UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on April 15 , 20 1 4



### NOTICE OF ACTION TAKEN

– DOCKET S DOT

- OST

- 201 4

- 0045 , DOT

- OST

- 1997

- 3289, and

DOT

- OST

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- 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 issued in this matter).

Joint Application of Delta Air Lines, Inc. (Delta); and Aerovias de Mexico, S.A. de C.V. (Aeromexico) , filed

3/ 31 /14 , for:

XX Exemption for Delta for two years under 49 U.S.C. 40109 to provide the following service:

S cheduled foreign air transportation of persons, property, and mail between (1) New York, New York, and San Jose del Cabo, Mexico; (2) San Diego, California, and San Jose del Cabo, Mexico; and (3) Los Angeles, California, and Mazatlan, Mexico

. 1

XX E xemption for Aeromexico under 49 U.S.C. 40109 to provide the following service:

S cheduled for eign air transportation of persons, property, and mail between (1) San Diego, California, and San Jose del Cabo, Mexico; and (2) Los Angeles, California, and Mazatlan, Mexico

, by placing its designator code on flights operated by Delta

.

XX Stat ement of a uthorization 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 betwee n (1) New York, New York, and San Jose del Cabo, Mexico; 2 (2) San Diego, California, and San Jose del Cabo, Mexico; and (3) Los Angeles, California, and Mazatlan, Mexico

.

Applicant r ep resentative s: Alexander Van der Bellen (Delta) (202) 842

- 4184

, and John R. Mietus, Jr. ( Aeromexico ) ( 202 ) 747

- 5212

DOT Analyst: Brett D. Kruger (202) 366

- 8025

D I S P O S I T I O N

XX Approved

, exemption authority to Delta ( subject to conditions, s ee remarks below).

XX Deferred, exemption authority to Aeromexi co (see remarks below).

XX Approved in part, statement of authorization to Delta ( to display the “AM” code on New York

- San

Jose del Cabo flights )

, remainder d eferred ( to display the “AM” code on San Diego

- San Jose del Cabo and Los Angeles

- Mazatlan flight s , see remarks below ).

The above action granting exemption authority to Delta w as effective when taken: April 15 , 2014

, through April 15 , 2016

.

1 Delta states that it will begin seasonal service in the subject markets beginning December 20, 2014.

2 Aeromexico holds separate exemption authority to conduct services in the New York

- San Jose del Cabo market. See

Notice of Action T aken dated July 22, 2013, in Docket DOT

- OST

- 2013

- 0133.The above action granting a statement of authorization for Delta to display the “AM” code in the New York

- San

Jose del Cabo market was effective: April 15 , 2014

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

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the avi ation 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 Standard U.S. carrier e xemption c onditions (attached as Appendix A )

XX Conditions for statement of authorization (attached as Appendix B)

Remarks/Conditions: We will approve the request of Delta for exemption authority. We will also approve the request of De lta for a statement of authorization to display the “AM” designator code of Aeromexico on Delta flights between New York and San Jose del Cabo. We note, however, that we have not yet received notification

from the Government of Mexico that it has authoriz ed Aeromexico to conduct code

- share services by displaying its code on Delta flights in the San Diego

- San Jose del Cabo and Los Angeles

- Mazatlan market s . Therefore, we will defer action on the request of Aeromexico for exemption authority, and the corresp onding request of Delta for a statement of authorization to display the Aeromexico code in the San Diego

- San Jose del Cabo and Los Angeles

- Mazatlan markets

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The U.S.

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

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- 2

, and the notice requirements for seasonal/intermittent services as

set forth in Order 96

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- 24, at 5 . Consistent with our standard policy, the dormancy notice period will begin on

December 20 , 2014, Delta’ s proposed start

- up date for the subject services.

We acted on the application without awaiting expiration of the 15

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

On the basis of data officially noticeable under Rule 24(g) of the Department' s regulations, we found Delta 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 au thority 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 or deferred , we denied all requests in the refer enced application

. 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 re gulations, 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 o f this document is available on the World Wide Web at: http://www.regulations.gov

3 Delta 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) sh all:

(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 r equirements 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 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 securi ty is adequate 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 regul ations 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.



### 1/2008

### Appendi x B

The code

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

(a) The statement of authorization will remain in effect only as long as (i) Delta and Aeromexico continue to hold the necessary underlying authority to operate the co de

- share services at issue, and (ii) the code

- share agreement providing for the code

- share operations remains in effect.

(b) Delta and/or Aeromexico must promptly notify the Department if the code

- 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

- 2014

- 0045

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(c ) 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 requir ements 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 transportation ( i.e., the carrier shown on the ticket) accept re sponsibility 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.

( d ) The authority granted here is specifically conditioned 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, modify, or revoke the authority granted at any time without hearing at o ur discretion.

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

- effectiveness or of such decisi on.