UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on April 5 2006

NOTICE OF ACTION TAKEN -- DOCKET OST-2006-24220

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 ATLANTIC SOUTHEAST AIRLINES, INC. (ASA), filed 3/15/06,
for:

XX	Exemption for two years 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
Canada, and to combine this exemption authority with its existing
certificate and exemption authority.  ASA plans to provide nonstop
“Delta Connection” service under the Delta Air Lines code, DL*,
between Atlanta, Georgia, and Toronto, Canada using a 70-seat CRJ 700
aircraft.

Applicant rep: Alexander Van der Bellen, (202) 637-8382	DOT Analyst:
Tretha Chromey (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 5, 2006 through April
5, 2008. 

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 Canada.

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 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 requested should be construed as
conferring upon ASA rights (including fifth-freedom intermediate and/or
beyond rights) to serve markets where U.S. carrier entry is limited
unless ASA 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
ASA’s authority by virtue of the route integration exemption granted
here, but that are not then being used by ASA, the holding of such
authority by route integration will not be considered as providing any
preference for ASA in a competitive carrier selection proceeding to
determine which carrier(s) should be entitled to use the authority at
issue.

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 ASA nor Delta
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 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:

http://dms.dot.gov//reports/report_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

 ASA states that it needs this exemption authority to upgrade from its
current aircraft of fewer than 60-seats to 70-seat CRJ-700 aircraft to
have the flexibility to introduce additional U.S.-Canada service.

