 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation on  August 14, 2003

NOTICE OF ACTION TAKEN – DOCKET OST-2003-15698

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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  DELTA AIR LINES, INC., AND AEROVIAS DE MEXICO,
S.A. DE C.V. (AEROMEXICO) for: 

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 the terminal point Las Vegas, Nevada, and the terminal point
Guadalajara, Mexico, and to combine this authority with Delta’s
existing exemption and certificate authority.  Delta states that it will
use the authority pursuant to a code-share arrangement with Aeromexico,
whereby Delta will place its code on flights operated by Aeromexico.

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

Display Delta’s “DL” designator code on flights operated by
Aeromexico between the terminal point Las Vegas, Nevada, and the
terminal point Guadalajara, Mexico. 

Applicant reps:   Robert E. Cohn (Delta) (202) 663-8060 and William C.
Evans (Aeromexico) (202) 371-6030

DOT Analyst:     Linda L. Lundell (202) 366-2336

D I S P O S I T I O N

XX  Granted (subject to conditions, see below)

The above action granting exemption authority to Delta was effective
when 

taken: August 14, 2003,  through _August 14, 2005 .

The above action granting a statement of authorization to Aeromexico was
effective when taken:  August 14, 2003,  and will remain in effect
indefinitely, subject to the conditions below.

Action taken by:   Paul L. Gretch, Director	

                               Office of International Aviation	

XX  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   Delta’s certificates of public convenience and necessity

	XX   Standard Exemption Conditions (attached)

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------------Conditions:  The U.S.-Mexico transborder 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.  The U.S.-Mexico
exemption authority granted to Delta is limited to services provided 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 

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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.

The code-share operations conducted under this authorization are subject
to the following conditions:

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.
 The operating carrier shall not permit the code of its U.S. code-share
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    

(b)	 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.

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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_aviation.aspAPPENDIX 

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.  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 Principal Security Inspector (PSI) to
advise the PSI 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.

											8/2003

   Aeromexico already holds exemption authority to serve the
Guadalajara-Las Vegas market.  See Notice of Action Taken dated July 16,
2003, in Docket OST-2003-15645.

