OST-2007-0015 - Shuttle America and Delta

Shuttle America hereby applies for an exemption authorizing Shuttle America to provide scheduled foreign air transportation of persons, property, and mail between Atlanta, Georgia, and Leon/Guanajuato, Mexico. In addition, Shuttle America requests that it be designated for the Atlanta-Leon/Guanajuato route under the U.S.-Mexico Air Transport Agreement.

Delta requests that its existing codeshare authorization for the Atlanta-Leon/Guanajuato route be amended, to the extent necessary, to identify Shuttle America as an authorized codesharing partner. Delta currently offers Delta Connection service on this route operated by Atlantic Southeast Airlines, Inc. See Notice of Action Taken, May 25, 2006 (Docket OST-2006-24427). Delta intends to substitute the proposed Shuttle America service for the service currently operated by ASA.

Finally, Shuttle America requests that it be authorized to integrate its exemption authority with its other exemption and certificate authority granted by the Department, to the extent permitted by international agreements.

The Joint Applicants plan to provide year-round nonstop service. Shuttle America plans to operate this service using 70-seat Embraer 170 regional jet aircraft, and will display the "DL*" designator code on the flights. The proposed start date is March 1, 2008. The service will be marketed under the "Delta Connection" brand.

The Joint Applicants request that the exemption remain in effect for at least two years, or until 90 days after the Department's final determination on each carrier's applications for U.S.-Mexico certificate authority covering these routes, whichever occurs earlier.

We have polled the US carrier representatives served with the above-referenced Joint Application, and no carrier has objected to the relief sought therein. Accordingly, the Joint Applicants respectfully urge that the requested authority be granted as soon as possible.

Scheduled foreign air transportation of persons, property, and mail between Atlanta, Georgia, and Leon/Guanajuato, Mexico, and to integrate this authority with Shuttle’s other exemption and certificate authority granted by the Department, to the extent permitted by international agreements. The applicants state that they will provide year-round service in the market pursuant to a code-share arrangement, whereby Shuttle will operate the service under Delta’s “DL*” designator code as a Delta Connection carrier, beginning March 1, 2008.

Shuttle is a commuter carrier certificated to provide scheduled interstate air transportation using aircraft with fewer than 60 seats (Order 1998-11-15). By letter dated April 6, 2005, to Mr. Robert Cohn (Counsel for Shuttle America) from Mr. William Bertram (then Chief of the Air Carrier Fitness Division, Office of Aviation Analysis), the Department authorized Shuttle to engage in interstate scheduled transportation using large aircraft, subject to the restriction that Shuttle’s operations are performed under a fee-for-service agreement with a major U.S carrier.

The applicants further request that Delta’s existing code-share authorization for the Atlanta-Leon/Guanajuato route be amended, to the extent necessary, to identify Shuttle as an authorized code-share partner. The applicants explain that, currently, Delta Connection service on the route is being providing by Atlantic Southeast Airlines, Inc. but that Delta intends to substitute the proposed Shuttle service for the service currently operated by ASA. The applicants state that, to ensure that the Delta Connection service is not disrupted, ASA’s designation to serve the route should not be withdrawn until Shuttle has commenced its new service and ASA has given notice that its Atlanta-Leon/Guanajuato authority is dormant.