UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on May 12 , 201 4

NOTICE OF ACTION TAKEN

-- DOCKET S DOT

- OST

- 201 4

- 0060 and DOT

- OST

- 201 3

- 0114

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

Joint Application of UNITED AIRLINES, INC. ( United ) and SKYWEST AIRL INES, INC. d/b/a UNITED EXPRESS (SkyWest)

, filed 4/18 /14 for :

XX Amendment of e xemption for SkyWest for two years under 49 U.S.C. 40109 to provide the following

service:

Scheduled foreign air transportation of persons, property, and mail between Los Angeles, California, and Leon/Guanajuato , Mexico

. 1 2

Applicant R ep resentative s : Gerald F. Murphy and Steven J. Seiden (202) 624

- 2500

DOT Analyst: Brett D. Kruger (202) 366

- 8025

D I S P O S I T I O N

XX Granted, subject to conditions (see below)

The above action granting amended exemption authority was effective when taken: May 12 , 2014

, through May 12 , 2016

.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the aviation agreement between the United States and

Mexico.



### Except to the extent exempted or waived, this authority is subject to the terms, conditions, and

limitations i ndicated:

XX The holder s’ certificates of public convenience and necessity

XX Standard Exemption Conditions (attached)

1 SkyWest currently holds exemption authority to provide scheduled foreign air transportation of persons, property, and mail between Los Angeles and Leon/Guanajuato, pursuant to an arrangement with Delta Air Lines, Inc. (Delta), whereby SkyWest conducts se rvices as a Delta Connection carrier. See Notice of Action Taken dated June 26, 2013, in Docket DOT

- OST

- 2013

- 0114. We note that beginning July 2, 2014, Delta plans to replace the Delta Connection services provided by SkyWest in the Los Angeles

- Leon/Guana juato market, with Delta’s own

- aircraft services ( See Notice of Action Taken dated April 11, 2014 in Docket DOT

- OST

- 2013

- 0114).

2 United also holds exemption authority to provide scheduled foreign air transportation of persons, property, and

mail between Los Angeles and Leon/Guanajuato using its own aircraft. See Notice of Action Taken dated September 10, 2010, in Docket DOT

- OST

- 2010

- 0226, and Order 2013

- 4

- 11. The j oint a pplicants state that beginning on or about October 26, 2014, United plans to replac e its own

- aircraft service with United Express service operated by SkyWest.Remarks /Conditions : The U.S.

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

- 10

- 2

. Consistent with our standard policy, the dormancy notice period will begin on October 26 , 201 4

, SkyWest’s propose d start

- up date for the subject services

.

The code

- share operations conducted under this authorization are subject to the following conditions:

(a) The code

- sharing operations conducted under this authority must comply with 14 CFR 257 and with any amendment to the Department’s regulations concerning code

- share arrangements that

may be adopted. Notwithstanding any provisions in the contract between th e 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 suc h 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 carr ier be unaffected; and

(b) The authority granted here is specifically conditioned so that neither United nor SkyWest shall give any force or effect to any contractual provisions between themselves that are contrary to these

conditions.

Effective Date for St art

- up/Designation: United may begin marketing and selling the subject United Express services authorized here, but SkyWest cannot commence the United Express Los Angeles

Leon/Guanajuato services until October 26, 2014.

Under the U.S.

- Mexico aviation a greement, two U.S. carriers may be designated to provide own

- aircraft scheduled foreign air transportation of persons, property, and mail between Los Angeles, California and Leon/Guanajuato, Mexico. Currently, United and SkyWest are designated to provide these services; however, SkyWest provides its services as a Delta Connection carrier. As noted in footnote 1 above, Delta plans to replace the Delta Connection services provided by SkyWest in the Los Angeles

Leon/Guanajuato market, with Delta ’s own

- aircraft service beginning July 2, 2014. By Notice of Action Taken dated April 11, 2014, we stated that we would withdraw the designation of SkyWest effective upon the departure of its last scheduled flight in the subject market, but in no case effect ive later than 11:59 PM on July 1, 2014, and designate Delta to provide service in the subject market effective July 2, 2014. We will take a similar approach here.

The joint applicants state that United’s own

- aircraft service will be replaced with Unit ed Express service operated by SkyWest commencing on October 26, 2014. Under the circumstances presented in this case, including the fact that no party opposed the application, we have decided that it is in the public interest to grant SkyWest the request ed exemption authority. In this regard, we will withdraw the designation of United effective upon the departure of its last scheduled flight in the Los Angeles

Leon/Guanajuato market, but in no case effective later than 11:59 PM on October 25, 2014, and

d esignate SkyWest for Los Angeles

- Leon/Guanajuato services effective October 26, 2014. 3

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicants qualified to provide the exemption services authori zed.

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) grant of the authority was consistent with the public interest; and (3) 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

3 We will also provide the necessary notification to the Government of Mexico confirming United’s authority to provide code

- share service in the market.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

issu ance 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: www.regulations.govATTACHMENT

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier 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 De partment 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 Transportation Security Administrat ion, 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 determined that security is adequ ate to allow such airport(s) to be served;

(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 applicable orders and regulations of

o ther 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.



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