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Updated: Monday, July 30, 2007 10:49 AM


OST-2005-22415 - Delta Air Lines - Los Angeles-Cancun

http://www.delta.com/


Delta Air Lines, Inc.

OST-2005-22415 - Delta - Exemption - Los Angeles-Cancun

September 7, 2005

Application for an Exemption

Pursuant to 49 U.S.C. § 40109, Delta Air Lines, Inc. hereby requests an exemption to provide nonstop service between the Los Angeles, California (LAX) and Cancun, Mexico beginning on or about December 1, 2005. Delta's proposed new flight will operate on a daily, year-round basis, using Boeing 737-800 aircraft with 16 premium and 134 coach seats.

Delta will restore full, beneficial use of the valuable U.S. carrier designation available for service on this route. ATA Airlines has announced cancellation of its Los Angeles-Cancun service, effective later this month, thereby leaving an available designation to fund Delta's proposed service.

Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com

OST-2001-10009 - Alaska Airlines' Los Angeles-Cancun Authority
OST-1999-6690 - ATA's Los Angeles-Cancun Authority

OST-2005-22360 - United Air Lines - Los Angeles-Cancun



OST-2005-22360 - United Air Lines - Exemption - Los Angeles-Cancun
OST-2005-22415 - Delta Air Lines - Exemption - Los Angeles-Cancun

September 22, 2005

Answer and Motion for Consolidation of United

United opposes Delta's application for an exemption authorizing it to provide foreign air transportation between Los Angeles, California and Cancun, Mexico. As explained below, United has also applied for authority to operate scheduled nonstop service between its hub at Los Angeles and Cancun, a proposed service that would provide significantly greater public benefits than would Delta's. Because United's proposal clearly offers greater consumer and competition benefits than Delta's, the Department can and should move forward to grant United's application without further administrative procedure and delay. However, in the event the Department is not persuaded to do so, United hereby moves to have Delta's application consolidated with United's for contemporaneous consideration pursuant to Rule 13 of the Department's Rules of Practice, 14 CFR §302.13, and requests that the Department utilize the same streamlined procedure used in recent U.S-Mexico cases.

Counsel: Wilmer Cutler, Bruce Rabinovitz, 202-663-6960, bruce.rabinovitz@wilmerhale.com



OST-2005-22360 - United Air Lines - Exemption - Los Angeles-Cancun
OST-2005-22415 - Delta Air Lines - Exemption - Los Angeles-Cancun

September 26, 2005

Reply of Delta Air Lines

Delta Air Lines, Inc. hereby files this Reply to United's Answer and Motion seeking consolidation of the above-captioned dockets. Delta urges the Department to immediately grant the pending applications of both carriers.

In light of the recent the new liberalizing agreement reached with Mexico, there is no need for further carrier selection proceedings, since there are now sufficient designations available to authorize both Delta and United to serve the Los Angeles-Cancun route. No other competing applications haev been filed, and both carriers' applications are ripe for decision. Under the new agreement, the Department will be able to designate three US carriers for service from any point in the United States to several specified points in Mexico, including Cancun.

Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com



OST-2005-21284 - Exemption - Orlando-Cancun
OST-2005-22243 - Exemption - Cincinnati-San Jose del Cabo / Atlanta-Merida / New York-Acapulco/Cozumel/Puerto Vallarta/San Jose del Cabo
OST-2005-22415 - Exemption - Los Angeles-Cancun
OST-2005-22551 - Exemption - New York-Cancun
OST-2005-22620 - Exemption - Atlanta-Acapulco; Boston-Cancun; Los Angeles-Puerto Vallarta/San Jose del Cabo/Zihuatanejo; Washington, DC-Cancun
OST-1999-6275 - Certificate of Public Convenience and Necessity for Route 562 - US-Mexico

October 17, 2005

Supplement to Applications for Exemption and Amended Certificate Authority

Pursuant to the Department's Notice served October 5, 2005, Delta Air Lines, Inc. hereby supplements its applications for U.S.-Mexico exemption authority pending in the above-captioned dockets by confirming the proposed start-up dates, types of service (seasonal or year-round), number of weekly flights, and types, capacity and availability of aircraft, as follows:

1. Atlanta, GA -Acapulco, Mexico (Docket OST-2005-22620). On or about March 11, 2006, Delta proposes to introduce two weekly frequencies (Saturdays/Sundays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a year-round basis. No other U.S. carriers currently provide Atlanta-Acapulco service and, provided that no other applications are submitted, the Department need not await the signing of the new U.S.-Mexico agreement in order to grant Delta's request for exemption authority with respect to this route.

2. Atlanta, GA - Ixtapa/Zihuatanejo, Mexico (Docket OST-2005-22620). On or about March 18, 2006, Delta proposes to introduce two weekly frequencies (Saturdays/Sundays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a year-round basis. No other U.S. carriers currently provide Atlanta-Ixtapa/Zihuatanejo service and, provided that no other applications are submitted, the Department need not await the signing of the new U.S.-Mexico agreement in order to grant Delta's request for exemption authority with respect to this route.

3. Boston, MA - Cancun, Mexico (Docket OST-2005-22620). On or about February 4, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a year-round basis.

4. Los Angeles, CA - Cancun, Mexico (Docket OST-2005-22415). On or about December 1, 2005, Delta proposes to introduce daily yearround service on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats.

5. Los Angeles, CA - Ixtapa/Zihuatanejo, Mexico (Docket OST-2005-22620). On or about March 18, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737800 aircraft with 16 premium and 134 coach seats, on a year-round basis.

6. Los Angeles, CA - Puerto Vallarta, Mexico (Docket OST-2005-22620). On or about February 4, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737800 aircraft with 16 premium and 134 coach seats, on a year-round basis.

7. Los Angeles, CA - San Jose del Cabo, Mexico (Docket OST-2005-22620). On or about February 4, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a yearround basis.

8. New York, NY/Newark, NJ- Cancun, Mexico (Docket OST-2005-22551). On or about December 17, 2005, Delta proposes to introduce daily year-round service on this route using Boeing 757-200 aircraft with 24 premium and 159 coach seats.

9. New York, NY/Newark, NJ - San Jose del Cabo, Mexico (Docket OST-2005-22243). On or about March 4, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a year-round basis.

10. Orlando, FL - Cancun, Mexico (Docket OST -2005-21284). As early as November 1, 2005, but no later than 90 days after the Department approves exemption authority to serve this route, Delta proposes to introduce daily year-round service on the Orlando-Cancun route using Boeing 737-800 aircraft with 16 premium and 134 coach seats.

11. Washington, D.C. - Cancun, Mexico (Docket OST-2005-22620). On or about February 4, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a year-round basis. Delta proposes to provide service via Washington Dulles International Airport.

Delta proposes to operate all of the foregoing services using its existing fleet resources. Delta has 71 Boeing 737-800 aircraft and 121 Boeing 757-200 aircraft in its fleet, in addition to a number of other aircraft types, and has additional aircraft on order.

Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com



OST-2005-22767 - United - Exemption - Chicago-Cancun; Los Angeles-San Jose del Cabo; Chicago-Puerto Vallarta; Los Angeles-Puerto Vallarta
OST-2005-22360 - United - Exemption - Los Angeles-Cancun
OST-2005-22620 - Delta - Exemption - Atlanta-Acapulco; Boston-Cancun; Los Angeles-Puerto Vallarta/San Jose del Cabo/Zihuatanejo; Washington, DC-Cancun
OST-2005-22415 - Delta - Exemption - Los Angeles-Cancun
OST-2005-22580 - Frontier - Exemption - Chicago (MDW)-Cancun
OST-2005-22590 - Frontier - Exemption - Los Angeles-San Jose del Cabo
OST-2205-22589 - Spirit - Exemption - Dallas-Ft. Worth/Chicago-Cancun
OST-2005-22636 - USA 3000 - Exemption - Newark/Chicago-Cancun
OST-2005-22637 - USA 3000 - Exemption - US-Mexico
OST-2005-22766 - ExpressJet - Designation - Los Angeles-San Jose del Cabo
OST-2005-22769 - USAirways - Exemption - Los Angeles-San Jose del Cabo

October 20, 2005

Motion of United Air Lines

United requests that the Department immediately grant United's pending applications for exemptions to serve Chicago-Puerto Vallarta and Los AngelesCancun, as well as applications of other carriers for city-pair authorizations for which sufficient designations will be available under the Memorandum of Consultations between the U.S. and Mexico dated September 21, 2005 and streamline the process for granting exemption authority on the three U.S.-Mexico routes requiring carrier selection. In particular, United requests that the Department allow carriers that filed exemption applications for Chicago-Cancun, Los Angeles-Puerto Vallarta and Los Angeles-San Jose del Cabo one additional opportunity to file answers to competing applications, along with any other pertinent information to support their own applications, before the Department proceeds to a decision. The Department should issue a notice setting the date for submission of these answers and related information. United suggests that the filing date be no less than 15 days after the issuance of the notice. With regard to Los Angeles-Puerto Vallarta, for which there are only two applicants, the Department should proceed directly to final order. With regard to Chicago-Cancun and Los Angeles-San Jose del Cabo, for which there are four and five applicants, respectively, the Department should proceed to a show-cause order. These valuable bilateral rights will soon be available, and all interested parties have had an opportunity to file applications pursuant to the Department's Notice dated October 5, 2005.

Counsel: Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmerhale.com



OST-2005-22767 - United - Exemption - Chicago-Cancun; Los Angeles-San Jose del Cabo; Chicago-Puerto Vallarta; Los Angeles-Puerto Vallarta
OST-2005-22360 - United - Exemption - Los Angeles-Cancun
OST-2005-22620 - Delta - Exemption - Atlanta-Acapulco; Boston-Cancun; Los Angeles-Puerto Vallarta/San Jose del Cabo/Zihuatanejo; Washington, DC-Cancun
OST-2005-22415 - Delta - Exemption - Los Angeles-Cancun
OST-2005-22580 - Frontier - Exemption - Chicago (MDW)-Cancun
OST-2005-22590 - Frontier - Exemption - Los Angeles-San Jose del Cabo
OST-2205-22589 - Spirit - Exemption - Dallas-Ft. Worth/Chicago-Cancun
OST-2005-22636 - USA 3000 - Exemption - Newark/Chicago-Cancun
OST-2005-22637 - USA 3000 - Exemption - US-Mexico
OST-2005-22766 - ExpressJet - Designation - Los Angeles-San Jose del Cabo
OST-2005-22769 - USAirways - Exemption - Los Angeles-San Jose del Cabo

October 28, 2005

Answer of ExpressJet Airlines

Weeks before answers to the United application for Chicago-Cancun, Los Angeles-San Jose del Cabo, Chicago-Puerto Vallarta and Los Angeles-Puerto Vallarta authority were due and moments before issuance of the Deparment's Notice on procedures governing US-Mexico applications, United asked the Department to grant its Chicago-Puerto Vallarta and Los Angeles-Cancun exemption applications "immediately." Although United's request for immediate action on those applications has been mooted by the Department's Notice of October 20, United's request that the Department truncate its normal processes for comparative consideration of other U.S.-Mexico applications has not been mooted.

ExpressJet supports fully the Department's efforts to streamline its licensing procedures, but the specific relief sought by United may well prove counterproductive in this instance. The Department should be wary of truncating proceedings when less input from applicants might actually delay final decisions.

Although ExpressJet is anxious to expand its Los Angeles-Mexico services and begin Los Angeles-San Jose del Cabo service as promptly as possible, ExpressJet urges the Department to ensure that its procedures meet due process requirements and provide the Department with all relevant information it requires for thoughtful consideration of the issues raised by the contested applications for new US-Mexico combination route authority.

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



OST-2005-21284 - Delta - Exemption - Orlando-Cancun
OST-2005-22415 - Delta - Exemption - Los Angeles-Cancun
OST-2005-22551 - Delta - Exemption - New York-Cancun
OST-2005-22620 - Delta - Exemption - Atlanta-Acapulco; Boston-Cancun; Los Angeles-Puerto Vallarta/San Jose del Cabo/Zihuatanejo; Washington, DC-Cancun
OST-2005-22737 - Comair - Exemption - Cincinnati-Cancun

November 22, 2005

Modified Start-Up Plans

In light of the severe damage Hurricane Wilma has inflicted on Cancun, Delta Air Lines, Inc. and its wholly owned subsidiary Comair, Inc. have modified their start-up plans with respect to the above-referenced routes, as described in Attachment A.

Delta anticipates that it will institute service on most of the subject routes by June 1, 2006, and requests that any dormancy condition run from that date. Delta is monitoring the situation in Cancun and hopes that it may be able to institute service sooner in some markets. Accordingly, Delta urges the Department to grant the requested economic authority for the identified routes as soon as possible.

Finally, Delta no longer has active service plans for Orlando-Cancun, and hereby withdraws that application.

Attachment A:

US Gateway Applicant Docket No. OST-2005- Original Start Date New Start Date
Los Angeles Delta 22415 December 15, 2005 June 1, 2006
New York Delta 22551 December 15, 2005 June 1, 2006
Boston Delta 22620 February 4, 2006 June 1, 2006
Washington Delta 22620 February 4, 2005 June 1, 2006
Cincinnati Comair 22737 December 15, 2005 June 1, 2006
Orlando Delta 21284 December 15, 2005 Application Withdrawn

Counsel: Hogan & Hartson, Alexander Van der Bellen, 202-637-8382, sascha.vanderbellen@hhlaw.com



OST-2005-22360 - United - Exemption - Los Angeles-Cancun
OST-2005-22415 - Delta - Exemption - Los Angeles-Cancun

Filed September 1/7, 2005 | Supplemented October 17, 2005 | Issued December 12, 2005

Notice of Action Taken

Scheduled foreign air transportation of persons, property, and mail between Los Angeles, California, and Cancun, Mexico. United states that it will initially provide daily service in the market, beginning on or about December 15, 2005.

United also requests that its exemption authority for Los Angeles-Cancun be awarded under the Department’s streamlined licensing procedures. To the extent that United is seeking certificate authority for the subject market, we will handle that request subsequently.

Scheduled foreign air transportation of persons, property, and mail between Los Angeles, California, and Cancun, Mexico, and to combine this exemption authority with Delta’s existing exemption and certificate authority, consistent with applicable international agreements. Delta states that it will provide daily service in the market, beginning on or about June 1, 2006.

In a consolidated supplement filed in Delta’s present application (Docket OST-2005-22415), among other dockets, Delta urges the Department to grant its request for Los Angeles-Cancun authority under the Department’s streamlined licensing procedures. To the extent that Delta is seeking certificate authority for the subject market, we will handle that request subsequently.

By letter dated November 22, 2005, Delta revised its startup date for Los Angeles-Cancun services from December 1, 2005, to June 1, 2006.

Granted: exemption authority to United and Delta to serve the Los Angeles-Cancun market.

Granted: route integration authority to Delta.

Deferred: on United’s and Delta’s requests for certificate authority to serve the Los Angeles-Cancun market.

By: Paul Gretch



OST-2000-6816 - Exemption - Mexico City-Chicago
OST-2000-7390 - Exemption - Atlanta-San Jose del Cabo
OST-2000-8270 - Exemption - Guadalajara-Ontario
OST-2001-10457 - Exemption - Cincinnati-Cancun
OST-2003-15698 - Exemption - Las Vegas-Guadalajara
OST-2004-16975 - Exemption - Boston-Mexico City
OST-2005-21075 - Exemption - Salt Lake City-Puerto Vallarta
OST-2005-21353 - Exemption and Statement of Authorization - San Diego-Mexico City
OST-2005-21724 - Exemption - Salt Lake City-Mazatlan
OST-2005-22025 - Exemption - Atlanta-Puerto Vallarta
OST-2005-22243 - Exemption - New York/Newark-Cozumel
OST-2005-22415 - Exemption - Los Angeles-Cancun
OST-2005-22620 - Exemption - Atlanta-Acapulco; Boston-Cancun; Los Angeles-Puerto Vallarta/San Jose del Cabo/Zihuatanejo; Washington, DC-Cancun

April 5, 2007

Application for Renewal of Exemptions

Delta Air Lines, Inc. hereby applies under 49 U.S.C. § 40109 for renewal of exemptions authorizing Delta to continue to provide scheduled foreign air transportation of persons, property, and mail on the U.S.-Mexico routes identified in Exhibit A. This renewal application encompasses multiple docketed exemptions that Delta relies upon to provide nonstop U.S. Mexico services with its own aircraft or pursuant to codeshare arrangements with Aerovias de Mexico, S.A. de C.V. or Delta Connection carriers. 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 Delta's application for amended certificate authority as it pertains to each of the routes identified herein, filed on November 30, 2004, and supplemented on October 17, 2005, in Docket OST-1999-6275, 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 non-controversial U.S.-Mexico exemption authorities.

Delta does not seek renewal of route integration authority included with these exemptions because such authority is now covered by its blanket route integration certificate issued by Order 2006-1-1.

In certain instances, Delta holds two exemptions for a single U.S.-Mexico route: one for codesharing service and one for service with its own aircraft. Although it is Delta's understanding that a single "own aircraft" exemption would be sufficient to cover both types of service (just as a city-pair designation authorizes both own-aircraft service and codeshare service), Delta is seeking to renew potentially redundant exemption authority out of an abundance of caution.

Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com



OST-2000-6816 - Exemption - Mexico City-Chicago
OST-2000-7390 - Exemption - Atlanta-San Jose del Cabo
OST-2000-8270 - Exemption - Guadalajara-Ontario
OST-2001-10457 - Exemption - Cincinnati-Cancun
OST-2003-15698 - Exemption - Las Vegas-Guadalajara
OST-2004-16975 - Exemption - Boston-Mexico City
OST-2005-21075 - Exemption - Salt Lake City-Puerto Vallarta
OST-2005-21353 - Exemption and Statement of Authorization - San Diego-Mexico City
OST-2005-21724 - Exemption - Salt Lake City-Mazatlan
OST-2005-22025 - Exemption - Atlanta-Puerto Vallarta
OST-2005-22243 - Exemption - New York/Newark-Cozumel
OST-2005-22415 - Exemption - Los Angeles-Cancun
OST-2005-22620 - Exemption - Atlanta-Acapulco; Boston-Cancun; Los Angeles-Puerto Vallarta/San Jose del Cabo/Zihuatanejo; Washington, DC-Cancun

Filed April 5, 2007 | Issued July 10, 2007

Notice of Action Taken

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

OST-2000-7390: Scheduled foreign air transportation of persons, property, and mail between the terminal point Atlanta, Georgia, and the terminal point San Jose del Cabo, Mexico. Delta provides year-round service on this route pursuant to a code-share arrangement with Aeromexico, whereby Aeromexico places its code on flights operated by Delta in the market.

OST-2000-8270: 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 Aeromexico, whereby Delta places its code on flights operated by Aeromexico in the market.

OST-2001-10457: Scheduled foreign air transportation of persons, property, and mail between the terminal point Cincinnati, Ohio, and the terminal point Cancun, Mexico. Delta provides year-round service on this route (or seasonal service, as dictated by market circumstances), pursuant to a code-share arrangement with Aerornexico, whereby Aeromexico places its code on flights operated by Delta in the market.

OST-2003-15698: Scheduled foreign air transportation of persons, property, and mail between the terminal point Las Vegas, Nevada, and the terminal point Guadalajara, Mexico. Delta provides year-round service on this route pursuant to a code-share arrangement with Aeromexico, whereby Delta places its code on flights operated by Aeromexico in the market.

OST-2004-16975: Scheduled foreign air transportation of persons, property, and mail between the terminal point Boston, Massachusetts, and the terminal point Mexico City, Mexico. Delta provides year-round service on this route pursuant to a code-share arrangement with Aeromexico, whereby Delta places its code on flights operated by Aeromexico in the market.

OST-2005-21075: Scheduled foreign air transportation of persons, property, and mail between the terminal point Salt Lake City, Utah, and the terminal point Puerto Vallarta, Mexico. Delta provides year-round service on this route with its own aircraft.

OST-2005-21353: Scheduled foreign air transportation of persons, property, and mail between the terminal point San Diego, California, and the terminal point Mexico City, Mexico. Delta has orally advised that it provides year-round service on this route pursuant to a code-share arrangement with Aeromexico, whereby Delta places its code on flights operated by Aeromexico in the market.

OST-2005-21724: Scheduled foreign air transportation of persons, property, and mail between the terminal point Salt Lake City, Utah, and the terminal point Mazatlan, Mexico. Delta provides year-round Delta Connection service on this route pursuant to a code-share arrangement with Skywest Airlines, Inc., whereby Delta places its code on flights operated by Skywest in the market.

OST-2005-22025: Scheduled foreign air transportation of persons, property, and mail between the terminal point Atlanta, Georgia, and the terminal point Puerto Vallarta, Mexico. Delta provides year-round service on this route with its own aircraft.

OST-2005-22243: Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Atlanta, Georgia, and the terminal point Merida, Mexico; (2) the terminal point Cincinnati, Ohio, and the terminal point San Jose del Cabo, Mexico; (3) the terminal point New York, New York/Newark, New Jersey, and the terminal point Puerto Vallarta, Mexico; and (4) the terminal point New York, New York/Newark, New Jersey, and the terminal point San Jose del Cabo, Mexico. Delta provides year-round service on the
Cincinnati-San Jose del Cabo, New York/Newark-Puerto Vallarta, and New YorWNewark-San Jose del Cabo routes with its own aircraft. Delta provides seasonal Delta Connection service on the Atlanta-Merida route pursuant to a code-share arrangement with Atlantic Southeast Airlines, Inc., whereby Delta places its code on flights operated by ASA in the market.

OST-2005-22415: Scheduled foreign air transportation of persons, property, and mail between the terminal point Los Angeles, California, and the terminal point Cancun, Mexico. Delta provides year-round service on the route with its own aircraft.

OST-2005-22620: Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Atlanta, Georgia, and the terminal point Acapulco, Mexico; (2) the terminal point Boston, Massachusetts, and the terminal point Cancun, Mexico; and (3) the terminal point Washington, D.C., and the terminal point Cancun, Mexico. Delta provides year-round service on each of these routes with its own aircraft.

By: Paul Gretch


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