BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Transcription

1 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Joint Application of DELTA AIR LINES, INC. and PT GARUDA INDONESIA (PERSERO) TBK for an exemption pursuant to 49 U.S.C and for a statement of authorization under 14 C.F.R. Part 212 ) ) ) ) ) ) ) ) ) ) ) ) Docket DOT-OST JOINT APPLICATION OF DELTA AIR LINES, INC., and PT GARUDA INDONESIA (PERSERO) TBK Communications with respect to this document should be addressed to: Mr. Nana Haryana Senior Manager Alliance & International Affairs PT GARUDA INDONESIA (PERSERO) TBK 1st Floor Management Building Garuda City Center Soekarno Hatta International Airport Cengkarent Indonesia Phone: nana.hr@garuda.indonesia.com Alexander Van der Bellen Managing Director Regulatory and International Affairs & Associate General Counsel Christopher Walker Regional Director Regulatory and International Affairs DELTA AIR LINES, INC New York Avenue, N.W. Washington, D.C (202) sascha.vanderbellen@delta.com chris.walker@delta.com May 29, 2014 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.

2 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Joint Application of DELTA AIR LINES, INC. and PT GARUDA INDONESIA (PERSERO) TBK for an exemption pursuant to 49 U.S.C and for a statement of authorization under 14 C.F.R. Part 212 ) ) ) ) ) ) ) ) ) ) ) ) Docket DOT-OST JOINT APPLICATION OF DELTA AIR LINES, INC., and PT GARUDA INDONESIA (PERSERO) TBK Pursuant to 49 U.S.C and Subpart C of the Department s Rules of Practice, Delta Air Lines, Inc. ( Delta ) and PT Garuda Indonesia (Persero) Tbk. ( Garuda ) (collectively the Joint Applicants ) hereby apply for exemption authority and a statement of authorization to allow Delta to carry Garuda s GA* designator code on certain flights between Japan and the United States, in accordance with their codeshare agreement as described more fully below. In support of this Joint Application, Delta and Garuda state as follows: 1. The Joint Applicants request the issuance of the following authorities: a) an exemption to Garuda, pursuant to 49 U.S.C , authorizing Garuda to engage in scheduled foreign air transportation of persons, property and mail between a point or points in the Republic of Indonesia via Tokyo-Haneda (HND) to Seattle (SEA) and Los Angeles (LAX); b) a statement of authorization to Delta, pursuant to 14 C.F.R. Part 212, to permit Delta to display Garuda s GA* designator code on

3 Joint Application Page 2 flights operated by Delta between Tokyo-Haneda on one hand, and Seattle and Los Angeles on the other. 2. The authority requested in this application is consistent with both the U.S.-Japan Open Skies Agreement 1 and the U.S.-Indonesia Open Skies Agreement 2. Part VII(1) of the U.S.-Japan Agreement authorizes U.S. carriers to codeshare with airlines of third countries. Similarly, Article 8(7) of the U.S.-Indonesia Agreement authorizes Indonesia carriers to enter into cooperative marketing agreements with U.S. airlines. 3. Garuda is a flag carrier of the Republic of Indonesia and holds a foreign air carrier permit which authorizes it to engage in scheduled foreign air transportation of persons, property, and mail between a point or points in Indonesia and the coterminal points of Guam, Honolulu and Los Angeles. Order Garuda Indonesia also holds exemption authority to operate between a point or points in the Republic of Indonesia and San Francisco under a codesharing arrangement with China Airlines. Notice of Action Taken, Docket OST (August 27, 2012), as well as exemption authority to operate between a point or points in the Republic of Indonesia and Chicago and New York under a codesharing agreement with Etihad Airways. Notice of Action Taken, Docket OST (January 8, 2013). 4. Delta holds open skies certificate authority authorizing it to engage in scheduled foreign air transportation of persons, property and mail, including between the United States and Japan. Order Pursuant to Rule 24 of the Department s Rules of Practice, Delta asks the Department to take official notice of all data on file with the Department necessary to establish Delta s fitness. 5. The Joint Applicants plan to introduce the proposed codeshare services upon receipt of all necessary DOT approvals, and request that the exemptions and 1 U.S.-Japan Open Skies Agreement (October 25, 2010). 2 U.S.-Indonesia Open Skies Agreement (July 26, 2004).

4 Joint Application Page 3 statements of authorization are granted as soon as possible so that Garuda and Delta can market these services without delay. 3 Garuda requests that its exemption authorities be effective for a period of at least two years. Delta requests that its codesharing statements of authorization remain in effect indefinitely, as long as the carriers codeshare agreement regains in effect. The carriers will notify the Department if the agreement is terminated. 6. The Joint Applicants recognize that Indonesia is currently rated "Category 2" under the Federal Aviation Administration's International Safety Assessment ("IASA") program. However, the Department routinely approves applications by foreign air carriers from IASA Category 2 countries when the services directly to/from the U.S. will be offered strictly on a codesharing or wet-lease arrangement with a duly authorized air carrier, as is the case here. Additionally, although more expansive economic authority is authorized under the U.S.-Indonesia Open Skies Agreement, Garuda Indonesia is requesting only limited exemption authority at this time, as necessary to implement the codeshare agreement with Delta between Tokyo-Haneda and Seattle/Los Angeles. 7. The proposed codeshare services will be operated pursuant to the attached Delta/Garuda codeshare agreement. 8. The proposed service will provide significant benefits to travelers and shippers and is clearly in the public interest. Approval will enable Garuda to offer online codesharing services that will enhance competition and improve the options available to travelers and shippers seeking service between Indonesia and the United States. 9. The Joint Applicants 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. 3 To the extent necessary, the Joint Applicants request a waiver of the 45-day advance filing requirement for codeshare statements of authorization under 14 C.F.R. Part 212.

5 Joint Application Page Delta affirms that its operation of these routes will have no impact on Delta s Civil Reserve Air Fleet ( CRAF ) commitment. 11. The environmental impacts of the Joint Applicants proposed services are de minimis, and Delta does not anticipate that the proposed services will cause a nearterm net annual change in aircraft fuel consumption of 10 million gallons or more. WHEREFORE, Delta and Garuda respectfully request that the Department grant the Statement of Authorization and exemption, as explained above, so that the Joint Applicants may commence the codesharing services described in this Application. Respectfully submitted, Nana Haryana Senior Manager Alliance & International Affairs PT GARUDA INDONESIA (PERSERO) TBK Alexander Van der Bellen Managing Director, Regulatory and International Affairs & Associate General Counsel DELTA AIR LINES, INC.

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49 CERTIFICATE OF SERVICE A copy of the foregoing Application has been served this 29 th day of May, 2014, upon the following persons via Air Carrier Name Address American Howard Kass howard.kass@aa.com American Robert Wirick robert.wirick@aa.com Hawaiian Jonathan Hill jhill@dowlohnes.com United Dan Weiss dan.weiss@united.com United Thomas Bolling thomas.bolling@united.com United Karine Faden karine.faden@united.com United Oracio Marquez oracio.marquez@united.com Brian Hedberg Robert Finamore Brett Kruger Info brian.hedberg@dot.gov robert.finamore@dot.gov brett.kruger@dot.gov info@airlineinfo.com