Document ID: DOT-OST-2005-22620-0013
Agency: dot
Document Type: Notice
Title: Notice of Action Taken re: Delta Air Lines, Inc.
Posted Date: 2005-12-09T05:00Z

UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on December 9, 2005

NOTICE OF ACTION TAKEN -- DOCKET OST-2005-22620

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).

Application of DELTA AIR LINES, INC. (DELTA) filed 9/29/05, as
supplemented on 10/3/05 and 10/17/05 for: 

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

Scheduled foreign air transportation of persons, property, and mail
between (1) Atlanta, Georgia, and Acapulco, Mexico; (2) Atlanta, Georgia
and Ixtapa/Zihuatanejo, Mexico; (3) Boston, Massachusetts, and Cancun,
Mexico; (4) Los Angeles, California, and Puerto Vallarta, Mexico; (5)
Los Angeles, California, and San Jose del Cabo, Mexico; (6) Los Angeles,
California, and Ixtapa/Zihuatanejo, Mexico; and (7) Washington, D.C.,
and Cancun, Mexico, and to integrate this authority with Delta’s
existing exemption and certificate authority, consistent with applicable
international agreements.  Delta proposes to offer year-round service in
these markets.

Applicant rep: Alexander Van der Bellen (202) 637-8382 DOT Analyst: Thuy
H. Cooper  (202) 366-5423

D I S P O S I T I O N

XX  Granted Atlanta-Acapulco and Atlanta-Ixtapa/Zihuatanejo exemption
authority, including                  corresponding route integration
authority (subject to conditions, see below)

XX  Deferred on Delta’s request for exemption authority to serve the
Boston-Cancun, Los

	Angeles-Puerto Vallarta, Los Angeles-San Jose del Cabo, Los
Angeles-Ixtapa/Zihuatanejo, and Washington, D.C.-Cancun markets,
including corresponding route integration authority (see remarks, below)

XX  Deferred on Delta’s request for certificate authority to serve the
Atlanta-Acapulco, Atlanta-

	Ixtapa/Zihuatanejo, Boston-Cancun, Washington, D.C.-Cancun, Los
Angeles-Puerto Vallarta, Los Angeles-San Jose del Cabo, and Los
Angeles-Ixtapa/Zihuatanejo markets (see remarks, below)

								

The above action granting exemption authority to Delta for
Atlanta-Acapulco and Atlanta-Ixtapa/Zihuatanejo services, including
corresponding route integration authority was effective when taken:
December 9, 2005, through December 9, 2007.

The above action deferring on Delta’s request for exemption authority
to serve the Boston-Cancun, Los Angeles-Puerto Vallarta, Los Angeles-San
Jose del Cabo, Los Angeles-Ixtapa/Zihuatanejo, and Washington,
D.C.-Cancun markets, including corresponding route integration authority
was effective when taken: December 9, 2005.

The above action deferring on Delta’s certificate requests was
effective when taken: December 9, 2005.

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 exemption conditions (attached)

Conditions:  The U.S.-Mexico exemption authority granted is subject to
the dormancy notice requirements set forth in condition 7 of Appendix A
of Order 88-10-2.  Consistent with our policy, the dormancy notice
period for the new exemption authority granted will begin on Delta’s
proposed start-up dates for the subject services, as follows: March 11,
2006, for the Atlanta-Acapulco market, and March 18, 2006, for the
Atlanta-Ixtapa/Zihuatanejo market.

The route integration authority granted to Delta is subject to the
condition that any service provided under this exemption shall be
consistent with all applicable agreements between the United States and
the foreign countries involved.  Furthermore, (a) nothing in the award
of the route integration authority granted should be construed as
conferring upon Delta rights (including fifth-freedom intermediate
and/or beyond rights) to serve markets where U.S. carrier entry is
limited unless Delta notifies the Department of its intent to serve such
a market and unless and until the Department has completed any necessary
carrier selection procedures to determine which carrier(s) should be
authorized to exercise such rights; and (b) should there be a request by
any such carrier to use the limited-entry route rights that are included
in Delta’s authority by virtue of the route integration authority
granted here, but that are not then being used by Delta, the holding of
such authority by route integration will not be considered as providing
any preference for Delta in a competitive carrier selection proceeding
to determine which carrier(s) should be entitled to use the authority at
issue.

Responsive Pleadings/Remarks:  Currently, under the U.S.-Mexico Air
Transport Agreement, up to a total of two U.S. carriers may be
designated to provide direct-carrier (own-aircraft) services in a given
city-pair market.  With the exception of the Atlanta-Acapulco and
Atlanta-Ixtapa/Zihuatanejo markets, either two U.S. carriers are already
authorized to provide direct-carrier services on the subject routes or
applications have been received from U.S. carriers in excess of
available designation opportunities.  On September 21, 2005, the United
States and Mexico reached an ad referendum agreement on certain
amendments to the U.S.-Mexico aviation agreement, providing for the
expansion of services between the two countries for both combination and
all-cargo air transportation services including combination services in
the Boston-Cancun, Los Angeles-Puerto Vallarta, Los Angeles-San Jose del
Cabo, Los Angeles-Ixtapa/Zihuatanejo, and Washington, D.C.-Cancun
markets.  However, the agreement has not yet been signed.  In the
circumstances presented, we defer action on the applicant’s request
for authority with respect to the Boston-Cancun, Los Angeles-Puerto
Vallarta, Los Angeles-San Jose del Cabo, Los Angeles-Ixtapa/Zihuatanejo,
and Washington, D.C.-Cancun markets. 

No party has opposed Delta’s request to serve the Atlanta-Acapulco and
Atlanta-Ixtapa/Zihuatanejo markets, no U.S. carrier is currently
designated to serve these routes, and the authority is available under
the current agreement.  Thus, we will grant the requested
Atlanta-Acapulco and Atlanta-Ixtapa/Zihuatanejo exemption authority
herein.    

We will handle Delta’s request for certificate authority for the
Atlanta-Acapulco, Atlanta-Ixtapa/Zihuatanejo, Boston-Cancun, Washington,
D.C.-Cancun, Los Angeles-Puerto Vallarta, Los Angeles-San Jose del Cabo,
and Los Angeles-Ixtapa/Zihuatanejo markets separately.

________________________________________________________________________
_____________

On the basis of data officially noticeable under Rule 24(g) of the
Department's regulations, we found the applicant qualified to provide
the exemption services authorized.

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 authority 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 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 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:

  HYPERLINK "http://dms.dot.gov//reports/reports_aviation.asp" 
http://dms.dot.gov//reports/reports_aviation.asp 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 requirements 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, concerning
waiver of Warsaw Convention liability limits and defenses;

(6)  Comply with all applicable requirements of the Federal Aviation
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 airport, contact its
International Principal Security Inspector (IPSI) to advise the IPSI 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 such 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 the
United States.

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

										  05/2004

   On October 3, 2005, Delta supplemented its application to add
Atlanta-Ixtapa/Zihuatanejo to the list of routes for which Delta seeks
authority to serve.  On October 17, 2005, Delta further supplemented its
application to confirm, among other things, its proposed start-up dates
in the subject markets.  By letter dated November 22, 2005, Delta
modified certain of its earlier-proposed start-up dates for its Cancun
services, as a result of the damage Hurricane Wilma inflicted on Cancun.
  

   Delta requests that its exemption authority for these markets be
awarded under the Department’s streamlined licensing procedures.  To
the extent that Delta is seeking certificate authority for these
markets, we will handle that request subsequently. 

   No U.S. carrier is currently authorized to provide direct-carrier
services on either the Atlanta-Acapulco or Atlanta-Ixtapa/Zihuatanejo
route.

   We note that, on October 20, 2005, United filed a consolidated
motion, including in the present docket, outlining proposed procedures
for awarding authority under the amended agreement.  A number of
responsive pleadings were filed to United’s motion addressing such
procedures, and United filed a reply.  Because our action here grants
authority pursuant to the current agreement only (an issue not addressed
in United’s motion), we will not consider United’s October 20 motion
here.

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