OST-98-3846 / Delta Air Lines / US-Africa Third-Country Codeshare with Air France / May 12, 1998

Application of

DELTA AIR LINES, INC. / Docket OST-98-3846

for an exemption pursuant to 49 U.S.C. § 40109

(U.S. - Africa (third-county code-share))

Delta Air Lines, Inc. ("Delta"), pursuant to 49 U.S.C. § 40109 and Subpart D of the Department of Transportation's Procedural Regulations, hereby applies for an exemption from 49 U.S.C. § 41101 to permit Delta to provide scheduled foreign air transportation of persons, property and mail between the United States and each of the African points listed in Exhibit A. The purpose of this exemption is to enable Delta to take advantage of new third-country codeshare opportunities to Africa in conjunction with Air France, which have recently been made possible under the new U.S.-France MOC.

Application of Delta Air Lines, Inc.

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Delta further requests route integration authority to permit Delta to combine services operated pursuant to the grant of this exemption with all other Delta services authorized by existing certificates and exemptions granted by the Department (to the extent permitted by applicable international agreements). Delta requests that this exemption be granted for an indefinite duration, consistent with recent Department practice.

In support of this application, Delta states the following:

1. On April 8, 1998, the United States and France reached an historic new air transport agreement providing for greatly liberalized air service opportunities between and beyond the two countries. Delta has entered into an agreement with Air France that provides for code-sharing services consistent with the terms of the MOC, including third-country code-share services (on a blind-sector basis) on flights operated by Air France beyond France.

2. Pursuant to the Delta/Air France agreement, Delta intends to begin offering third-country code-share services to points beyond France (as listed in Exhibit AA of the code-share agreement). /1 Delta intends to begin offering

1/ The Delta/Air France agreement has previously been submitted and reviewed by the Department.

Application of Delta Air Lines, Inc.

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service to the African points listed in Exhibit A as soon as it receives the necessary regulatory approval. Therefore, Delta respectfully requests that the Department issue the requested exemption authority as soon as possible but no later than June 1, 1998, so that Delta can have its new Africa services in place before the peak summer travel season.

4. In order to allow Delta to fully enjoy the benefits available to U.S. carriers under the MOC, Delta is hereby applying for exemption authority to serve the third-country code-share points in Africa that Delta intends to serve

Application of Delta Air Lines, Inc.

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with Air France for which Delta does not already hold underlying authority. Delta and Air France are applying separately for the Statement of Authorization authority to implement these services. Grant of this application would be consistent with the U.S.-France MOC and the Department's previous grant of exemption authority to Delta to serve multiple European and African points on a third-country code-share basis. See, em, Order 96-9-28.

5. The bilateral relationships between the United States and each of the African countries listed in Exhibit A are governed by principles of comity and reciprocity, since there are no formal agreements in place between these countries and the United States (or, in the case of Morocco, no provision in the bilateral agreement for the services proposed). Delta submits that approval of this application would be consistent with the general state of aviation relations between the United States and the African nations involved and would be consistent with the Department's African Aviation Initiative announced last October. /2

2/ In any event, Delta will provide services to each point only to the extent permitted by the authorities issued by the foreign governments involved.

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6. Approval of this application is in the public interest. U.S. carriers' ability to provide third-country code-share service to points beyond France is an important component of the new MOC. By approving this exemption application, the Department will provide Delta with the underlying authority necessary to implement new online services that will enhance competition and provide consumers with improved service options to points in Africa.

WHEREFORE, for the foregoing reasons, Delta respectfully requests that the Department expeditiously grant Delta the exemption authority proposed herein and grant such other and further relief as the Department deems to be consistent with the public interest.

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.

Exhibit A