U.S. Department of Transportation Office of the Secretary of Transportation

DEPARTMENT ACTION ON APPLICATION IN DOCKET DOT

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- 200 3

- 14367 (Filed June 7 , 201 2 )

Joint a pplication of Delta Air Lines, Inc. (Delta), Korean Air Lines Co. Ltd., (Korean), Pinnacle Airlines Corp. , Inc. ( Pinnacle ) , and SkyWest Airlines, Inc. (SkyWest) for blanket statement s of authorization permitting Pinnacle and SkyWest to display the “ KE ” designator code of Korean on Delta Connection flights operated by Pinnacle and SkyWest on behalf of Delta ( a ) within the United States (in conjunction with Korean ’s services in foreign air transportation); and ( b ) between the

United States and third countries. The J oint A pplicants also request a waiv er of the 45

- day advance filing requirement under 14 CFR Part 212. 1

* Approved under assigned authority (14 CFR §385.13).

Date of Action: June 12 , 201 2 2

This action is subject to the conditions attached. 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 ac tion is effective immediately, and the filing of a petition for review will not alter its effectiveness. An electronic version of this document is available on the World Wide Web at http://www.regulations.gov

1 The Joint Applicants also request that the code

- share authority granted here be administered jointly with the existing authority for Korean code sha ring on Delta and other Delta Connection carriers in this docket and that a

non

- open

- skies point code

- share notice given by Delta, Korean, or any of the regional partners or code

- share affiliates authorized in this docket be deemed notice given by all the carriers, except for U.S.

- Mexico service where notices will continue to be provided on an operating carrier

- specific basis. The Joint Applicants also incorporate by reference all previous non

- Mexico code

- share point notices provided in this docket, includ ing the March 18, 2009, Delta/Korean blanket open

- skies code

- share notice.
2 We acted on the application without awaiting expiration of the answer period with the consent of all parties served.

### Appendix A

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, Pinnacle, SkyWest , and Korean continue to hold the necessary underl ying 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, Pinnacle, SkyWest , and/or Korean , 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 t he service will begin. Such notice should be filed in Docket DOT

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- 2003

- 14367

. 3

(c) Delta, Pinnacle, SkyWest , and/or Korean , 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 services. Such notice should be filed in Docket DOT

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- 2003

- 14367

. 4

(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. No twithstanding 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 rese rvation 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 passen ger; and that the passenger liability of the operating carrier be unaffected.
(e) The authority to operate to third countries is subject to the condition that any service provided under th ese blanket 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 blanket
statement s of authorization should be construed as conferring upon Pi nnacle or SkyWest rights (including code

- share, fifth freedom intermediate and/or beyond rights) to serve markets where U.S. carrier entry is limited unless Pinnacle or SkyWest notifies the Department of their intent to serve such a market and unless and u ntil 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 includ ed in the authority of Pinnacle and SkyWest by virtue of the blanket statement s of authorization granted here, but that are not then being used by Pinnacle or SkyWest , the holding of such authority will not be considered as providing any preference for Pin nacle or SkyWest in a competitive carrier selection proceeding to determine which carrier(s) should be entitled to use the authority at issue. 5

(f) The authority granted here is specifically cond itioned so that neither Delta, Pinnacle, SkyWest , nor Korean 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 hearing at our discretion.

3 See Appendix B for list of initial code

- share points. We gr ant the requests that notice given by Delta, Pinnacle, SkyWest, or any of the Delta Connection carriers authorized in this docket, be deemed as notice given by all carriers (except in the case of Mexico where operator

- specific notices will continue to be s upplied for Delta/Delta Connection services).
4 We expect this notification to be received within ten (10) days after such non

- effectiveness or of such decision.
5 The notice in paragraph (b) above can be used for this notification.

### Appendix B Page 1 of 2

INITIAL LIST OF CODE

- SHARE POINTS

“KE” designator code on Delta Connection flights operated by Pinnacle:

### Appendix B Page 2 of 2

INITIAL LIST OF CODE

- SHARE POINTS

“KE” designator code on Delta Connection flights operated by SkyWest: