OST-97-2569 / Delta Air Lines / May 30, 1997

NOTICE: Delta Air Lines, Inc. requests that this application be processed by non-hearing procedures pursuant to Subpart Q. 14 C.F.R. § 302.1750(a)(4). Any person who wishes to support or oppose this application must file an answer by June 26, 1997, and must serve that answer on Delta Air Lines, Inc., and all persons served with this application.

Application of

under 49 U.S.C. §§ 41102 and 41108 for Renewal of a Certificate of Public Convenience and Necessity (Los Angeles-Mazatlan; Los Angeles-Puerto Vallarta; Orlando-Mexico City)

Delta Air Lines, Inc. ("Delta"), pursuant to 49 U.S.C. §§ 41102 and 41108, 14 C.F.R. Part 377, Part 201 of the Department's Economic Regulations, and Subpart Q of the Department's Procedural Regulations, hereby applies for renewal of its Certificate of Public Convenience and Necessity for Route 562, segments 3, 4 and 6, which authorizes Delta to provide scheduled foreign air transportation of persons, property and mail between the terminal

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Delta hereby invokes the automatic extension provisions of the Administrative Procedure Act, 5 U.S.C. § 558(c), as implemented by 14 C.F.R. Part 377, to continue its authority in effect pending final Department action on this application. This application is timely under § 377.10(c)(1) since it is filed more than 180 days in advance of the expiration date.

In support of this application, Delta states the following:

1. Applicant. Delta is a corporation organized and existing under and pursuant to the laws of the State of Delaware. Delta's general offices are located at 1030 Delta Boulevard, Hartsfield Atlanta International Airport, Atlanta, Georgia 30320-6001.

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2. U.S. Citizen. Delta is a citizen of the United States, as defined by 49 U.S.C. § 40102(a)(15)(C). Delta has determined by reasonable investigation that its President and more than two-thirds of its directors and managing officers are citizens of the United States, and that at least seventy-five percent (75%) of its voting interest is owned and controlled by persons who are citizens of the United States. Delta is prepared to furnish such evidence, by affidavit or otherwise, as the Department may require to establish the facts set forth above.

3. Fitness. Delta holds various certificates of public convenience and necessity and exemption authority authorizing it to engage in scheduled air transportation of persons, property and mail on various domestic and international routes. Delta is fit, willing and able to continue to perform all of its existing services. Delta requests that the Department take official notice pursuant to Rule 24 of the Department's Rules of Practice of all data on file with the Department necessary to establish Delta's fitness.

4. Renewal Authority Requested. Delta hereby applies for renewal of its certificate for Route 562, segments 3, 4 and 6, authorizing Delta to continue to serve the Los Angeles-Mazatlan, Los Angeles-Puerto Vallarta and OrlandoMexico City routes. The certificate authority for the Los Angeles

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Mazatlan/Puerto Vallarta routes was most recently renewed by Order 92-10-58; the certificate authority for the Orlando-Mexico City route was initially granted by the same Order. Delta's authority to serve these three route segments was made effective through November 29, 1997.

5. Service Proposal. Delta has been providing service in the Orlando-Mexico City market since 1991. Effective April 6, 1997, Delta briefly discontinued its nonstop service for a two month period, as it implemented a code-share/blocked-space agreement with Aeromexico, whereby Delta will offer Orlando-Mexico City nonstop service operated by Aeromexico on a twice weekly (Saturday/Sunday) basis, utilizing MD-87 aircraft. Delta intends to resume service in this market under the code-share/blocked space agreement with Aeromexico on or about June 10, 1997.

Delta currently provides daily roundtrip service between Los Angeles, on the one hand, and Mazatlan and Puerto Vallarta, on the other hand, in a roundrobin pattern, utilizing Boeing 727-200 aircraft. Delta intends to discontinue its Los Angeles-Mazatlan/Puerto Vallarta service on or about May 31, 1997, and immediately implement a code-share/blocked-space arrangement with Aeromexico between Los Angeles and Puerto Vallarta on or about June 10,

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1997. Although Delta does not have immediate plans to operate service between Los Angeles and Mazatlan, Delta seeks renewal of its certificate authority for this route in order to retain the operational flexibility to resume service quickly as market conditions warrant. /1 Delta hereby reserves the right to resume service in the Los Angeles-Mazatlan market, either with its own aircraft or pursuant to a code-share arrangement, to alter its schedules and frequencies for each of the three routes that are the subject of this renewal application (subject to applicable legal restrictions) and to use such aircraft /2 as Delta may determine to be appropriate and consistent with market conditions at any given time.

6. Fuel Delta requests, to the extent necessary, a waiver of the requirement to provide fuel consumption data and an environmental analysis with respect to its Los Angeles-Mazatlan/Puerto Vallarta and Orlando-Mexico City services. In the event that Delta resumes any of these U.S.-Mexico services

1/ Delta continues to analyze market conditions and explore resumption of service. Delta has not, as of the date of filing this application, concluded that it will permanently discontinue service in this market.

2/ Delta presently owns or operates a substantial fleet of aircraft consisting of the following: Boeing 727, 737, 7S7 and 767 aircraft; McDonnell Douglas MD-11, MD-88, and MD-90 aircraft; and Lockheed L-1011 aircraft. Delta has additional aircraft of various types on order.

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utilizing its own aircraft, Delta anticipates that it will have no difficulty in obtaining adequate supplies of fuel for such operations.

7. Renewal is ire the Public Interest and is Consistent with DOT Policy. Renewal of Delta's Los Angeles-Mazatlan, Los Angeles-Puerto Vallarta and Orlando-Mexico City authority is fully consistent with the public interest, and with the Department's policies which establish a presumption of renewal of temporary certificate authority for limited-entry international routes:

51 Fed. Reg. at 43187 (December 1, 1986).

With the recent exception noted above, Delta has provided continuous service on the Orlando-Mexico City route since 1991, initially pursuant to exemption authority issued by Order 91-10-37, and subsequently pursuant to Delta's certificate authority for Route 562. On the Los Angeles-Mazatlan and Los Angeles-Puerto Vallarta routes, Delta has provided continuous service for over ten years, since shortly after its authority to serve these routes was

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transferred from Western Airlines (see Order 87-1-19). As noted above, Delta will immediately commence operations between Los Angeles and Puerto Vallarta on or about June 10, pursuant to a code-share/blocked space arrangement with Aeromexico. Although Delta intends to discontinue its service between Los Angeles and Mazatlan as Delta analyzes market conditions, renewal of this authority will allow the traveling and shipping public to benefit from Delta's ability quickly to resume service in response to public demand. Grant of this renewal application will provide Delta with continued authority to offer convenient U.S.-Mexico services to the Los Angeles and Orlando communities, as well as convenient connection alternatives to other West Coast gateways to Mazatlan and Puerto Vallarta, and other East Coast gateways to Mexico City. Moreover, renewal of Delta's authority for each of these U.S.-Mexico routes is fully consistent with the U.S.-Mexico Bilateral Agreement.

8. Expedited Procedures. Delta requests that its Route 562, segment 3, 4 and 6, certificate authority be renewed by simplified, nonhearing procedures. Given the presumption in favor of renewal and the circumstances presented herein, nonhearing procedures are appropriate and renewed certificate authority should be issued without undue delay.

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WHEREFORE, for the reasons set forth herein, Delta respectfully requests that the Department grant this application for renewal of Delta's Certificate of Public Convenience and Necessity for Route 562, segments 3, 4 and 6, and grant such other, additional and different relief as the public convenience and necessity and public interest may require.

Respectfully submitted,

Robert E. Cohn

Sheryl R. Israel

SHAW, PITTMAN, POTTS & TROWBRIDGE

2300 N Street, N.W.

Washington, D.C. 20037

(202) 663-8060

Counsel for DELTA AIR LINES, INC.