	                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC

Issued by the Department of Transportation on February 7, 2006

NOTICE OF ACTION TAKEN -- DOCKET OST-97-2447

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).

Applications of  CONTINENTAL AIRLINES, INC. for:

XX  Renewal of exemption under 49 U.S.C. 40109 to provide the following
service, filed 1/8/2003: 

Scheduled air transportation of persons, property and mail (1) between
New York/Newark and Quito, Ecuador, via Bogota, Colombia and (2) between
New York/Newark and Guayaquil, Ecuador, via Panama City, Panama.

XX  Temporary waiver of 90-day dormancy condition, filed 12/19/2005:

By a Notice of Action Taken, Continental was awarded an allocation of
seven weekly U.S.-Ecuador combination frequencies to provide scheduled
service between New York/Newark and Quito, Ecuador.  The allocation is
subject to a dormancy condition, whereby if a carrier discontinues
service for 90 days, the allocation as to that frequency will, absent
the grant of a waiver by the Department, expire automatically and the
frequency will revert to the Department for reallocation.  On December
19, 2005, Continental filed an application for a waiver of the dormancy
condition through December 15, 2006, since it plans to suspend this
service for the period January 25-December 15, 2006.  Continental states
that in light of high fuel prices, burdensome tax structures and
economic uncertainties, it is evaluating all of its schedules to match
demand with capacity requirements on an economic basis.  Continental
further states that unused frequencies remain available for other
airlines to serve Ecuador from U.S. gateways other than Miami.   

Delta Air Lines, Inc. (Delta) filed an answer stating that it has an
application pending before the Department for exemption authority to
provide service between Atlanta and Quito/Guayaquil, and also for the
award of seven U.S.-Ecuador frequencies to offer this service.  Delta
states that its application and Continental’s request for a dormancy
waiver do not appear to be mutually exclusive and it does not oppose
Continental’s request as long as Delta’s application for a frequency
award is granted.  

Applicant rep:  R. Bruce Keiner, Jr.   (202) 624-2615   DOT Analyst: 
Gerald Caolo   (202) 366-2406 

D I S P O S I T I O N

XX  Granted Renewal of Exemption Authority for two years, subject to
conditions (See below.) 

XX  Granted Waiver Of Dormancy Condition (See Remarks below)

The renewal of exemption authority granted was effective when taken: 
February 7, 2006,  through February 7, 2008 .

2

The grant of the dormancy request was effective when taken: February 7,
2006,  through December 15, 2006. 

Action taken by:                               Paul L. Gretch, Director	

		                                 Office of International Aviation	

XX  The authority granted is consistent with the aviation agreements
between the United States, and Ecuador, Panama and Colombia,
respectively.

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)

________________________________________________________________________
______

Remarks:  

We note that there should be no expectation that any additional waiver
request to further extend the start-up deadline will be granted.  Any
future request to extend the dormancy period for the frequencies at
issue here will have to be considered in light of any specific new
arguments offered and responses thereto, and in the context of the
circumstances present at that time, including whether another carrier
seeks to use the frequency at issue.

The exemption authority for which Continental requested renewal expired
March 15, 2003, but has been kept in force pursuant to the provisions of
the Administrative Procedure Act, 5 U.S.C. 558(c), as implemented by 14
CFR Part 377, pending action on its timely-filed renewal application.  

We further note that we are granting Delta’s application to serve the
Atlanta, Georgia-Quito and Guayaquil, Ecuador markets contemporaneously
with our grant of Continental’s application here. 

________________________________________________________________________
__

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 waiver 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 order 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

 Continental was awarded indefinite authority for the U.S.-Ecuador
frequencies.  See Notice of Action Taken dated May 10, 1999 in this
docket.  

 Continental’s waiver from the dormancy condition is effective through
December 15, 2006, or until the date on which Continental begins service
with these frequencies, whichever occurs earlier.  As to any frequency
with which Continental does not begin service by December 15, 2006, its
frequency allocation with respect to that frequency will expire
automatically and the frequency will revert to the Department for
reallocation.

 See Notice of Action Taken dated February 7, 2006, Docket
OST-2006-23526.

 PAGE   

