UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on October 22

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### N OTICE OF ACTION TAKEN

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- 2013

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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)

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Joint Applicant s : AEROVIAS de ME XICO, S.A. de C.V. (Aeromexico) ; and DELTA AIR LINES, INC. (Delta)

Date Filed: September 27 , 2013

Relief Requested: Exemption for Aeromexico pursuant to 49 USC §40109, authorizing Aeromexico to engage in

scheduled fo reign air transportation of persons, property, and mail between (1) Leon (El Bajio), Mexico, and Sacramento, California; (2) Leon (El Bajio), Mexico, and San Francisco, California; (3) Monterrey, Mexico, and Los Angeles, California; (4) Morelia, Mexico, an d Fresno, California; and (5) Morelia, Mexico, and Chicago, Illinois.

Aeromexico further requests a statement of authorization pursuant to 14 CFR Part 212 to permit Aeromexico to display Delta’s “DL” designator code on flights operated by Aeromexico bet ween (1) Leon (El Bajio), Mexico, and Sacramento, California; (2) Leon (El Bajio), Mexico, and San Francisco, California; (3) Monterrey, Mexico, and Los Angeles, California; (4) Morelia, Mexico, and Fresno, California; and (5) Morelia, Mexico, and Chicago, Illinois

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Delta requests e xemption authority for two years pursuant to 49 USC §40109, authorizing Delta to engage in scheduled foreign air transportation of persons, property, and mail by placing its “DL” designator code on flights operated by

Aeromexico between (1) Leon (El Bajio), Mexico, and Sacramento, California; (2) Leon (El Bajio), Mexico, and San Francisco, California; (3) Monterrey, Mexico, and Los Angeles, California; (4) Morelia, Mexico, and Fresno, California; and (5) Morelia, Mexico, and Chic ago, Illinois

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The joint applicants further request a waiver of the 45

- day advance filing requirement under 14 CFR Part 212.

Applicant representative s : John R. Mietus, Jr. (Aer omexico ), 202

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Alexander Van der Bellen and Christopher Walk er ( Delta ), 202

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DOT analyst: Brett D. Kruger , 202

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Responsive pleadings: None

DISPOSITION

Action: Approved in part ( subject to conditions ), remainder deferred. See Remarks below.

Action date: October 22 , 2013

Effective dates of authority granted : The exemption authority granted to Aeromexico is effective October 22 , 2013

, through October 22 , 201 4

.

T he statement of authorization granted to Aeromexico is effective October 22 , 2013 , and will remain in effect for an

indefinite du ration, subject to conditions.

The exemption authority granted to Delta is effective October 22 , 2013 , through October 22 , 2015.

Our action granting a waiver of the 45

- day advance filing requirement under 14 CFR Part 212 is effective October 22

, 2013.Ba sis for approval (bilateral agreement/reciprocity): United States

- Mexico Air Transport Services Agreement

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Except to the extent exempted/waive d , this authority is subject to the terms, conditions, and limitations of our standard foreign air carrier exempt ion conditions attached as Appendix A ; our standard U.S. carrier exemption conditions attached as Appendix B ; the codeshare conditions attached as Appendix C ; and, as to the authority granted to Aeromexico, to the

otherwise

- applicable terms, conditions, an d limitations of Aeromexico’s foreign air carrier permit (Order 91

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- 25).

Special conditions/Remarks: We will approve the request of Aeromexico for exemption authority, the request of Delta for

code

- share

- only exemption authority, and the request of Aero mexico for a statement of authorization to display the “DL” designator code for the following markets: (1) Leon

- Sacramento, (2) Leon

- San Francisco, (3) Monterrey

- Los Angeles, and (4) Morelia

- Fresno. We note, however, that Aeromexico has not yet been desi gnated by the Government of Mexico to provide services in the Morelia

- Chicago market. Therefore, we will defer action on the request of Aeromexico for exemption authority, the request of Delta for code

- share

- only exemption authority, and the request of Ae romexico for a

statement of authorization to serve the Morelia

- Chicago market

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The U.S.

- Mexico exemption authority granted to Delta is subject to the dormancy notice requirements set forth in condition 7 of Appendix A of Order 88

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The exemption au thority granted to Delta is limited to services provided on a code

- share basis only.

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) our action was consistent w ith Department policy; (2) the applicant s w ere qualified to perform their proposed operations; (3) grant of the au thority was consistent with the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Poli cy and Conservation Act of 1975. To the extent not granted or deferred , we denied all requests in the refer enced 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 regulat ions, 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.govAppendix 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 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 Aviati on 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 com pliance 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, c ontact 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

ad equate 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 th is 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) Exc ept 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) bas ed 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 Conventi on, 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 Departme nt'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 regulat ions 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.

12/2007

### Appendix B U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier applicant(s) shall:

(1) Ho ld 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 f or 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 Depa rtment 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; and

(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 o ther 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.

1/2008Appendix C

The Sta tement of Authorization is subject to the following conditions:



### (a) The statement of authorization w ill remain in effect only as long as (i) Delta and Aeromexico continue to hold the necessary underlying authority to operate the code

- share services at iss ue, and (ii) the code

- share agreement providing for the code

- sha re operations remains in effect;

( b ) Delta and/or Aeromexico must notify the Department immediately if the code

- share agreement under which these

code

- share services are operated is no longer in effect or if the carriers decide to cease operating all or a portion of the approved code

- share services. Such notice should be filed in Docket DOT

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( c ) 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 the computer reservation systems and elsewhere; that the carrier selling such transportation ( i.e., the carrier shown on the ticket) accept responsibilit y 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 it s 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.

( d ) The authority granted here is specifically condi tioned so that neither Delta nor Aeromexico shall g ive any force or effect to any contractual provisions between themselves that a re contrary to these conditions;

( e ) We may amend, modify, or revoke the authority granted at any time wi thout hearing at ou r discretion.

Persons entitled to petition the Department for review of this action under the Department’s regulations, 14 CFR §385.30, should file their petitions within seven days of the date of this action. This action is effective immediately, and th e filing of a petition for review will not alter its effectiveness.

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

- effectiveness or of such decision.