UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on February 25

, 20 1 1



### N OTICE OF ACTION TAKEN

– DOCKET S DOT

- OST

- 200 0

- 7708 and DOT

- O ST

- 1997

- 3289

_____________________ ___________________________________________________________________________________________________________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will b e issued in this matter).

Joint Applicant s : AEROVIAS de MEXICO, S.A. de C.V. (Aeromexico), DELTA AIR LINES, INC. (Delta), and PINNACLE AIRLINES, INC. (Pinnacle)

Date Filed: October 21 , 2010

Relief requested: E xemption for Aeromexico from 49 USC § 413 01 to the extent necessary to permit Aeromexico to engage in scheduled foreign air transportation of persons, property, and mail, (1) between Atlanta, Georgia, on the one hand, and Monterrey, Cozumel, and Guadalajara, Mexico, on the other hand, by displayi ng its “AM” designator code on flights operated by Pinnacle, (2) between Detroit, Michigan and Monterrey, Mexico by displaying its “AM” designator code on flights operated by Pinnacle, and (3) between Aeromexico’s authorized U.S. gateway points and other p oints within the U.S. for the purpose of blind

- sector code sharing services between the U.S. gateway points and other points in the U.S. on flights operated by Pinnacle. Aeromexico requests this exemption authority be granted for a period of one

year.

Ae romexico also seeks a special authorization pursuant to 14 C.F.R. Part 216 to permit Aeromexico to commingle traffic not moving in foreign air transpor t ation between Mexico and Canada on the same services that carry traffic in foreign air transportation between Mexico and the United States and be tween the United States and Canada, in conjunction with

Aeromexico blind

- sector code

- share services on Pinnacle ’s U.S.

- Canada operations. Aeromexico requests this special authorization be granted for an indefinite period.

A statement of authorization for Pinnacle, pursuant to 14 C.F.R. Part 212, to allow Pinnacle to display Aeromexico’s “AM” designator code on Delta Connect ion flights Pinnacle operates (1 ) between Atlanta, Georgia, on the one hand, and Monterrey, Cozumel, and Guadalajara, Mexico, on the o ther hand ; ( 2 ) on a blind

- sector basis between Aeromexico’s U.S. gateway points and other points in the U.S. served by Pinnacle; and ( 3 ) on a blind

- sector basis between Aeromexico’s U.S. gateway points and points in Canada served by Pinnacle. Pinnacle req uests the statement of authorization be granted for an indefinite period.

Applicant representative s : William C. Evans (Aer omexico ), (410) 827

- 5074; Alexander Van der Bellen (Delta), (202) 842

- 4184; and Megan Rae Rosia ( Pinnacle )

, ( 202 ) 965

- 48 89

DOT analyst: Brett D. Kruger , 202

- 366

- 8025

Responsive pleadings: None

DISPOSITION

Action: Approved

, in part ( subject to conditions ), remainder (request for longer

- term authority) dismissed 1

Action date: February 25 , 20 1 1

1 Consistent with our standard policy, we grant the special authorization to Aeromexico for a one

- year period, and dismiss the request for longer

- term authority.Effective dates of authority granted : The exemption authority and special authorization granted to Aeromexico is

effective February 25 , 20 1 1

, through February 25 , 20 1 2

. The statement of authorization granted to Pinnacle is effective February 25 , 201 1 , and will remain in effec t for an indefinite duration , subject to conditions

.
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

, and codeshare conditions attached as Appendix B

.

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 was qualifie d to perform their proposed operations; (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 Policy an d

Conservation Act of 1975. To the extent n ot granted, 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 fort h 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 suc h 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 author ized, 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 a ll 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 A dministration 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 author ity, 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 t hat 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 Gove rnment 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 t ransportation" 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 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 applica ble 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 D epartment, 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 imp osed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval under Title

49 of the U.S. Code.

12/2007Appendix B

The Statement of Authorization granted is subject to the following conditio ns:



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

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

share agreement provid ing for the code

- sha re operations remains in effect;

( b ) Pinnacle, Delta , and/or Aeromexico , 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

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- 7708 and DOT

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- 3289 ; 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 between the carriers, our approval here is expressly conditioned upon the requiremen ts 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

respon sibility 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 con ditioned so that neither Pinnacle , Delta, nor Aeromexico shall g ive any force or effect to any contractual provisions between themselves that a re contrary to these conditions;

( e ) We may amend, modify, or revoke the authority granted at any time wi thout 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 immedi ately, and the filing of a petition for review will not alter its effectiveness.

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

- effectiveness or of such decision.