			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on July 21, 2004

NOTICE OF ACTION TAKEN -- DOCKETS OST-2002-13217

                    		                                                  
               							            OST-2002-13400			

________________________________________________________________________
___________________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).

Applications of DELTA AIR LINES, INC. (DELTA) filed 6/17/04, for:

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

Docket OST-2002-13217:

Scheduled foreign air transportation of persons, property, and mail
between the terminal point San Diego, California, and the terminal point
Loreto, Mexico, and to combine this exemption authority with all of
Delta’s existing certificate and exemption authority, consistent with
international agreements.

Docket OST-2002-13400:

Scheduled foreign air transportation of persons, property, and mail
between the terminal point San Diego, California, and the terminal point
Mazatlan, Mexico, and to combine this exemption authority with all of
Delta’s existing certificate and exemption authority, consistent with
international agreements.

Delta states that it uses the authority in both documents pursuant to a
code-share arrangement with Aerovias de Mexico, S.A., de C.V.
(Aeromexico), whereby Delta places its “DL” code on the flights of
Aeromexico in the subject markets. 

Applicant reps: Robert E. Cohn (202) 663-8060 DOT Analyst: Linda Lundell
Thuy H. Cooper (202) 366-23365423

                         

D I S P O S I T I O N

XX  Granted (subject to conditions and remarks, see below)

The above action was effective when taken:  _  July 21, 2004  through
_.July 21, 2006.

Action taken by:	Paul L. Gretch, Director

			Office of International Aviation

(See next page)												2

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, and is limited to operations conducted on a code-share
basis only.  

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); (b) should there be a request by
any carrier to use the limited-entry route rights that are included in
Delta’s authority by virtue of the route integration exemption 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.

 

.

________________________________________________________________________
________________________________________

On the basis of data officially noticeable under Rule 24(g) of the
Department’s regulations, we found the applicant qualified to provide
the 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 application 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, 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:

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

 Aeromexico holds the requisite underline underlying authority by Notice
of Action Taken dated October 15, 2003 in Docket 2002-13400.

