BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Joint Application of DELTA AIR LINES, INC. and AEROVIAS de MEXICO, S.A. de C.V. for a codeshare statement of authorization (Atlanta-Guadalajara) ) ) ) ) Docket OST-99-5573 ) ) ) JOINT APPLICATION OF DELTA AIR LINES, INC. AND AEROVIAS DE MEXICO, S.A. DE C.V. FOR A STATEMENT OF AUTHORIZATION April 19, 1999 Note: Delta and Aeromexico are requesting expedited action on this application and will conduct a poll of the U.S. carrier representatives listed on the attached service list. Communications with respect to this document should be addressed to: William C. Evans VERNER, LIIPFERT, BERNHARD, MCPHERSON AND HAND, CHARTERED 901 15th Street, N.W., #700 Washington, D.C. 20005 (202) 371-6030 D. Scott Yohe Senior Vice President Government Affairs DELTA AIR LINES, INC. 1275 K Street, N.W. Washington, D.C. 20005 (202) 216-0700 Counsel for AEROVIAS de MEXICO, S.A. de C.V. John Varley Assistant General Counsel Alexander Van der Bellen Attorney DELTA AIR LINES, INC. Law Department #986 1030 Delta Boulevard Atlanta, Georgia 30320 (404) 715-5408 Robert E. Cohn SHAW PITTMAN POTTS & TROWBRIDGE 2300 N Street, N.W. Washington, D.C. 20037 (202) 663-8060 Counsel for DELTA AIR LINES, INC. BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. April 19, 1999 Joint Application of DELTA AIR LINES, INC. and AEROVIAS de MEXICO, S.A. de C.V. for a codeshare statement of authorization (Atlanta-Guadalajara) ) ) ) ) Docket OST-99) ) ) JOINT APPLICATION OF DELTA AIR LINES, INC. AND AEROVIAS DE MEXICO, S.A. DE C.V. FOR A STATEMENT OF AUTHORIZATION Delta Air Lines, Inc. (“Delta”) and Aerovias de Mexico, S.A. de C.V. (“Aeromexico”) (together, the “Joint Applicants”) hereby apply for a Statement of Authorization, pursuant to 14 C.F.R. Part 212, permitting Delta to display Aeromexico’s “AM” designator code on flights operated by Delta between Atlanta, Georgia and Guadalajara, Mexico.1 In support of this application, the Joint Applicants state the following: 1. On or about July 1, 1999, Delta plans to implement first daily nonstop service between Atlanta and Guadalajara. Aeromexico plans to commence competitive nonstop service between Atlanta and Guadalajara that same day by codesharing on Delta’s new nonstop service. 1 This application will have no impact on Delta’s CRAF commitments. Application of Delta Air Lines, Inc. Page 2 2. Grant of this application meets all of the criteria applicable to codeshare statements of authorization under Part 212, and would be in the public interest2 for the following reasons: First, grant of this application would be fully consistent with the U.S.Mexico bilateral agreement. The United States and Mexico recently signed an agreement expressly authorizing codeshare services between the United States and Mexico. Second, grant of this application would be consistent with the Department’s international aviation policy which fosters and promotes codeshare service as a means to enhance service and competitive options for the traveling public. This is particularly important in a developmental market, such as Atlanta-Guadalajara, that will better support new nonstop service with traffic from both carriers. Third, grant of this application would simultaneously install two carriers on a route that currently receives no service. Delta and Aeromexico will independently market and sell tickets on the Atlanta-Guadalajara service in direct competition with one another. 2 Delta is concurrently filing an application for exemption authority to enable it to provide nonstop service between Atlanta and Guadalajara beginning July 1, 1999. Application of Delta Air Lines, Inc. Page 3 3. The Joint Applicants respectfully request that this application be granted by April 23, 1999 and that the authority remain effective for a period of indefinite duration, consistent with Department practice with respect to codeshare authority that is specifically authorized by a bilateral agreement. WHEREFORE, Delta and Aeromexico respectfully request that the Department issue a statement of authorization authorizing Delta to display Aeromexico’s “AM” designator code on flights operated by Delta between Atlanta and Guadalajara as described herein, and grant such other additional relief as the public interest may require. Aeromexico shortly will file an application for an exemption to enable it to list its code on Delta’s flights between Atlanta and Guadalajara. Application of Delta Air Lines, Inc. Page 4 Respectfully submitted, _______________________ William C. Evans VERNER, LIIPFERT, BERNHARD, MCPHERSON AND HAND, CHARTERED 901 15th Street, N.W., #700 Washington, D.C. 20005 (202) 371-6030 Counsel for AEROVIAS de MEXICO, S.A. de C.V. 749827 __________________________________ Robert E. Cohn SHAW PITTMAN POTTS & TROWBRIDGE 2300 N Street, N.W. Washington, D.C. 20037 (202) 663-8060 Counsel for DELTA AIR LINES, INC. CERTIFICATE OF SERVICE I hereby certify that I have caused a copy of the foregoing Application for a Statement of Authorization of Delta Air Lines, Inc. and Aerovias de Mexico, S.A. de C.V. a Statement of Authorization to be served this 19th day of April, 1999, upon each of the following persons: Megan Rae Poldy Associate General Counsel Northwest Airlines, Inc. 901 15th Street, N.W., Suite 310 Washington, D.C. 20005 R. Bruce Keiner, Jr. Crowell & Moring 1001 Pennsylvania Ave., N.W. 10th Floor North Washington, D.C. 20004 Carl B. Nelson, Jr. Associate General Counsel American Airlines, Inc. 1101 17th Street, N.W., Suite 600 Washington, D.C. 20036 Bruce H. Rabinovitz Jeffrey A. Manley Kirkland & Ellis 655 Fifteenth Street, N.W. Washington, D.C. 20005 Joel Stephen Burton O'Melveny & Myers LLP 555 13th Street, N.W. Suite 500 West Washington, D.C. 20004-1109 Richard J. Fahy, Jr. Consulting Attorney Trans World Airlines, Inc. 900 19th Street, N.W., Suite 350 Washington, D.C. 20006 Joanne W. Young Baker & Hostetler Washington Square, Suite 1100 1050 Connecticut Avenue, N.W. Washington, D.C. 20036 Marshall S. Sinick Squire Sanders & Dempsey 1201 Pennsylvania Avenue, N.W. Suite 500 Washington, D.C. 20004 Jonathan Waller Vice President and General Counsel Midway Airways Corporation 300 West Morgan Street, Suite 1200 Durham, NC 27701 Brian T. Hunt American Trans Air, Inc. P.O. Box 51609 Indianapolis, Indiana 46251 Director, Flight Standards Service Federal Aviation Administration, AFS-1 800 Independence Avenue, S.W., Room 822 Washington, D.C. 20591 U.S. TRANSCOM/TCJ5-AA Attn: Air Mobility Analysis 508 Scott Drive, Building 1900 Scott AFB, IL 62225-5357 Roger W. Fones Chief, Transportation, Energy & Agriculture Section Antitrust Division U.S. Department of Justice 325 7th Street, N.W., Suite 500 Washington, D.C. 20530 David Marchick Deputy Assistant Secretary for Transportation Affairs U.S. Department of State 2201 C Street, N.W. Room 5830 Washington, D.C. 20590 His Excellency Jesus Silva-Hervog Embassy of Mexico 1911 Pennsylvania Avenue, N.W. Washington, D.C. 20006 ___________________________ Katherine Gaines