UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on February 23 , 20 11



### NOTICE OF ACTION TAKEN

– DOCKET DOT

- OST

- 20 10

- 0300

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 Application of Aerovias de Mexico, S.A. de C.V. (Aeromexico) ; Delta Air Lines, Inc. (D elta); and SkyWest Airlines, Inc. (Sky W est) , filed December 27 , 20 10 , for: 1

XX Exemption for Aeromexico under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail on the following U.S.

- Mex ico

routes , pursuant to a code

- share arrangement with Delta and SkyWest :

Detroit

- Cancun Detroit

- Mexico City Memphis

- Cancun

Memphis

- Mexico City Minneapolis/St. Paul

- Cancun Minneapolis/St. Paul

- Mexico City

Orlando

- Cancun

XX Stat ement s of authorizati on in order to engage in the following code

- share services :

Delta requests a statement of authorization to permit Delta to display Aeromexico’s “AM * ” designator code on flights operated by Delta on the following U.S.

- Mexico routes:

Detroit

- Cancun Detroi t

- Mexico City Memphis

- Cancun

Memphis

- Mexico City Minneapolis/St. Paul

- Cancun Minneapolis/St. Paul

- Mexico City

Orlando

- Cancun

Applicant reps: Alexander Van der Bellen (Delta) (202) 842

- 4184 and William C. Evans (Aeromexico) (410) 827

- 5074

DOT Analys t: Brett D. Kruger (202) 366

- 8025

D I S P O S I T I O N

XX Approved

, exemption authority to Aeromexico ( subject to conditions ).

XX Approved

, statement of authorization to Delta ( subject to conditions ).

The above action granting exemption authority to Aeromexico was effective when taken: February 23 , 20 11

, through February 16 , 201 2

. 2

1 Our present action addresses the remaining portion of the Joint Applicants’ pending request in this Docket, on which the Department had previously deferred action. By Notice of Action Taken, dated February 16, 2011, we granted exemption author ity to Aeromexico, and statement s of authorization to Delta and SkyWest permitting

them to display Aeromexico’s code, on various U.S.

- Mexico routes. At that time, we had not yet received

notification from the Government of Mexico that it had authorized Ae romexico to conduct code

- share services

in the seven U.S.

- Mexico routes listed above. We have now received the necessary notification from the

Government of Mexico ; therefore, we are granting the remainder of the carriers’ request.

2 We are granting Aero mexico’s exemption authority through February 16, 2012, coextensive with its existing exemption authority in this Docket.The above action granting a statement of authorization to Delta is effective: February 23 , 2011 , and will remain in effect indefinitely, subject to conditions.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the aviation agreement between the United States and

Mexico.

Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations

indicated:

XX Holder ’ s certificates of public convenience and necessity

XX Standard foreign carrier e xemption c onditions (attached as Appendix A )

XX Conditions for statements of authorization (attached as Appendix B)

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) grant of the authority was consistent with the public interest; and (3) grant of the auth ority would not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975. To the extent not granted or deferred , we denied all requests in the referenced Docket. We may amend, modify, or revoke the authority granted in th is 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 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.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.

12/2007

### Appendix B

The code

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

(a) The statement of authorization granted to Delta will remain in effect only as long as (i) Delta and

Aeromexico conti nue 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 Aeromexico , as appropriate, must notify the Departmen t 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 the service will begin. Such notice should be filed in Docket DOT

- OST

- 2010

- 0300

.

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

- share agreement providing for the code

- share operations is no lon ger 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

- 2010

- 0300

. 3

( 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. 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 responsib ility 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 operating carrier

be unaffected.

( f

) The authority granted here is specifically condit ioned so that neither Delta nor Aeromexico 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 disc retion.

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

- effectiveness or of such decision.