization for Aerolitoral in Docket DOT

- OST

2013

- 0127 ; amended exemption authority for Delta in Docket DOT

- OST

- 2013

- 0115 ; and exemp tion authority for Aeromexico to the extent it seeks to place its code on Aerolit o ral

- operated flights in Docket DOT

- OST

- 2013

- 0115 ), subject to conditions , remainder ( exemption authority for Aeromexico to the extent it seeks to place its code on ExpressJet

- operated flights and statement of authorization to ExpressJet in Docket DOT

- OST

- 2013

- 0115 ) deferred. See

Remarks below.

Action date: July 30 , 2013

Effective dates of authority granted : The exemption authority granted to Aerolitoral in Docket DOT

- OST

- 2 013

- 0127 is

effective July 30 , 2013 , through July 30 , 201 4

.

The statement of authorization permitting Aerolitoral to display the “AM” and “DL” codes is effective July 30 , 2013 , and will remain in effect for an indefinite duration, subject to conditions.

The amended exemption authority permitting Delta to place its “DL” code on Aerolitoral

- operated flights is effective July

30 , 2013 , through July 30 , 2015.

The exemption authority permitting Aeromexico to place its “AM” code on Aerolitoral

- operated flights i s effective July

30 , 2013, through July 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 lim itations of our standard foreign air carrier exemption conditions attached as Appendix A ; our standard U.S. carrier exemption conditions attached as Appendix B ; the codeshare conditions attached as Appendix C ; 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: We will approve the requests of Aerolitoral for exemption authority and a statement of

authorization to display the “AM” code of Aeromexico and the “DL” code of Delta . We will also approve the request of Delta for amended exemption authority to place its “DL” code on fl ights operated by Aerolitoral; and the request of Aeromexico for exemption authority t o place its “AM” code on flight s operated by Aerolitoral. We note, however, as we stated in our June 19, 2013 Notice of Action Taken in Docket DOT

- OST

- 2013

- 0115, that we have not yet received

notification from the Government of Mexico that it has authoriz ed Aeromexico to conduct code

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

- Leon/Guanajuato market. Therefore, we will continue to defer action on the request of Aeromexico for exemption authority to the extent that it seeks t o place its “AM” code on ExpressJet

- operated flights, and the corresponding request of ExpressJet for a statement of authorization to display the

Aeromexico code.

The U.S.

- Mexico exemption authority granted to Delta is subject to the dormancy notice requi rements set forth in condition 7 of Appendix A of Order 88

- 10

- 2

. Consistent with our standard policy, the dormancy notice period for Delta’s

Atlanta

- Leon/Guanajuato service will begin on August 5, 2013, the applicants’ proposed start

- up date for the subje ct
services.

The exemption authority granted to Delta is limited to services provided on a code

- share basis only.

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 w ith Department policy; (2) the applicant s w ere qualified to perform their proposed o perations; (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 Poli cy and Conservation Act of 1975. To the extent not granted or deferred , we de nied all requests in the referenced Docket s . 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 alter such effectiveness.

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

### Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant(s) 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 req uirements 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 dep arture 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 evidenc e 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 intern ational 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 i ts 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 Unite d States in its homeland;

(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 agre ement, 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 a ll 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. More over, this authority cannot be sold or otherwise transferred without explicit Department approval under Title

49 of the U.S. Code.

12/2007

### Appendix B U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. c arrier applicant(s) shall:

(1) Hold at all times effective operating authority from the government of each country served;

(2) Comply with applicable requirements concerning oversales contained in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insurance coverage, and for certifying that coverage to the Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise provided for in a Department Order, comply with the requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable requirements of the Federal Aviation Administration, the Tra nsportation 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 requirements 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 Security

Administration has d etermined that security is adequate to allow such airport(s) to be served; and

(7) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department of Transportation, with all app licable orders and regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

The authority granted shall be effective only during the period when the holder is in compliance with the conditions imposed above.

1/2008Appendix C

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



### (a) The statement of authorization w ill remain in effect only as long as (i) Aerolitoral, Aeromexico, and Delta continue to hold the necessary und erlying 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) Aerolitoral, Aeromexico, 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 services. Such notice should be filed in Docket s DOT

- OST

20 13

- 0 1 27 ; 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 concerning code

- share arrangements that may be adopted. Notwithstanding any provisions in the contract b etween 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 carrie r 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 opera ting 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 Administrat ion has issued a flight prohibition;

(d) The authority granted here is specifically conditioned so that neither Aerolitoral, Aeromexico, nor Delta shall give any force or effect to any contractual provisions between themselves that are contrary to these c onditions;

(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 the ir 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 effectiveness.

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

- effectiveness or of such decision.