BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION …

BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Joint Application of DELTA AIR LINES, INC. Docket DOT-OST-2011-_______ and WESTJET

for Statements of Authorization pursuant to 14 C.F.R. Part 212

JOINT APPLICATION OF DELTA AIR LINES, INC. AND WESTJET

FOR STATEMENTS OF AUTHORIZATION

Communications with respect to this document should be sent to: Todd Peterson Director of Alliances Lorne Mackenzie Director, Environment and Regulatory Affairs WESTJET 22 Aerial Place NE Calgary, Alberta, Canada T2E 3J1 Don H. Hainbach Garofalo Goerlich Hainbach PC 1200 New Hampshire Ave, NW, Suite 800 Washington, DC 20036 (202) 776-3970 [email protected] For WESTJET

Andrea Fischer Newman Senior Vice President, Government

Affairs Alexander Van der Bellen, Managing Director, Government Affairs

and Associate General Counsel Jeff Morgan Regional Director, Government Affairs DELTA AIR LINES, INC. 1212 New York Avenue NW, Suite 200 Washington, DC 20005 (202) 842-4184 [email protected]

November 1, 2011 Notice: The Joint Applicants are requesting expedited treatment of this application. The Joint Applicants will poll air carrier representatives on the attached service list and will advise the Department of the results.

BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Joint Application of DELTA AIR LINES, INC., Docket DOT-OST-2011-_______ and WESTJET

for Statements of Authorization pursuant to 14 C.F.R. Part 212

JOINT APPLICATION OF DELTA AIR LINES, INC. AND WESTJET

FOR STATEMENTS OF AUTHORIZATION

Delta Air Lines, Inc. (“Delta”) and WestJet (collectively, the "Joint Applicants") hereby

apply for Statements of Authorization pursuant to 14 C.F.R. Part 212 to engage in codesharing

services to the full extent permitted by the U.S.-Canada Open Skies Agreement, as described

below.1

WestJet is a Canadian low-cost airline that operates a fleet of more than 90 Boeing Next

Generation 737 aircraft across a network of 71 destinations in Canada, the U.S., the Caribbean

and Mexico. WestJet’s U.S. network is currently comprised of 18 cities: Ft. Lauderdale, Ft.

Myers, Honolulu, Kahului, Kona, Las Vegas, Lihue, Los Angeles, Miami, Newark, Orange

County, Orlando, Palm Springs, Phoenix, San Diego, San Francisco, San Juan, and Tampa.

WestJet is the second largest Canadian airline.

Delta and WestJet have entered into a reciprocal codesharing arrangement. This

codesharing arrangement will create substantial benefits for passengers traveling between the

1 The Joint Applicants also request a waiver of the 45-day advance filing requirement for codeshare statements of authorization under 14 C.F.R. Part 212.

Joint Application of Delta and WestJet Page 2

United States and Canada and will enable both Delta and WestJet to extend their networks and

market their services more effectively.2

The proposed services are noncontroversial and are fully consistent with the U.S.-

Canada Open Skies Agreement. Specifically, the Joint Applicants request the authority to

engage in reciprocal codeshare services as follows:

Between any point or points in the United States and any point or points in Canada (on a nonstop basis and via intermediate routings);

Between U.S. points;

Between points in Canada;

Beyond Canada to any point or points; and

Beyond the United States to any point or points.

Delta requests that its blanket statement of authorization extend to its Delta Connection regional

affiliates3 which operate service for Delta within North America.

In support of this Application, the Joint Applicants submit the following:

1. Delta holds a Certificate of Public Convenience and Necessity for Route 840,

which authorizes Delta, inter alia, to engage in scheduled foreign air transportation of persons,

property and mail between points in the United States and points in Canada nonstop and via

intermediate points and to points beyond Canada. See, Order 2007-4-27, Dockets DOT OST-

2007-27790 and DOT-OST-1999-6246 (April 17, 2007).

2. WestJet holds authority from the Department, inter alia, to engage in scheduled

foreign air transportation of persons, property and mail from points behind Canada via Canada

and intermediate points to a point or points in the U.S. and beyond. See, NOAT December 4,

2009 in Docket DOT-OST-2001-11158.

3. The proposed codeshare services are consistent with the U.S.-Canada Open

2 A redacted copy of the Delta/WestJet codesharing agreement is attached to this Application. 3 Atlantic Southeast Airlines, Inc., Chautauqua Airlines, Inc., Comair, Inc., Compass Airlines, Inc., Mesaba Aviation, Inc., Pinnacle Airlines, Inc., SkyWest Airlines, Inc., and Shuttle America Corporation.


Skies Agreement. See U.S.-Canada Agreement, Article 11, paragraph 6.

4. The codeshare services proposed by the Joint Applicants are fully consistent with

the public interest and DOT policy. The Department recognized in its 1995 International Policy

Statement that codeshare services such as those proposed herein produce important public

benefits:

Code sharing and other cooperative marketing arrangements can provide a cost-efficient way for carriers to enter new markets, expand their systems and obtain additional flow traffic to support their other operations by using existing facilities and scheduled operations. Because these cooperative arrangements can give the airline partners new or additional access to more markets, the partners will gain traffic, some stimulated by the new service, and some diverted from incumbents. In this way, cooperative arrangements can enhance the competitive positions of both partners in such a relationship.

Increased international code sharing and other cooperative arrangements can benefit consumers by increasing international service options and enhancing competition between carriers, particularly for traffic to or from cities behind major gateways. By stimulating traffic, the increased competition and service options should expand the overall international market and increase overall opportunities for the aviation industry.4

Additional codesharing by Delta and WestJet between the United States and Canada will make

both carriers more competitive for transborder traffic. The Joint Applicants agree to accept the

conditions normally applicable to codeshare authority such as requested herein.

5. The Joint Applicants’ initial codeshare markets are set forth in Exhibits A-1 and

A-2 of their codesharing agreement. Pursuant to the streamlined procedures announced in the

Department's February 9, 2009 Notice concerning blanket notification of codeshare service to

Open Skies partners and points, this Joint Application also serves as a single blanket 30-day

notice covering new codeshare service for Open Skies points. For points in non-Open Skies

countries, the Joint Applicants will comply with the standard 30-day notice condition set forth in

the relevant statements of authorization. However, consistent with the Department’s

administration of similar blanket statements, travel via alternative gateways and paths would not

4 U.S. International Air Transportation Policy Statement, 60 Fed. Reg. 21841, 21842 (May 3, 1995).


require additional notice; and, notice by Delta or any of the Delta Connection carriers would be

deemed notice given for all (except in the case of Mexico where operator-specific notices will

continue to be supplied for Delta/Delta Connection services).

6. The Joint Applicants also request that their statements of authorization be issued

for an indefinite period, so long as their codeshare agreement continues in effect, and will notify

the Department if that agreement should cease to be effective.

7. The Joint Applicants agree to abide by the consumer notification requirements of

14 C.F.R. Part 257 as well as the other conditions applicable to codeshare services operated to

or sold in the United States. Delta's engagement in these codeshare services will not affect its

commitment of aircraft to the CRAF program.

8. Delta will rely on WestJet’s IOSA certification to support the instant codeshare

request. Delta’s compliance statement on WestJet’s IOSA codeshare safety audit has been

presented to and accepted by the Federal Aviation Administration. The FAA has rated Canada

a Category 1 country under the IASA Program.

WHEREFORE, the Joint Applicants respectfully request the Department to grant them

the statements of authorization described above to allow them to offer codeshare services on

each other’s flights and to grant the Joint Applicants such other and different relief as is

consistent with this Application and with the public interest.

Respectfully Submitted,

/s/ Don H. Hainbach ____________________________ Don H. Hainbach For WESTJET

___________________________ Alexander Van der Bellen For DELTA AIR LINES, INC.

CERTIFICATE OF SERVICE

A copy of the foregoing Joint Application has been served this 1st day of November, 2011, upon the following persons via email:

Carrier Name Email Address Alaska, Horizon Marshall Sinick [email protected] American, American Eagle Carl Nelson [email protected] United/Continental Dan Weiss [email protected] United/Continental Oracio Marquez [email protected] United/Continental Jonathan Linde [email protected] US Airways Benjamin Slocum [email protected] US Airways Howard Kass [email protected] Virgin America Barbara Russell [email protected] States David Hayes [email protected] GoJet Lisa Harig [email protected] Compass Jennifer Trock [email protected] Pinnacle, Mesaba, Colgan Megan Rosia [email protected] North American Malcolm Benge [email protected] Air Wisconsin Jonathan Hill [email protected] Atlantic Southeast, ExpressJet, SkyWest

Gerald Murphy [email protected]

Republic, Shuttle America, Chautauqua

Bob Cohn [email protected]

Republic, Shuttle America, Chautauqua

Pat Rizzi [email protected]

[email protected] [email protected] [email protected]

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