 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

                    WASHINGTON, DC

Issued by the Department of Transportation on October 2, 2002

   NOTICE OF ACTION TAKEN -- DOCKET 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).

Joint application of AEROVIAS DE MEXICO, S.A. DE C.V. and DELTA AIR
LINES, INC., filed  9/19/02 for:

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

Scheduled foreign air transportation of persons, property, and mail
between Mazatlan, Mexico, and San Diego, California.  Aeromexico intends
to operate this service under a code-share arrangement with Delta on
flights operated by Aeromexico.

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

Scheduled foreign air transportation of persons, property, and mail
between Mazatlan, Mexico, and San Diego, California.  Delta also
requests to integrate this authority with its existing certificate and
exemption authority.  

XX  Statement of authorization for Aeromexico for indefinite duration
under 14 CFR Part 212 of the Department’s Regulations to:

Display Delta’s “DL” designator code in conjunction with scheduled
foreign air transportation of persons, property, and mail on flights
operated by Aeromexico between Mazatlan, Mexico, and San Diego,
California.  

Applicant rep: Robert E.Cohn, 202-663-8060 (Delta)        

                        William C. Evans, 202-371-6030 (Aeromexico)

DOT Analyst:  Keith A. Glatz, 202-366-3260

D I S P O S I T I O N

XX Granted (subject to conditions, see below)

The above action, granting new exemption authority to Aeromexico was
effective when taken:

October 2, 2002, through   October 2, 2003.

The above action, granting new exemption authority to Delta was
effective when taken:

October 2, 2002, through   October 2, 2004. 

The above action, granting a statement of authorization to Aeromexico
was effective when taken: 

October 2, 2002, and will remain in effect indefinitely, subject to the
conditions listed below.  

 

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  Aeromexico’s foreign air carrier permit

	   XX  Delta’s certificates of public convenience and necessity

	   XX  Standard exemption conditions (attached)

______________

Conditions:  The U.S.-Mexico exemption authority granted to Delta 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 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 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 to
Delta in a competitive carrier selection proceeding to determine which
carrier(s) should be entitled to use the authority at issue.

The Statement of Authorization granted Aeromexico is subject to the
following conditions:

 The statement of authorization will remain in effect only as long as
Delta and Aeromexico continue to hold the underlying authority to
operate the code-share services at issue, and the code-share agreement
providing for the code-share operations remains in effect.

 Delta and/or Aeromexico must promptly notify the Department (Office of
International Aviation) if the code-share agreement is no longer
effective or if the carriers decide to cease operating all of a portion
of the approved code-share services. (Such notice should be filed in
Docket OST-2002-13.)

The code-sharing operations conducted under this authority must comply
with 14 CFR 257 and with any amendment 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 computer reservation systems and elsewhere; that the carrier
selling 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 operating carrier be unaffected;
and the operating carrier shall not permit the code of its U.S.
code-sharing partner to be carried on any flight that enters, departs,
or transits the airspace of any area for whose airspace the Federal
Aviation Administration has issued a flight prohibition; and

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

Remarks:  We acted on this application without awaiting expiration of
the 15-day answer period with the consent of all parties served.

________________________________________________________________________
______________

On the basis of data officially noticeable under Rule 24(g) of the
Department's regulations, we found the applicants 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

										     



           Attachment 

FOREIGN AIR CARRIER CONDITIONS OF AUTHORITYIn the conduct of the
operations authorized, the holder 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, including, but not limited to, 14 CFR Parts 129, 91, and
36, and with all applicable U.S. Government requirements concerning
security;

(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 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
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
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, 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 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
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
governing 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 otherwise transferred without explicit
Department approval under Title 49 of the U.S. Code (formerly the
Federal Aviation Act of 1958, as amended).



 											

U.S. Department of Transportation	

Office of the Secretary of Transportation								          
(41301/40109) 7/2002			              									        Attachment 

U.S. CARRIER Standard Exemption Conditions

In the conduct of operations authorized by the attached notice, the
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 Part 203,
concerning waiver of Warsaw Convention liability limits and defenses;

(6)  Comply with the applicable requirements of the Federal Aviation
Administration (FAA), and with all U.S. Government requirements
concerning security; 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.

 

 We expect this notification to be received within 10 days of such
non-effectiveness or of such decision.

