UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation on May 21, 2010 

NOTICE OF ACTION TAKEN -- DOCKETS DOT-OST-2008-0143 & DOT-OST-2002-14057 ________________________________________________________________________________________________________________________________

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).

Applicant: Sociedad Aeronautica de Medellin Consolidada S.A. (SAM) & Delta Air Lines, Inc. (Delta)

Date Filed: April 18, 2008, as amended July 11, 2008 and March 19, 2010 (Docket DOT-OST-2008-0143); and 

June 13, 2005, as amended March 19, 2010 (Docket DOT-OST-2002-14057)

 

Relief requested: 

SAM (Docket DOT-OST-2008-0143) -- Exemption under 49 U.S.C. § 40109 to permit SAM to engage in scheduled 

foreign air transportation of persons, property, and mail to the extent necessary to display Delta’s DL* designator code on 

flights operated by SAM within Colombia and between Colombia and third country points; and a statement of 

authorization under 14 CFR Part 212 to permit SAM to display Delta’s DL* designator code in conjunction with foreign 

air transportation on flights operated by SAM between Delta’s Colombia gateways and (1) other authorized points in 

Colombia,1 and (2) Quito and Guayaquil, Ecuador, pursuant to code-sharing agreements between Delta and Aerovias del 

Continente Americano S.A. Avianca (Avianca) and between Delta and SAM .

2

Delta (Docket DOT-OST-2002-14057)—Renewal of exemption under 49 U.S.C. § 40109 to permit Delta to conduct, on 

a codeshare-only basis with Avianca,3 scheduled foreign air transportation of persons, property, and mail between points 

in the United States and (1) points in Colombia, via intermediate points and beyond, and (2) points in the United States 

and Guayaquil and Quito, Ecuador, via intermediate points and beyond. Delta also requests renewal of its authority to 

combine this exemption authority with its existing certificate and exemption authority, consistent with international 

agreements.4

Delta further requests that its existing exemption be amended to permit Delta to display its code on SAM’s 

intra-Colombia flights and flights between Colombia and third countries, in connection with Delta and Avianca’s existing 

code-share services previously authorized in Docket DOT-OST-2002-14057.5

 

Applicant representatives: Richard D. Mathias & David Endersbee (SAM) (202) 298-8660 

 Alexander Van der Bellen (Delta) (202) 842-4184

DOT Analyst: Shelita A. Johnson (202) 366-1226

Responsive pleadings: None filed

DISPOSITION

Action: Approved in part, dismissed in part (see footnote 2 and remarks below) Action date: May 21, 2010

 1 The currently authorized Colombian points are Armenia, Bogota, Barranquilla, Bucaramanga, Cali, Cartagena de Indias, Cucuta, 

Manizales, Medellin, Pereira, and San Andres Island. 2 SAM states that it will not operate its own aircraft between the United States and Colombia, and seeks an exemption only to the 

extent necessary to permit Delta to hold out service on SAM-operated flights pursuant to Delta’s code-sharing agreements with 

Avianca and SAM. 

3 Delta’s existing exemption authorizes it to provide code-share services with both Avianca and ACES. Delta notes that ACES has 

ceased operations and asks that the reference to ACES be removed.

4 Subsequent to the filing of Delta’s renewal application, by Order 2006-1-1, the Department awarded the carrier a blanket route 

integration certificate. Therefore, we dismiss, as moot, the route integration portion of Delta’s renewal request. 5 See Attachment 3 for a list of initial code-share routes.
Effective dates of exemption authority granted to Delta: May 21, 2010 – May 21, 2012. Effective dates of exemption 

authority granted to SAM: May 21, 2010-May 21, 2011.

Effective dates of statement of authorization granted to SAM: May 21, 2010 – Indefinite (subject to code-share 

conditions attached)

Basis for approval (bilateral agreement/reciprocity): The U.S.-Colombia Air Transport Agreement 

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations indicated:

 X Standard exemption conditions (Attachments 1 and 2) 

Special conditions/Partial grant/Denial basis/Remarks: Based on the record in this case, we found that SAM is 

financially and operationally qualified to perform the services authorized above. SAM is substantially owned and 

effectively controlled by citizens of Colombia.6 All of SAM’s directors and key management personnel are citizens of 

Colombia. The carrier is properly licensed by the Government of Colombia to perform the proposed services. We note 

that Delta has conducted a safety audit of SAM under the Department’s Code-Share Safety Audit Program, and the FAA 

has advised that it has reviewed the relevant audit report and found it to be acceptable.

SAM has requested authority to engage in scheduled foreign air transportation of persons, property, and mail between 

points in Colombia and between Colombia and third countries in conjunction with Delta’s U.S.-Colombia service. Annex

II of the U.S.-Colombia Air Transport Agreement limits U.S. carrier routes beyond to Colombia to points in the Western 

Hemisphere. We, therefore, dismissed the application to the extent that it sought authority to countries not in the 

Western Hemisphere.

The operations authorized here are subject to the following conditions:

a) The statement of authorization will remain in effect only as long as (i) SAM and Delta continue to hold the necessary 

underlying authority to operate the code-share services at issue, and (ii) the code-share agreement providing for the codeshare operations remains in effect.

(b) SAM and/or Delta must promptly notify the Department (Office of International Aviation) if the code-share 

agreement providing for the code-share operations is no longer effective or the carriers decide to cease operating any or 

all of the approved code-share services.7

 Such notice should be filed in Dockets DOT-OST-2008-0143 and DOT-OST2002-14057.

(c) SAM and/or Delta 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 services will begin. Such notices shall be filed in Dockets DOT-OST-2008-0143 and DOT-OST-2002-14057.

(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 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 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; 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 transits the airspace of any area 

for whose airspace the Federal Aviation Administration has issued a flight prohibition. 

 6 The applicant states that SAM is 95% owned by Aerovias Nactionales de Colombia, S.A. (AVIANCA) with the remaining 5% owned 

by Synergy Ocean Air Colombia (Synergy), which is ultimately owned by citizens of Colombia, and which in turn, is the majority 

owner of AVIANCA. All of SAM’s management and key personnel are Colombian citizens.

7 We expect this notification to be received within 10 days of such non-effectiveness or of such decision.
(e) Any service provided shall be consistent with all applicable agreements between the United States and Colombia, and 

all applicable agreements with other foreign countries involved. Furthermore, (i) nothing in the award of this authority 

should be construed as conferring upon Delta rights (including code-share, fifth-freedom intermediate and/or beyond 

rights) to serve markets where U.S. carrier 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;8 and (ii) should there be a request by any carrier to use the limited-entry 

route rights that are included in Delta’s authority by virtue of the blanket statement of authorization granted here, but that 

are not being used by Delta, the holding of such authority 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 neither carrier shall give any force or effect to any

contractual provisions between themselves that are contrary to these conditions.

(g) We may amend, modify, or revoke the authority granted at any time without hearing at our discretion.

Action taken by: Paul L. Gretch, Director

 Office of International Aviation

_________________________________________________________________________________________________

Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) the applicant is 

qualified to perform the proposed operations; (2) our action was consistent with Department policy; (3) grant of the 

authority was consistent with the public interest; and (4) 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/deferred/dismissed, we denied 

all requests in the referenced Docket. 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 

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:

http://www.regulations.gov

 8 The notice referenced in condition (c) above may be used for this notification.
Foreign Carrier Exemption Conditions Attachment 1

In the conduct of the operations authorized, the foreign carrier applicant(s) 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 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) (formerly 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 with 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 Administration’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 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, 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 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 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 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, 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 applicable 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 approval under Title 49 of the U.S. Code.
Attachment 2

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 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 security 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 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.

1/2008
Attachment 3

Initial Code-Share Markets

Delta DL* code on flights operated by SAM

Between Bogota (BOG) and:

Cali (CLO)

Bucaramanga (BGA)

Barranquilla (BAQ)

Medellin (MDE)

Cartagena (CTG)

Pereira (PEI)