BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________ ) Joint Application of ) ) AEROVIAS DE MEXICO, S.A. DE C.V., and ) DELTA AIR LINES, INC. ) DOCKET OST-2013-____ ) for exemptions and a code -share ) statement of authorization ) (U.S.-Mexico markets) ) __________________________________________) JOINT APPLICATION OF AEROVIAS DE MEXICO, S.A. DE C.V. AND DELTA AIR LINES, INC. FOR EXEMPTIONS AND A

STATEMENT OF AUTHORIZATION Communications with respect to this document should be sent to: John R. Mietus, Jr. LAW OFFICE OF JOHN MIETUS, LLC 6701 Democracy Boulevard Ste 300 Bethesda, Maryland 20817 (202) 747- 5212 john@mietuslaw.com Counsel for AEROMEXICO Alexander Van der Bellen Managing Director

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Government Affairs & Associate General Counsel Christopher Walker Regional Director

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Government Affairs DELTA AIR LINES, INC. 1212 New York Avenue, N.W. Washington, D.C. 20005 (202) 842- 4184 sascha.vanderbellen@delta.com chris.walker@delta.com
NOTICE : Any person may support or oppose this application by filing an answer and

serving a copy of the answer on counsel for the Joint Applicants and upon persons served with this application no later than July 23 , 2013. THE JOINT APPLICANTS INTEND TO POLL. July 8, 2013BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________ ) Joint Application of ) ) AEROVIAS DE MEXICO, S.A. DE C.V., and ) DELTA AIR LINES, INC. ) DOCKET OST-2013-____ ) July 8, 2013 for exemptions and a code-share ) statement of authorization ) (U.S.-Mexico markets) ) __________________________________________)

JOINT APPLICATION OF AEROVIAS DE MEXICO, S.A. DE C.V. AND DELTA AIR LINES, INC. FOR EXEMPTIONS AND A

STATEMENT OF AUTHORIZATION Aerovias de Mexico, S.A. de C.V. ("Aeromexico") and Delta Air Lines, Inc. (“Delta”) (together, the “Joint Applicants”) respectfully apply for the following authority to engage in scheduled, foreign air transportation of persons, property, and mail in three Mexico

- U.S. city

- pair ma r kets as described below : ( 1) an exemption, pursuant to 49 U.S.C. § 40109 and for an initial period of one year, authorizing Aeromexico to operate such service in the New York-San Jose del Cabo (SJD) and Chicago-Ixtapa/Zihuatenejo (ZIH) markets; (2) a statement of authorization, pursuant to 14 C.F.R. Part 212 and of indefinite duration , permitting Aeromexico to display the DL* designator code of Delta on Aeromexico-operated flights on flights in the the New York-Puerto Vallarta (PVR) 1 , New York -SJD, and Chicago-ZIH markets; and

1 / Aeromexico holds permit authority in Order 91-5-25 for the New York-Puerto Vallarta market.Aeromexico/Delta Application Page 2 (3) a code -share exemption authorizing Delta to engage in such transportation in the New York-SJD and Chicago-ZIH markets by placing its code on Aeromexico 2

. In support of this Joint Application, the Joint Applicants state as follows: 1. Aeromexico is a flag carrier of the United Mexican States that hold s Department permit and exemption authority to provide service between M exico and numerous U.S. points. It provides extensive U.S.

- Mexico service. Aeromexico proposes to operate daily service in the New York

- PVR and New York

- SJD markets, and four weekly flights in th e Chicago

- ZIH market , beginning in December 2013 with Boeing B737 aircraft. 2. Annex 1 to the 1960 Air Transport Agreement, as amended, between the United Mexican States and the United States provides that a carrier designated by the Government of Mexico is entitled to operate "[f]rom a point or points in Mexico to a point or points in the United States." The Joint Applicants understand that Aeromexico will be designated to serve all three city-pair routes, and a public interest finding is therefore warranted. 3 The services for which Aeromexico requests authority also will benefit business

2 / Delta’s Route 901 certificate, issued by Order 2010 -3-12, includes authority for the New York-PVR market. Delta requests code-share exemption authority for the other two markets for an initial, two-year period. It further requests the Department transmit the necessary code-share designation to the Government of Mexico to facilitate Mexican licensing of Delta’s proposed services on Aeromexico under the U. S. -Mexico Air Transport Agreement. 3/ Designation of a carrier by its homeland government is the most significant factor in determining whether grant of an application is in the public interest. See, e.g., Bluebird Cargo Ltd. , Order 2004-8-24 at 3- 4; Fast Air Carrier Ltda., Permit Amendment , Order 82-2-66 at 3- 4.Aeromexico/Delta Application Page 3 travelers, tourists, and shippers, further demonstrating that grant of the exemption would be consistent with the public interest. 3. So that Delta may offer code-share service on all three routes pursuant to its longstanding code-share agreement with Aeromexico, the Joint Applicants also request code-share exemption authority for Delta, and a statement of authorization authorizing Aeromexico to carry Delta’s code, in both markets. Delta is fit, willing, and able to engage in these services on a code -share basis, as it operates numerous U.S.-Mexico transborder services under various exemptions and pursuant to Delta’s certificate authority for Route 901. See Order 2010-3-12. Delta also requests that the Department take official notice, pursuant to Rule 24 of the Department’s Rules of Practice, of all data on file with the Department necessary to establish its fitness. 5. Approval of the requested code-sharing authority is in the public interest. Authorizing Delta to offer code-share service in these three markets will enhance competition and expand price and service options for U.S.

– Mexico travelers. Approval of the exemption and statement of authorization also is consistent with the U.S.

– Mexico agreement. The Department has granted similar U.S.

– Mexico transborder codesharing requests, finding that the exercise of such codeshare rights “will benefit travelers, shippers, businesses, cities, airlines, and airports.” DOT Order 99 -6-6, at 6. Moreover, the amended agreement authorizes up to ten carriers from each country to