UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on May 15 , 2015

NOTICE OF ACTION TAKEN

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- 00 45 , DOT

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_________________________________________________________________________________________________________ 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) ; Compass Airlines, LLC (Compass); and Aerovias de Mexico, S.A. de C.V. (Aeromexico)

, filed 4/15/15

, for:

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 Mazatlán , Mexico

. 1

XX Amendment of e xemption 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 Mazatlán , Mexico. 2

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 display the “AM” designator code of Aeromexico on flights operated by Compass between Los Angeles, California, and Mazatlán , 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, Kenneth P. Quinn and Jennifer E. Trock (Compass) ( 202 ) 663

- 8898

, and

John R. Mietus

, Jr. (Aeromexico) (202) 747

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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 Compass (subject to conditions, see below)

XX Deferred

, amendment of exemption authority to Aeromexico (see Remarks below)

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

XX Deferred

, waiver of the 45

- day advance filing requirement under 14 C.F.R. Part 212.

1 Compass proposes to commence Los Angeles

- Mazatlán service starting December 1, 2015 , and intends to display

Delt a ’ s “ DL ” designator code and Aeromexico ’ s “ AM ” designator code

. 2 Aeromexico currently holds exemption authority to engage in scheduled foreign air transportation of persons, property, and mail between Los Angeles and Mazatlán by placing its designator code on flights operated by Delta.

See Notice of Action Taken dated July 25, 2014, in these Dockets. Aeromexico seeks an amended exemption to serve the route by placing its code on Compass

- operated flights.The above action granting exemption authority to Compass was effective when taken: May 15 , 2015

, through May 15 , 201 7

.

The above action s deferring on the requests for amended exemption authority to Aeromexico , a

statement of authorization to Compass, and a waiver of the 45

- day advance filing requirement were effective: May 15 , 2015

.

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 Compass’ certificates of publi c convenience and necessity

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

Remarks : We will approve the request of 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 Compass flights in the Los Angeles

- 

### Mazatlán
market. Therefore, we will defer action on th e request s of Aeromexico for amended exemption authority,

and of Compass for a statement of authorization to display the Aeromexico code (and the associated waiver request)

. On the other hand, our action here will permit the Delta

- Compass code

- share services to proceed without further a ction of the Department.

Conditions: The U.S.

- Mexico exemption authority granted to 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 December 1, 2015

, the date on which Compass propose s to commence the subj ect service

.

The Delta

- Compass 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 C.F.R. 257 and with any amendments to the Departme nt’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 s old in the name of the carrier holding out such service in computer reservation systems and elsewhere; that the carrier selling 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 operating carrier be unaffected; and

(b) The authority granted here is specifically conditioned so that neither Compass nor Delta shall give a ny force or effect to any contractual provisions between themselves that are contrary to

these conditions

.

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found 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 Energy Policy and Cons ervation Act of 1975. To the extent not granted or deferred

, we denied all requests in thereferenced application

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

Persons entitled to pe tition 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 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

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 t he 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 wi th 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 complia nce 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 adequate to allow such airport(s) to be served; and

(7) Comply with such other reasonable terms, conditions, and limitations required by the public i nterest 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 authority granted shall be effective only during the period when the holder is in compliance with the conditions imposed above.

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