BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________ ) Joint Application of ) ) AEROLITORAL, S.A. DE C.V., ) AEROVIAS DE MEXICO, S.A. DE C.V. , and ) DELTA AIR LINES, INC. ) DOCKET OST

- 2013

-

____ ) for exemptions and a code

- share ) statement of authorization ) ( Monterrey

- Chicago ) ) __________________________________________)

JOINT APPLICATION OF AEROLITORAL, AEROMEXICO,

AND DELTA FOR EXEMPTION S AND A STATEMENT OF AUTHORIZATION
Communications with respect to this document should be sent to:

John R. Mietus, Jr. LAW OFFICE OF JOHN MIETUS, LLC 6701 Democracy Boulevard Ste 300 Bethesda, Maryland 20817 (202) 747

- 5212 john@mietuslaw.com Counsel for AEROMEXICO and AEROLITORAL Alexander Van der Bellen Managing Director

– R egulatory Affairs & Associate General Counsel Christopher Walker Regional Director

– R egulatory Affairs DELTA AIR LINES, INC. 1212 New York Avenue, N.W. Washington, D.C. 20005 (202) 842

- 4184 sascha.vanderbellen@delta.com chris.walker@delta.co m

NOTICE: Any person may support or oppose this application by filing an answer and

serving a copy of the answer on counsel for the Joint Applicants and upon persons served with this application no later than November 1 9 , 2013. THE JOINT APPLICANTS INTEND TO POLL.

N ovember 4 , 2013BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________ ) Joint Application of ) ) AEROLITORAL, S.A. DE C.V., ) AEROVIAS DE MEXICO, S.A. DE C.V. , and ) DELTA AIR LINES, INC. ) DOCKET OST

- 2013

-

____ ) N ovember 4 , 2013 for exemptions and a code

- share ) statement of authorization ) ( Monterrey

- Chicago) )

______________________________________ ____) JOINT APPLICATION OF AEROLITORAL, AEROMEXICO,

AND DELTA FOR EXEMPTION S AND A STATEMENT OF AUTHORIZATION Aerovias de Mexico, S.A. de C.V. ("Aeromexico") , Aerolitoral, S.A. de C.V. (“Aerolitoral”), and Delta Air Lines, Inc. (“Delta”) (together, the “Joint Applicants”) respectfully apply for the following authority to engage in scheduled, foreign air transportation of persons, property, and mail between Monterrey, Mexico and Chicago, Illinois as described below : ( 1) an exemption, pursu ant to 49 U.S.C. § 4 0109 and for an initial period of one year , authorizing Aeromexico to operate such service in the Monterrey

- Chicago market; (2) a statement of authorization , pursuant to 14 C.F.R. Part 212 and of indefinite duration , authorizing Aeromexico and Aerolitoral to display the DL* designator code of Delta on Aeromexico and/or Aerolitoral

operated flights in the Monterrey

- Chicago market; and (3 ) a code

- share exemption , for an initial period of two years, authorizing Delta to engage in such transportation in the Monterrey

- Chicago market by placing its code on Aeromexico or Aerolitoral

. 1

1 / Delta further request s the Department transmit the necessary code

- share designation to the Government of Mexico to facilitate Mexican licensing of Delta’s proposed services on Aeromexico or Aerolitoral under the U.S.

- Mexico Air TransportAero mexico / Aerolitoral/ Delta Application Page 2
The Joint Applicants request this authority so that Aeromexico may operate Monterrey

- Chicago service carrying Delta’s DL* code beginn ing on or about December 12, 2013 and so the Joint Applicants can later offer the service with aircraft operated by Aerolitoral; that transition is expected to occur several months later. Accordingly, they request expedited Department action and will repo rt the results of their poll of U.S. carriers serv ed with the Joint Application. 2 In support of thi s Joint Application, the Joint Applicants state as follows: 1. Aeromexico and Aerolitoral are flag carrier s of the United Mexican States holding Department permit and exemption authority to provide service between M exico and numerous U.S. points. They provide extensive , Aeromexico

- coded service between the two countries. Aeromexico previously held authority to operate scheduled Monterrey

- Chicago service with its own aircraft , but that authority later was amended, and authority for Aerolitoral added, to authorize the operation of the route only with Aerolitoral aircraft. 3 Aeromexico now intends to begin daily flights in the Monterrey

- Chicago

Agreement

. 2/ The Joint Applicants als o request a waiver of the 45

- day advance notice requirement prescribed by 14 C.F.R. § 212. 10(d)(2).
3 / Notice of Action Taken dated March 28, 2013 in Docket 2011

- 0042 (Aeromexico exemption limited to code

- share) and Notice of Action Taken dated November 21, 2012 in Docket 2012

- 0188 (Aerolitoral exemption).Aero mexico / Aerolitoral/ Delta Application Page 3
marke t with Boeing B737 aircraf t on or about December 12, 2013, but it intends to return the operation to Aerolitoral’s Embraer regional aircraft several months later. 4 2. Annex 1 to the 1960 Air Transport Agreement, as amended, between the United Mexican State s and the United States provides that a carrier designated by the Government of Mexico is entitled to operate "[f]rom a point or points in Mexico to a point or points in the United States." The Joint Applicants understand that Aeromexico will soon be desig nated to operate the route in lieu of Aerolitoral , and designation of a carrier by its homeland government is the most significant factor in determining whether grant of an application is in the public interest

. 5 The Monterrey

- Chicago services operated by Aeromexico and Aerolitoral have benefitted business travelers, tourists, and shippers, further demonstrating that grant of the exemption would be consistent with the public interest. 3. Delta also wishes to offer code

- share service in the Mont errey Chicago market on either Aeromexico or Aerolitoral

- operated aircraft pursuant to its longstanding code

- share agreement with Aeromexico . Thus, the Joint Applicants also request code

- share exemption authority for Delta on Aeromexico or Aerolitoral fli ghts , and a statement of authorization

4 / Because the date for returning operations to Aerolitoral has not yet been set, Aeromexico requests that its operating exemption be issued for the usual, one

- year period.
5 / See, e.g., Blu ebird Cargo Ltd. , Order 2004

- 8

- 24 at 3

- 4; Fast Air Carrier Ltda., Permit Amendment , Order 82

- 2

- 66 at 3

- 4.Aero mexico / Aerolitoral/ Delta Application Page 4 authorizing either Aeromexico or Aerolitoral to carry Delta’s code in the market , to replace existing authority in Docket OST

- 2012

- 0135

. Earlier this year the Department granted Aeromexico and Aerolitoral a "flexible " statement of authorization , similar to that requested here, that permit s either or both carriers to begin, end, or resume their display of the DL* code in the listed markets. See Notice of Action Taken dated March 19, 2013 in Docket OST

- 2013

- 0052. T his approach serves the public interest by allowing Delta to hold out service without further Department action should operations in a market shift between Aeromexico and its affiliate (as would be the case here). 6 Delta is fit, willing, and able to engag e in these services on a code

- share basis, as it operates numerous U.S.

- Mexico transborder services under various exemptions and pursuant to Delta’s certificate authority for Route 901. See Order 2010

- 3

- 12. Delta also requests that the Department take of

ficial notice, pursuant to Rule 24 of the Department’s Rules of Practice, of all data on file with the Department necessary to establish its fitness.
4 . Approval of the requested code

- sharing authority is in the public interest. Authorizing Delta to offer code

- share service in th ese market s will enhance competition and expand price and service options for U.S.

– Mexico

6 / Aeromexico and Aerolitoral each understand that before exercising the requested statement of authorization in a market, the operating carrier woul d need to hold or obtain the necessary operating designation and DOT permit or exemption authority.