 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on October 14, 2003

   NOTICE OF ACTION TAKEN -- DOCKET OST-2003-15805           

________________________________________________________________________
_________________________________

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 Emirates    filed  
7/29/03  for:

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

Scheduled foreign air transportation of persons, property, and mail
between a point or points in the United States and a point or points in
Qatar directly and via intermediate points, and beyond, and to integrate
such authority with its existing exemption and certificate authority. 
Delta intends to operate this service pursuant to a reciprocal
code-share arrangement with Emirates.

XX  Statement of authorization for Delta under CFR Part 212 to:

Permit Delta to display the “EK” code of Emirates on flights
operated by Delta between (1) any point or points in the United States
and any point or points in the United Arab Emirates (either nonstop or
via intermediate points), (2) any points in the United States in
conjunction with foreign air transportation services held out by
Emirates, and (3) any point or points in the United States or the United
Arab Emirates and any point or points in any third country. 

XX  Statement of authorization for Emirates under 14 CFR Part 212 to:

Permit Emirates to display the “DL” code of Delta on flights
operated by Emirates between (1) any point or points in the United
States and any point or points in the United Arab Emirates (either
nonstop or via intermediate points), (2) any points in the United Arab
Emirates, and (3) any point or points in the United Arab Emirates or the
United States and any point or points in any third country.

Applicant reps: Robert E. Cohn  (202) 663-8060 (DL)  DOT Analyst: 
Sylvia Moore  (202) 366-6519

                         Jeffrey A. Manley (202) 663-6000 (Emirates)

D I S P O S I T I O N

XX  Deferred Delta’s request for exemption authority.  (See Remarks)

XX  Granted in part the Delta and Emirates statements of authorization
(subject to conditions, see

        below)

XX  Deferred on the statements of authorization to the extent they
involve authority for Doha

        and Bahrain.  (See Remarks)



2

The statements of authorization granted were effective when taken:  
October 14, 2003, 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 the United Arab Emirates.

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  Emirates’ foreign air carrier permit      

_______________________

Remarks:  Delta and Emirates have listed Doha and Bahrain as points they
initially propose to serve in connection with their reciprocal
code-sharing arrangement pursuant to their requested statements of
authorization.  We are deferring action on Delta’s and Emirates’
request to operate code-share services involving Doha and Bahrain
pending receipt of the necessary security clearances.

The statements of authorization granted are subject to the following
conditions:

(a)	The statements of authorization will remain in effect only as long
as (i) Delta and Emirates continue 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 Emirates must promptly notify the Department (Office of
International Aviation) if the code-share agreement providing for the
code-share operations is no longer effective or if the carriers decide
to cease operating all or a portion of the approved code-share services.
 Such notices should be filed in Docket OST-2003-15805.

(c)	Delta and/or Emirates must notify the Department 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 this Docket.)

 (d)	The code-sharing conducted under this authority must comply with
Part 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
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.  Further,
the operating carrier shall not permit the

code of its U.S. air carrier code-sharing partner to be carried on any
flights that enter, depart, or transit the airspace of any area for
whose airspace the Federal Aviation Administration has issued a flight
prohibition.

(e)	The authority to operate to third countries is subject to the
condition that any service provided under the statement of authorization
shall be consistent with all applicable agreements between the United
States and the foreign countries involved.  Furthermore, (i) nothing in
the award of this blanket statement of authorization should be construed
as conferring upon Delta rights (including code-share, fifth freedom
intermediate and/or beyond rights) to serve markets where U.S. carrier
entry is limited unless Delta notifies 3

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 (ii) 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 blanket statement of authorization granted here, but that
are not then being used by Delta, the holding of such authority 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.

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

________________________________________________________________________

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



									Attachment A

Proposed Initial Routes

“EK” Code on Flights Operated by Delta

Between London (LGW) and

	Atlanta

	Cincinnati

Between Atlanta and

	Dallas/Ft. Worth

	Ft. Lauderdale

	Miami

	Orlando

Between Cincinnati and

	

	Chicago

	Seattle

“DL” Code on Flights Operated by Emirates (via authorized code-share
or wet lease)

Between London (LGW) and Dubai; and

Between Dubai and

	Bahrain, Bahrain*

	Doha, Qatar*

	Karachi, Pakistan

	Lahore, Pakistan

	Mumbai, India

_________

*Carriers are not permitted to operate to these points until an
assessment of these airports is conducted.

			Attachment B

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.

									      08/2003

				Attachment C

Foreign Carrier 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, including, but not limited to, 14 CFR Parts 129, 91, and
36, 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) from a foreign airport that
would be the holder’s last point of departure for the United States,
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;

(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.

										 08/2003

 See Attachment A for the routes Delta and Emirates initially propose to
serve.

 Id.

 In addition to the conditions specified in this Notice, the code-share
services authorized are subject to the code-share and wet lease
condition imposed on Emirates on July 1, 2003, in Docket OST-2000-7490,
whereby Emirates may exercise the authority only as part of a
Department-authorized code-share or wet lease arrangement with a duly
authorized and properly supervised carrier or carriers.

 The carriers have underlying authority to serve the other points listed
in Attachment A.

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

 The notice in paragraph (c) above can be used for this notification.

 We note that the code-share agreement as submitted did not include
provisions regarding exclusive dealings between the code-share parties. 
Should the parties subsequently amend their code-share agreement or any
other agreement affecting the code-share services to include a provision
relating to an exclusive arrangement between the parties, that amended
language must first be submitted for consideration by the Department.

