UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on December 20 , 20 1 1

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 20 11

- 0153

___________________________________________ ______________________________________________________________ ____________ 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).

Joint Application of DELTA AIR LINES, INC. (Delta), AEROLINEAS ARGENTINAS S.A. (Aerolineas), and AUSTRAL LINEAS AEREAS

- CIELOS DEL SUR S.A. (Austral) filed 8/15 /11

for:

XX E xemption for Delta for two years under 49 U.S.C. 40109 to provide the following services :

Scheduled foreign air transportation of persons, property and mail , on a code

- share only basis on Aerolineas and Austral flights, (1) between any points in the United States and four (4) points in Argentina, and beyond to any points or points in South Am erica; (2) between any points in the United States and five (5) additional points in Argentina on a code

- share basis only ; and (3) scheduled foreign air transportation of persons, property, and mail between any points in the United States and five (5)

ad ditional points in Argentina on a code

- share basis only in conjunction with a designated airline of Argentina. 1

XX E xemption for Aerolineas for two years under 49 U.S.C. 40109 to provide the following services:

(1) Scheduled foreign air transportation of persons, property, and mail between points in Argentina and fourteen (14) points in the United States, and beyond to three (3) points in Canada, four (4) points in Asia (except Japan, China, and the Philippines), eight (8) points in Europe, four (4) poi nts in Mexico, and points in the Caribbean, Central America, and South America; (2) scheduled foreign air transportation of persons, property, and mail between points in Argentina and five (5) additional points

in the United States on a code

- share basis on ly; and (3) scheduled foreign air transportation of persons, property, and mail between points in Argentina and five (5) additional points in the United States on a

code

- share basis only, in conjunction with a designated airline of the United States. 2

1 Under Section B(1) of Annex I to the Agreement, the United States may select four points in Argentina for direct

U.S. carrier or code

- share service, five points in Argentina for code

- share

- only service, and five points in Argentina

for code

- share

- only service with a designated airline of Argentina. The United States has selected at this time,

Buenos Aires and Cordoba as two of the four points for U.S. direct carrier or code

- share service; Bariloche, Iguazu, Mendoza, Rosario, and Ushuaia as points for service on a code

- share

- only basis; and Comodoro Rivadavia, El Calafate, Rio Gallegos , and Rio Grande as four of five points for service on a code

- share

- only basis with a designated carrier of Argentina.

2 Under Section B(2) of Annex I to the Agreement, Argentine carriers may provide scheduled combination service as follows: (a) direct

- carrier or code

- share services from points behind Argentina , via Argentina and intermediate points, to fourteen (14) points in the United States, and beyond to three (3) points in Canada, four (4) points in Asia (except Japan, China, and the Philippines), eight (8) points in Europe, four (4) points in Mexico, and points in the Caribbean, Central America, and South America; (b) a total of five (5) additional points in the United States may be

served on a code

- share

- only basis; and (c) a total of five (5) additional points in the United States may be served on

a code

- share

- only basis with a designated airline of the United States . The Argentine Government has selected, at this time, Atlanta, Boston, Chicago, Dallas/Ft. Worth, Denver, Detroit, Houston, Las Vegas, Los Angeles, Miami, Minneapolis/St. Paul, New York/Newa rk, Orlando, and Philadelphia as points for Argentine direct

- carrier or code

share service; Montreal, Toronto, Vancouver , and Cancun for service beyond the United States to Canada and Mexico; Phoenix, Salt Lake City, and New Orleans as three of five points for service on a code

- share

- only basis;XX S tatement of authorization in order to engage in the following code

- share services:

Delta requests a blanket s tatement of authorization under 14 CFR Part 212 to display the “AR” designator code of Aerolineas on Delta operated flights (1) between points in the United States, (2) between points in the United States and points in Argentina, and (3) between points in the United States and points in third countries, pursuant to the U.S.

- Argentina Air Services Agreement. 3

XX Statement of authorization in order to engage in the following code

- share services:

Aerolineas requests a blanket statement of authorization under 14 CFR Part 212 to display the “DL” designator code of Delta on Aerolineas operated flights (1) between points in Argentina, (2) between points in Argentina and points in the United States, and (3) between points in Argentina and points in third countries, pursuant to the U.S.

- Argentina Air Services Agreement.

XX S tatement of authorization in order to engage in the following code

- share services :
Austral requests a blanket statement of authorization under 14 CFR Part 212 to display the “DL” designator code of Delta on Austral operated flights between points in Argentina.

Applicant rep s : Charles F. Donley (202) 626

- 6840 ( Aerolineas and Austral ) and

Alexander Van der Bellen (202) 842

- 4184 ( Delta )

DOT Analyst: Brett D. Kruger (202) 366

- 8025

DISPOSITION

XX Approved request of Delta for exemption authority (subject to conditions, see below).

XX Approved in part, request of Aerolineas for exemp tion authority ; remainder (request for longer

- term authority) dismissed. 4 (subject to conditions, see below).

XX Approved request of Delta for a blanket statement of authorization (subject to conditions, see below).

XX Approved request of Aerolineas fo r a blanket statement of authorization (subject to conditions, see below)

.

XX Approved request of Austral for a blanket statement of authorization (subject to conditions, see below).

The above action granting exemption authority to Delta is effective wh en taken : December 20 , 20 1 1

, through December 20 , 201 3

.

and San Diego, San Francisco, San Juan, Seattle, and Washington, D.C. as points for service on a code

- share

- only basis with a designated U.S. carrier.

3 Delta requests that this blanket statement of authorization ex tend to its Delta Connection regional affiliates which operate service for Delta within North America. The regional affiliates are Atlantic Southeast Airlines, Inc.; Chautauqua Airlines, Inc.; Comair, In c.; Compass Airlines, Inc.; Mes aba Aviation, Inc.; P innacle Airlines, Inc.; SkyWest Airlines, Inc.; and Shuttle America Corporation . We will grant this request.

4 The one

- year duration of the authority we granted to Aerolineas is consistent with our usual policy of granting exemption authority in the circu mstances presented. We therefore dismissed the application to the extent that it sought authority for a longer period.The above action granting exemption authority to Aerolineas is effective when taken:

December 20 , 20 1 1 , through December 20 , 201 2

.

The above action s granting statements of authorizat ion to the ref erenced carriers are effective: December

20

, 20 1 1 , and will remain in effect indefinitely, subject to c onditions.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consist ent with the aviation agreement between the United States and Argentina.

Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations

indicated:

XX Delta’s certificates of public convenience and necess ity

XX Standard U.S. exemption conditions (attached as Appendix A )

XX Aerolineas’ foreign air carrier permit (Order 77

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- 53)

XX Standard foreign carrier exemption conditions (attached as Appendix B )

XX Conditions for Statements o f Authorization (attached as Appendix C )

___________________________________________________________________________________ Remarks: We note that Delta has conducted s afety audit s of Aerolineas and Austral under the Department ’ s Code

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

__________________________________________________________________________________ On the basis of data officially noticeable un der Rule 24(g) of the Department's regulations, we found the applicants qualified to provide the exemption services authorized. Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action in this notice was consistent with Department policy; (2) grant of the authority was consistent with the publi c interest; and (3) grant of

th e authority would not constitute a major federal action under the Energy Policy and Conservation Act of

1975.

To the extent not gr anted or 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 sev en ( 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 a lter such effectiveness.

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

### Appendix A

U.S. Carrier Exemption Conditions

In the conduct of the operatio ns 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 oper ations, 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 Aviatio n 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 Secu rity 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 Transpo rtation, 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

### Appendix B 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 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

sha ll, 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 Internationa l 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 th e 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 respec t 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 Unite d 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 t ribunal 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 purpos e 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,

non scheduled, 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 su ch 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.

12/2007

### Appendix C

The code

- share operations authorized here are subject to the following conditions:

(a) The statement s of authorization granted will remain in effect only as long as (i) Delta, Aerolineas , and

Austral continue to hol d the necessary underlying authority to operate the code

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

- share agreement providing for the code

- share operations remains in effect.

( b ) Delta, Aerolineas , and/or Austral , as appropriate, must notify the Departmen t 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, which carrier will be operating the aircraft in the code

- share market added, and the date on which the service will begin. Such notice should be filed in Docket DOT

OST

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. 1

( c ) Delta, Aerolineas, and/or Austral

, as appropriate, must promptly notify the Department if the code

share agreement providing for the code

- share operation s is no longer effective 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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( d ) The code

- sharing operations conducted under this authority must com ply 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 re quirements 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) accep t 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.

( e ) The authority to operate to third countries is subject to the condition that any service provided under

the se statement s of authorization shall be consistent with all applicable agreements between the United States and the foreign countries involved. Furthermore, (i) nothing in the award of th ese statement s 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. carrier entry is limited unless

Delta notifies the Department of its intent to serve such a 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; and (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 statement s of authorization granted here, but that are not then being used by Delta , the holding of such authority will not be considered as providing any prefe rence for Delta in a competitive carrier selection proceeding to determine which carrier(s) should be entitled to use the authority at issue. 3

( f

) The authority granted here is specifically conditioned so that neither Delta, Aerolineas, nor Austral

s hall 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 discretion.

1 See Appendix D for list of initial code

- share points.

2 We expect this notification to be received within ten (10) days after such non

- effectiveness or of such decision.

3 The notice in paragraph (c) above can be used for this notification.

### Appendix D Page 1 of 2

INITIAL LIST OF CODE

- SHARE POINTS

Delta Code on A erolineas/Austral

Trunk Routes

Maimi, USA (MIA)

- Buenos Aires, Argentina (EZE)

To/From Buenos Aires, Argentina (EZE) :

San Carlos de Bariloche, Argentina (BRC) Cordoba, Argentina (COR) Calafate, Argentina (FTE) Iguazu, Argentina (IGR) Mendoza, Argentina (MDZ) Rio Grande, Argentina (RGA) Rosario, Argentina (ROS) Ushuaia, Argentina (USH) Santa Cruz, Bolivia (VVI) Rio de Janeiro, Brazil (RIO) Sao Paulo, Brazil (SAO) Santiago, Chile (SCL) Asuncion, Paraguay (ASU) Montevideo, Uruguay (MVD)

To/From Buenos Aires, Argentina (AEP) :

Rio de Janeiro, Brazil (RIO) Sao Paulo, Brazil (SAO) Santiago, Chile (SCL)

To/From Santiago, Chile (SCL) :

Mendoza, Argentina (MDZ)

*Austral operates only domestic Argentina routes

### Page 2 of 2

Ae rolineas Code on Delta/ Delta Connection

Trunk Routes

Atlanta, USA (ATL)

- Buenos Aires, Argentina (EZE)

To/From Atlanta, USA (ATL) :

San Juan, PR USA (SJU) Orlando, USA (MCO) Miami, USA (MIA) Washington, DC USA (WAS) Philadelphia, USA (PHL) New York City, USA (NYC) Boston, USA (BOS) Chicago, USA (CHI) New Orleans, USA (MSY) Dallas, USA (DAL) Houston, USA (HOU) Denver, USA (DEN) Los Angeles, USA (LAX) San Francisco, USA (SFO) Seattle, USA (SEA) Toronto, Canada (YYZ) Montreal, Canada (YUL) Vancouver, Canada (YVR)

To/From Miami, USA (MIA) :

Orlando, USA (MCO) Washington, D.C., USA (WAS) New York City, USA (NYC) Los Angeles, USA (LAX)