	

                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC

Issued by the Department of Transportation on April 14, 2004

NOTICE OF ACTION TAKEN -- DOCKETS OST-97-3283

________________________________________________________________________
_____________

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 Micronesia, Inc.   filed  8/26/2003   to:	

XX  Renew for two years exemption pursuant to 49 U.S.C. §40109 to
provide the following service:

Scheduled foreign air transportation of persons, property and mail
between Guam and Cairns, Australia and to integrate this authority with
its other exemption and certificate authority.  

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

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: April 14, 2004, through 
April 14, 2006, 

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 Australia.  

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:  The authority for which Continental Micronesia requested
renewal expired November 1, 2003, but had 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.  

Conditions:  The route integration authority granted is subject to the
condition that any service provided under this exemption shall be
consistent with the applicable bilateral aviation agreements between the
United States and the foreign countries involved.  Furthermore, (a)
nothing in the award of the route integration authority requested should
be construed as conferring upon Continental Micronesia additional rights
(including fifth-freedom intermediate and/or beyond rights) to serve
markets where U.S. carrier entry is limited unless Continental
Micronesia first 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 carrier to use the limited-entry route rights that are included in
Continental Micronesia’s authority by virtue of the route integration
authority granted here, but that are not then being used by Continental
Micronesia, the holding of such authority by route integration will not
be considered as providing any preference for Continental Micronesia in
a competitive carrier selection proceeding to determine which carrier(s)
should be entitled to use the authority at issue.

____________________________________

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

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.  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 Principal Security Inspector (PSI) to
advise the PSI 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.

08/2003

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