 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on September 14, 2005

   NOTICE OF ACTION TAKEN -- DOCKET OST-2005-21724       

________________________________________________________________________
_________________________________

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   Shuttle America Corporation (Shuttle America) and
Delta Air Lines, Inc. (Delta) 

filed   6/27/05 for:

XX  Exemption for Shuttle America 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 Salt Lake City, Utah, and the terminal point
Mazatlan, Mexico, and to combine such exemption authority with existing
certificate and exemption authority held by Shuttle America,  consistent
with applicable international agreements. 

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 Salt Lake City, Utah, and the terminal point
Mazatlan, Mexico, and to combine such exemption authority with existing
certificate and exemption authority held by Delta, consistent with
applicable international agreements.

Joint Applicant rep: Robert E. Cohn (202) 637-4999   DOT Analyst: Linda
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 Shuttle America was
effective when taken:  September 14, 2005, through September 14, 2007.

The above action granting exemption authority to Delta was effective
when taken:  September 14, 2005, 

through September 14, 2007.

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)  

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 standard policy, the dormancy
notice period will begin March 1, 2006, the carriers’ startup date for
the proposed service.   The exemption authority granted to Delta is
limited to services provided on a code-share basis only.  The exemption
authority granted to Shuttle America for direct-carrier (own-aircraft)
service is awarded subject to the terms of the correspondence dated
April 6, 2005, referenced in note 1. 

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;
and

The authority granted here is specifically conditioned so that neither
Shuttle America nor Delta 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 applicants 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 

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

   Shuttle America is a commuter carrier certificated to provide
scheduled interstate air transportation using aircraft with fewer than
60 seats (Order 98-11-15).  By letter dated April 6, 2005, to Mr. Robert
Cohn (Counsel for Shuttle America) from Mr. William Bertram (Chief, Air
Carrier Fitness Division, Office of Aviation Analysis), the Department
authorized Shuttle America to engage in interstate scheduled
transportation using large aircraft, subject to the restriction that
Shuttle America’s operations are performed under a fee-for-service
agreement with a major U.S carrier.  In the instant application, Shuttle
America states that it plans to introduce daily nonstop service on the
Salt Lake City-Mazatlan route, using 70-seat Embraer 170 aircraft, and
that the proposed services will be offered under a code-share
fee-for-service agreement with Delta, whereby Shuttle America will
operate flights under Delta’s “DL*” code as a “Delta
Connection” carrier.  

  By letter dated September 1, 2005, Counsel for Shuttle America advised
the Department that it plans to begin the subject services on March 1,
2006, instead of its originally proposed startup of December 1, 2005,
and requested that any dormancy condition relating to the authority
requested run from March 1, 2006.

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