Delta Air Lines, Inc. - Filings for 2001-2005

Filed April 7, 2003 | Issued April 24, 2003

OST-97-2338 - Route Integration

Integrate its authority to provide scheduled foreign air transportation of persons, property, and mail under its certificates of public convenience and necessity and currently held exemptions.

By: Paul Gretch

May 14, 2003

OST-99-6151 - US-Aruba

Application for Renewal of Exemption

Such authority continues to be governed by and consistent with the July 22, 1997 open skies agreement between the United States and Aruba. Delta's existing service to Aruba from Atlanta and New York provides strong competition with services to Aruba that are operated by other U.S. and foreign flag carriers. Renewal of Delta's authority will allow Delta to continue to provide these important competitive services to consumers and to introduce new services that are consistent with the U.S.-Aruba open skies agreement as market conditions warrant.

Counsel: Shaw Pittman, Robert Cohn, 202-662-8060

May 14, 2003

OST-00-6816 - Mexico City-Chicago
OST-00-8270 - Guadalajara - Ontario
OST-01-10174 - Los Angeles-Acapulco/New York - Monterrey
OST-01-10438 - Mexico/Hermosillo-Salt Lake City
OST-01-10457 - Cincinnati-Cancun
OST-01-10691 - New York-Acapulco/Puerto Vallarta
OST-02-11478 - Ontario-Hermosillo

Application Renewal of Exemptions

This renewal application encompasses multiple docketed exemptions that Delta relies upon to provide nonstop U.S.-Mexico services either with its own aircraft or pursuant to a codeshare arrangement with Aerovias de Mexico, S.A. de C.V. The exemptions in the captioned dockets all have renewal application deadlines within the next several months. Delta requests that these exemptions be renewed for a period of at least two years, with a common expiration date, or until 90 days after the Department's final determination on applications for certificate authority with respect to each route, whichever occurs earlier. The establishment of a common renewal date will promote administrative efficiency and reduce the burden on Delta and the Department in maintaining these multiple and non-controversial U.S.-Mexico exemption authorities.

Counsel: Shaw Pittman, Robert Cohn, 202-662-8060

May 20, 2003

OST-00-6939 - Statements of Authorization - US-France Blanket Codesharing

Notice of Additional Codesharing and Request for Waiver

Delta and Air France hereby notify the Department that Air France plans to display its "AF" designator code on flights operated by Delta and Delta Connection carriers between Air France's authorized U.S. gateways and the following points: Manchester, N.H. (MHT) and Kalului, Hawaii (OGG). Air France wishes to begin offering the new codeshare services as soon as possible on or after June 1, 2003. Accordingly, if the DOT and FAA are able to complete their internal review processes in advance of the normal 30 day waiting period, Air France and Delta request permission for early implementation. However, Air France will not implement service until the earlier of 30 days from the date of this Notice or confirmation of the Department's concurrence with this request.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060 / Silverberg Goldman, Robert Silverberg, 202-944-3305

May 22, 2003

OST-03-15252 - Mexico City-Ft. Lauderdale / Monterrey-Orlando

Joint Application for Exemptions and Codeshare Statement of Authorization

Exemption authority for one year to Aeromexico to the extent necessary to permit it to engage in scheduled foreign air transportation of persons, property and mail between (1) Mexico City, Mexico, and Ft. Lauderdale, Florida, and (2) Monterrey, Mexico, and Orlando, Florida.
Exemption authority for two years to Delta to the extent necessary to permit it to engage in scheduled foreign air transportation of persons, property and mail between (1) Mexico City, Mexico, and Ft. Lauderdale, Florida, and (2) Monterrey, Mexico, and Orlando, Florida. Delta also seeks to combine this exemption authority with all of Delta's existing certificate and exemption authority, consistent with international agreements.
Statement of authorization for an indefinite period to permit Aeromexico to display Delta's "DL" designator code on flights operated by Aeromexico between (1) Mexico City, Mexico, and Ft. Lauderdale, Florida, and (2) Monterrey, Mexico, and Orlando, Florida.
In addition, Aeromexico seeks a statement of authorization permitting it to carry Deltas DL" designator code on Aeromexico flights over both routes.

Joint Applicants expect to institute the proposed services on or about July 7, 2003. Consequently, Joint Applicants request that the exemption authority and statement of authorization be granted as soon as possible so that Aeromexico and Delta have adequate time to promote and market the new services. Joint Applicants will poll the airlines shown on the service list and report the results to the Department.

Counsel: Shaw Pittman, Robert Cohn, 202-663-8060 for Delta / Piper Rudnick, William Evans, 202-371-6030 for Aeromexico

Filed May 22, 2003 | Issued May 30, 2003

OST-03-15252 - Mexico City-Ft.Lauderdale / Monterrey-Orlando

Notice of Action Taken | Word

Notice approving the application, subject to conditions. The Exemption authority granted to AeroMexico is effective May 30, 2003, through May 30, 2004. The Exemption authority granted to Delta is effective May 30, 2003, through May 30, 2005. The Statement of Authorization granted to AeroMexico is effective May 30, 2003, for an indefinite duration. Petitions are due June 10, 2003.

By: Paul Gretch

June 3, 2003

OST-00-6939 - US-France Blanket Codeshare

Decision Approving the Application

By Statements of Authorization issued August 6, 1998, March 3, 2000, and February 26, 2002, Delta, Atlantic Southeast, and Comair were granted blanket authority to code share with Societe Air France subject to the condition that they notify the Department no later than 30 days before they begin any new code-share service under the code-share services authorized. The carriers have requested a waiver of this requirement to enable them to begin service immediately upon confirmation by the Department. There were no answers to the requested waiver. Under these circumstances, we find it in the public interest to grant the requested waiver.

By: Sylvia Moore

Filed May 14, 2003 | Issued June 10, 2003

OST-00-6816 - Mexico City-Chicago
OST-00-7022 - Las Vegas-Hermosillo
OST-00-7292 - Lost Angeles-Durango; Atlanta-Merida
OST-00-7390 - Atlanta-San Jose del Cabo
OST-00-8270 - Guadalajara-Ontario
OST-01-10174 - Los Angeles-Acapulco/New York-Monterrey
OST-01-10438 - Mexico/Hermosillo-Salt Lake City
OST-01-10457 - Cincinnati-Cancun
OST-01-10691 - New York-Acapulco/Puerto Vallarta
OST-02-11478 - Ontario-Hermosillo

Notice of Action Taken | Word

OST-2000-6816, filed May 14, 2003: Scheduled foreign air transportation of persons, property, and mail between the terminal point Chicago, Illinois, and the terminal point Mexico City, Mexico. Delta provides yearround service on this route pursuant to a code-share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Delta places its code on flights operated by Aeromexico in the market.

OST-2000-8270, filed May 14, 2003: Scheduled foreign air transportation of persons, property, and mail between the terminal point Ontario, California, and the terminal point Guadalajara, Mexico. Delta provides year-round service on this route pursuant to a code-share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Delta places its code on flights operated by Aeromexico in the market.

OST-2001-10174, filed May 14, 2003: Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Los Angeles, California, and the terminal point Acapulco, Mexico; and (2) the terminal point New York, New York, and the terminal point Monterrey, Mexico. Delta provides year-round service on these routes pursuant to a code-share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Delta places its code on flights operated by Aeromexico in the markets.

OST-2001-10438, filed May 14, 2003: Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Salt Lake City, Utah, and the terminal point Mexico City, Mexico; and (2) the terminal point Salt Lake City, Utah, and the terminal point Hermosillo, Mexico. Delta provides year-round service on these routes pursuant to a code-share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Delta places its code on flights operated by Aeromexico in the markets.

OST-2001-10457, filed May 14, 2003: Scheduled foreign air transportation of persons, property, and mail between the terminal point Cincinnati, Ohio, and the terminal point Cancun, Mexico. Delta provides service on this route pursuant to a code-share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Aeromexico places its code on flights operated by Delta in the market. Delta has requested flexibility to use its authority in the Cincinnati-Cancun market on a year-round or seasonal basis, as dictated by market circumstances.

OST-2001-10691, filed May 14, 2003: Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point New York, New York, and the terminal point Acapulco, Mexico; and (2) the terminal point New York, New York, and the terminal point Puerto Vallarta, Mexico. Delta provides yearround service on these routes pursuant to a code-share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Delta places its code on flights operated by Aeromexico in the markets.

OST-2002-11478, filed May 14, 2003: Scheduled foreign air transportation of persons, property, and mail between the terminal point Ontario, California, and the terminal point Hermosillo, Mexico. Delta provides year-round service on this route pursuant to a code-share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico) and Aerolitoral, S.A., de C.V. Aerolitoral), whereby Delta places its code on flights operated by both Aeromexico and Aerolitoral in the market.

OST-2000-7292, filed April 5, 2002: Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Atlanta, Georgia, and the terminal point Merida, Mexico. 2 Delta provides yearround service on this route pursuant to a code-share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Delta places its code on flights operated by Aeromexico in the market.

OST-2000-7390, filed April 5, 2002: Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Atlanta, Georgia, and the terminal point Leon, Mexico; and (2) the terminal point Atlanta, Georgia, and the terminal point San Jose del Cabo, Mexico. Delta provides service on this route pursuant to a code-share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Aeromexico places its code on flights operated by Delta in the markets.

OST-2000-7022, filed February 1,2002: Scheduled foreign air transportation of persons, property, and mail between the terminal point Las Vegas, Nevada, and the terminal point Hermosillo, Mexico. Delta provides year-round service on this route pursuant to a code-share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Aeromexico places its code on flights operated by Delta in the market.

The U.S.-Mexico transborder exemption authority granted to Delta in the captioned dockets is subject to the dormancy notice requirements set forth in condition 7 of Appendix A of Order 88-10-2. With the exception of the U.S.-Mexico exemption authority granted in Dockets OST-2001-10457, OST-2000-7390, and OST-2000-7022, the U.S.-Mexico exemption authority granted is limited to services provided on a code-share basis only.

Delta does not seek to renew the Los Angeles-Durango exemption authority originally granted in this docket (see Notice of Action Taken dated June 20, 2000). Delta provides seasonal service in the Atlanta-San Jose del Cabo market.

By: Paul Gretch

June 13, 2003

OST-03-15419 - Culiacan-Las Vegas

Joint Application for Exemptions and Code-Share Statement of Authorization

By this application, Aeromexico seeks an exemption to engage in scheduled foreign air transportation of persons, property and mail between Culiacun and Las Vegas. Aeromexico proposes to initially offer nonstop service two days per week between Culiacan and Las Vegas, with northbound departures on Thursdays and Sundays, and southbound departures on Mondays and Fridays. MD-80 Series or other appropriate aircraft will be used on the route. Aeromexico's proposed service will provide travelers with first single plane and nonstop service in the market, which clearly demonstrates that grant of the application is in the public interest. Aeromexico seeks a statement of authorization permitting it to carry Delta's "DL" designator code on Aeromexico flights over the route. Approval of the statement of authorization will enable Delta to offer first competitive nonstop service on the routes.

Joint Applicants expect to institute the proposed services on or about July 10, 2003. Consequently, Joint Applicants request that the exemption authority and statement of authorization be granted as soon as possible so that Aeromexico and Delta have adequate time to promote and market the new services. Joint Applicants will poll the airlines shown on the service list and report the results to the Department.

Counsel: Shaw Pittman, Robert Cohn, 202-663-8060 for Delta / Piper Rudnick, William Evans, 202-371-6030 for Aeromexico

June 17, 2003

OST-03-15440 - "Phase 3" US-Israel Third-Country Codeshare Opportunity

Application

Delta plans to place its DL* designator code on Alitalia's flights between Milan and Tel Aviv as soon as the carriers have obtained the necessary approvals from the Governments of each country involved. Accordingly, Delta requests prompt approval of this application so that Milan-Tel Aviv service may be implemented without delay. Delta/Alitalia plan subsequently to add Rome-Tel Aviv codeshare service in late October under this Phase 3 authorization.

The initial three opportunities have been awarded by Order 2001-5-24 (Docket OST-2001-8726) and Notice of Action Taken dated May 30, 2002 (Docket OST-2002-12102). Although the fourth opportunity became available in April, Delta is not aware of any U.S. carrier request for this final-phase authorization.

Delta and Alitalia are separately providing the Department with the appropriate notice in Docket OST-2001-10417

Order 2000-4-5
OST-97-2338

Counsel: Delta and Shaw Pittman, Robert cohn, 202-663-8060

June 24, 2003

OST-03-15504 - Antigua, Brazil, Colombia, and Mexico Codeshare

Application for an Exemption

hereby applies, pursuant to 49 U.S.C. § 40109 and Subpart C of the Department's Rules of Practice, for an exemption from 49 U.S.C. § 41101 authorizing Delta to provide scheduled foreign air transportation of persons, property and mail between (1) Newark and Antigua; (2) Newark and Houston, on the one hand, and Sao Paulo and Rio de Janeiro, Brazil, on the other hand; (3) Newark and Houston, on the one hand, and Bogota, Colombia, on the other hand; and (4) the U.S.-Mexico transborder citypairs identified in Exhibit A. Delta requests route integration authority to permit Delta to combine service on these routes with all other Delta services authorized by its existing certificates and exemptions, to the extent permitted by applicable international agreements.

Delta further requests that the Department issue new or amended U.S. carrier codeshare notifications to the Mexican Director General of Civil Aviation to the extent necessary to authorize Delta to codeshare on new transborder routes either with Continental Airlines, Inc. or ExpressJet Airlines, Inc. d/b/a Continental Express. These routes are identified on Exhibit A and include routes where Delta is already offering service, either independently or with another codeshare partner.

Counsel: Shaw Pittman, Robert Cohn, 202-663-8060

June 26, 2003

OST-03-15440 - "Phase 3" US-Israel Third-Country Codeshare Opportunity

Answer of American Airlines

The U.S.-Israel codesharing services proposed by American and British Airways will provide passengers and shippers with significant public benefits. Delta already benefits from two codeshare opportunities to serve Israel - one with El Al, and the other with its ally Northwest. If Delta were to achieve authorization with Alitalia, Delta would benefit from three of the five limited-entry opportunities available (one with El Al and two with third-country partners). While American presently codeshares to Israel with Swiss, a second authorization with British Airways will clearly be competitively preferable to allowing Delta to benefit from 60 percent of all the available opportunities.

Counsel: Carl Nelson, 202-496-5647, carl.nelson@aa.com

June 26, 2003

Answer of Continental Airlines

Continental is the only U.S. airline currently operating its own flights between the U.S. and Israel, and Continental offers daily nonstop B-777 roundtrip service between its New York/Newark hub and Tel Aviv. To supplement and support that service by offering additional capacity and alternative routings for passengers stopping over in Europe, Continental requires the ability to offer codeshare service between Amsterdam and Tel Aviv in conjunction with KLM. In contrast, Delta has abandoned its own U.S.-Tel Aviv flights and provides service pursuant to a codeshare with El Al, the dominant airline on U.S. -Israel nonstop routes. Delta now seeks additional codeshare authority for U.S.-Israel service via Milan and Rome, Italy, by placing the DL* code on Alitalia's flights between Italy and Tel Aviv. If Delta's request were granted, it would be awarded its second U.S. Israel codeshare authorization, while Continental would have none.

Counsel: Crowell Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com

July 1, 2003

OST-98-4755 - US-Johannesburg, South Africa

Contingent Application for a Renewal of a Certificate of Public Convenience and Necessity

Based on current Department policy and precedent, Delta believes that its Johannesburg certificate authority in Route 616, segment 12, when combined with its broad integration authority, permits Delta to provide, inter alia, third-country codeshare service between the United States and Johannesburg. Nevertheless, Delta is requesting renewal of its Route 756 certificate out of an abundance of caution. In the event the Department determines that renewal of this certificate would duplicate Delta's existing Johannesburg authority, Delta would be amenable to the Department's dismissal of this application. Otherwise, Delta requests renewal of its Route 756 certificate authority for a period of at least five additional years.

Counsel: Shaw Pittman, Robert Cohn, 202-663-8060

July 2, 2003

OST-03-15440 - Phase 3 Israel Codeshare
OST-03-15519 - American - US-Israel Codeshare
OST-03-15516 - Continental - US-Israel Codeshare

Consolidated Answer

Delta Air Lines, Inc. hereby answers in opposition to the applications of American Airlines, Inc. and Continental Airlines, Inc. for U.S.-Israel codeshare designations. Delta opposes these applications, because they are mutually exclusive to Delta's request for the same authority. The Department is required to conduct a carrier selection proceeding to consider merits of the pending applications. See, Ashbacker Radio Corp. v. FCC, 326 U.S. 327 (1945).

Counsel: Shaw Pittman, Alexander Van de Bellen, 202-663-8060

OST-98-3736 - US-Hare, Zimbabwe
OST-99-6558 - Atlanta/NY-South Africa Codeshare w/ South African
OST-99-6559 - Sub-Saharan Points Codeshare w/ South Africa
OST-01-10493 - US-Brazzaville, Congo - Exemption

July 28, 2003

Application for Renewal of Exemptions

The docket numbers, most recent approval and expiration dates, and authorized routes of the exemptions with respect to which Delta herein seeks renewal are identified in Exhibit A. Pursuant to these exemptions, Delta provides direct, beyond-gateway and third-country codeshare service between the United States and numerous points in Africa in conjunction with codeshare partner South African Airways (Pty) Limited and SkyTeam alliance partner Societe Air France. Delta reserves the right to serve these routes with other codeshare partners in the future, subject to the Department's approval of any necessary statements of authorization.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

July 30, 2003

OST-95-545 - Route 757 - Atlanta-Caracas

Application for Renewal of Certificate of Public Convenience and Necessity

Application of Delta Air Lines, Inc., pursuant to 49 USC Sections 41102 and 41108 and Subpart B, requesting renewal of its certificate of public convenience and necessity to engage in scheduled foreign air transportation of persons, property, and mail between Atlanta, Georgia, and Caracas, Venezuela.

Delta hereby applies for renewal of its Certificate of Public Convenience and Necessity for Route 757, issued by Order 99-2-8 and set to expire on February 5, 2004, to authorize Delta to continue engage in scheduled combination service between Atlanta and Caracas. Delta further requests that the Department give timely and favorable consideration to Delta's application for broad U.S.-Venezuela certificate authority, which remains pending in Docket OST-99-6246. In the interim, Delta urges the Department to renew its Route 757 Atlanta-Caracas certificate indefinitely, consistent with the duration of U.S.Venezuela certificate authority granted to other U.S. carriers, as explained in more detail below.

Delta requests the Department to reconsider its determination regarding U.S. -Venezuela route awards set forth in the Appendix to Order 99-2-8, and grant Delta's pending omnibus certificate application in Docket OST-99-6246, which includes U.S.-Venezuela.

Pursuant to Route 757 and an exemption previously granted to Delta in Docket OST-97-2614, Delta has provided daily nonstop service between its Atlanta hub and Caracas since 1997. Delta currently serves this route using Boeing 737-800 equipment.

Counsel: Shaw Pittman, Robert Cohn, 202-663-8060

August 12, 2003

OST-03-15944 - Letter of Credit in Lieu of Surety Bond and Limited Waiver of Advance Charter Payment

Application for an Exemption

Application of Delta Air Lines Inc., pursuant to 49 USC Section 40109, requesting an exemption from certain provisions of 14 CFR Part 212 and Part 380: (i) approval to use a letter of credit issued by a commercial bank to satisfy the requirements to provide financial protection for customer advance payments under Part 212, subject to conditions; and, (ii) exemption from Part 212.3, requiring advance payment of the total charter price form a limited class of sophisticated charter customers, to permit Delta to waive such advances from select Fortune 500 corporations, professional sports teams, or college or universities for single entity charters of large jet aircraft with 100 or more seats to permit the parties to negotiate their own advance payment contractual arrangements.

Counsel: Shaw Pittman, Robert Cohn, 202-663-8060

Filed June 24, 2003 | Issued August 21, 2003

OST-03-15504 - Antigua, Brazil, Colombia and Mexico Codeshare

Notice of Action Taken | Word

By: Paul Gretch

September 4, 2003

OST-03-15944 - Letter of Credit in Lieu of Surety Bond and Limited Waiver of Advance Charter Payment

Comments of Kenneth Moninski | Word

Acting in my individual capacity, I am respectfully requesting leave to file comments regarding the application of Delta Air Lines, Inc. for an exemption under 14 CFR Part 212, specifically relating to the provision of charter services. I am providing these comments out of concern that Delta’s request be duly scrutinized to avoid any erosion of competition within the charter airline industry and the broader market for scheduled air service.

The charter airline industry has typically operated independent of scheduled air carriers in the domestic U.S. marketplace. This has been especially true for network airlines that have historically seen only a negligible amount of their available seat miles derived from aircraft charter activity. The peaceful coexistence of these two aviation segments has resulted from the large investment in operations infrastructure and marketing technology by the major or network carriers and the relatively low fixed costs and high-density aircraft operated by the charter airlines. Economics have dictated that each type of airline stay within their niche to maximize the benefits of their respective operations.

By: K. Moninski, 206-325-3111

OST-03-16287 - Statement of Authorization - US-Jordan - Blanket Mail-Only Codeshare

October 9, 2003

Application of Delta Air Lines for an Exemption

Hereby apply applies for an exemption from the provisions of Order 95-2-34 (which limits the ability of U.S. carriers to codeshare in areas where the FAA has issued a flight restriction) to the extent necessary to enable Delta to codeshare on flights operated by Royal Jordanian between Amman and Baghdad, for the limited purpose of transporting U.S. mail.

Delta has no objection to this general policy as it relates to passenger codeshare activities. However, the concerns addressed in the Order are not valid with respect to mail-only codeshare activities. Order 95-2-34 should not be applied so as to impair Delta's ability to play a vital role in delivering mail to U.S. troops stationed in Iraq. There is no indication that Order 95-2-34 was ever intended to apply to mail-only codeshare activities. The stated objective of the Order was to protect the safety and security of U.S. citizens, not U.S. mail. Indeed, at the time of the Order, nearly a decade ago, commercial codeshare arrangements were stilt evolving, and, mail-only codeshare activities would have been a rare anomaly, if they existed at all. Order 95-2-34 did not contemplate such operations.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

Order 03-11-4
OST-03-16507 - Violations of 14 CFR Part 382 and 49 USC 41310, 41702, 41705 and 41712

Issued and Served November 10, 2003

Consent Order | Word

The Office of Aviation Enforcement and Proceedings investigated Delta’s compliance with certain provisions of Part 382 by reviewing complaints that the Department received from disabled Delta passengers and by requesting that Delta provide the Department copies of all complaints Delta received directly from passengers between April 5, 2000, and August 22, 2002, that alleged a failure to provide adequate enplaning, connecting, and deplaning wheelchair assistance. A review of those complaints revealed a significant number of apparent violations of sections 382.39 and 382.65. Almost all of the complaints involved incidents occurring after April 5, 2000, the effective date of the increase in civil penalties for ACAA violations enacted by AIR 21.

Delta Air Lines, Inc., is assessed a civil penalty in the amount of $1.35 million in compromise of civil penalties that might otherwise be assessed for the violations found in ordering paragraphs 2 through 7 of this order, subject to the payment schedule set forth in paragraph 9 (a) through (c) below, and subject to credit offsets.

By: Rosalind Knapp

OST-95-651 - Form 41; Schedule B-7

November 10, 2003

Motion for Confidential Treatment

Counsel: Shaw Pittman, Robert Cohn, 202-663-8060

Order 03-11-16
OST-03-15944 - Letter of Credit in Lieu of Surety Bond and Limited Waiver of Advance Charter Payment

Issued and Served November 19, 2003

Order Granting Exemption in Part | Word

By this order, and subject to the conditions set forth herein, we grant Delta Air Lines, Inc., a U.S. direct air carrier holding a certificate issued under 49 U.S.C. 41102, a one‑year exemption from the requirements of 14 CFR 212.8(c), to permit Delta's use of a standby letter of credit in lieu of a bond to protect charter customer payments and to guarantee the performance of charter flights it undertakes. At this time, we defer decision on Delta's request for an exemption from the advance payment requirement of 14 CFR 212.3(e).

The current charter rules contain provisions designed to protect both the funds of persons who pay for and the travel expectations of persons who travel on charter flights. In the case of Public Charters under Part 380, we have long recognized that unique financial risks are inherent in the sale of charter transportation by charter operators who are not themselves direct air carriers, and thus are not required to hold a certificate issued under 49 U.S.C. 41102.

By: Michael Reynolds

OST-97-3051 - Atlanta-St. Lucia

December 8, 2003

Application for an Amended Exemption

Hereby applies for an amended exemption authorizing Delta to provide scheduled foreign air transportation of persons, property and mail between Atlanta and St. Lucia. Delta plans to begin operating its proposed new nonstop service on or about April 1, 2004. Delta currently holds exemption authority to serve St. Lucia on a codeshare basis with Air Jamaica. See, NOAT dated April 17, 2003 in this docket. Delta is filing the instant application so that Delta may also provide nonstop service from Atlanta utilizing its own Boeing 737-800 aircraft. No changes are planned to the existing codeshare operation.

Delta requests that this exemption authority remain in effect through April 17, 2005 (concurrent with Delta's existing St. Lucia codeshare exemption authority), or until 90 days after final action is taken on Delta's pending request for St. Lucia certificate authority in Docket OST-99-6246, whichever occurs first. Delta also requests route integration authority to permit Delta to combine Atlanta-St. Lucia service with all other Delta services authorized by its existing certificates and exemptions, to the extent permitted by applicable international agreements.

Counsel: Shaw Pittman, Alexandra Van der Bellen, 202-663-8060

OST-03-15944 - Letter of Credit in Lieu of Surety Bond and Limited Waiver of Advance Charter Payment

December 9, 2003

Re: Charter Exemption

Pursuant to Order 2003-11-16, the Department granted Delta Air Lines, Inc. an exemption from the requirements of Part 212 to permit Delta to use a standby letter of credit in lieu of a surety bond to protect customer payments. In accordance with that Order, representatives of Delta met on December 4, 2003 with representatives of your office and the Special Authorities Division and reached agreement on the form of the letter of credit Delta will use. Attached is the agreed form of the letter of credit (clean and redlined to show changes from the form submitted with Delta's application'). We request that the Department promptly notify Delta that its proposed letter of credit is approved.

Counsel: Shaw Pittman, Robert Cohn, 202-663-8000

OST-97-3051 - Atlanta-St. Lucia

Filed December 8, 2003 | Issued December 16, 2003

Notice of Action Taken

Amend its exemption authority to provide the following service: Scheduled foreign air transportation of property and mail between Atlanta, Georgia, and St. Lucia. Delta states that it holds exemption authority to serve St. Lucia on a code-share basis with Air Jamaica. Delta states that it is filing this amendment so that Delta may also provide nonstop service from Atlanta using its own Boeing 737-800 aircraft, beginning on or about April 1, 2004. Delta requests that this exemption authority remain in effect through April 17, 2005 (concurrent with Delta's existing St. Lucia code-share exemption authority), or until 90 days after final action is taken on Delta's pending request for St. Lucia certificate authority in Docket OST-99-6246, whichever occurs first. Delta also requests route integration authority to permit Delta to combine Atlanta-St. Lucia service with all other Delta services authorized by its existing certificates and exemptions, to the extent permitted by applicable international agreements. Delta further states that no changes are planned to the existing code-share operation.

By: Paul Gretch

OST-00-7233 - Exemption - US-Chile

December 18, 2003

Application for Renewal of an Exemption

Hereby applies for renewal of an exemption under 49 U.S.C. § 40109 authorizing Delta to continue to provide scheduled foreign air transportation of persons, property, and mail between any point or points in the United States, directly and via intermediate points, and any point or points in Chile, and beyond, and to integrate this authority with its existing exemption and certificate authority, subject to the Department's standard conditions. Delta's U.S.-Chile open skies exemption was initially granted by Notice of Action Taken dated April 19, 2000, and was renewed by Notice of Action Taken dated March 4, 2002 for two years, through March 4, 2004.

Delta introduced and continues to operate daily nonstop roundtrip service between Atlanta and Santiago.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

OST-01-10493

Filed July 28, 2003 | Issued December 23, 2003

Notice of Action Taken

Scheduled foreign air transportation of persons, property, and mail between the United States and Brazzaville, Republic of Congo, via Paris, France, and to integrate this authority with its existing exemption and certificate authority. Delta provides service to these points on a code‑share basis with Air France.

By: Paul Gretch

OST-99-6559

Filed July 28, 2003 | Issued December 23, 2003

Notice of Action Taken

Scheduled foreign air transportation of persons, property, and mail between a point or points in the United States and the following points in Africa: Lilongwe and Blantyre, Malawi; Maputo, Mozambique; Windhoek, Namibia; a point or points in Tanzania; Lusaka, Zambia; and Victoria Falls and Bulawayo, Zimbabwe, and to integrate these services with its existing certificate and exemption authority. Delta provides service to these points via South Africa under a third‑country code‑share arrangement with South African Airways (SAA).

By: Paul Gretch

OST-98-3736

Filed July 28, 2003 | Issued December 23, 2003

Notice of Action Taken

Scheduled foreign air transportation of persons, property and mail between points in the United States and Harare, Zimbabwe, via Johannesburg, South Africa, and to integrate this authority with its existing certificate authority. Delta provides service to these points on a code‑share basis with South African Airways (SAA).

By: Paul Gretch

OST-99-6558

Filed July 28, 2003 | Issued December 23, 2003

Notice of Action Taken

Scheduled foreign air transportation of persons, property and mail between Atlanta, Georgia, and New York, New York, on the one hand, and the following points in South Africa, on the other hand: Cape Town, Johannesburg, Durban, Port Elizabeth, East London, and George, and to integrate these services with its existing certificate and exemption authority. Delta provides service to these points on a code‑share basis with South African Airways.

By: Paul Gretch

Order 04-01-7
OST-03-15944 - Exemption Permitting Use of Letter of Credit in Lieu of Surety Bond

Issued and Served January 12, 2004

Order Amending Exemption | Word

By Order 2003-11-16, issued November 19, 2003, we granted Delta Air Lines, Inc., a U.S. direct air carrier holding a certificate issued under 49 U.S.C. 41102, a one-year exemption from the requirements of 14 CFR 212.8(c), subject to a variety of stated conditions, to permit Delta's use of a standby letter of credit in lieu of a bond to protect charter customer payments and to guarantee the performance of charter flights it undertakes.

After consulting with the Department on December 4, 2003, Delta submitted a revised letter of credit and revised drawing certificate for our consideration. See OST-2003-15944-04. We are persuaded that, together with the exemption conditions being imposed, Delta's revised letter of credit (coupled with the revised drawing certificate) offers at least as much protection as provided by a bond under section 212.8(c), and, accordingly, we amend Order 2003-11-16 in three respects, none of which substantively affects our analysis provided therein.

First, we amend ordering paragraph lb. of Order 2003‑11‑16 to eliminate the requirement that the letter of credit itself include a statement that, in the event that the agreement does not otherwise provide protection comparable to that provided under a bond, the bank shall assume for the benefit of customers and participants all liabilities it would have if it entered into such a bond. Instead, we substitute a simpler explicit requirement that the letter of credit used by Delta must provide protections comparable to the protections provided by a bond.

Second, we amend ordering paragraph id. of Order 2003-11-16 to eliminate as unnecessary the requirement that a copy of the letter of credit be provided to customers upon request. We believe that providing notice to each charter customer that a letter of credit is being used in lieu of a bond to provide financial protection is sufficient to inform charter customers of the nature and consequences of Delta's substitution. We therefore retain the notice requirement.

Third, we amend Order 2003‑11‑16 to eliminate ordering paragraph i.e. in view of the inherent protections afforded by a letter of credit and the language of new ordering paragraph i.b. herein.

As stated in Order 2003‑ii‑i6, the exemption granted by this order does not relieve Delta of its regulatory duty, under 14 CFR 212.3(f), to return to his or her point of origin any roundtrip charter passenger who received the outbound portion of such transportation under this exemption.

By: Karan Bhatia

OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-99-6210 - Dormancy Waiver for Atlanta-Buenos Aires

January 27, 2004

Notice of Delta Air Lines of Intent to Resume Service and Request for an Interim Dormancy Waiver

Delta is eager to resume service to Argentina, but the interim dormancy waiver is essential to Delta's efforts to do so successfully. Argentina is still recovering from serious economic difficulty and the demand for international air travel in general remains subject to uncertainty caused by events beyond Delta's control. To maximize the potential for success, Delta seeks to time the resumption of its service to Argentina to coincide with the beginning of the peak season for U.S. ‑Argentina travel. The requested waiver will provide adequate time for Delta to market and promote the service before it commences. Delta must also re‑establish a station and other facilities to support the flight in Argentina. The planned December 1, 2004 implementation date will provide Delta the necessary time to accomplish these objectives, all of which are vital to the success of the new service.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

OST-03-15021 - US Carriers - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-99-6210 - Delta Air Lines - Dormancy Waiver for Atlanta-Buenos Aires

Filed January 27, 2004 | Issued January 30, 2004

Notice of Action Taken | Word

Order 2003-4-18 granted U.S. passenger carriers holding limited international route authority a blanket waiver of the dormancy conditions applicable to their authorities through March 31, 2004. The order also required U.S. carriers to notify the Department in writing no later than February 15, 2004, of the limited-entry rights that they will not be using beginning April 1. Finally, Order 2003-4-18 provided that carriers are free to seek extension of the dormancy waiver beyond March 31, 2004, for specific city-pair limited-entry services where they can demonstrate that circumstances warrant.

Delta filed a Notice of its intent to resume services in the Atlanta-Buenos Aires market, effective December 1, 2004. It included with that Notice a request for an interim waiver for its U.S.-Argentina frequencies beyond the March 31 date through December 1, 2004. Delta states that, absent a waiver, its frequencies will expire March 31, 2004. Delta states that it is ready to resume sales and marketing activities immediately and that it will poll carriers regarding its notice and i