 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on July 5, 2005

   NOTICE OF ACTION TAKEN -- DOCKET OST-2005-21353           

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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 5/27/05 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 San Diego, California, and the terminal point
Mexico City, Mexico, and to combine this exemption authority with all of
Delta’s existing certificate and exemption authority, consistent with
applicable international agreements.  Delta states that it will use the
authority by placing its “DL” code on flights operated by Aeromexico
in the market.    

XX  Statement of authorization for Aeromexico for indefinite duration
under CFR Part 212 to:

Display Delta’s “DL” designator code on flights operated by
Aeromexico between the terminal point San Diego, California, and the
terminal point Mexico City, Mexico.

Applicant reps: Alexander Van der Bellen, (202) 637-8382 (Delta)  DOT
Analyst: Linda Lundell (202)366-2336 

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

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: July 5, 2005, through July 5, 2007. 

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

July 5, 2005, and will remain in effect indefinitely, subject to the
conditions 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.

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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, and is limited to code-share services only. 
Consistent with our policy, the dormancy notice period will begin July
6, 2005, the applicants’ proposed startup date for these services.  

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 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.

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

(a) 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.

(b) 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 or a portion
of the approved code-share services. (Such notice should be filed in
Docket OST-2005-21353.)

(c) 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. 

(d) 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.

(e) We may amend, modify, or revoke the authority granted in this Notice
at any time without hearing at our discretion.

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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

   Aeromexico already holds the underlying exemption authority to
provide air transportation of persons, property, and mail in the Mexico
City-San Diego market (see Notice of Action Taken dated May 27, 2005, in
Docket OST-2005-21252).  

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

