 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on July 5, 2006

   NOTICE OF ACTION TAKEN -- DOCKET OST-2006-24984           

________________________________________________________________________
_________________________________

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 ATLANTIC SOUTHEAST AIRLINES, INC. (ASA) and 

DELTA AIR LINES, INC. (Delta), filed 6/1/06 for:

XX  Exemption authority for both ASA and 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 Los Angeles, California, on the one hand, and the following
Mexico points, on the other hand:  Culiacan, Hermosillo, La Paz, Loreto,
Los Mochis, Manzanillo, Mazatlan, Torreon, and Zacatecas.  The carriers
state that they will use the authority by placing Delta’s “DL”
code on the flights of ASA, which will operate the year-round service as
a “Delta Connection” carrier.  The applicants further request that
ASA be granted authority to combine this exemption authority with
ASA’s existing certificate and exemption authority, consistent with
applicable agreements.    

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 with respect to the Los Angeles-Culiacan, Los
Angeles-Hermosillo, Los Angeles-Loreto, Los Angeles-Manzanillo, Los
Angeles-Mazatlan, Los Angeles-La Paz, Los Angeles-Torreon, and Los
Angeles-Zacatecas exemption authority, including corresponding route
integration authority for ASA (subject to conditions, see below)

XX	Deferred with respect to the Los Angeles-Los Mochis request,
including corresponding route integration authority for ASA (see
remarks, below)

The above action granting exemption authority to ASA and Delta,
including corresponding route integration authority to ASA, was
effective when taken: July 5, 2006, through July 5, 2008. 

The above action deferring on the ASA/Delta request for exemption
authority, including corresponding route integration authority for ASA,
was effective when taken: July 5, 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  The holder’s certificates of public convenience and necessity

	XX  Standard exemption conditions (attached)

Remarks:  

Los Angeles-La Paz

Alaska filed an answer stating that it had no objection to the ASA/Delta
application as long as the Department grants contemporaneously
Alaska’s application, in Docket OST-2006-25107, for Los Angeles-La Paz
exemption authority (filed the same day as Alaska’s answer to
ASA/Delta’s application here).  ASA/Delta filed a reply to Alaska’s
answer, urging the Department to grant immediately ASA/Delta’s ripe
and otherwise unopposed application without awaiting expiration of the
answer period to Alaska’s application in Docket OST-2006-25107. 
Alaska filed a surreply, stating that it had been advised that at least
one other U.S. carrier was considering seeking Los Angeles-La Paz
authority, which would result in a carrier selection proceeding for that
market.  As the ASA/Delta application (in Docket OST-2006-24984), and
the Alaska application (in Docket OST-2006-25107), are now ripe and no
other U.S. carrier has sought authority to serve the Los Angeles-La Paz
route, we are now able to grant contemporaneously the Los Angeles-La Paz
requests.  ASA and Alaska will be authorized to provide direct-carrier
service on the route, and Delta will be authorized to provide code-share
service on the route consistent with the aviation agreement.

Los Angeles-Los Mochis

We are deferring action on the carriers’ request to serve the Los
Angeles-Los Mochis market pending the necessary security clearances.

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.  The exemption authority granted to Delta is limited
to code-share services only.  Consistent with our standard policy, the
dormancy notice period will begin on December 1, 2006, for the Los
Angeles-Loreto and Los Angeles-La Paz markets and, for the other subject
markets, where the carriers have proposed a significantly later startup
date, we will require them to institute the proposed service on their
proposed startup dates, as follows:  February 1, 2007, for the Los
Angeles-Hermosillo and Los Angeles-Mazatlan services; March 6, 2007, for
the Los Angeles-Torreon services; March 13, 2007, for the Los
Angeles-Manzanillo and Los Angeles-Zacatecas services; and March 15,
2007, for the Los Angeles-Culiacan services.

The route integration authority granted to ASA 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 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 such
carrier to use the limited-entry route rights that are included in
ASA’s authority by virtue of the route integration authority 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:

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.
 

(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.

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______

On the basis of data officially noticeable under Rule 24(g) of the
Department's regulations, we found the applicant 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 

 

				APPENDIX

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

   Delta holds blanket route integration authority under Order 2006-1-1.

   Under the U.S.-Mexico aviation agreement, two U.S. carriers may be
designated to provide direct-carrier (own aircraft) service on the Los
Angeles-La Paz route, and up to ten U.S. carriers may be authorized to
provide code-share service on the Los Angeles-La Paz route.  Currently,
no U.S. carrier is authorized to provide direct-carrier or code-share
service in the market.  

