 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on June 29, 2004

   NOTICE OF ACTION TAKEN -- DOCKET OST-2004-18184           

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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. (Delta) and Aerovias de
Mexico, S.A. de C.V. (Aeromexico)  filed   6/14/04  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 Salt Lake City, Utah, and Cancun, Mexico, and to combine this
authority with all of Delta’s existing certificate and exemption
authority, consistent with applicable international agreements.  Delta
will operate this service pursuant to a code-share arrangement with
Aeromexico.

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

Permit Delta to display the “AM” code of Aeromexico on flights
operated by Delta between Salt Lake City, Utah, and Cancun, Mexico.   

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 Salt Lake City, Utah, and Cancun, Mexico.

Applicant reps: Alexander Van der Bellen, (202) 663-8060 (Delta)  DOT
Analyst: Sylvia Moore, 

           William C. Evans (202) 861-6459 (Aeromexico)  		     
202-366-6519

D I S P O S I T I O N

XX  Granted Delta’s request for exemption authority  (subject to
conditions, see below)

XX  Deferred on Delta’s request for a statement of authorization (see
remarks below)

XX  Deferred on Aeromexico’s request for exemption authority and a
statement of authorization (see remarks below)

The above action granting Delta’s exemption authority was effective
when taken: June 29, 2004, through  June 29,      2006

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 Delta’s certificates of public convenience and necessity 

   XX Standard exemption conditions (attached)

2

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.  Consistent with our policy, the dormancy notice
period will begin on August 7, 2004, Delta’s proposed start-up date
for the Salt Lake City-Cancun service.

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 for
Delta in a competitive carrier selection proceeding to determine which
carrier(s) should be entitled to use the authority at issue.

Remarks:  We are deferring action on the joint applicants’ request for
(1) statement of authorization for Delta to place the “AM” code on
Delta’s flights in the Salt Lake City-Cancun market; and (2) exemption
authority for Aeromexico to conduct the proposed code-share services,
pending receipt of Aeromexico’s designation for the Salt Lake
City-Cancun services from the government of Mexico.

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

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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 or deferred, 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 



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

