BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Application of

DELTA AIR LINES, INC.

for an exemption under 49 U.S.C. § 40109

(U.S.-Japan-Republic of Palau) ) ) ) ) ) ) ) ) ) ) Docket DOT-OST-2010-

APPLICATION OF DELTA AIR LINES, INC.

Communications with respect to this document should be addressed to:

Robert J. Cortelyou Senior Vice President – Network Planning Andreas Renner Director – International Network Planning DELTA AIR LINES, INC. 1030 Delta Boulevard Atlanta, Georgia 30320 Alexander Van der Bellen Managing Director – Government Affairs & Associate General Counsel Jeff Morgan Regional Director – Government Affairs DELTA AIR LINES, INC. 1212 New York Avenue, N.W. Washington, D.C. 20005 (202) 842-4184 sascha.vanderbellen@delta.com

July 2, 2010

Notice: Delta intends to poll the U.S. carrier representatives on the attached service list regarding this Application and will notify the Department of the results as soon as possible.BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Application of

DELTA AIR LINES, INC.

for an exemption under 49 U.S.C. § 40109

(U.S.-Japan-Republic of Palau) ) ) ) ) ) ) ) ) ) ) Docket DOT-OST-2010-

APPLICATION OF DELTA AIR LINES, INC.

Pursuant to 49 U.S.C. § 40109 and Subpart C of the Department’s Rules of

Practice in Proceedings, Delta Air Lines, Inc. (“Delta”) hereby applies for an exemption

authorizing Delta to engage in scheduled foreign air transportation of persons, property,

and mail between a point or points in the United States, on the one hand, and a point or

points in the Republic of Palau, on the other hand, via a point or points in Japan. Delta

requests that its exemption authority be granted for a period of at least two years.

Service Proposal . Delta proposes to offer four times weekly service between

Tokyo Narita and Palau International Airport, beginning on or about December 22, 2010.

Service will be operated with Boeing 757 aircraft, equipped with 162 coach and 20

BusinessElite seats.

Public Benefits . Delta’s service to Palau will create significant public benefits,

facilitating tourism and trade between the U.S. and Palau. Palau, an island nation in the

Pacific Ocean, located 500 miles east of the Philippines and 2,000 miles south of Tokyo,

is known as a popular scuba diving destination. In addition to divers, the island has

been attracting more tourists interested in its well preserved natural environment.Application of Delta Page 2

Only one U.S. carrier – Continental Micronesia – serves Palau directly. The new

Delta service will bring competitive U.S. flag service to the market.

Bilateral Authority. Delta’s proposed services are consistent with the public

interest and comity and reciprocity with the Republic of Palau. Although no air transport

agreement exists between the U.S. and Palau, Delta expects that this service will be

welcomed by the government of Palau, given the enhanced tourism, trade, and other

economic activities that will be stimulated. Delta is a designated incumbent carrier under

the U.S.-Japan air transport agreement. Delta will carry local traffic between Tokyo and

Palau.

Fitness

. Delta is fit, willing, and able to per form the service proposed in this

application. Delta operates numerous transpac ific services under various exemption

and certificate authorities. 1 Delta requests that the Department take official notice,

pursuant to Rule 24 of the Department’s Rules of Practice, of all data on file with the

Department necessary to establish Delta’s fitness.

The environmental impacts of De lta’s proposed services are de minimis, and Delta

does not anticipate that the proposed services will cause a near-term net annual change

in aircraft fuel consumption of 10 million gallons or more.

WHEREFORE, Delta requests prompt issuance of exemption authority Delta to

engage in scheduled foreign air transportation of persons, property, and mail between a

point or points in the United States, on the one hand, and a point or points in the

Republic of Palau, on the other hand, via a point or points in Japan.

1 See e.g. Route 129 (U.S.-Japan and beyond), Order 98-6-22. By Route Transfer Order 2009-1-8, the Department authorized the use of all of Northwest Airlines, Inc.’s authorities by Delta.Application of Delta Page 3

Respectfully submitted,

_________________________________ Alexander Van der Bellen Managing Director, Government Affairs & Associate General Counsel DELTA AIR LINES, INC.CERTIFICATE OF SERVICE

A copy of the foregoing Application has been served this 2 nd day of July, 2010, upon the following persons via email:

dan.weiss@coair.com (for Continental/Continental Micronesia) hkamen@coair.com (for Continental/Continental Micronesia) rbkeiner@crowell.com (for Continental/Continental Micronesia) mrosia@crowell.com (for Continental/Continental Micronesia) esta.rosenberg@dot.gov byerlyjr@state.gov john.allen@faa.gov mike.orr@airlineinfo.com