UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on April 21, 2006

NOTICE OF ACTION TAKEN -- DOCKET OST-1997-3283

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 2/9/06, for:

XX	Renewal of exemption for two years under 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: Tretha
Chromey (202) 366-2367 

D I S P O S I T I O N

XX	Granted, in part (subject to conditions, see below)

XX	Dismissed, in part (request for route integration authority)

The above action was effective when taken: April 21, 2006 through April
21, 2008, or until 90 days after final Department action on a
corresponding certificate application filed in Dockets OST-97-2558 and
OST-2005-22228, whichever occurs earlier. 

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 April 14, 2006, but was 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.

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 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:

http://dms.dot.gov//reports/report_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

 In the present application, Continental Micronesia references a pending
application for corresponding certificate authority in Dockets
OST-97-2558 and OST-2005-22228.  We will handle the certificate request
separately.

 The carrier’s request for route integration authority has been
superseded by Order 2006-1-1, where the Department awarded the carrier a
blanket route integration certificate.

