UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on April 10

, 20 1 4



### N OTICE OF ACTION TAKEN

– DOCKET S DOT

- OST

- 1997

- 3289 and DOT

- O ST

- 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 i ssued in this matter).

Joint Applicant s : AEROVIAS de MEXICO, S.A. de C.V. (Aeromexico ) ; DELTA AIR LINES, INC. (Delta); and COMPASS AIRLINES, LLC (Compass)

Date Filed: March 10, 2014

Relief requested: E xemption from 49 USC §41301 to the extent necessa ry to permit Aeromexico to engage in scheduled foreign air transportation of persons, property, and mail between Aeromexico’s authorized U.S. gateway points and other points 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 Compass.

Aeromexico also seeks a special authorization pursuant to 14 C.F.R. Part 216 to permit it to commingle traffic between
Mexico and third countries (that is, traffic not in for eign air transportation) on the same services that carry traffic that is in foreign air transportation between Mexico and the United States and between the United States and third countries , in conjunction with third

- country code

- sharing services with Delt a/Delta Connection

.

Compass seeks a statement of authorization under 14 C.F.R. Part 212 to permit Compass to display Aeromexico’s “AM” designator code on Delta Connection flights Compass operates: (a) on a blind

- sector basis between Aeromexico’s U.S. gat eway points and other points in the U.S., and (b) between any point or points in the United States and any point or points in third countries on a blind

- sector basis for the carriage of Aeromexico’s traffic between Mexico and third
countries.

The joint ap plicants also request waivers of the 45

- day advance filing requirement for statements of authorization under 14 C.F.R. Part 212, and the 60

- day advance filing requirement for special authorizations under 14 C.F.R. Part 216.

Applicant representative s : Jo hn R. Mietus, Jr. (Aeromexico) 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

DISPOSITION

Action: Approved

. Action date: April 10 , 2014

Effective dates of authority granted : The exemption authority granted to Aeromexico is effective April 10 , 2014 , through April 10 , 2015

.

The special authorization under 14 C.F.R. Part 216 granted to Aeromexico is effect ive April 10 , 2014, through April 10

, 2015

.

The statement of authorization under 14 C.F.R. Part 212 granted to Compass is effective April 10 , 2014, and will remain in effect for an indefinite duration, subject to conditions

.

The waivers of the advance fil ing requirements under 14 C.F.R. Parts 212 and 216 are effective April 10 , 2014.Basis for approval (bilateral agreement/reciprocity): United States

- Mexico Air Transport Services Agreement

. Except to the extent exempted/waived, this authority is subject t o the terms, conditions, and limitations of our standard exemption conditions attached as Appendix A; to the code

- share conditions attached as Appendix B; and to the otherwise

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

- 5

- 25).

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 with Department policy; (2) Aeromexico was qualified to perform its 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 and Conservation Act of 1975. To the extent not granted, we denied all requests in the referenced application . We may amend, modify, or revoke the authority granted in t his 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 their petitions within seven (7) days afte r 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

### Appendix 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 auth orization 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 a ll 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 secur ity, 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 requi rements 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 l east 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 Or der, 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), b ut 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 a ny 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 Par ties 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 reportin g 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 t he 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.

12/2007Appendix B

The code

- share operations authorized here are subject to the following conditions:



### (a) The statement of authorization granted to Compass will remain in effect only as long as (i) Compass and
Aero mexico 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 ) Compass , Delta, and/or Aeromexico , as appropriate, mus t 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 code

- share market added, and the date on which the service will begin. Such notice should be filed in Docket s DOT

- OST

- 1997

- 3289 and DOT

- OST

- 2000

- 7708

. 1

( c ) Compass, Delta

, and/or Aeromexico, as appropriate, must promptly notify the Department if the code

- share agr eement providing for the code

- share operations is no longer effective or if the carriers decide to cease operating all or a portion of the approved code

- share services. Such notice should be filed in Dockets DOT

- OST

- 1997

- 3289 and DOT

- OST

- 2000

- 7708

. 2

(d ) 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 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 selli ng 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 operatin g carrier be unaffected.

( e ) The authority granted here is specifically conditioned so that neither Compass, Delta

, nor Aeromexico shall give any force or effect to any contractual provisions between themselves that are contrary to these conditions.

We m ay amend, modify, or revoke the authority granted at any time without hearing at our discretion.

1 The applicants request that any point notice given for one Delta/Delta Connection carrier be deemed notice for Delta, Express Jet Airlines, Inc., Endeavor Air, Inc., and Compass with respect to that point as served via any of Aeromexico’s authorized U.S. gateways. The applicants further incorporate by reference all previous beyond

- gateway point notices provided in the captioned dockets as notice with respec t to Compass.

2 We expect this notification to be received within ten (10) days after such non

- effectiveness or of such decision.