OST-97-3124 / OST-97-3218 / Delta Air Lines / Atlanta-Lima; Atlanta/New York-South America; U.S.-Belize / February 9, 1998

Application of

for exemption authority under 49 U.S.C. § 40109

(Atlanta-Lima, Peru).

Application of

under 49 U.S.C. §§ 41102 and 41108 for a Certificate of Public Convenience and Necessity

(Atlanta/New York-South America; U.S.-Belize)

1. Delta requests allocation of the seven (7) weekly frequencies available for scheduled combination services by a U.S. carrier between the United States and Peru to enable Delta to operate daily nonstop service between Atlanta and Lima.

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2. The Department's Notice indicated that the additional frequencies will become available "no earlier than June 1998." Accordingly, Delta's proposed start-up date will be in June 1998, or within 90 days of the service date of a final order granting Delta's request for route authority and frequencies, whichever is later.

3. Delta further requests that the Department immediately grant, on a pendente late basis, the allocation of seven frequencies and an exemption authorizing Delta to serve Atlanta-Lima, pending final action on Delta's certificate application and a final determination on the long term award of frequencies. The public interest fully supports the grant to Delta of an immediate frequency allocation and exemption. The recently announced frequency opportunities will enable Delta to implement daily Atlanta-Lima nonstop service.

4. An award to Delta will maximize service and competitive benefits and the utilization of valuable limited-entry rights. No carrier that is not now already serving U.S.-Peru responded to Delta's exemption and certificate applications. Thus, Delta is the only carrier that will inject new entrant competition between the United States and Peru, and thereby achieve an important U.S. international aviation policy objective. In the bilateral consultations held in November 1997, which led to the Government of Peru's

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December letter, one of the objectives of the U.S. Government was the ability to authorize a new U.S. carrier to provide service between the United States and Peru. Delta is the only carrier positioned to fulfill this objective.

Moreover, the grant of authority to permit Delta to operate Atlanta-Peru service will enhance network competition against the entrenched U.S.-flag incumbents (American, United and Continental) and improve the overall competitive market structure. The prompt issuance of the authority is necessary to ensure a successful and timely start-up of Delta's proposed new service.

WHEREFORE, Delta requests the allocation of seven weekly frequencies and the grant of an immediate pendente lite allocation of frequencies and an exemption to permit Delta to implement Atlanta-Peru nonstop service.

Respectfully submitted,

Robert E. Cohn

Alexander Van der Bellen

SHAW PITTMAN POTTS & TROWBRIDGE

2300 N Street, N.W.

Washington, D.C. 20037

(202) 663-8060

Counsel for DELTA AIR LINES, INC.