UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on September 26

, 20 1 4



### N OTICE OF ACTION TAKEN

– DOCKET DOT

- OST

- 2014

- 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 matte r).

Joint Applicant s : AEROLI TORAL, S.A. de C.V. d/b/a AEROMEXICO CONNECT (Aerolitoral); AEROVIAS de MEXICO, S.A. de C.V. (Aeromexico ) ; and DELTA AIR LINES, INC. (Delta)

Date Filed: September 3 , 2014

Relief requested: E xemption under 49 USC §4 0109 to permit Aerolitoral to engage in scheduled foreign air transportation of persons, property, and mail between Guadalajara and Monterrey, Mexico, on the one hand, and New York, New York,

on the other hand.

E xemption under 49 USC §4 0109 to permit Aeromexico t o engage in scheduled foreign air transportation of persons, property, and mail between Guadalajara and Monterrey, Mexico, on the one hand, and New York, New York, on the other hand, by placing its “AM” designator code on flights operated by Aerolitoral. 1

E xemption for two years under 49 USC §4 0109 to permit Delta to engage in scheduled foreign air transportation of persons, property, and mail between Guadalajara and Monterrey, Mexico, on the one hand, and New York, New York, on the other hand, by placing its “DL” designator code on flights operated by Aerolitoral.

Aerolitoral seek s statement s of authorization under 14 C.F.R. Part 212 to permit Aerolitoral to display Aeromexico’s “AM” designator code and Delta’s “DL” designator code on Aerolitoral flights b etween Guadalajara and Monterrey, Mexico, on the one hand, and New York, New York, on the other hand.

The joint applicants also request a waiver of the 45

- day advance filing requirement under 14 C.F.R. Part 212.

Applicant representative s : John R. Miet us, Jr. ( Aerolitoral and Aeromexico) 202

- 747

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

- 842

- 4184

DOT analyst: Brett D. Kruger , 202

- 366

- 8025

Responsive pleadings: None

DISPOSITION

Action: Approved

. Action date: September 26 , 2014

Effective dates of authority granted : The exemption authority granted to Aerolitoral is effective September 26 , 2014, through September 26 , 2015.

The exemption authority granted to Aeromexico is effective September 26 , 2014, throug h September 26 , 2015.

1 Aeromexico currently holds Guadalajara

- New York exemption authority in Docket DOT

- OST

- 2013

- 0168 , for which it has filed a pending renewal application

. However, in that renewal application, Aeromexico states its expectation that its homeland operating designation to serve the Guadalajara

- New York market with its own aircraft will be withdrawn to permit Aeromexico to transition to

the Aerolitoral

- operated Guadalajara

- New York services at issu e in the present docket. That designation has in fact now been

withdrawn

. In these circumstances, Aeromexico requests dismissal of its request for renewal of th e Guadalajara

- New York exemption authority in Dock et DOT

- OST

- 2013

- 0168. ( see Aeromexico’s September 5, 2014 applicat ion in Docket DOT

- OST

- 2013

- 0168 at 2, note 1). We will handle that dismissal request separately.The exemption authority granted to Delta is effective September 26 , 2014, through September 26 , 2016.

The statement s of authorization under 14 C.F.R. Part 212 granted to Aerolitoral are effective September 26 , 2014 , and will

remain in e ffect for an indefinite duration, subject to conditions

.

The waiver of the adva nce filing requirement under 14 C.F.R. Part 212 is effective September 26 , 2014

.

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

- Mexico Air Transport Servic es Agreement

.
Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard foreign carrier exemption conditions attached as Appendix A; our standard U.S. carrier exemption conditions attached as Appendix B; to the code

- share conditions attached as Appendix C ; and to the otherwise

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

- 5

- 25).

Special conditions/Remarks: The exemption authority granted t o Aeromexico and Delta is limited to services provided on

a code

- share only basis, on flights operated by Aerolitoral.

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

- 10

- 2

.

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 with Department policy; (2) the applicants w ere 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 Policy and Conservation Act of 1975. To the extent not granted, we denied all requests in the referenced application . 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 regulati ons, 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.gov

### Appendix 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 Aviation Administration, the Transportation Security Administration, and wi th 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 s ecurity, 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 refe rred 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 adequate to allow such airport(s) to be served;

(3) Comply with the r equirements 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 Administrati on’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 Departmen t 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, inclu de 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 "international 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 repo rting 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); a nd

(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 conditions imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval un der Title

49 of the U.S. Code.

12/2007Appendix 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 operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR 241;

(4) Comply with requ irements 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, concern ing 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 air port, 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 suc h 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 applicable laws of th e United States.

The authority granted shall be effective only during the period when the holder is in compliance with the conditions imposed above.

1/08Appendix C

The code

- share operations authorized here are subject to the following c onditions:



### (a) The statement s of authorization granted to Aerolitoral will remain in effect only as long as (i) Aerolitoral,

Aeromexico , and Delta continue to hold the necessary underlying authority to operate the code

- share services at issue, and (ii) th e code

- share agreement providing for the code

- share operations remains in effect.

(b ) Aerolitoral, Aeromexico, and/or Delta, as appropriate, must promptly notify the Department if the code

- share agreement providing for the code

- share operations is no long er 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

- OST

- 2014

- 0153

. 1

( c ) The code

- sharing operations conducted under this authority must comply with 14 C FR 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 th at 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 responsibil ity 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.

.

( d ) The authority granted here is specifically co nditioned so that neither Aerolitoral, Aeromexico, nor Delta shall 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 h earing at our discretion.

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

- effectiveness or of such decision.