UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on December 6 , 2013

NOTICE OF ACTION TAKEN

-- DOCKET 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 DELTA AIR LINES, INC. (Delta), and JOINT STOCK COMPANY

“AEROFLOT

- RUSSIAN AIRLINES” (Aeroflot) filed 11/20 /13

, for:

XX E xemption for Aeroflot under 49 U.S.C. 40109 to provide the following additional services:

Scheduled foreign air transp ortation of persons, property, and mail between Yerevan, Armenia and Baku, Azerbaijan through points in the Russian Federation to Anchorage; Atlanta; Baltimore; Bangor, ME; Boston; Buffalo, NY; Charleston, SC; Charlotte, NC; Chicago; Cincinnati; Cleveland; Columbus; Dallas/Ft. Worth; Denver; Detroit; Honolulu; Houston; Huntsville; Indianapolis; Jacksonville; Las Vegas; Los Angeles; Miami; Minneapolis; Nashville; New Orleans; New York; Norfolk, VA; Orlando ; Philadelphia; Phoenix; Pittsburgh; Portland, OR; Ra leigh

- Durham, NC; Richmond, VA; Rochester, NY; Salt Lake City; San Antonio; San Diego; San Francisco; Seattle; St. Louis; Syracuse, NY; Tampa; Toledo; Washington, DC; Montreal, Canada; Quebec City, Canada; and Toronto, Canada. 1 2

XX E xemption for Delta u nder 49 U.S.C. 40109 to provide the following additional services:

S cheduled foreign air transportation of persons, property, and mail (1) between a point or points in the United States, on the one hand, and Soci, Russia; Chelyabinsk, Russia; Volgograd, R ussia; Perm, Russia; Irkutsk, Russia; Ufa, Russia; Kazan, Russia; Yerevan, Armenia; and Baku, Azerbaijan on the other hand, 3 and (2) between Miami, FL

, on the one hand, and Moscow, Russia, on the other hand

.

XX Amendment of Aeroflot’s statement of author ization in order to engage in the following additional code

share services: 4

1 We note that

, under the A gree ment, Aeroflot may serve t h e following points as the marketing car rier on a code

share

- only basis: Baltimore; Buffalo, NY; Charleston, SC; Charlotte, NC; Cincinnati; Cleveland; Denver; Detroit; Indianapolis; Jacksonville; Las Vegas; Minneapolis; Nashville ; New Orleans; Norfolk, VA; Philadelphia; Phoenix; Pittsburgh; Raleigh

- Durham, NC; Richmond, VA; Rochester, NY; Salt Lake City; San Antonio; San Diego; St. Louis; Syracuse, NY; Tampa; Montreal, Canada; Quebec City, Canada; and Toronto, Canada

. We further note that under the Agreement, Aeroflot may serve the following points

, either with its own aircraft or as the marketing

carrier in a code

- share arrangement: Anchorage

, Atlanta, Bangor, Boston, Chicago

, Columbus (Ohio), Dallas/Fort Worth, Honolulu, Housto n, Huntsville

, Los Angeles

, Miami

, New York, Orlando, Portland (Oregon), San Francisco, Seattle, Toledo

, and Washington

. 2 The Joint Applicants state that all code

- share traffic on beyond/behind segments will connect to/from transatlantic

service on a blin d

- sector basis ( i.e., there will be no local traffic).

3 We note that

, under the Agreement, Delta may serve these points as the marketing carrier on a code

- share

- only

basis.

4 Aeroflot’s current statement of authorization permits it to display the designat or code of Delta on flights operated by Aeroflot (1) between Moscow, Russia, on the one hand, and Koltsovo

- Ekaterinburg, Russia; Kaliningrad, Russia; Khabarovsk, Russia; Krasnodar, Russia; Magadan, Russia; Nizhniy Novgorod, Russia; Novosibirsk, Russia;

Pet ropavlovsk

- Kamchatski, Russia; Samara, Russia; St. Petersburg, Russia; Vladivostok, Russia; Yuzhno

Sakhalinsk, Russia; Tashkent, Uzbekistan; and Bishkek, Kyrgyzstan, on the other hand, and (2) between New York, Los Angeles, and Washington, on the one hand, and Moscow, Russia, on the other hand

. See Notice of Action

Taken dated July 8, 201 1, in this Docket.Aeroflot requests an a mended s tatement of authorization under 14 CFR Part 212 to display the designator code of Delta on flights operated by Aeroflot (1) between Moscow, Russia, on the one hand, and Soci, Russia; Chelyabinsk, Russia; Volgograd, Russia; Perm, Russia; Irkutsk, Russia; Ufa, Russia; Kazan, Russia; Yerevan, Armenia; and Baku, Azerbaijan, on the other hand, and (2) between Miami, FL, on the one hand, and Moscow, Russia, on the other hand

. 5

XX Waiver of the 45

- day advance filing requirement under 14 CFR Part 212

Applicant rep s : Don H. Hainbach , (202) 776

- 3970 ( Aeroflot ) and

Alexander Van der Bellen (202) 842

- 4184 ( Delta )

DOT Analyst: Brett D. Kruger (202) 366

- 8025

DISPOSITION

XX Approved Aeroflot’s exemption authority (subject to conditions, see below).

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

XX Approved Aeroflot ’s amended statement of authorization (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 Aeroflot is effective when taken : December 6 , 2013

, through June 28 , 201 4

. 6

The above action granting exemptio n authority to Delta is effective when taken: December 6 , 2013

, through June 27, 2015

. 7

The above action granting a n amended statement of authorizat ion to Aeroflot is effective: December 6

, 2013 , and will remain in effect indefinitely, subject to c ondit ions.

The above action granting a waiver of the 45

- day advance filing requirement under 14 CFR Part 212 is

effective December 6 , 2013

.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The aut hority granted is consistent with the Annexes to the 1994 U.S.

- Russian Federation Air Transport Agreement. 8

5 The Joint Applicants state that all code

- share traffic on beyond/behind segments will connect to/from transatlantic

service on a blind

- sector basis ( i .e., there will be no local traffic).

6 We are granting Aeroflot’s exemption authority through June 28, 2014, coextensive with its existing exemption authority in this Docket, and consistent with the applicant ’s request

. 7 We are granting Delta’s exemption authority through June 27, 2015, coextensive with its existing exemption authority in this Docket, and consistent with the applicant ’s request.

8 On February 1 4 , 20 13 , the United States and the Russian Federation agreed, ad referendum , to revised Annexes to
the U.S.

- Russia n Federation Air Transport Agreement and stated that, pending their entry into force, the respective

aeronautical authorities intend to implement the provisions of those Annexes on the basis of comity and reciprocity

.Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations

indicated:

XX Delta ’s certifica tes 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 Conditions for Statement of Authorization (attached as Appe ndix C )

___________________________________________________________________________________ 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 in this notice was consistent with Department policy; (2) grant of the authority was consistent with the publi c interest; and (3) grant of

th e authority would not constitute a major federal 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 sev en ( 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: http://www.regulations.gov

### Appendix 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 eff ective 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 Security 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. Government requirements conce rning 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 Representative (IIR) (former ly 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 served;

(3) Comply wit h 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 Federal Aviation Admin istration’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 operational safety requir ements 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 De partment 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 agreement or treaty cogn izable 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 considered to be High Cont racting 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 Part 217, concerning t he 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 applicabl e 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 appr oval under Title 49 of the U.S. Code.

12/2007Appendix 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 gover nment 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, co ncerning 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 conce rning 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 foreig n 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 wit h 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 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 follow ing conditions:

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

- share services at issue, and (ii) the

code

- share agreement prov iding for the code

- share operations remains in effect.

( b ) Delta and/or Aeroflot

, as appropriate, 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 c ease operating all or a portion of the approved code

- share services. Such notice should be filed in Docket

DOT

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. 1

( c ) The code

- sharing operations conducted under this authority must comply with 14 CFR 257 and with any amendments to the Dep artment’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 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 responsibility for the entirety of

the code

- share jo urney for all obligations established in its contract of carriage with the passenger; that the passenger liability of the operating carrier be unaffected ; and that the operating carrier shall not permit

the code of its U.S. code

- sharing partner to be carri ed 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

.

( d ) The authority granted here is specifically conditioned so that neither Delta nor Aerofl ot s hall 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 our discretion.

1 We expect this not ification to be received within ten (10) days after such non

- effectiveness or of such decision.