BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of DELTA AIR LINES, INC. for an exemption pursuant to 49 U.S.C. 40109 (U.S.- Anguilla, Antigua and Barbuda, Dominica, and the British Virgin Islands) ) ) ) ) ) ) ) ) ) ) Docket DOT-OST-2016- APPLICATION OF DELTA AIR LINES, INC. FOR EXEMPTION AUTHORITY Communications with respect to this document should be addressed to: Christopher Walker Director Regulatory and International Affairs DELTA AIR LINES, INC. 1212 New York Avenue, N.W. Washington, D.C. 20005 (202) 842-3949 chris.walker@delta.com July 11, 2016 Notice: Delta intends to poll the U.S. carrier representatives on the attached service list regarding this Application and will notify the Department of the results as soon as possible.
BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of DELTA AIR LINES, INC. for an exemption pursuant to 49 U.S.C. 40109 (U.S.- Anguilla, Antigua and Barbuda, Dominica, and the British Virgin Islands) ) ) ) ) ) ) ) ) ) ) Docket DOT-OST-2016- APPLICATION OF DELTA AIR LINES, INC. FOR EXEMPTION AUTHORITY Pursuant to 49 U.S.C. 40109 and Subpart C of the Department s Rules of Practice, Delta Air Lines, Inc. ( Delta ) hereby applies for an exemption from 49 U.S.C. 41101 authorizing Delta to provide scheduled foreign air transportation of persons, property, and mail between any point in the U.S., on the one hand, and any point or points in Anguilla, Antigua and Barbuda, Dominica, and the British Virgin Islands. Delta plans to start new codeshare service between the U.S. and several Caribbean points thanks to a new codeshare agreement with Seaborne Airlines ( Seaborne ). 1 Delta requests that its exemption be granted for a period of at least two years. This codesharing will create substantial benefits for passengers traveling between the U.S. and the Caribbean. In support of this Application, Delta states as follows: 1. Delta and Seaborne are parties to a codeshare agreement under which Delta will place its DL* designator code on flights operated by Seaborne between San Juan, Puerto Rico on the one hand; and Anguilla, Antigua and Barbuda, Dominica, the British Virgin Islands, Martinique, the Dominican Republic, Nevis, Guadeloupe, St. Kitts, the U.S. Virgin Islands, and 1 Pursuant to this agreement, Delta s DL* designator code will be displayed solely on flights operated by Seaborne aircraft with fewer than 60 seats. Department regulations exempt such operations from the state of authorization requirements of 4 C.F.R. Part 212. See 14 C.F.R. 206.5, 212.1 and 298.11.
Application of Delta Page 2 St. Maarten, on the other; as well as on flights operated by Seaborne within the U.S. Virgin Islands. Seaborne will not place its BB* designator code on any flights operated by Delta. 2. Delta holds a Certificate of Public Convenience and Necessity for Interstate and Overseas Transportation. 2 In addition, the Department has issued authority to Delta for service between the U.S. and numerous other points in the Caribbean. 3 Delta is well qualified to provide the services proposed in this Application and respectfully asks the Department take official notice of all information in these dockets and orders pursuant to Rule 24. 3. Delta s proposed Anguilla, Antigua and Barbuda, Dominica, and British Virgin Islands service is fully consistent with the Air Transportation Agreement between the United Kingdom of Great Britain and Northern Ireland and the Government of the United States of America dated July 23, 1977, as amended (Bermuda II), which provides for codesharing. 4. Delta currently holds underlying economic authority to serve the Dominican Republic, pursuant to certificate authority for Route 152, 4 St. Kitts, Nevis, Martinique, Guadeloupe, and St. Maarten, pursuant to its Blanket Open-Skies Route Authority, 5 and the U.S. Virgin Islands, pursuant to the aforementioned Certificate of Public Convenience and Necessity. 6 5. Seaborne holds underlying economic authority to serve the applicable routes 7 and is currently providing scheduled passenger service to numerous destinations throughout the Caribbean, including those at issue in this application, using its fleet of aircraft equipped with fewer than 60 seats. 6. Approval of this application will allow the introduction of new service between the U.S. and numerous Caribbean points. Delta already provides numerous flights to and from the 2 See Order 81-12-131. 3 See Order 99-2-8. 4 See supra, Note 3. 5 See Order 2007-4-27. 6 See supra, note 2. 7 Seaborne holds a certificate of public convenience and necessity reissued by Order 2000-7-3.
Application of Delta Page 3 Caribbean and the authority requested will enhance the traveling public s competitive options for travel in the region. This additional service is clearly in the public interest. 7. Approval of this Application is also consistent with long standing precedent and Department policy. The Department has consistently permitted carriers to implement various codeshare/block space arrangements where those arrangements were pro-competitive and in the public interest. There is no doubt that this Application meats that standard, as it will allow Delta and Seaborne to offer enhanced services to their customers. 8. Delta plans to introduce the proposed codeshare services upon receipt of all necessary DOT and foreign approvals, and requests that the exemption be granted as soon as possible so that Delta can market these services without delay. 9. Delta will conduct these codeshare services in accordance with 14 C.F.R. Part 257 and the other conditions normally imposed by the Department on codesharing statements of authorization. 10. Delta affirms that its operation of these routes will have no impact on Delta s Civil Reserve Air Fleet ( CRAF ) commitment. The environmental impacts of Delta s proposed services are de minimis, and Delta does not anticipate that the proposed services will cause a near-term net annual change in aircraft fuel consumption of 10 million gallons or more.
Application of Delta Page 4 WHEREFORE, Delta requests issuance of exemption authority to engage in scheduled foreign air transportation of persons, property, and mail with Seaborne as described above; to designate Delta to serve Anguilla, Antigua and Barbuda, Dominica, and the British Virgin Islands; and grant such other or further relief as the Department deems appropriate and consistent with the public interest. Respectfully Submitted, Christopher Walker For DELTA AIR LINES, INC.
CERTIFICATE OF SERVICE A copy of the foregoing letter has been served this 11th day of July, 2016, upon the following persons via email: Air Carrier Name Email Address Alaska Airlines David Heffernan dheffernan@cozen.com Alaska Airlines Jeremy Ross jeremy.ross@alaskaair.com American Howard Kass howard.kass@aa.com American Robert Wirick robert.wirick@aa.com Hawaiian Parker Erkmann perkmann@cooley.com JetBlue Robert Land robert.land@jetblue.com JetBlue Evelyn Sahr esahr@eckertseamans.com JetBlue Drew Derco dderco@eckertseamans.com JetBlue Reese Davidson rdavidson@eckertseamans.com Southwest Bob Kneisley bob.kneisley@wnco.com Southwest Leslie Abbott leslie.abbott@wnco.com Spirit Airlines David Kirstein dkirstein@yklaw.com Spirit Airlines Joanne Young jyoung@yklaw.com Sun Country Mathew Friebe mathew.friebe@suncountry.com Sun Country Larry Cheslter larry.chestler@suncountry.com United Dan Weiss dan.weiss@united.com United Thomas Bolling thomas.bolling@united.com United Gerry Murphy gmurphy@crowell.com Virgin America John Varley john.varley@virginamerica.com Virgin America Jonathon Foglia jhfoglia@zsrlaw.com Brian Hedberg Robert Finamore Brett Kruger Info brian.hedberg@dot.gov robert.finamore@dot.gov brett.kruger@dot.gov info@airlineinfo.com