### CORRECTED COPY

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on June 2 6

, 2014



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 20 1 4

- 0091

_____________________________________________________________________________________________________________________________ ___ 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 Applicant s : 

### PT Garuda Indonesia (Persero) TBK (Garuda) & Delta Air Lines, Inc. (Delta)

Date Filed: May 29, 2014

Relief requested:

Garuda: E xemption under 49 U.S.C. § 4 0109 to engage in scheduled foreign air transportation of persons, property and mail between a point or points in the Republic of Indonesia via Tokyo

- Haneda to Seattle, WA

, and Los Angeles, CA

, under a code

- share arrangement with Delta

.

Delta : Statement of authorization under 14 CFR Part 212 to permit Delta to display Garuda’s GA * designator code on flights operated by Delta between Tokyo

- Haneda on the one hand, and Seattle, WA

, and Los Angeles, CA, on the other

hand.

The joint applicants further reques t a waiver of the 45

- day advance filing requirement under 14 CFR Part 212.

If renewal, date and citation of last action: New authority

Applicant representative s : Mr. Nana Haryana (Garuda) 62 21 2560 1123

Alexander Van der Bellen (Delta) 202

- 842

- 4184

DOT Analyst: Shelita A. Johnson (202) 366

- 1226

Responsive pleadings: American Airlines , Inc. filed comments in support of the Delta/ Garuda joint application.

DISPOSITION

Action: Approved Action date : June 2 6 , 20 14

The exemption authority granted to Garuda is effective : J une 2 6

, 2014

– June 2 6

, 2016

.

The statement of authorization granted to Delta is effective June 2 6 , 2 014, and will remain in effect for an i ndefinite duration, subject to conditions

.

The waiver of the 45

- day advance filing requirement under 14 CFR Part 212 is effective June 2 6 , 2014.

Basis for approval (bilateral agreement/reciprocity) : U.S.

- Japan Air T ransport Agreement, and U.S.

- Indonesia Air Transport Agreement.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations indicated:

X Standard exemption conditions (attached as Appendix A ) X Code

- share conditions ( attached as Appendix B )Special conditions/Remarks: The exemption authority granted to Garuda is limited to services provided on a code

- share basis only, on flights operated by Delta.

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) the applicant is qualified to perform the proposed operations; (2) our action was consistent with Department policy; (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/deferred/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 und er 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.

A n 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 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 Administrati on, 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 al l 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

Inte rnational 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 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 un less 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 specific ally 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 so vereign 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 transportat ion 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 u nder 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 th e 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 gove rning 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 conditions imposed above. Moreover, this authority cannot be sold or otherwi se transferred without explicit Department approval under Title

49 of the U.S. Code.APPENDIX B

The code

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

(a) The statement of authorization will remain in effect only as long as ( i) Delta and Garuda continue to hold 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 and/or Garuda must promptly notify the Department if the code

- share agreement providing for

the code

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

- share services. 1 Such notice should be filed in Dockets DOT

- OST

- 2014

- 0091.

( c ) 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 be tween 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 computer reservation systems and elsewhere; that the

carrier sel ling 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; and that the passenger liability of the operat ing carrier be unaffected

.

( d ) The authority granted here is specifically conditioned so that neither Delta nor Garuda shall give any force or effect to any contractual provisions between themselves that are contrary to these conditions.

( e ) We may ame nd, modify, or revoke the authority granted at any time without hearing at our

discretion.

1 We expect this notification to be received within 10 days of such non

- effectiveness or of such decision.