			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on November 15, 2005

                        NOTICE OF ACTION TAKEN -- DOCKET OST-1996-1368  

      	       

This serves as notice to the public of the action described below, taken
by the Department official indicated (no additional confirming order
will be issued in this matter).

Application of CONTINENTAL AIRLINES, INC. (CONTINENTAL) filed 10/7/05,
and clarified 11/2/05, for:

XX  Reactivation of dormant exemption authority

XX  Renewal of exemption for two years under 49 U.S.C. 40109 to provide
the following:

Scheduled foreign air transportation of persons, property, and mail
between the terminal point Houston, Texas, and the terminal point
Mazatlan, Mexico, and to integrate this authority with Continental’s
existing exemption and certificate authority.  Continental states that
it will use this authority to offer seasonal and day-of-week demand
large-jet aircraft service in conjunction with the regional-jet aircraft
service offered by Continental Express.

Applicant rep: R. Bruce Keiner (202) 624-2615   DOT Analyst: Linda L.
Lundell (202) 366-2336

D I S P O S I T I O N

XX  Granted (subject to conditions, see below)

The above action was effective when taken: November 15, 2005, through
November 15, 2007.

Action taken by:   Paul L. Gretch, Director	

	       Office of International Aviation

XX  The authority granted is consistent with the aviation agreement
between the United States and Mexico.

Except to the extent exempted or waived, this authority is subject to
the terms, conditions, and limitations indicated:  

XX Holder’s certificates of public convenience and necessity 

              XX Standard exemption conditions (attached)

Conditions:  The U.S.-Mexico exemption authority granted is subject to
the dormancy notice requirements set forth in condition 7 of Appendix A
of Order 88-10-2.  

The route integration authority granted to Continental, is subject to
the condition that any service provided under this exemption shall be
consistent with all applicable agreements between the United States and
the foreign countries involved.  Furthermore, (a) nothing in the award
of the route integration authority granted should be construed as
conferring upon Continental rights (including fifth-freedom intermediate
and/or beyond rights) to serve markets where U.S. carrier entry is
limited unless Continental notifies the Department of its intent to
serve such a market and unless and until the Department has completed
any necessary carrier selection procedures to determine which carrier(s)
should be authorized to exercise such rights; and (b) should there be a
request by any such carrier to use the limited-entry route rights that
are included in Continental’s authority by virtue of the route
integration authority granted here, but that are not then being used by
Continental, the holding of such authority by route integration will not
be considered as providing any preference for Continental in a
competitive carrier selection proceeding to determine which carrier(s)
should be entitled to use the authority at issue.

- see next page -											2

On the basis of data officially noticeable under Rule 24(g) of the
Department's regulations, we found the applicant qualified to provide
the exemption services authorized.

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) our action was consistent with Department
policy; (2) grant of the authority was consistent with the public
interest; and (3) grant of the authority would not constitute a major
regulatory action under the Energy Policy and Conservation Act of 1975. 
To the extent not granted, we denied all requests in the referenced
Docket.  We may amend, modify, or revoke the authority granted in this
Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR
§385.30, may file their petitions within seven (7) days after the date
of issuance of this Notice.  This action was effective when taken, and
the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide
Web at:

  HYPERLINK "http://dms.dot.gov//reports/reports_aviation.asp" 
http://dms.dot.gov//reports/reports_aviation.asp 

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier
applicant(s) shall:

(1)  Hold at all times effective operating authority from the government
of each country served;

(2)  Comply with applicable requirements concerning oversales contained
in 14 CFR 250 (for scheduled operations, if authorized);

(3)  Comply with the requirements for reporting data contained in 14 CFR
241;

(4)  Comply with requirements for minimum insurance coverage, and for
certifying that coverage to the Department, contained in 14 CFR 205;

(5)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR 203, concerning
waiver of Warsaw Convention liability limits and defenses;

(6)  Comply with all applicable requirements of the Federal Aviation
Administration and with all applicable U.S. Government requirements
concerning security, including, but not limited to, 49 CFR Part 1544. 
To assure compliance with all applicable U.S. Government requirements
concerning security, the holder shall, before commencing any new service
(including charter flights) to or from a foreign airport, contact its
International Principal Security Inspector (IPSI) to advise the IPSI of
its plans and to find out whether the Transportation Security
Administration has determined that security is adequate to allow such
airport(s) to be served; and

(7)  Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department of Transportation, with all applicable orders and regulations
of other U.S. agencies and courts, and with all applicable laws of the
United States.

The authority granted shall be effective only during the period when the
holder is in compliance with the conditions imposed above.

										  05/2004

 By letter dated November 2, 2005, and posted in the present docket,
Continental clarifies its October 7 renewal application to request
reactivation of its Houston-Mazatlan authority, in light of its
previously submitted dormancy notice for the Houston-Mazatlan market
(see undocketed Continental letter dated February 18, 2004, to Mr. Paul
L. Gretch, Director, Office of International Aviation, regarding
Continental’s dormant U.S.-Mexico route authority).

