	

                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC

                                   	Issued by the Department of
Transportation on July 7, 2003

		       NOTICE OF ACTION TAKEN -- DOCKET OST-2003-15180

________________________________________________________________________
______________

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    5/13/03  
for:

XX  Exemption under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail
between any point or points in the United States and any point or points
in the United Arab Emirates directly and via intermediate points, and
beyond the United Arab Emirates to any point or points in third
countries, and to combine this authority with its existing exemption and
certificates.  Continental intends to operate this service under a
code-share arrangement with Emirates.  Continental requested this
authority for an indefinite duration.

Applicant rep:    R. Bruce Keiner, Jr.  (202) 624-2500      DOT Analyst:
 Sylvia Moore   (202) 366-6519

D I S P O S I T I O N

XX  Granted (subject to conditions, see below)

XX  Balance dismissed (i.e., request for longer-term authority)

The above action was effective when taken:    July 7, 2003,   through   
July 7, 2005

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation

XX  The exemption authority granted is consistent with the aviation
agreement between the United States and United Arab Emirates.	

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)

	      XX  Statement of authorization approving Continental/Emirates
code-share operations,

	      dated July 1, 2003, and conditions therein

(See Reverse Side)

2

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 award of
the route integration authority requested 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 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.

The authority granted to serve intermediate and beyond points is limited
to countries with which the United States has signed open-skies
agreements and/or countries for which the carrier holds authority to
serve under certificates or exemptions issued by the Department, and for
which it holds route integration authority by virtue of either the
present action or other action of the Department.

Remarks:  Consistent with our standard practice for this type of
application, we granted Continental’s exemption authority for a period
of two years and dismissed its request for longer-term authority.

 

________________________________________________________________________
______________

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 document 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 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 the applicable requirements of the Federal Aviation
Administration Regulations and with all applicable U.S. Government
requirements concerning security; 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.

 To assure compliance with all applicable U.S. Government requirements
concerning security, the holder should, before commencing any new
service (including charter flights) to or from a foreign airport, inform
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.

										          

06/2003

