UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on July 8 , 20 1 1

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 200 7

- 26805

______________________________________________ ___________________________________________________________ ____________ 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 App lication of DELTA AIR LINES, INC. (Delta), COMAIR, INC. (Comair), and JOINT
STOCK COMPANY “AEROFLOT

- RUSSIAN AIRLINES” (Aeroflot) filed 6/8/11 for: 1

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 between a point or points in the
United States , on the one hand, and Kaliningrad, Russia; Khabarovsk, Russia; Magadan, Russia; Nizhniy Novgorod, Russia; Novosibirsk, Russia; Petropavlovsk

- Kamchatski, Russia; Samara, Russia; Vladivostok, Russia; Yuzhno

- Sakhalinsk, Russia; and Bishkek, Kyrgyzstan, on the other hand. 2

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

Scheduled foreign air transportation of persons, property, and mail between a point or points in Russia, on the one hand, and Atlanta, Bangor, Boston, Cleveland, Columbus (Ohio), Dallas/Ft. Worth, Denver, Detroit, Honolulu, Houston, Huntsville, Las Vegas, Minneapolis, Philadelphia, Portland ( Oregon), and Toledo, on the other hand. 3

XX Amendment of statement of authorization in order to engage in the following code

- share services:

Delta requests an a mended s tatement of authorization under 14 CFR Part 212 to display the designator
code of Aer oflot on flights operated by Delta (1) between New York and/or Atlanta, on the one hand, and Anchorage, Atlanta, Bangor, Boston, Chicago, Cleveland, Columbus (Ohio), Dallas/Ft. Worth, Denver, Detroit, Honolulu, Houston, Huntsville, Las Vegas, Los Angeles, Miami, Minneapolis, New York, Orlando, Philadelphia, Portland (Oregon), San Francisco, Seattle, Toledo, and Washington, DC, on the other hand, and (2) between New York and Atlanta, on the one hand, and Moscow, Russia, on the

other hand. 4 5

1 By Notice of Action Take n dated November 10, 2008, in this Docket, the Department granted Delta and Aeroflot exemptions and statements of authorization for certain reciprocal code

- share services. The Joint Applicants state that those services have not been implemented.

2 We note that under the U.S.

- Russian Federation Air Transport A greement (the Agreement)

, Delta may serve Kaliningrad, Novosibirsk, and Samara as the marketing carrier on a code

- share

- only basis.

3 We note that under the A greement, Aeroflot may serve Cleveland, D enver, Detroit, Las Vegas, Minneapolis, and Philadelphia as the marketing carrier on a code

- share

- only basis.

4 The Joint Applicants state that all code

- share traffic on beyond/behind segments will connect to/from transatlantic

service on a blind

- sector b asis (i.e., there will be no local traffic).

5 Aeroflot holds a foreign air carrier permit for scheduled services between Russia and New York ( see Order 86

- 5

- 75), and exemption authority for scheduled services between Russia, on the one hand, and Anchorage , Chicago, Los Angeles, Miami, Orlando, San Francisco, Seattle, and Washington, DC, on the other hand ( see Docket DOT

- OST

1995

- 250). Aeroflot filed a timely renewal application for its exemption authority, which has been kept in force pursuant to the provisions of the Administrative Procedure Act, 5 U.S.C. 588(c) and 14 CFR Part 377.XX Statement of authorization in order to engage in the following code

- share services:

Comair requests an amended statement of authorization under 14 CFR Part 212 to display the designator code of Aeroflot on flights operated by Comair between New York and/or Atlanta, on the one hand, and Anchorage, Atlanta, Bangor, Boston, Chicago, Cleveland, Columbus (Ohio), Dallas/Ft. Worth, Denver, Detroit, Honolulu, Houston, Huntsville, Las Vegas, Los Angeles, Miami, Minneapolis, New York, Orlando, Philadelphia, Portland (Oregon), San Francisco, Seattle, Toledo, and Washington, DC, on the other hand. 6

XX Amendment of statement of authorization in order to engage in the following code

- share services:

Aeroflot requests an amended statement of authorization under 14 CFR Part 212 t o display the designator code of Delta on flights operated by Aeroflot (1) between Moscow, Russia, on the one hand,

and Koltsovo

- Ekaterinburg, Russia; Kaliningrad, Russia; Khabarovsk, Russia; Krasnodar, Russia; Magadan, Russia; Nizhniy Novgorod, Russia; No vosibirsk, Russia; Petropavlovsk

- Kamchatski, Russia; Samara, Russia; St. Petersburg, Russia; Vladivostok, Russia; Yuzhno

- Sakhalinsk, Russia; Tashkent, Uzbekistan; and Bishkek, Kyrgyzstan, on the other hand, and (2) between New York, Los Angeles, and
Washin gton, on the one hand, and Moscow, Russia, on the other hand. 7 8

XX Waiver of the 45

- day advance filing requirement under 14 CFR Part 212

Applicant rep s : Don H. Hainbach , (202) 776

- 3970 ( Aeroflot ) and

DOT Analyst: Alexander Van der Bellen (202) 842

- 4184 ( Delta an d Comair )

Brett D. Kruger (202) 366

- 8025

DISPOSITION

XX Approved Delta’s exemption authority (subject to conditions, see below).

XX Approved in part, Aeroflot’s exemption authority ; remainder (request for longer

- term authority) dismisse d. 9 (subject to conditions, see below).

XX Approved amendmen t of Delta’ s statement of authorization (subject to conditions, see below).

XX Approved Comair ’s statement of authorization (subject to conditions, see below)

.

XX Approved amendment of Aerof lot’s statement of authorization (subject to conditions, see below).

6 The Joint Applicants state that all code

- share traffic on beyond/behind segments will connect to/from transatlantic

service on a blind

- sector basis (i.e., there will be no local tr affic).

7 The Joint Applicants state that all code

- share traffic on beyond/behind segments will connect to/from transatlantic

service on a blind

- sector basis (i.e., there will be no local traffic).

8 Delta holds authority to provide service between points in the United States and Moscow ( see Orders 95

- 3

- 25 and

2010

- 12

- 24) and, pursuant to its open

- skies certificate, Delta holds authority to serve Tashkent, Uzbekistan ( see Order 2007

- 4

- 27). Delta also holds exemption authority to provide scheduled services between a point or points in the United States, on the one hand, and St. Petersburg, Krasnodar, and Koltsovo

- Ekaterinburg, Russia, on the other hand ( see Notice of Action Taken dated November 10, 2008 in this Docket).

9 The one

- year duration of the autho rity we granted to Aeroflot is consistent with our usual policy of granting exemption authority in the circumstances presented. We therefore dismissed the application to the extent that it sought authority for a longer period.XX Approved waiver of 45

- day advance filing requirement under 14 CFR Part 212.

The above action granting exemption authority to Delta is effective when taken : July 8 , 20 1 1 , through

J ul y 8 , 201 3

. The above action granting exemption authority to Aeroflot is effective when taken: July 8 , 20 1 1 , through July 8 , 201 2

. The above action s granting statements of authorizat ion to the

referenced carriers are effective: July 8 , 20 1 1 , and will r emain in effect indefinitely, subject to

c onditions.

Action taken by: Paul L. Gretch, Director
Office of International Aviation

XX The authority granted is consistent with the Annexes to the 1994 U.S.

- Russian Federation Air Transport Agreement. 10 11

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

indicated:

XX Delta and Comair’s certificates of public convenience and necessity

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

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

XX

__________________________________________________________________________________ _ Conditions for Statements of Authorization (attached as Appendix C )

Remarks: We note that Delta has conducted a s afety audit of Aeroflot under the Department ’ s Code

Share Safety Audit Program, and the FAA has advised us that it has reviewed the relevant audit report

and found it to be ac ceptable.

__________________________________________________________________________________ On the basis of data officially noticeable under 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 granted or dismissed , we denied all requests in the referenced Docket. We may amend, modify, or revoke the a uthority 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 withi n 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 alter such effectiveness.

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

10 On February 13, 2009, the United States and the Russian Federation agreed, ad referendum , to revised Annexes to

the U.S.

- Russia n Federation Air Transport Agreement and stated that, pending their entry into force, the respective

aeronautical authorities intend to implement the provi sions of those Annexes on the basis of comity and reciprocity

. 11 Delta requests to the extent necessary, that the United States designate Kaliningrad, Koltsovo

- Ekaterinburg, Krasnodar, Novosibirsk, and Samara as the five code

- share

- only points for U.S. car riers under Annex I, Section 2(A) of the agreement. With respect to Denver, Las Vegas, and Philadelphia, the Joint Applicants state that they anticipate that the Russian Government will designate these points as three additional code

- share

- only points und er Annex I, Section 2(B). We note that these points will be available once they have been named by the United States and the Russian Federation, respectively.

### Appendix A

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 fro m 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 require ments 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 fr om 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) Com ply 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 applicabl e 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 shall, before commencing any new service (including charter flights) from a foreign airport that would be

the ho lder’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 Sec urity 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 i ts 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 t hat 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 c arriage 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 "internat ional 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 f lights 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 b y 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

conditi ons 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 followin g conditions:

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

Aeroflot continue to hold the necessary underlying authority to operate the code

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

- share agreem ent providing for the code

- share operations remains in effect.

( b ) Delta, Comair, and/or Aeroflot , as appropriate, 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, 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

- 200 7

- 26805

. 1

( c ) Delta, Coma ir, and/or Aeroflot

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

- share agreement providing for the code

- share operations is no longer effective or if the carriers decide to cease operating all or a portion of the approved code

- share ser vices. Such notice should be filed in Docket

DOT

- OST

- 200 7

- 26805

. 2

( 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 i n the 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 carri age 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 airspac e 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 co nsistent 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, fif th 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 author ization granted here, but that are not then being used by Delta , the holding of such authority will not be considered as providing any preference for Delta in a competitive carrier selection proceeding to determine which carrier(s) should be entitled to us e the authority at issue. 3

( f

) The authority granted here is specifically conditioned so that neither Delta, Comair, nor Aeroflot s hall give any force or effect to any contractual provisions between themselves that are contrary to these

conditions.

We ma y 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 rece ived 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

INITIAL LIST OF CODE

- SHARE POINTS

Delta Code on Aeroflot

Between Moscow and:

St. Petersburg, Russia Ekaterinburg, Russia Krasnodar, Russia

Novo sibirsk, Russia Samara, Russia Kaliningrad, Russia Tashkent, Uzbekistan Bishkek, Kyrgyzstan

Transatlantic Routes

New York

- Moscow, Russia Los Angeles

- Moscow, Russia Washington, DC

- Moscow, Russia

Aeroflot Code on Delta and/or Comair

Between Atlanta and/o r New York and:

Atlanta

New York Los Angeles Washington, DC

San Francisco Chicago

Boston

Houston
Miami

Denver
Orlando

Dallas/Ft. Worth Las Vegas Philadelphia

Transatlantic Routes

Atlanta

- Moscow, Russia New York, Moscow, Russia