			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on April 23, 2004

NOTICE OF ACTION TAKEN – DOCKET OST 2004-17213

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.  filed  2/26/2004 for:

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

Scheduled foreign air transportation of persons, property, and mail
between Houston, Texas, on the one hand, and each of the following
points in Mexico, on the other: (1) Ciudad del Carmen; (2) Monclova; (3)
Oaxaca; and (4) Puebla.   Delta also requests route integration
authority to permit it to combine service on these routes with all other
Delta services authorized by its existing certificates and exemptions,
to the extent  permitted by applicable international agreements.  Delta
states that it will use the authority pursuant to a code-share
arrangement with ExpressJet Airlines, Inc., d/b/a Continental Express
(ExpressJet), whereby Delta will place its code on flights operated by
ExpressJet in the subject markets.  

Applicant rep:   Robert E. Cohn (202) 663-8060  DOT Analyst:  Linda
Senese   (202) 366-2367

D I S P O S I T I O N

XX  Granted, ( subject to conditions, see below)

The above action was effective when taken:   April 23 ,  2004,  through 
April 21, 2005, (coextensive with other U.S.-Mexico exemption authority
for codesharing with Continental/Express Jet, granted in Docket
OST-2003-15504) or until 90 days after final Department action on a
corresponding certificate application, whichever occurs earlier.

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)

Special Conditions/Remarks:  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.  All of the exemption authority granted
is limited to service 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 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.

(See Reverse Side)

The code-share operations conducted under this authorization are subject
to the following conditions:  (a)  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 (b) the authority
granted here is specifically conditioned so that neither Delta nor
ExpressJet 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 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 exemption 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 dismissed, 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

U.S. Carrier Standard Exemption Conditions

In the conduct of 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 the 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

 In its application, Delta states that it also plans to display its code
on ExpressJet flights in the Houston-Toluca market.  Delta advises that,
in this regard, Delta already holds certificate authority to serve the
Houston-Mexico City/Toluca market (Route 562, Order 2000-5-31).  It
further states that the Department has submitted notification to the
Mexico authorities for Delta codesharing on flights operated by
Continental Airlines and ExpressJet on the Houston-Mexico City route. 
To the extent necessary, Delta requests that this code-share
notification be amended to include Houston-Toluca.  We find that no such
amendment is necessary since we view the notification to serve Mexico
City as including authority to serve Toluca.  

