UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on July 22

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### N OTICE OF ACTION TAKEN

– DOCKET S DOT

- OST

- 2013

- 0133

_______________________________________________ _________________________________________________________________________________ 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).

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

Date Filed: July 8 , 2013

Relief Requested: Exemption for Aeromexico pursuant to 49 USC §40109, authorizing Aeromexico to engage in scheduled foreign air tran sportation of persons, property, and mail between (1) New York, New York, and San Jose del Cabo, Mexico; and (2) Chicago, Illinois, and Ixtapa/Zihuatenejo, Mexico.

Aeromexico further requests a statement of authorization pursuant to 14 CFR Part 212 to p ermit Aeromexico to display Delta’s “DL” designator code on flights operated by Aeromexico between (1) New York, New York, and Puerto Vallarta, Mexico; 1 2 (2) New York, New York, and San Jose del Cabo, Mexico; and (3) Chicago, Illinois, and Ixtapa/Zihuaten ejo,

Mexico.

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

Aeromexi co between (1) New York, New York, and San Jose del Cabo, Mexico; and (2) Chicago, Illinois, and Ixtapa/Zihuatenejo, Mexico. 3

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

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- 5212 ; and Alexander Van der Bellen ( Delta ), 202

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DOT analyst: Brett D. Kruger , 202

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Responsive pleadings: None

DISPOSITION

Action: Approved ( subject to conditions )

Action date: July 22 , 2013 4

Effective dates of authority granted : The exemption authority granted to Aeromexico is e ffective July 22 , 2013 , through July 22 , 201 4

.

T he statement of authorization granted to Aeromexico is effective July 22 , 2013 , and will remain in effect for an indefinite duration, subject to conditions.

The exemption authority granted to Delta is effec tive July 22 , 2013 , through July 22 , 2015.

Basis for approval (bilateral agreement/reciprocity): United States

- Mexico Air Transport Services Agreement

.

1 Aeromexico’s foreign air carrier permit authorizes Aeromexico to serve the New York

- Puerto Vallarta market. See Order 91

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- 25.

2 Delta holds certificate authority to serve the New York

- Puerto Vallarta market. See Order 2010

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- 12.

3 The applicants propose to begin the subject services in December 2013.

4 We acted on the application prior to the expiration of the answer period wit h the consent of all parties served.Except to the extent exempted/waive d , this authority is subject to the terms, conditions, and limitation s of our standard foreign air carrier exemption 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 th e otherwise

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

- 5

- 25).

Special conditions/Remarks: The U.S.

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

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. Consistent with our standard policy, the dormancy notice period for Delta’s New York

- San Jose del Cabo and Chicago

- Ixtapa/ Zihuatenejo service s will begin on December

1 , 2013, the beginning of the month in which Delta propose s to start the subject services.

The exemption authority 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 er e qualified to perform their proposed operations; (3) grant of the authority 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 th e extent not granted, 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 actio n set forth in this Notice under the Department’s regulations, 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 operatio ns 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) Comp ly 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 an d 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 holder’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 S ecurity 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 th is 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 fil ed 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 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) 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 "intern ational 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 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 th e 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 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 condi tions 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) 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 operati ons, 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 A dministration, 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 con cerning 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 Securit y 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 Transp ortation, 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.

1/2008Appendix C

The Statement 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 under lying authority to operate the code

- share services at issue, 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 operatio ns 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 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 t hat 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 prohibiti on.

( d ) The authority granted here is specifically conditioned 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 revok e the authority granted at any time wi thout hearing at our 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 t his action. This action is effective immediately, and the 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.