UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on August 4

, 20 1 4



### N OTICE OF ACTION TAKEN

– DOCKET S DOT

- O ST

- 20 1 4

- 0 0 7 6 & DOT

- OST

- 2000

- 6939

_________________________ _______________________________________________________________________________________________________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be is sued in this matter).

Applicant: AIRLINAIR D/B/A HOP!

- AIRLINAIR ( Airlinair )

Date Filed: May 1 9 , 201 4

Relief requested:

A. E xemption under 49 USC §40109 to permit Airlinair to display the designator code of any duly authorized U.S. air

carrie r on flights operated by Airlinair between and beyond points in E u ropean Union (EU) Member States; 1 and

B. A b lanket statement of authorization under 14 CFR Part 212 to permit Airlinair to display the (DL*) designator code of Delta Air Lines, Inc. (Delta ) on flights operated by Airlinair between and beyond points in EU Member States. 2

Applicant representative s : Robert E. Cohn and Patrick R. Rizzi

, 202

- 637

- 4999 / 5659

DOT analyst: David R. Christofano , 202

- 366

- 0584

Responsive pleadings: None

DISPO SITION

Action: Approved

, subject to conditions Action date: August 4

, 20 1 4

Effective dates of exemption authority granted: August 4 , 20 1 4

, through August 4 , 2016

.

The statement of authorization granted is effective August 4 , 20 1 4 , and will r emain in effect for an indefinite duration

, subject to conditions

.

Basis for approval (bilateral agreement/reciprocity): U.S.

- EU Air Transport Agreement.

Except to the extent exempted/waive d , this authority is subject to the terms, conditions, and limi tations of our standard foreign air carrier exemption conditions attached as Appendix A and code

- share conditions attached as Appendix B

.
Special conditions/Remarks: W e note that Airlinair , an air carrier of France, is operationally and financially quali fied to conduct the proposed services, and that it is substantially owned and effectively controlled in a manner consistent with the provisions of the U.S.

- EU Agreement

. 3 We also note that the applicant is properly licensed by its homeland to perform

the proposed services.

1 This exemption provides the applicant with underlying authority to conduct the described code

- share operations. The applicant must
also hold a Statement of Authorization under 14 CFR Part 212 that permits it to display the code of its specific U.S.

- carrier code

- share

partners.

2 The appl icant requests consolidation of its statement of authorization into Docket DOT

- OST

- 2000

- 6939, the docket established by the Department for the administration of the blanket statements of authorization held by Delta, Air France, and their regional affiliates and partners. We will grant its request.

3 We make this finding based on Article 2 (Reciprocal Recognition of Regulatory Determinations with Regard to Airline Fitness a nd Citizenship) of the Protocol to amend the U.S.

- EU Air Transport Agreement, signed June 24, 2010.We also note that Delta has conducted a safety audit of Airlinair under the Department’s Code

- Share Safety Audit Program, and the FAA has advised us that it has reviewed the relevant audit report and found it to be acceptable.

Action taken by: Paul L. Gretch, Director Office of International Aviation

_________________________________________________________ ___________________________________________________ Under authority assigned by the Department in its regulations, 14 CFR Part 3 85, we found that (1) our action was consistent with Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consistent with the public interest; and (4) grant of the authority would not constit ute a major regulatory action under the Energy Policy and Conservation Act of 1975. To the extent not granted, we denied all requests in the referenced Docket s . We may amend, modify, or revoke the authority granted in this Notice at any time without hear ing at our discretion.

Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulati ons, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Noti ce. 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.regul ations.govAppendix A



### F oreign Air Carrier Exemption Conditions

In the conduct of the operations authorized, each foreign carrier applicant shall:



### (1) Not conduct any operations unless it holds a currently effective 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 concerning security, the holder shall, before commencing a ny 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) (formerly referred to as International Principal Security

In spector) 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 with the requirements for minimum insurance coverage containe d 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 Administration’s Program Management Branch (AFS

260), Flight St andards 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 requirements 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 Department Order, comply with the requirements of 14 CFR Part 203, concerni ng 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 aga inst 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 destinat ion, 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 cognizable 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 Contracting Parties for the purpose of this definition;

(8) Except as specifically aut horized by the Department, originate or terminate all flights to/from the United States in a Member State of the European Union;

(9) Comply with the requirements of 14 CFR Part 217, concerning the 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, conditio ns, 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 applicable laws of the United States.

This authority shall not be effecti ve 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 approval under Title

49 of the U.S. Code.

EU carrier 01/2008Append ix 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

, Air France

, and Airlinair continue to hold the necessary underlying authority to o perate the code

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

- share agreement providing for the code

- share operations remains in effect.

(b) Delta

, Air France , and /or Airlinair must promptly notify the Department if the c ode

- 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 notices should be filed in Docket s DOT

- OST

- 2014

- 00 7 6 and DOT

- OST

- 2000

- 6939

. 1

(c) Delta

, Air France , and / or Airlinair must notify the Department no later than 30 days before they begin any new code

share service under the code

- share services authorized here. Such notice shall identify the market(s) to be served and the date on which the service will begin. Such notices should be filed in Docket s DOT

- OST

- 2014

- 0076 and DOT

OST

- 2000

- 6939

. 2

(d) 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 arra ngements 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 journey for all obligations established in its con tract 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 carried on any flight that enters, departs, or transi ts the airspace of any area for whose airspace the Federal Aviation Administration has issued a flight prohibition.

(e) Any service provided shall be consistent with the provisions of the U.S.

- EU agreement, and all applicable agreements with other foreign countries involved. Furthermore, (i) nothing in the award of the blanket statement of authorization should be construed as conferring upon Delta rights (including code

- share, fifth

- freedom intermediate and/or beyond rights) to serve markets where U.S. ca rrier rights are limited unless Delta notifies us of its intent to serve such market and unless and until the Department has completed any necessary carrier selection procedures to determine which carrier(s) should be authorized to exercise such rights; 3 a nd (ii) should there be a request by any carrier to use the

limited

- entry route rights that are included in the authority of Delta by virtue of the blanket statement of authorization granted here, but that are not being used by Delta , the holding of such a uthority will not be considered as providing any preference for Delta in a carrier selection proceeding to determine which carrier(s) should be entitled to use the authority at issue;

(f) The authority granted here is specifically conditioned so that neit her Delta, Air France, and/or Airlinair 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 our discret ion

.

1 We expect this notification to be received within 10 days of such non

- effectiveness or of such decision.

2 Consistent with the blanket Notice of Additional Code

- S haring filed by Delta and Air Fr ance in Docket DOT

- O ST

- 2000

- 6939 on February 5, 2009, Airlinair also provides in its application blanket notification of its intent to display Delta's designator code on flight s it operates: 1) between points in the European Union; and 2) beyond the Europe an Union to any open

- skies point or points. Furthermore, Airlinair incorporates by reference and relies upon the code

- sharing notices previously filed in that Docket for the display of Delta's designator code on flights operated by Air France and its affi liates and partners between points in the European Union and points in non

- open skies third countries, which should be deemed as notice given by Airlinair for these points.

3 The notice referenced in condition (c) above may be used for this notification.