BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.
Joint Application of DELTA AIR LINES, INC., and Docket DOT-OST-2011- CHINA EASTERN AIRLINES CORPORATION LTD.
for Statements of Authorization and Blanket Exemptions (U.S.-China Codesharing)

JOINT APPLICATION OF DELTA AIR LINES, INC., AND CHINA EASTERN AIRLINES CORPORATION LTD.

Communications with respect to this document should be sent to: Evelyn D. Sahr James G. Ehrig ECKERT SEAMANS CHERIN & MELLOTT, LLC 1717 Pennsylvania Ave. NW Washington D.C. 20006 (202) 659-6622 esahr@eckertseamans.com jehrig@eckertseamans.com for CHINA EASTERN AIRLINES CORPORATION LTD. Alexander Van der Bellen, Managing Director, Government Affairs and Associate General Counsel Jeff Morgan Regional Director, Government Affairs DELTA AIR LINES, INC. 1212 New York Avenue NW, Suite 200 Washington, DC 20005 (202) 842-4184 sascha.vanderbellen@delta.com

March 23, 2011
Notice: Delta and China Eastern are requesting exp edited treatment of this application. Delta will poll air carrier representatives on the attached service list and advise the Department of the results.BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.
Joint Application of DELTA AIR LINES, INC., and Docket DOT-OST-2011- CHINA EASTERN AIRLINES CORPORATION LTD. for Statements of Authorization and Blanket Exemptions (U.S.-China Codesharing)

JOINT APPLICATION OF DELTA AIR LINES, INC., AND CHINA EASTERN AIRLINES CORPORATION LTD.

Delta Air Lines, Inc. (“Delta”), and China Eastern Airlines Corporation Ltd. (“China Eastern”) (collectively, the "Joint Applicants") he reby apply for Statements of Authorization pursuant to 14 C.F.R. Part 212, and for blanket cod eshare-only exemptions pursuant to 49 U.S.C. § 40109 to engage in reciprocal codeshare se rvices. By codesharing across their respective networks, Delta and China Eastern will e ach be able to offer a broader network and enhanced service options to U.S.-China customers. The Joint Applicants propose to start reciprocal codeshare services on June 1, 2011. 1 Under the U.S.-China Air Transport Agreement, U.S. carriers and their Chinese codeshare partners may engage in codeshare service to an unlimited number of points in China or in third countries:

1 On March 22, 2011, China Eastern filed a terminati on notice in Dockets DOT-OST-1998-3622, DOTOST-2005-23471, and DOT-OST-2005-23473 informing th e Department that China Eastern's prior codeshare arrangement with American Airlines will e nd on May 31, 2011.Joint Application of Delta and China Eastern

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“A Chinese airline or airlines may codeshare with a ny U.S. airline

or airlines without limitation. Subject to the mut ual agreement of the participating Chinese and U.S. airlines, such c odeshare arrangements may also involve airlines of third cou ntries. U.S. and Chinese airlines may hold out codeshare service s pursuant to this subparagraph on routes that include points in the territories of the Parties and may also include any behind, interm ediate and beyond points in third countries.” Article 11(5)(1)(a) Accordingly, Delta and China Eastern request the fo llowing authorities: (a) a blanket statement of authorization under 14 C .F.R. Part 212 permitting the

display of China Eastern’s MU code on flights opera ted by Delta between the U.S. and China, within the United States and China, and to behind, intermediate, and beyond points in third countries. Delta requests that this blanket statement of authorization extend to its De lta Connection 2 regional affiliates which operate service for Delta within N orth America; (b) a blanket statement of authorization under 14 C .F.R. Part 212 permitting the

display of Delta’s DL code on flights operated by C hina Eastern between the U.S. and China, within China and the United States, and to behind, intermediate, and beyond points in third countries; (c) a blanket exemption under 49 U.S.C. § 40109 per mitting Delta to service (on

a codeshare-only basis with China Eastern) points i n China and behind, intermediate, and beyond points in third countries; and (d) a blanket exemption under 49 U.S.C. § 40109 per mitting China Eastern to

service (on a codeshare-only basis with Delta/Delta Connection) points in United States and behind, intermediate, and beyond points in third countries.

2 Atlantic Southeast Airlines, Inc., Chautauqua Airl ines, Inc., Comair, Inc., Compass Airlines, Inc., M esaba Aviation, Inc., Pinnacle Airlines, Inc., SkyWest Ai rlines, Inc., and Shuttle America Corporation.Joint Application of Delta and China Eastern

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These blanket authorities will be used to transport only passengers traveling in foreign air transportation, and will be subject to the Depa rtment’s standard 30 day notice condition. In support of this Application, the Joint Applicant s submit the following: 1. Delta and China Eastern have entered into a reci procal codesharing agreement which will create substantial benefits for passenge rs traveling between the United States and China. A redacted copy of the codeshare agreement is attached. 2. The Joint Applicants’ initial codeshare markets are set forth in Appendix A. The Joint Applicants propose that service to new points be subject to the Department’s standard 30 day notice condition. However, consistent with the Department’s administration of similar blanket statements and codeshare-only exemptions tr avel via alternative gateways and paths would not require additional notice; and, service b y Delta or any of the Delta Connection carriers would be deemed notice given for all (except in the case of Mexico where operator-specific notices will continue to be supplied for Delta/Delt a Connection services). 3. The Joint Applicants request that the Statements of Authorization be issued for an indefinite period, so long as their codeshare ag reement continues in effect, and will notify the Department if that agreement should cease to be eff ective. 4. The Joint Applicants request that their codeshar e-only exemptions be issued for a period of at least two years. 5. Delta holds various certificates authorizing ser ve China, both on a nonstop basis and via intermediate points. See, e.g. , Order 2009-1-8. Delta requests that the Departm ent take official notice of the information on file wit h the Department which establish Delta’s fitness to provide the proposed service, pursuant to Rule 2 4 of the Department’s Rules of Practice. 6. China Eastern has long held permit Authority to serve the United States ( see , e.g. Order 92-11-7) and currently provides nonstop service from Shanghai to Los Angeles and New York. China Eastern requests that the Departm ent take official notice of the informationJoint Application of Delta and China Eastern

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on file with the Department which establish China E astern’s fitness to provide the proposed service, pursuant to Rule 24 of the Department’s Ru les of Practice. 7. The proposed codeshare services are fully consis tent with the U.S.-China Air Transport Agreement, as described above. 8. The requested blanket authorities are similar to those previously granted to other U.S.-China codeshare partnerships including Delta/C hina Southern, 3 United/Air China, 4 and American/China Eastern. 5 9. The codeshare services proposed by the Joint App licants are consistent with the public interest and DOT policy:

Code sharing and other cooperative marketing arrang ements can provide a cost-efficient way for carriers to enter new mark ets, expand their systems and obtain additional flow traffic to suppo rt their other operations by using existing facilities and scheduled operatio ns. Because these cooperative arrangements can give the airline partn ers new or additional access to more markets, the partners will gain traf fic, some stimulated by the new service, and some diverted from incumbents. In this way, cooperative arrangements can enhance the competitiv e positions of both partners in such a relationship. Increased international code sharing and other coop erative arrangements can benefit consumers by increasing international s ervice options and enhancing competition between carriers, particularl y for traffic to or from cities behind major gateways. By stimulating traff ic, the increased competition and service options should expand the o verall international market and increase overall opportunities for the a viation industry. 6 10. The Joint Applicants agree to abide by the cons umer notification requirements of 14 C.F.R. Part 257, as well as the other usual cond itions applicable to codeshare services operated to or sold in the United States. 11. Delta's engagement in these codeshare services will not affect its commitment of aircraft to the CRAF program.

3 Dockets OST 97-2653; OST-99-5031; OST-01-9314 and 01-10172. 4 Docket OST-2003-16213. 5 OST-05-23471 and OST-04-19010. 6 U.S. International Air Transportation Policy State ment, 60 Fed. Reg. 21841, 21842 (May 3, 1995).Joint Application of Delta and China Eastern

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12. Delta’s compliance statement on China Eastern’s IOSA codeshare safety audit was presented to and approved by the Federal Aviati on Administration. The FAA has rated China a Category 1 country.

WHEREFORE, the Joint Applicants respectfully reques t the Department to grant them the blanket statements of authorization and exempti ons described above.

Respectfully Submitted,

/s/ Evelyn D. Sahr

____________________________ Evelyn D. Sahr For CHINA EASTERN AIRLINES CORPORATION LTD. ___________________________ Alexander Van der Bellen For DELTA AIR LINES, INCAppendix A: Initial Codeshare Markets

Delta on China Eastern Shanghai, China (PVG) - Los Angeles, USA (LAX) Shanghai, China (PVG) - New York City, USA (JFK) To and From Shanghai, China PVG:

- Beijing, China (PEK)

- Guangzhou, China (CAN)

- Fuzhou, China (FOC)

- Shenyang, China (SHE)

- Chengdu, China (CTU)

- Qingdao, China (TAO)

- Dalian, China (DLC)

- Xiamen, China (XMN)

- Kunming, China (KMG)

- Xian, China (XIY)

- Nanjing, China (NKG)

- Chongqing, China (CKG)

- Wenzhou, China (WNZ)

- Harbin, China (HRB)

- Shenzhen, China (SZX)

- Changchun, China (CGQ)

- Nanchang, China (KHN)

- Hefei, China (HFE)

- Haikou, China (HAK)

- Changsha, China (CSX)

- Wuhan, China (WUH) China Eastern on Delta/Delta Connection Detroit, USA (DTW) - Shanghai, China (PVG) Seattle, USA (SEA) - Beijing, China (PEK) Atlanta, USA (ATL) - Shanghai, China (PVG)
To and From Los Angeles, USA (LAX):

- Honolulu, USA (HNL)

- New York City, USA (JFK)

- Salt Lake City, USA (SLC)

- Atlanta, USA (ATL)

- Orlando, USA (MCO)

- San Diego, USA (SAN)

- Las Vegas, USA (LAS)

- Phoenix, USA (PHX)

- San Francisco, USA (SFO)

- Detroit, USA (DTW)

- Memphis, USA (MSP)To and From New York City, USA (JFK):

- Washington D.C., USA (IAD)

- Washington D.C., USA (DCA)

- Boston, USA (BOS)

- Miami, USA (MIA)

- Atlanta, USA (ATL)

- Chicago, USA (ORD)

- Orlando, USA (MCO)

- Portland OR, USA (PDX)

- Toronto, Canada (YYZ)

- Detroit, USA (DTW)

- Minneapolis, USA (MSP)

Note: Delta and China Eastern request flexibility t o serve any of the above-named codeshare points via any U.S.-China gateway or inte rmediate routing flown by the carriers.CERTIFICATE OF SERVICE

A copy of the foregoing Joint Application has been served this 23rd day of March, 2011 upon the following persons via email: carl.nelson@aa.com dan.weiss@coair.com hershel.kamen@coair.com jeffrey.manley@united.com steve.morrissey@united.com howard.kass@usairways.com benjamin.slocum@usairways.com paul.gretch@dot.gov keith.glatz@dot.gov esta.rosenberg@dot.gov UrsKR@state.gov info@airlineinfo.com