UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on June 4 , 201 4

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 201 4

- 00 79

_________________________________________________________________________________________________________ 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 D elta Air Lines , I nc . (Delta) ; and Aerovias de Mexico, S.A. de C.V. (Aeromexico)

, filed 5/20/14 for:

XX Exemption for Aeromexico 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 Oaxaca, Mexico.

XX Exemption for Delta 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 Oaxaca, Mexico. 1

XX Statement of authorization to Aeromexico in order to engage in the following code

- share services:

Aeromexico requests a statement of authorization pursuant to 14 C.F.R. Part 212 to permit

Aeromexico to display the “ DL ” designator code of Delta on flights operated by Aeromexico

between Los Angeles, California, and Oaxaca, Mexico

.

XX Waiver of the 45

- day advance filing requirement under 14 C

. F

. R

. Part 212.

Applicant rep resentatives : Alexande r Van der Bellen and Christopher Walker (Delta) (202) 842

- 4184 ; and John R. Mietus (Aeromexico) (202) 747

- 5212

DOT Analyst: Brett Kruger (202) 366

- 8025

D I S P O S I T I O N

XX Approved, exemption authority to Aeromexico (subject to conditions, see below)

XX Approved , exemption authority to Delta ( subject to conditions, see below)

XX Approved , statement of authorization to Aeromexico (subject to conditions, see below)

XX Approved , waiver of 45

- day advance filing requirement under 14 CFR Part 212

The above action granting exemption authority to Aeromexico was effective when taken: June 4 , 201 4

, through June 4 , 2015

.

1 Delta proposes to conduct Los Angeles

- Oaxaca services by display ing its “DL” designator code on Aeromexico

operated flights

.The above action granting exemption authority to Delta was effective when taken: June 4 , 2014

, through

June 4 , 2016

.

The above action granting a statement of authorization to Aeromexico was effective: June 4 , 2014

, and will remain in effect indefinitely, subject to conditions.

The above action granting a waiver of the advance filing requirement under 14 CFR Part 212 was

effective: June 4 , 2014

.

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

indicated:

XX Aeromexico’s foreign air carrier permit (Order 91

- 5

- 25)

XX Delta’s certificates of public convenience and necessity

XX Standard foreign carrier exemption conditions (attached as Appendix A)

XX Standard U.S. carrier exemption conditions (attached as Appendix B )

XX C ode

- share conditions (attached as Appendix C)

Conditions : The U.S.

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

- 10

- 2.

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

- share basis only.

Remarks: We acted on the application without awaiting expiration of the 15

- day answer period with the consent of all parties served with the application.

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 authorized.

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

Docket. We may amend, modify, or revoke the authority gran ted 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) d ays 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: 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 requirements of the Federal Aviation Administration, the Transportation Sec urity 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. Governme nt 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 Represe ntative (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 ser ved;

(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 evidence of such coverage, in the form of a completed OST Form 6411, with the F ederal 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 oper ational 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 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

agr eement 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 consi dered 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 P art 217, concerning the reporting 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 the 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.

12/2007

### APPENDIX B

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 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 Transportation Security Administration, and with all applicable U.S. Government req uirements 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 o r 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 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 applicable orders and regulations of other U.S. agencies and courts, and with all a pplicable 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.

1/08

### APPENDIX C

The code

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

(a) The statement of authorization granted to Aeromexico will remain in effect only as long as (i) Delta and Aeromexico 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) Delta and/or Aeromexico, as appropriate, must 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 w ill 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 DOT

- OST

- 201 4

- 0079

.

( c ) Delta and/or Aeromexico, as appropriate, must promptly notify the Department if the c ode

- share agreement 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 Docket DOT

- OST

- 201 4

- 0079

. 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 carrie rs, 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 selling such tr ansportation ( 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 operating carrier be u naffected; 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 Administration has issued a flight prohibition.

( e ) The authority granted here is specifically co nditioned so that neither Delta nor Aeromexico shall give any force or effect to any contractual provisions between themselves that are contrary to these conditions.

We may amend, modif y, or revoke the authority granted at any time without hearing at our discretion.

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

- effectiveness or of such decision.