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OST-1997-3289

http://www.delta.com/
http://www.aeromexico.com/

Delta Air Lines, Inc. and Aerovias de Mexico, S.A. de C.V.

OST-1997-3289 - Exemption - Blanket US-Mexico Beyond Gateways Codesharing

December 29, 1997

Joint Application for Exemptions and Statements of Authorization

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Submit this Joint Application requesting exemptions and Statements of Authorization necessary to enable the Joint Applicants to expand their U.S.-Mexico code-share/blocked space services over the domestic route networks of the respective carriers on a system-wide basis.

• DL/AM Attachment 1: Delta's Request for Exemption Authority to Hold Out Codeshare Service
• DL/AM Attachment 2: Delta's Request for a Statement of Authorization to Display Aeromexico's Designator Code
• DL/AM Attachment 3: Aeromexico's Request for Exemption Authority to Hold Out Codeshare Service
• DL/AM Attachment 4: Aeromexico's Request for a Statement of Authorization to Display Delta's Designator Code

Answers are due by January 18, 1998

Service List

Counsel: Verner Liipfert, William Evans, 202-371-6030 for Aeromexico / Delta and Shaw Pittman, Robert Cohn, 202-663-8060

OST-97-3289 | Undocketed | January 13, 1998

Joint Answer of American Airlines and Aero California

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American and Aero California take note that United, in its consolidated reply submitted on January 8, 1998 in OST-97-3237, suggested that the Department should defer acting on any of the pending U.S.-Mexico codeshare applications until the two governments have held discussions on these matters that are currently scheduled for January 23, 1998. American and Aero California do not object to a brief deferral with respect to routes on which carriers have not yet received designations, but encourage the Department to act as quickly as possible with respect to city-pairs where designations that have already been granted by appropriate authorities.

Counsel:  American, Carl Nelson, 202-496-5647 / Steptoe Johnson, David Coburn, 202-429-8063 for Aero California

Answer of Continental Airlines

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Continental opposes the Delta/Aeromexico application to provide code-share services between the U.S., particularly in Houston and New York/Newark markets. and Mexican points served by Aeromexico unless and until Mexico agrees that no designations are necessary for code-share services or that designations only for code-sharing will not count against the limits on designations. Although the Department's policies on Mexico code-sharing recognize that authority for flights operated by U.S. airlines should take precedence over code-share services on foreign-carrier flights, granting code-share authority to Delta for the Aeromexico flights could delay the institution of additional flights by Continental in Houston and New York/Newark-Mexico markets without providing any public benefits justifying those delays. Continental states as follows in opposition to the Delta/Aeromexico application.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202-624-2500

Answer of United Air Lines

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Assuming the January 23, 1998, talks result in a bilateral agreement which permits unlimited designations for code-share services such as those proposed in various pending applications, the deferral urged by United need not be of long duration. In the absence of such an accord, United reserves the right to supplement its position following the completion of those talks.

Counsel:  United and Ginsburg Feldman, Joel Burton, 202-637-9130

OST-97-3289 and Undocketed | January 16, 1998

Motion for Immediate Action Concerning Discrete City-Pairs

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There are currently three alliance pairs seeking broad U.S.-Mexico code-share authority: (1) Delta/Aeromexico, (2) United/Mexicana and (3) American/Aero California. The United States and Mexico have been involved in ongoing discussions concerning the bilateral provisions on designations as they apply to code-share service and a solution which would hopefully obviate the need for carrier-selection proceedings. Those discussions are scheduled to resume later this month. The Department has found, however, that "given the existing code-share services in the U.S.-Mexico market, we do not find that it is in the public interest to withhold approval of competing code-share services while these negotiations proceed." Order 97-7-31 at 7.

Attachment 1:  Codeshare Points

Counsel:  Verner Liipfert, William Evans, 202-371-6030 / Delta and Shaw Pittman, Robert Cohn, 202-663-8060

OST-97-3289 and Undocketed | January 28, 1998

Joint Answer of American Airlines and Aero California to Motion of Delta and Aeromexico

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American and Aero California remain of the view that the Department should continue to encourage the Mexican aeronautical authorities to liberalize the availability of codeshare authority, so that designations would not need to be issued on each of thousands of city-pairs for which U.S. and Mexican carriers seek codeshare authority. While we understand that no immediate progress was made in recent bilateral discussions, the Department should make clear that, in granting codeshare authority on a limited number of city-pairs on an incremental basis. the Department is not effectively adopting the Mexican views on this matter. The Department should continue to seek a final resolution of the codeshare issues that separate the United States and Mexico, so that a more orderly and appropriate means of attaining codeshare authority, satisfactory to both governments, may be employed in this market.

Counsel:  American, Carl Nelson, 202-496-5647 / Steptoe Johnson, David Coburn, 202-429-8063 for Aero California

Filed December 29, 1997  | Action Taken March 20, 1998

Notice of Action | Attachment

Scheduled foreign air transportation of persons, property, and mail between various points in the United States and various points in Mexico, under a code-share arrangement between Delta Air Lines, Inc. (Delta), and Aerovias de Mexico, S.A. de C.V. (Aeromexico).

Applicant Representative: Robert E. Cohn for Delta, 202.663.8060; William Evans for Aeromexico, 202.371.6030

Order 98-6-2 | Issued June 2, 1998 | Served June 8, 1998

Order

• American Airlines:  OST-98-3401 | Undocketed* | Undocketed* | OST-97-2477* | OST-97-2944*
• American Airlines and Aero California:  Undocketed*
• Aero California:  OST-97-2481* | OST-97-2961*
• Continental Airlines:  OST-98-3317 | OST-98-3466
• Delta Air Lines and Aeromexico:  OST-97-3289*
• Trans World Airlines:  OST-98-3325*
• United Air Lines:  OST-96-1348* | OST-96-1554* | OST-96-1560*
• United Air Lines and Mexicana:  OST-97-3237*
• United Air Lines and Lufthansa:  OST-98-3476*

By:  Paul Gretch

June 15, 1998

Request for a Waiver

Delta has firm plans to implement service on all of the routes by no later than August 15, 1998. Thus, Delta needs a waiver to be able to implement the services previously authorized by the Department.  Order 98-6-2 confirms a Notice of Action Taken dated March 20, 1998, approving Delta's request for immediate action with respect to exemption authority and Statements of Authorization for code-share service with Aerovias de Mexico, S.A. de C.V. (" Aeromexico ") in a number of U. S. -Mexico city pairs. This waiver request does not apply to the Los Angeles-La Paz city pair (which is not included in Exhibit A), since Delta does not intend to provide service on this route.

Exhibit A:  City Pairs Granted by Order 98-6-2

Answers are due by June 17, 1998 - Will Poll

Service List

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

Filed June 15, 1998 | Action Taken June 18, 1998

Notice of Action

Delta seeks a waiver from the 90-day dormancy condition for certain of the authorities granted March 20, 1998 and confirmed by Order 98-6-2. The 90-day dormancy period runs through June 18, 1998. Delta specifically requests that under this waiver the dormancy condition with respect to its U.S-Mexico exemption authority be modified to begin on August 15, 1998. Delta states that it has firm plans to commence service on the affected route by that date.

Applicant Rep.: Robert Cohn, 202.663.8060

June 24, 1998

Answer of American Airlines

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Regrettably, as the Department is well aware, American and Aero California have been precluded from inaugurating certain of their codeshare services due to the failure of the Mexican Government to grant necessary approvals. Surely, the dormancy condition should not apply in such a situation. To require dormancy notices in such circumstances would not only be unfair, but would impose substantial and needless administrative burdens on the Department, which has already been forced by Mexico's restrictive codeshare policy to devote disproportionate staff resources to these matters.

In our view, the Department should dismiss Delta's application, as we do not believe that the dormancy condition is even applicable. If, however, the Department finds otherwise, it should grant a blanket waiver or exemption from this condition to all carriers, such as American, which have been unable to inaugurate U.S.-Mexico codeshare services due to the failure of the Government of Mexico to grant necessary approvals.

Counsel: Carl Nelson, Jr., 202.496.5647

July 1, 1998

Reply of Delta Air Lines, Inc.

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Since there is no question that it is in the public interest to permit Delta's U.S.-Mexico authority to remain in effect, Delta urges the Department promptly to grant the requested exemption, or, in the alternative, to issue a Notice confirming that the dormancy conditions do not apply.

Counsel: Shaw Pittman, Alexander Van der Bellen, 202.663.8060

Filed June 15, 1998 | Action Taken July 1, 1998

Notice of Action

Delta seeks a waiver from the 90-day dormancy condition for certain of the authorities granted March 20, 1998, and confirmed by Order 98-6-2. The 90-day dormancy period runs through June 18, 1998. Delta specifically requested that, under this waiver, the dormancy condition with respect to its U.S-Mexico exemption authority be modified to begin on August 15, 1998. Delta states that it has firm plans to commence service on the affected routes by that date. On June 18, 1998, the Department temporarily granted to Delta a waiver of the dormancy provisions through July 2, 1998, to provide time for interested parties to file comments on Delta's application and for the Department to consider those comments. On June 24, 1998, American Airlines, Inc., (American), filed an answer to Delta's waiver request, urging the Department to dismiss Delta's request as unnecessary. On July 1, 1998, Delta filed a reply to American's answer.

Applicant Rep.: Robert Cohn, 202.663.8060

Order 98-7-11 | OST-97-3289 | Issued July 17, 1998 | Served July 22, 1998

Order Granting Waiver

By this order we grant the request of Delta Air Lines, Inc. (Delta), for a waiver of the dormancy conditions for certain of its
U.S.-Mexico exemption authority so that the dormancy notice period for the subject U.S.-Mexico markets will begin August 15, 1998, Delta's new proposed start-up date for these services.

By: Paul Gretch

OST-97-3289 | Undocketed | September 11, 1998

Motion for Immediate Action Concerning Discrete City-Pairs

This limited expedited relief is required to enable Aeromexico to implement service over discrete, bilaterally-agreed routes. Because the domestic U.S. points that are the subject of this motion do not involve the grant of any additional limited designation authority to Delta, no Ashbacker concerns are implicated. Thus, the requested relief should be granted immediately.

Attachment 1: City-Pairs

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

Delta and Aeromexico request that the Department immediately grant Aeromexico an exemption and Delta a Statement of Authorization to permit the Joint Applicants to engage in the Monterrey-Chicago operations described herein.

Counsel:  Verner Liipfert, William Evans, 202-371-6030 / Delta and Shaw Pittman, Robert Cohn, 202-663-8060

Counsel: Steptoe Johnson, David Coburn for Aero California, 202.429.8063; Carl Nelson, Jr., for American, 202.496.5647

There is no reason to delay Delta's and Aeromexico's ability to offer their passengers enhanced online service between the United States and Monterrey. Accordingly, the motion for immedaiate action should be granted.

Counsel: Verner Liipfert, William Evans for Aeromexico, 202.371.6030; Shaw Pittman, Robert Cohn, 202.663.8060

American Airlines, Inc. and Aero California S.A. de C.V. hereby jointly move for leave to file one day late their accompanying answer in opposition to the motion for immediate action (Chicago-Monterrey) submitted on September 15, 1998 by Delta Air Lines, Inc. and Aerovias de Mexico, S.A. de C.V. We inadvertently miscalculated the due date, and do not believe that anyone will be prejudiced by our late answer, which we are serving on Delta and Aeromexico by fax.

The central issue is Mexico's refusal to reach a bilateral agreement providing for open third/fourth freedom codesharing. As long as the Department continues to give away extrabilateral rights to Mexican carriers for codesharing, the Government of Mexico will have no incentive to liberalize its restrictive policy.

Counsel: Steptoe Johnson, David Coburn for Aero California, 202.429.8063; Carl Nelson, Jr. for American, 202.496.5647

Delta already has authority to carry Aeromexico's code between Atlanta and all U.S. points (with the exception of Boston, Cincinnati, Chicago and Nashville) that are involved in this Application and the September 11, 1998 Motion. Delta is currently carrying Aeromexico's Mexico City passengers between Atlanta and each of these points. Delta and Aeromexico are merely seeking the flexibility to serve existing code-share points in a manner that will enable them to preserve the important public benefits of Atlanta-Monterrey nonstop service.

Counsel:  Verner Liipfert, William Evans for Aerovias de Mexico, 202.371.6030 and Shaw Pittman, Robert Cohn for Delta, 202.663.8060

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Simply stated, the Monterrey-Atlanta market cannot economically support service without the benefit of the beyond-Atlanta traffic, and the only way for Aeromexico to penetrate the beyond markets is for it to offer single carrier or code share service. In the absence of the projected beyond-Atlanta traffic, the load factors on the three daily round trips have been unsatisfactory and it is highly likely that Aeromexico will be forced to substantially reduce service levels or terminate service altogether. Termination of that service would reduce by one third the U.S. gateways readily accessible to travelers between the U.S. and Monterrey, as well as other points in northern Mexico, and would eliminate the best gateway to and from the Eastern U.S. On the other hand, grant of the code share authority would enable Joint Applicants to continue the Monterrey-Atlanta operations on an economic oasis, preserve the substantial public benefits of the nonstop service, and maintain Atlanta as a gateway for Monterrey-U.S. and beyond traffic. In addition, Aeromexico would be able to provide Monterrey passengers service beyond Atlanta to twelve U.S. points, and offer those passengers the documented benefits of code share service, such is simplified ticketing, coordinated scheduling and coordinated baggage handling. These benefits cannot be realized with the interline service that Aeromexico's beyond-Atlanta passengers must use today.

Counsel:  Verner Liipfert and Aeromexico, William Evans, 202.371.6030, Shaw Pittman and Delta, Robert Cohn, 202.663.8060

Aeromexico and Delta are seeking relief in the wrong place for a problem of Aeromexico's own making. They are well aware that the Mexican aeronautical authorities have taken an unduly narrow view of U.S./Mexico code-sharing arrangements, insisting on applying a restrictive designation rule to code-share arrangements. They are also aware that the Mexican aeronautical authorities have delayed in responding to the Department's proposals for advancing toward a solution of this issue. The result of the Mexican policy has been continued discrimination in terms of access to code sharing opportunities in favor of Aeromexico and its commonly-owned sister carrier, Mexicana (both of which carriers are essentially owned and controlled by the Mexican government), at the expense of privately-owned Aero California. The result has also been that far fewer city pairs enjoy the benefits of code-share service than would be the case if the Mexican authorities adopted the more liberal approach to code-sharing urged by the Department.

Counsel:  American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com / Steptoe Johnson, David Coburn, 202-429-8063 for Aero California

Order 98-12-23, grants the joint motions of Delta Air Lines, Inc., and Aerovias de Mexico, S.A. de C.V. (Aeromexico), filed September 11, and September 15, 1998, in Docket OST-97-3289, for certain exemption authority and statements of authorization to the extent necessary to expand the carriers' code-shares services in the U.S.-Mexico market, to include services between 12 U.S. points and Monterrey, Mexico via Atlanta, Georgia., Also, continues to defer action on the remainder of the application filed December 29, 1997, for blanket code-share authority in the U.S.-Mexico market.

Discussions toward a more liberal code-share regime will resume in late January 1999. We believe that these talks could resolve a number of issues and thereby facilitate expanded codeshare operations in the U.S.-Mexico market by the various interested U.S.-Mexico carrier codeshare partnerships. American and Aero California have made persuasive arguments supporting our continued deferral of applications for additional code-share operations pending those discussions. However, we believe, based on the specific circumstances presented here, that the public interest supports a limited exception in this case.

By:  Charles Hunnicutt

Scheduled foreign air transportation between Atlanta, Dallas/Ft. Worth, New York, and Los Angleles, on the one hand, and the points in Mexico.

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

Permit Delta to display Aeromexico's airline code on flights operated by Delta between Atlanta, on the one hand, and Boston, Charlotte, Chicago, Cincinnati, Detroit, Raleigh/Durham, Greensboro, Nashville, New York, Newark, Philadelphia, and Washington, D.C., on the other, for the carriage of Aeromexico's traffic moving between Monterrey, Mexico, and the 12 named points beyond Atlanta.

By:  Paul Gretch

Corrected to reflect the proper date of the agreement as January 26, 1999, rather than 1998.

By:  Paul Gretch

Counsel:  Verner Liipfert, William Evans, 202.371.6030

This amendment would permit interior starburst codeshare/blocked-space services behind/beyond the Joint Applicants’ gateways, rather than limiting the authority to specific named points. The Joint Applicants’ existing behind/beyond gateway codeshare authority approved by Statements of Authorization dated December 8, 1998, April 22, 1997 (Order 97-6-26), and January 27, 1999 (by Notice of Action Taken) would be subsumed within this blanket Statement of Authorization, along with the other pending codeshare requests in the Joint Applicants’ December 29, 1997 application.

Counsel:  Delta and Shaw Pittman, Robert Cohn, 202-663-8060 / Verner Liipfert, William Evans, 202-371-6030 for Aeromexico

Before turning to the specifics of the Delta/Aeromexico arrangement, Delta would like to reiterate its serious reservations regarding the Department's new policy of redrafting commercial agreements to eliminate exclusivity clauses. Proposed codeshare arrangements either benefit competition and the public interest and should be approved, or they are detrimental and should be denied. The Delta/Aeromexico codeshare arrangement has injected substantial new competition in the U.S.-Mexico marketplace since its approval in 1994, and there is no reason the Department's public interest evaluation of the relationship should be affected by the subsequent addition of an exclusivity clause. Placing limits on carriers' freedom of contract choices is undesirable because it diminishes the level of commitment that can be achieved between the parties, which is an important component in forming a comprehensive long term commercial relationship. Moreover, while striking exclusivity clauses unnecessarily limits the benefits that can be achieved through an alliance or codeshare agreement, this remedy has proved to be an ineffective means to addressing the Department's competitive concerns.

Counsel:  Verner Liipfert, William Evans for Aeromexico / Shaw Pittman, Robert Cohn for Delta

On May 17, 1999, and supplemented on May 24, 1999, Delta Air Lines, Inc. and Aerovias de Mexico, S.A. de C.V. (Aeromexico) filed applications for new and amended regulatory authorities to engage in codesharing operations in the U.S. -Mexico market. The applicants request the immediate grant of these authorities to permit them to exercise valuable new U.S.-Mexico code-share rights without delay. Under the Department's regulations, 14 C.F.R. Part 302, answers to the captioned applications would normally be due June 1, 1999, and replies to answers filed would be due June 10, 1999. So that we may be in a position expeditiously to complete our processing of the Delta/Aeromexico applications, we have decided to shorten the period for filing answers to the these applications to 2 p.m. EDT on May 28, 1999, and to shorten the period for replies to June 1, 1999.

By:  Paul Gretch

On May 24, 1999, at the request of Department staff, Delta and Aeromexico supplemented their joint applications by providing a copy of the exclusivity clause relating to their marketing relationship, which was executed last year in conjunction with Delta's investment in Aeroperu. It is now clear that every major U.S. carrier-Mexican carrier code-share alliance operates within the purview of a contractual exclusivity clause, most of them in place for a number of years. These contractual provisions have provided the commitment and security needed for carriers to undertake the substantial investments involved in fully developing these relationships. And these investments have paid off in terms of public interest benefits. As anticipated when the code sharing was first authorized, these cooperative arrangements have greatly expanded competition in scores of U.S.-Mexico city-pairs. Consumers enjoy much greater service choice and convenience than existed a few short years ago. Moreover, with the support of code-share alliance members, including United/Mexicana and Delta/Aeromexico, the Department was able successfully to negotiate a substantially liberalized code-share agreement with Mexico in January 1999 to further expand code-share service in the U.S. -Mexico market. In view of these benefits, and consistent with the understandings between the parties and the U.S. and Mexican Governments, the Department should immediately approve the pending applications for expanded U.S. -Mexico code-share authority without interfering with the exclusivity arrangements agreed among the parties.

Counsel:  United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com

We understand that the Department's delay is due to policy concerns over exclusivity provisions that are present in each of the three U.S.-Mexico codesharing alliances. American and Aero California urge the Department to resolve this matter promptly, and to act favorably on all pending U.S.-Mexico codesharing applications, at the same time and with the same condition, if any, on exclusivity. Until the Department is prepared to act on all such applications, it should not grant piecemeal authorizations to Delta and Aeromexico.

Counsels:  Steptoe & Johnson, LLP, David Coburn for Aero California, 202.429.8063, and Carl Nelson, Jr. for American, 202.496.5647, carl_nelson@amrcorp.com

Continental urges the Department to grant immediately the long-standing applications of Continental and other carriers for authority to offer code-share service on U.S. -Mexico routes. The late-filed Delta/Aeromexico request for the Department to add new city pairs, grant blanket authority beyond the gateways and delay other requests while Delta and Aeromexico argue about code-share exclusivity raises controversial issues which should not delay the approval of other applications.

Counsels:  Crowell & Moring, LLP for Continental, R. Bruce Keiner, Jr., rbkeiner@cromor.com, and Thomas Newton Bolling, tbolling@cromor.com, 202.624.2500

Although Northwest asserts that the Department should defer action on the applications of Delta and Aeromexico, Northwest has provided no basis for the Department to delay approval of the Delta/Aeromexico requests, while acting immediately to approve the similar requests of other carriers. For these reasons, and the reasons; set forth in Delta and Aeromexico's supplement dated May 24, 1999, the Department should promptly approve all pending U.S.-Mexico codeshare applications, and should do so without imposing any exclusivity conditions.

Counsels:  Verner Liipfert, William Evans for Aeromexico, 202.371.6030, and Shaw Pittman, Robert Cohn for Delta, 202.663.8060

The Department should not allow Delta and Aeromexico to hinder Northwest's ability to begin its proposed U.S.-Mexico code-share services with Alaska and Continental expeditiously. Delta and Aeromexico have opted at the eleventh hour to request new authority from the Department for code-share exclusivity, blanket beyond-gateway authority and additional city pairs even though the Department stands ready now to allocate U.S.-Mexico code-share authority to all applicants. The Department will likely require considerable time and devote much attention to the complex and controversial issues associated with code-share exclusivity for Delta and Aeromexico. Northwest's applications for code-share authority with Alaska and Continental have been pending since February, and their alliance agreements have been filed with. the Department and reviewed. other applications for U.S.-Mexico code-share authority have been pending for lengthy periods of time.

Counsel:  Megan Rae Poldy for Northwest, 202.842.3193

Pursuant to Order 99-6-6, Delta and Aeromexico hereby notify the Department that, beginning on or about July 17, 1999, Aeromexico will display Delta's "DL" designator code on flights operated by Aeromexico between Monterrey and Leon.

Counsel:  Verner Liipfert, William Evans, 202-371-6030 for Aeromexico / Delta and Shaw Pittman, Robert Cohn, 202-663-8060

By failing to articulate a rational explanation for the imposition of an anti-exclusivity condition, and by retroactively nullifying the Delta-Aeromexico exclusive marketing agreement, the Department’s decision violates the arbitrary and capricious standard of the Administrative Procedure Act and constitutes an abuse of discretion.

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

We reject arguments that we should adopt a laissez-faire approach to exclusive dealings between and among airlines in international air transportation. It is not in the public interest to ignore any feature of a code-share agreement that could interfere with competition or otherwise undermine the ability of consumers to benefit from the opportunities created by our aviation relationships. For that reason, we will continue to assess the merits of code-share exclusivity provisions on a case-by-case basis in light of the terms of the overall arrangement and of the special facts and circumstances affecting each market, such as its structure, the positions of the parties in those markets, and the nature of the bilateral aviation relationship governing it.

By:  Brad Mims

Counsel:  Verner Liipfert, William Evans and Shaw Pittman, Robert Cohn

Counsel:  Verner Liipfert, William Evans, 202.371.6030 and Shaw Pittman, Alexander Van der Bellen, 202-663-8060

By this application, Aeromexico seeks renewal of its exemption authority to provide service between Monterrey, and the coterminal points Boston, Charlotte, Chicago, Cincinnati, Detroit, Raleigh/Durham, Greensboro, Nashville, New York, Newark, Philadelphia, and Washington. The authority was last renewed by Order 98-1223, dated December 16, 1998, and currently is set to expire on December 16, 1999. Aeromexico currently is offering service in these markets via a code share arrangement with Delta Air Lines, Inc., which has been approved by the Department. Under that arrangement, Aeromexico places its code on Delta's flights between Atlanta, and the named U.S. points. Although Aeromexico does not require specific exemption authority to serve these markets by code share, it desires to retain the authority so it has the ability to institute independent service should economic conditions warrant such service.

Counsel: Verner Liipfert, William Evans, 202-371-6030

By:  Paul Gretch

Notice of Delta Air Lines, Inc. and Aerovias de Mexico, S.A. de C.V. pursuant to Order 99-6-6, informing the Department that on or about May 20, 2000, the carriers plan to begin codeshare services to Campeche, Mexico, on flights operated by Aeromexico between Mexico City and Campeche.

Counsel:  Verner Liipfert, William Evans, 202.371.6030 and Shaw Pittman, Robert Cohn, 202.663.8060

Counsel:  Verner Liipfert, William Evans, 202.371.6030 and Shaw Pittman, Robert Cohn, 202.663.8060

Joint application of Delta Air Lines, Inc., its wholly owned Delta Connection subsidiaries Atlantic Southeast Airlines, Inc., and Comair, Inc., and Aerovias de Mexico, S.A. de C.V., apply for authority to implement codeshare/blocked-space services on flights operated by Delta and the Delta Connection carriers between (1) Atlanta, Georgia, and Leon, Mexico, (2) Atlanta, Georgia, and San Jose del Cabo, Mexico, (3) Atlanta, Georgia, and Monterrey, Mexico, (4) Dallas/Ft. Worth, Texas, and Monterrey, Mexico, (5) Dallas/Ft. Worth, Texas, and Mexico (6) Dallas/Ft. Worth, Texas, and Puebla, Mexico, and (7) Dallas/Ft. Worth, Mexico, and Guadalajara, Mexico. In addition, subject to the Department's standard 30-day notice provision applicable to U.S.-Mexico behind-gateway codeshare services, ASA and Comair request blanket statements of authorization to carry Aeromexico's code between Aeromexico's authorized U.S. gateways and points in the United States served by ASA and Comair.

Aeromexico plans to begin transborder service on seven U.S.-Mexico routes by displaying its "AM" designator code on new nonstop flights operated by Delta, ASA and Comair. Pursuant to the existing Delta/Aeromexico codesharing/blocked space agreement, which is being amended to include flights operated by the Delta Connection subsidiaries, Delta will provide Aeromexico with a certain number of seats on transborder U.S.-Mexico flights operated by Delta, ASA and Comair for independent marketing and sale by Aeromexico. In the coming months, Aeromexico also plans to begin blind-sector codeshare service to points within the United States beyond its authorized U.S. gateways on Delta Connection flights operated by ASA and Comair. Such flights will also be operated pursuant to the existing Delta/Aeromexico codesharing/blocked space agreement, as amended.

Counsel:  Delta and Shaw Pittman, Robert Cohn / Verner Liipfert, William Evans for Aeromexico

To display Aeromexico's "AM" designator code on flights operated by Delta in the Atlanta-San Jose del Cabo markets.  Scheduled foreign air transportation of persons, property, and mail between Atlanta, Georgia, and San Jose del Cabo, Mexico.

By:  Paul Gretch

Counsel: Aeromexico and Verner Liipfert, William Evans, 202.371.6030 and Delta and Shaw Pittman, Robert Cohn, 202.663.8060 

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Pursuant to Order 99-6-6, Delta and Aeromexico hereby notify the Department that, beginning on or about April 1, 2001, Delta will display Aeromexico's "AM" designator code on flights operated by Delta between Atlanta, on the one hand, and New Orleans and Las Vegas, on the other hand.

Counsel: Verner Liipfert, William Evans, 202.371.6030 and Shaw Pittman, Robert Cohn, 202.663.8060

Delta Air Lines, Inc. hereby applies for renewal of an exemption, pursuant to 49 U.S.C. § 40109 and Subpart C of the Department of Transportation's Procedural Regulations, to authorize Delta to continue to engage in scheduled foreign air transportation of persons, property and mail between points in the United States and points within Mexico beyond Delta's authorized Mexican gateway points for transborder services, for the purpose of blind-sector codesharing services operated between the Mexican gateway points and other points within Mexico on services operated by either Delta or Aerovias de Mexico, S.A. de C.V. Delta's U.S.-Mexico beyond gateway exemption authority was initially granted by Order 99-6-6, and is set to expire on June 4, 2001. Delta requests that this authority be renewed for an additional period of at least two years.

Counsel:  Shaw Pittman, Alexander Van der Bellen, 202.663.8060

By:  Paul Gretch

Application of Aerovias de Mexico, S.A. de C.V. , requesting renewal of its exemption authority, authorizing Aeromexico to engage in scheduled foreign air transportation of persons, property and mail between points in Mexico and points in the U.S. beyond Aeromexico's U.S. gateways, for the purpose of blind-sector codesharing services operated between the U.S. gateway points and other U.S. points on services operated by either Aeromexico, Delta Air Lines, Inc. or The Delta Connection carriers.

Pursuant to this blanket exemption authority and the code share authorization, Aeromexico can offer single­carrier service between points in Mexico and 53 U.S. points beyond Atlanta, 25 U.S. points beyond Dallas/Ft. Worth, points beyond Los Angeles and 2 points beyond Phoenix. For example, Aeromexico is offering service between Mexico City and Birmingham, Al., Charleston, S.C., Charlotte, N.C., Colombia, S.C., Daytona Beach, Fl., Detroit, Mi., and Greensboro, N.C., by placing its code on Delta or Delta Connection flights between Atlanta and those cities. Thus, travelers in these markets are receiving the benefits of single-carrier service by Aeromexico. In addition, Delta also provides single-carrier service in some of these markets so that travelers have the benefit of competitive service. 

Thus, the grant of the blanket exemption authority has enabled Aeromexico to offer single-carrier benefits to travelers in these markets. It also enables Aeromexico to expand its service to new code share markets and to do so in a timely fashion without the necessity of seeking new exemption authority each time such an expansion is warranted by market conditions. Consequently, Aeromexico desires to renew the exemption authority for an additional two years.

Counsel:  Verner Liipfert, William Evans, 202.371.6030

Notice of Delta Air Lines, Inc. and Aerovias de Mexico, S.A. de C.V., pursuant to Order 99-6-6, notifying the Department that, beginning on or about December 14, 2001, Delta will display Aeromexico's "AM" designator code on flights operated by Delta between Salt Lake City, on the one hand, and Billings, Boise, Great Falls and Helena, on the other hand.

Counsel: Verner Liipfert, William Evans, 202.371.6030 and Shaw Pittman, Robert Cohn, 202.663.8060

Correspondence of Delta Air Lines, Inc. and Aerovias de Mexico, S.A. de C.V. pursuant to Order 99-6-6, advising that beginning on or about November 30, 2001, Aeromexico will display Delta's "DL" designator code on flights operated by Aeromexico between Mexico City, on the one hand, and Monterrey and Chihuahua, on the other hand.

Counsel: Verner Liipfert, William Evans, 202.371.6030 and Shaw Pittman, Robert Cohn, 202.663.8060, sascha.vanderbellen@shawpittman.com

30-Day Notice of Delta Air Lines, Inc. and Aerovias de Mexico, S.A. de C.V. pursuant to Order 99-6-6, advising the Department that, beginning on or about December 10, 2001, Delta will display Aeromexico's "AM" designator code on flights operated by Delta between Salt Lake City, on the one hand, and Portland, Oregon; Seattle, Washington; San Francisco, California and San Jose, California, on the other hand.

Counsel: Verner Liipfert, William Evans, 202.371.6030 and Shaw Pittman, Robert Cohn, 202.663.8060

30-Day Notice of Delta Air Lines, Inc. and Aerovias de Mexico, S.A. de C.V. pursuant to Order 99-6-6, advising the Department that, beginning on or about January 1, 2001, Delta will display Aeromexico's "AM" designator code on flights operated by Delta between Salt Lake City, on the one hand, and Kansas City and Missoula, on the other hand.

Counsel:  Delta and Shaw Pittman, Robert Cohn, 202.663.8060 and Aeromexico, Verner Liipfert, William Evans, 202.371.6030

Beginning on or about January 14, 2002, Delta will display Aeromexico's "AM" designator code on flight operated by Delta between Salt Lake City and Denver.

Counsel:  Delta and Shaw Pittman, Robert Cohn, 202.663.8060 and Aeromexico, Verner Liipfert, William Evans, 202.371.6030

Beginning May 1, 2002, Aeromexico will display Delta's "DL" designator code on flights operated by Aeromexico between Hermosillo and Mazatlan.

Counsel: Verner Liipfert, William Evans, 202.371.6030 and Shaw Pittman, Robert Cohn, 202.663.8060, sascha.vanderbellen@shawpittman.com

Counsel:  Shaw Pittman, Alexander Van der Bellen, 202.663.8060 and Verner Liipfert, William Evans, 202.371.6000

Hereby apply for an amendment to their existing beyond-U.S. gateway blanket codeshare authority to add blind sector codeshare services on flights operated by Delta and the Delta Connection carriers between the United States and Canada. The proposed services are adequately supported by comity and reciprocity. Moreover, the Department has granted identical U.S.-Canada blanket codesharing and blind sector authority to United Air Lines, Inc. and Compania Mexicana de Aviacion. See Department Action on Application in Docket OST-2000-8221 dated December 1, 2000.

Specifically, the Joint Applicants request the issuance of the following authorities:

• a) amended statements of authorization to Delta, ASA and Comair pursuant to 14 C.F.R. Part 212, to permit the carriers to display Aeromexico's "AM" designator code on Delta/Delta Connection flights between any point or points in the United States and any point or points in Canada on a blind-sector basis for the carriage of Aeromexico's Mexico-Canada traffic; and 
• b) special authorization to Aeromexico pursuant to 14 C.F.R. Part 216, to permit Aeromexico to commingle Mexico-Canada traffic (that is, traffic not in foreign air transportation) on the same services that carry traffic that is in foreign air transportation between Mexico and the United States and between the United States and Canada.

Counsel:  Shaw Pittman, Alexander Van der Bellen, 202.663.8060 and Verner Liipfert, William Evans, 202.371.6030

(2) In the matter of authority for Aeromexico under 14 C.F.R Part 216 to permit Aeromexico to commingle Mexico-Canada traffic (that is, traffic not in foreign air transportation), on the same services that carry traffic that is in foreign air transportation between Mexico and the United States and between the United States and Canada .

By:  George Wellington

Pursuant to Order 99-6-6, Delta and Aeromexico hereby notify the Department that, beginning on or about May 24, 2002, Delta will display Aeromexico's "AM" designator code on flights operated by Delta between Salt Lake City, on the one hand, and Atlanta, Boston and Washington, D.C. (IAD), on the other hand.

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8060, and Verner Liipfert, William Evans, 202.371.6030

Pursuant to Order 99-6-6, Delta and Aeromexico hereby notify the Department that, beginning on or about July 8, 2002, Aeromexico will display Delta’s “DL” designator code on flights operated by Aeromexico between Monterrey and Cancun. 

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8060, and Verner Liipfert, William Evans, 202.371.6030

Letter of Aerovias de Mexico, S.A. de C.V. and Delta Air Lines, Inc. pursuant to Order 99-6-6, advising the Department that beginning on or about November 14, 2002, Aeromexico plans to display Delta's two-letter designator code on its flights between Loreto and Mexico City, Mexico.

Counsel:  Shaw Pittman, Robert Cohn for Delta / Verner Liipfert, William Evans for Aeromexico

Scheduled foreign air transportation of persons, property, and mail between points in Mexico and points within the United States beyond Aeromexico's authorized U.S. gateway points for transborder services, for the purpose of blind-sector code-sharing services operated between the U.S. gateway points and other points within the United States on services operated by either Aeromexico or Delta or the Delta Connection carriers.

By: Paul Gretch

Hereby applies for renewal of an exemption, pursuant to 49 U.S.C. § 40109 and Subpart C of the Department's Rules of Practice in Proceedings, to authorize Delta to continue to engage in scheduled foreign air transportation of persons, property and mail between points in the United States and points within Mexico beyond Delta's authorized Mexican gateway points for transborder services, for the purpose of blind-sector codesharing services operated between the Mexican gateway points and other points within Mexico on services operated by either Delta or Aerovias de Mexico, S.A. de C.V.

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

Scheduled foreign air transportation of persons, property, and mail between points in the United States and points within Mexico beyond Delta's authorized Mexican gateway points for transborder services, for the purpose of blind-sector code­sharing services operated between the Mexican gateway points and other points within Mexico on services operated by either Delta or Aeromexico.

By: Paul Gretch

July 9, 2003

Notice of Additional Codesharing

30-Day Notice of Delta and Aeromexico, pursuant to Order 99-6-6, notifying the Department that, beginning on or about August 15, 2003, Delta will display Aeromexico's "AM" designator code on flights operated by Delta between Salt Lake City and San Diego.

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

October 7, 2003

Application for Renewal of Exemption Authority

By this application, Aeromexico seeks renewal of its exemption authority to provide service between points in Mexico and points in the U.S. beyond its gateways. The authority was last renewed by Notice of Action Taken, dated October 29, 2002, and currently is set to expire on October 29, 2003. Utilizing the blanket exemption authority and the blanket code share authorization issued to Delta and the Delta Connection carriers, Aeromexico is providing valuable single carrier service between Mexico and more than 25 U.S. communities via its U.S. gateways. The services clearly provide significant benefits to Mexico and U.S. travelers, and Aeromexico seeks renewal of the blanket exemption so it can continue to provide these services in the future.

Counsel: Piper Rudnick, William Evans, 202-861-6459

OST-97-3289 - US-Mexico Codesharing
OST-00-7708 - US-Mexico Blind Sector Codeshare

October 15, 2003

Re: Notice of Additional Codeshare

Pursuant to Order 99-6-6, Delta and Aeromexico hereby notify the Department that, beginning on or about November 15, 2003, Delta will display Aeromexico's "AM" designator code on flights operated by Delta between Las Vegas and Salt Lake City.

Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8060 for Delta / Piper Rudnick, William Evans, 202-861-6459 for Aeromexico

OST-97-3289 - US-Mexico Codesharing
OST-00-7708 - US-Mexico Blind Sector Codesharing
OST-01-10833 - US-Mexico Codeshare

November 19, 2003

30-Day Notice Re: Behind-Gateway Codeshare Integration

The U.S.-Mexico Air Transport Services Agreement allows unrestricted opportunities for U.S. and Mexican carriers to codeshare on behind-gateway intra-U.S. and intra-Mexico routes. In order to facilitate such codeshare services by Delta and Aeromexico, the Department granted blanket statements of authorization to Delta and Aeromexico (OST-97-3289), and their respective subsidiaries and affiliates, Comair (OST-00-7708), ASA (OST-00-7708), and Aerolitoral (OST-01-10833). Consistent with the Department's administration of similar blanket codeshare arrangements, and in order to alleviate unnecessary administrative burdens on the Department and the applicant carriers, the Joint Applicants are submitting this 30-day notice of additional codesharing concerning behind-gateway services.

Delta and Aeromexico wish to emphasize that this notice applies only to previously‑noticed behind‑gateway service points, and is in full accord with current Department practice and precedent regarding the administration of blanket codeshare authorizations. Any new transborder codeshare routes will continue to require separate authorizations for each operating carrier, because those routes are designation‑limited. The summary documentation and 30‑day notice of integration of previously‑issued blanket code share authorities as set forth herein will simplify and reduce the burden on Delta, Aeromexico and the Department.

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

Filed October 7, 2003 | Issued November 20, 2003

Notice of Action Taken | Word

Scheduled foreign air transportation of persons, property, and mail between points in Mexico and points within the United States beyond Aeromexico's authorized U.S. gateway points for transborder services, for the purpose of blind‑sector code‑sharing services operated between the U.S. gateway points and other points within the United States on services operated by either Aeromexico, Delta, or the Delta Connection carriers. 1 Aeromexico requests that the authority be renewed for one year.

By: Paul Gretch

October 26, 2004

Application for Renewal of Exemption Authority

By this application, Aeromexico seeks renewal of its exemption authority to provide service between points in Mexico and points in the U.S. beyond its gateways via its code share agreement with Delta Air Lines, Inc. The authority was last renewed by Notice of Action Taken, dated November 20, 2003, and currently is set to expire on November 20, 2004. Utilizing the blanket exemption authority and the blanket code share authorization issued to Delta, and the Delta Connection carriers, Aeromexico is providing valuable single carrier service between Mexico and numerous U.S. communities via its U.S. gateways. The services clearly provide significant benefits to Mexico and U.S. travelers, and Aeromexico seeks renewal of the blanket exemption so it can continue to provide these services in the future.

Counsel: Piper Rudnick, William Evans, 202-861-6459

Filed October 26, 2004 | Issued November 16, 2004

Notice of Action Taken

Renewal of exemption from 49 USC section 41301 to permit the applicant to continue to conduct scheduled foreign air transportation of persons, property, and mail between points in Mexico and points within the United States beyond Aeromexico’s authorized U.S. gateway points for transborder service, for the purpose of blindsector code-sharing services operated between the U.S. gateway points and other points within the United States on services operated by either Aeromexico, Delta, or the Delta Connection carriers. Aeromexico requests that the authority be renewed for one year.

By: Paul Gretch

January 10, 2005

Application for Renewal of an Exemption

Delta Air Lines, Inc. hereby applies for renewal of an exemption, pursuant to 49 U.S.C. § 40109 and Subpart C of the Department's Rules of Practice in Proceedings, to authorize Delta to continue to engage in scheduled foreign air transportation of persons, property and mail between points in the United States and points within Mexico beyond Delta's authorized Mexican gateway points for transborder services, for the purpose of blind-sector codesharing services operated between the Mexican gateway points and other points within Mexico on services operated by either Delta or Aerovias de Mexico, S.A. de C.V. Delta's U.S.-Mexico beyond gateway exemption authority was initially granted by Order 99-6-6 and subsequently renewed by Notices of Action Taken dated April 19, 2001 and March 13, 2003. The authority is set to expire on March 13, 2005. Delta requests that this authority be renewed for an additional period of at least two years.

Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8382, sascha.vanderbellen@shawpittman.com

Filed January 10, 2005 | Issued April 14, 2005

Notice of Action Taken

Scheduled foreign air transportation of persons, property, and mail between points in the United States and points within Mexico beyond Delta's authorized Mexican gateway points for transborder services, for the purposes of blind-sector code-sharing services operated between the Mexican gateway points and other points within Mexico on services operated by either Delta or Aeromexico.

By: Paul Gretch

October 11, 2005

Application for Renewal of Exemption Authority

By this application, Aeromexico seeks renewal of its exemption authority to provide service between points in Mexico and points in the U.S. beyond its gateways via its code share agreement with Delta Air Lines, Inc. The authority was last renewed by Notice of Action Taken, dated November 16, 2004, and currently is set to expire on November 16, 2005. Utilizing the blanket exemption authority and the blanket code share authorization issued to Delta, and the Delta Connection carriers, Aeromexico is providing valuable single carrier service between Mexico and numerous U.S. communities via its U.S. gateways. The services clearly provide significant benefits to Mexico and U.S. travelers, and Aeromexico seeks renewal of the blanket exemption so it can continue to provide these services in the future.

Counsel: DLA Piper Rudnick, William Evans, 202-861-6459/6466

Filed October 11, 2005 | Issued November 29, 2005

Notice of Action Taken

Renewal of exemption from 49 USC 5 41301 to permit the applicant to conduct scheduled foreign air transportation of persons, property, and mail between points in Mexico and points within the United States beyond Aeromexico’s authorized U.S. gateway points for trans border service, for the purpose of blind-sector codesharing services operated between the U.S. gateway points and other points within the U.S. on services operated by either Aeromexico, Delta, or the Delta Connection carriers.

The Delta Connection carriers are Atlantic Southeast Airlines, Inc. and Comair, Inc.

By: Paul Gretch

OST-1997-3289 - Delta and Aeromexico - Exemption - Blanket Mexico-US Beyond Gateways Codesharing
OST-2000-7708 - Delta/Comair/ASA and Aeromexico - Exemption - Leon/San Jose del Cabo-Atlanta
OST-2001-10833 - Delta and Aerolitoral - US-Mexico Codeshare

July 31, 2006

30-Day Notice Regarding Additional Codesharing Points

Delta, Aerovias de Mexico, S.A. de C.V. and Aerolitoral, S.A., de C.V. for behind-gateway intra-Mexico codesharing in Dockets OST-1997-3289 and OST-2001-10833, the carriers hereby notify the Department of their intent to display Delta's "DL*" designator code on flights operated by Aeromexico and/or Aerolitoral between Delta's authorized gateways in Mexico and each of the following points:

• Ciudad del Carmen (CME);
• Piedras Negras (PDS); and
• Toluca (TLC).

Such codesharing services will commence no earlier than 30 days from the date of this notice.

Counsel: John Mietus, 301-571-9334, john@mietuslaw.com for Aeromexico and Aerolitoral / Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com for Delta/Comair/ASA

October 12, 2006

Application for Renewal of Exemption Authority

By this application, Aeromexico seeks renewal of its exemption authority to provide service between points in Mexico and points in the U.S. beyond its gateways via its code share agreement with Delta Air Lines, Inc. The authority was last renewed by Notice of Action Taken, dated November 29, 2005, and currently is set to expire on November 29, 2006. Utilizing the blanket exemption authority and the blanket code share authorization issued to Delta, and the Delta Connection carriers, Aeromexico is providing valuable single carrier service between Mexico and numerous U.S. communities via its U.S. gateways. The services clearly provide significant benefits to Mexico and U.S. travelers, and Aeromexico seeks renewal of the blanket exemption so it can continue to provide these services in the future. The renewal is requested for one year.

Counsel: Law Office of John Mietus, William Evans, 410-827-5074, bill@mietuslaw.com

Filed October 12, 2006 | Issued November 6, 2006

Notice of Action Taken

Renewal of exemption from 49 USC § 41301 to permit the applicant to conduct scheduled foreign air transportation of persons, property, and mail between points in Mexico and points within the United States beyond Aeromexico's authorized U.S. gateway points for transborder service, for the purpose of blind-sector codesharing services operated between the U.S. gateway points and other points within the U.S. on services operated by either Aeromexico, Delta, or the Delta Connection carriers.

By: Paul Gretch

OST-1997-3289 - Delta and Aeromexico - Exemption - Blanket Mexico-US Beyond Gateways Codesharing
OST-2000-7708 - Delta/Comair/ASA and Aeromexico - Exemption - Leon/San Jose del Cabo-Atlanta
OST-2001-10833 - Delta and Aerolitoral - US-Mexico Codeshare

December 20, 2006

30-Day Notice Regarding Additional Codesharing Points

Pursuant to the blanket statements of authorization granted to Delta Air Lines, Inc., Comair, Inc., Atlantic Southeast Airlines, Inc., and Aerovias de Mexico, S.A. de C.V. for codesharing to U.S. and Canadian points beyond Aeromexico's U.S. gateways in Dockets OST-1997-3289 and OST-2000-7708, the carriers hereby notify the Department of their intent to display Aeromexico's AM* designator code on flights operated by Delta, Comair and/or ASA between Aeromexico's authorized gateways in the United States and each of the following points:

• Hartford
• Montreal
• Syracuse

Counsel: John Mietus, 301-571-9334, john@mietuslaw.com for Aeromexico and Aerolitoral / Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com for Delta/Comair/ASA

OST-1997-3289 - Delta and Aeromexico - Exemption - Blanket Mexico-US Beyond Gateways Codesharing
OST-2000-7708 - Delta/Comair/ASA and Aeromexico - Exemption - Leon/San Jose del Cabo-Atlanta

February 8, 2007

Joint Application for Amended Statements of Authorization and Special Authorization and Renewal and Amendment of Exemption Authority

The Joint Applicants request issuance of the following authorities:

1. amended statements of authorization to Delta, Comair, and ASA pursuant to 14 C.F.R. Part 212 adding authority to display Aeromexico's "AM" designator code on Delta/Delta Connection flights between any point or points in the United States and any point or points in third countries on a blind-sector basis for the carriage of Aeromexico's traffic between Mexico and third countries;
2. special authorization to Aeromexico pursuant to 14 C.F.R. Part 216 to permit Aeromexico to commingle traffic between Mexico and third countries (that is, traffic not in foreign air transportation) on the same services that carry traffic that is in foreign air transportation between Mexico and the United States and between the United States and third countries, in conjunction with third-country codesharing services with Delta/Delta Connection;
3. an amended statement of authorization to Aeromexico pursuant to 14 C.F.R. Part 212 adding authority to display Delta's "DL" designator code on flights operated by Aeromexico between any point or points in Mexico and any point or points in third countries on a blind‑sector basis for the carriage of Delta's traffic between the United States and third countries; and
4. renewal of an exemption to Delta pursuant to 49 U.S.C. § 40109 to authorize Delta to continue to engage in scheduled foreign air transportation of persons, property and mail between points in the United States and points within Mexico beyond/behind Delta's authorized Mexican gateway points for transborder services for the purpose of blind-sector codesharing services operated between the Mexican gateway points and other points within Mexico on services operated by either Delta or Aeromexico, and amendment of this exemption to authorize Delta to engage in scheduled foreign air transportation of persons, property and mail between points in the United States and points worldwide beyond/behind Delta's authorized Mexican gateway points for transborder services for the purpose of blind-sector codesharing services operated between the Mexican gateway points and points worldwide on services operated by either Delta or Aeromexico.

Initially, Delta and Aeromexico plan to display Aeromexico's "AM" code on flights operated by Delta between (i) Atlanta, Georgia, and Madrid, Spain, and (ii) New York, New York, and Barcelona, Spain. The Joint Applicants request that this application be promptly granted so that Aeromexico may market these new international services without delay.

Counsel: Law Office of John Mietus, William Evans, 410-827-5074, bill@mietuslaw.com for Aeromexico / Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com for Delta

October 10, 2007

Application for Renewal of Exemption Authority

Aeromexico respectfully requests renewal of the exemption authority last renewed by Notice of Action Taken dated November 6, 2006, permitting it to engage in foreign air transportation of persons, property and mail between points in Mexico and points within the United States beyond Aeromexico's authorized U.S. gateway points for transborder services, for the purpose of blind-sector code-sharing services operated between the U.S. gateway points and other points in the U.S. on services operated by either Aeromexico, Delta Air Lines, Inc., or the Delta Connection carriers (Atlantic Southeast Airlines, Inc., and Comair, Inc.) The exemption authority currently is set to expire November 6, 2007.

Counsel: Law Offices of John Mietus, Bill Evans, 202-457-5212, bill@mietuslaw.com

Filed October 9, 2007 | Issued November 1, 2007

Notice of Action Taken

Renewal of exemption from 49 USC 41301 to permit the applicant to conduct scheduled foreign air transportation of persons, property, and mail between points in Mexico and points within the United States beyond Aeromexico's authorized US gateway points for transborder service, for the purpose of blind-sector codesharing services operated between the U.S. gateway points and other points within the US on services operated by either Aeromexico, Delta Air Lines, Inc., or the Delta Connection carriers.

The Delta Connection carriers are Atlantic Southeast Airlines, Inc. and Comair, Inc.

By: Paul Gretch

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