UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on April 11 , 201 4

NOTICE OF ACTION TAKEN

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_________________________________________________________________________________________________________ This serves as notice to the public of the action described below, taken by the Department official

in dicated (no additional confirming order will be issued in this matter).

Joint Application of D elta Air Lines , I nc . (Delta) ; Compass Airlines, LLC (Compass); and Aerovias de Mexico, S.A. de C.V. (Aeromexico)

, filed 3/10/14

, for:

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 Monterrey , Mexico

. 1

XX Exemption for Compass 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 Monterrey, Mexico. 2

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

- share services:

Delta requests a statement of authorization pursuant to 14 C.F.R. Part 212 to permit Delta to display the “AM” designator code of Aeromexico on flights operated by Delta b etween Los Angeles, California, and Monterrey, Mexico

.

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

- share services:

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

to di splay the “AM” designator code of Aeromexico on flights operated by Compass between Los Angeles, California, and Monterrey, 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 (Delta) (202) 842

- 4184, Lisa A. Harig (Compass) (703) 247

- 5487, and John R. Mietus (Aeromexico) (202) 747

- 5212

DOT Analyst: Brett Kruger (202) 366

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D I S P O S I T I O N

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

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

1 Delta proposes to commence year

- round service , and intends to display the “AM” designator code of Aeromexico,

on the Los Angeles

- Monterrey ro ute on or about October 1

, 2014

. 2 Compass proposes to commence year

- round service, and intends to display the “DL” designator code of Delta and

the “AM” designator code of Aeromexico, on the Los Angeles

- Monterrey route on or about October 1

, 2014.XX Deferred , statement of authorization to Delta (see remarks below)

XX Deferred, statement of authorization to Compass (see remarks below)

XX Deferred , waiver of 45

- day advance filing requirement under 14 CFR Part 212 (see remarks below)

The above action granting exemption authority to De l ta was effective when taken: April 11 , 201 4

, through April 11 , 2016

.

The above action granting exemption authority to Compass was effective when taken: April 11 , 2014

, through April 11 , 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

indicated:

XX Delta’s certificates of public convenience and necessity

XX Compass’ certificates of public convenience and necessity

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

Remarks/ Conditions : We will approve the request s of Delta and Compass for exemption authority. We note, however

, that we have not yet received notification from the Government of Mexico that it has

authorized Aeromexico to conduct code

- share services by displaying its code on Delta or Compass flights

in the Los Angeles

- Monterrey market. Therefore, we will defer action on the request s of Delta and Compass for statement s of authorization to display the Aeromexico code (and the associated waiver request)

. 3

The U.S.

- Mexico exemption authority granted to Delta and Compass 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 1 , 2014

, the date on which the applicants

propose to comm ence the subject service

.

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found

Delta and Compass 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 En ergy Policy and Conservation Act of 1975. To the extent not granted or deferred , we denied all requests in the

referenced application

. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

Pe rsons 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 effec tive 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.gov

3 Delta and Compass requested such a deferral in these circumstances

. See Application at 4, note 1.APPENDIX A

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 insur ance 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 Conve ntion 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 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 Principa l 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 applicable laws of the United States.

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

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