 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on October 22, 2004

   NOTICE OF ACTION TAKEN -- DOCKET OST-2002-13364

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_________________________________

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. filed 8/31/04 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 (1) Detroit, Michigan, and Nassau, the Bahamas and (2) Memphis,
Tennessee, and Grand Cayman, Cayman Islands, as well as integration
authority to combine this exemption authority with Continental’s
existing exemption and certificate authority.  Continental states that
it uses this authority pursuant to a code-share arrangement with
Northwest, whereby Continental places its “CO” code on Northwest’s
seasonal flights in each of the subject markets listed.

Applicant rep:  R. Bruce Keiner, Jr. (202) 624-2615   DOT Analyst:  Thuy
H. Cooper   202-366-5423

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: October 22, 2004, through
October 22, 2006.

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation

	

XX  The U.S.-Bahamas authority granted is consistent with the overall
state of aviation relations between the United States and The Bahamas.
The U.S.-Cayman Islands authority granted is consistent with the
aviation agreement between the United States and the United Kingdom.  

  

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)

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Conditions:  The code-share operations conducted under this authority
must comply with 14 CFR 257 and with any amendments to the
Department’s regulations concerning code-share arrangements that may
be adopted. Notwithstanding any provisions in the contract between the
carriers, our approval here is expressly conditioned upon the
requirements that the subject foreign air transportation be sold in the
name of the carrier holding out such service in computer reservation
systems and elsewhere; that the carrier selling such transportation
(ie., the carrier shown on the ticket) accept responsibility for the
entirety of the code-share journey for all obligations established in
its contract of carriage with the passenger; and that the passenger
liability of the operating carrier be unaffected; and (2) the authority
granted here is specifically conditioned so that neither Continental nor
Northwest shall give any force or effect to any contractual provisions
between themselves that are contrary to these conditions.

 

The route integration authority granted 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); (b) should there be a request by any carrier
to use the limited-entry route rights that are included in
Continental’s authority by virtue of the route integration exemption
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.

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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 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

 Continental states that it does not seek to renew its authority between
Memphis and Puerto Vallarta since Northwest is not currently providing
service on that route.

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