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Updated: Tuesday, July 1, 2008 9:21 AM


OST-2006-25433 - Delta - Orlando/Salt Lake City-Mexico City

http://www.delta.com/


OST-1998-4482 - Mexicana Authroity for Mexico City-Orlando


Delta Air Lines, Inc.

OST-2006-25433 - Exemption - Orlando/Salt Lake City-Mexico City

July 17, 2006

Application for an Exemption

Delta Air Lines, Inc. hereby applies for an exemption authorizing Delta to provide scheduled foreign air transportation of persons, property and mail between (a) Orlando, Florida and Mexico City, Mexico, and (b) Salt Lake City, Utah and Mexico City, Mexico. Delta requests that such authority remain in effect for a period of at least two years.

Delta requires the exemption authority to remain in effect only to the extent and for such time as it is not yet authorized to provide service on these routes with its own aircraft under its Certificate of Public Convenience and Necessity for Route 562. An application for renewal and amendment of Delta's Route 562 certificate is pending before the Department, which includes a request for renewal of the Orlando-Mexico City/Toluca route (currently served by Delta on a codesharing basis with Aerovias de Mexico, S.A. de C.V.) and a request to add the Salt Lake City-Mexico City/Toluca route (previously served by Delta on a codesharing basis with Aeromexico pursuant to an exemption granted in Docket OST-2001-10438). See Application dated November 30, 2004, and Supplement dated October 17, 2005, in Docket OST-1999-6275. Delta hereby reaffirms its request that Route 562 be renewed and amended to include these routes, but clarifies for the record that it intends to provide such service using its own aircraft pursuant to designations rather than codeshare-only authorizations.

Delta plans to commence year-round service on these two U.S.-Mexico City routes on or about December 1, 2006, using B-737-800 aircraft configured with 134 coach seats and 16 first class seats. Delta initially plans to offer daily service on the Orlando-Mexico City route and four weekly flights on the Salt Lake City-Mexico City route.

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



July 20, 2006

Re: Polling Results

We have polled the US carrier representatives served with the above-referenced application, and no carrier has objected to Delta's request for exemption authority. Delta urges that the exemption be granted as soon as possible.

Counsel: Hogan & Hartson, Jonathan Echmalian, 202-637-5439, jechmalian@hhlaw.com



Filed July 17, 2006 | Issued July 27, 2006

Notice of Action Taken

Scheduled foreign air transportation of persons, property, and mail between Orlando, Florida, and Mexico City, Mexico, and between Salt Lake City, Utah, and Mexico City, Mexico.

Delta currently holds authority to serve these two city-pair markets on a code-share basis with Aerovias de Mexico, S.A. de C.V., whereby Delta places its code on Aeromexico flights. Delta states that it intends to commence year-round service using its own aircraft.

The applicant has requested a shortened answer period. We are acting on Delta’s application prior to the expiration of the 15-day answer period with consent of all parties served.

By: Paul Gretch



OST-2003-14290 - Exemption - San Jose del Cabo-Ontario / Monterrey-Las Vegas
OST-2004-18184 - Exemption - Salt Lake City-Cancun
OST-2004-18878 - Exemption-Salt Lake City-San Jose del Cabo
OST-2004-19231 - Exemption - Atlanta-Cozumel
OST-2005-23497 - Los Angeles-Puerto Vallarta Combination Service Proceeding
OST-2006-24427 - Exemption - Atlanta-Leon/Guanajuato
OST-2006-24984 - ASA and Delta - Los Angeles-Mexico Routes
OST-2006-25065 - Exemption - Los Angeles-Acapulco
OST-2006-25433 - Exemption - Orlando/Salt Lake City-Mexico City
OST-2006-25495 - Exemption - Salt Lake City-Guadalajara/Mazatlan/San Jose del Cabo

March 25, 2008

Application for Renewal of Exemptions

Pursuant to these exemptions, Delta provides nonstop U.S.‑Mexico service, in some cases with its own aircraft, in some cases on a codeshare basis with Aeromexico or Delta Connection carriers, and in some cases both with its own aircraft and on a codeshare basis.

Delta's exemption authority in Docket OST-2003-14290 also includes the Ontario-San Jose del Cabo route, but Delta is not seeking renewal of the exemption as it pertains to that route because the Aeromexico flights on which Delta had previously placed its code have been discontinued. In that regard, by letter dated February 20, 2007, filed in this Docket, Aeromexico notified the Department that it would not seek renewal of its Ontario-San Jose del Cabo exemption authority.

Delta currently offers service on the Los Angeles-Mexico routes specified in Docket OST-2006-24984 by displaying its code on "small aircraft" regional jet services operated by ExpressJet Airlines, Inc. Although Delta would remain authorized to offer such services pursuant to 14 C.F.R. § 206.5, Delta is seeking renewal of its exemption authority to provide it with the flexibility to offer large aircraft service in the future.

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



OST-2005-22243 - Exemption - Cincinnati-San Jose del Cabo
OST-2005-22620 - Exemption - Atlanta-Acapulco; Boston-Cancun; Washington, DC-Cancun
OST-2006-24984 - Exemption - ASA and Delta - Los Angeles-Mexico Routes
OST-2006-25433 - Exemption - Orlando/Salt Lake City-Mexico City

June 30, 2008

Motion for Approval of Conversion to Seasonal US-Mexico Services

Unfortunately, the market conditions for air transportation have radically deteriorated in recent months, in particular due to the unprecedented increase in jet fuel costs during that period. The fuel cost increases have had disastrous financial consequences for U.S. carriers, forcing all of them to reevaluate and restructure their route networks. Several carriers have already been forced into bankruptcy and/or liquidation in recent months.

Permitting Delta the flexibility to adjust its service offerings in these markets so as to more accurately match capacity to demand on a seasonal basis will allow it to maintain transborder services in these markets, which enhances competition and expands price and service options for U.S.-Mexico travelers and shippers. Puerto Vallarta, Mazatlan, San Jose del Cabo, Acapulco, and Cancun are all triple-designation markets under the U.S.-Mexico Air Transport Services Agreement, as amended. There are at least one and in several cases two unallocated designations for U.S. carrier-operated service available in each of these markets except Los Angeles - La Paz. Up to ten carriers from each country may be designated to serve each city pair market on a codeshare basis. As such, there are abundant unused service opportunities for other carriers on each of these routes.

La Paz is not a triple‑designation market under the U.S.‑Mexico Air Transport Services Agreement as amended, and competitive service is currently operated in this market by Alaska Airlines.

Counsel: Delta, Scott McClain, 404-773-6514


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