			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on August 21, 2003

NOTICE OF ACTION TAKEN -- DOCKET OST 2003-15502

________________________________________________________________________
________________________________________________________

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  6/24/03 for:

XX  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 Cincinnati, Ohio, and Nassau, Bahamas; between Boston,
Massachusetts, and Bermuda; between Atlanta, Georgia, on the one hand,
and Sao Paulo, Brazil; and Bogota, Colombia, on the other hand; between
Paris, France, and Bombay, India;  between Atlanta, Georgia, and Dublin,
Ireland; between Atlanta, Georgia, on the one hand, and Cancun,
Guadalajara, Mexico City, Monterrey, and San Jose del Cabo, Mexico, on
the other hand; between Cincinnati, Ohio, and Cancun, Mexico; between
Los Angeles, California, on the one hand, and Guadalajara and Mexico
City, Mexico, on the other hand; between New York (JFK), New York, and
Mexico City, Mexico;  between Atlanta, Georgia, and Lima, Peru; between
New York, New York, and Moscow, Russia; between Atlanta, Georgia, New
York, New York, and Madrid and Barcelona, Spain;  and between New York,
New York, and Istanbul, Turkey; and to combine the authority requested
with Continental’s other exemption and certificate authority. 
Continental states that it will use the authority pursuant to a
code-share arrangement with Delta Air Lines, Inc., whereby Continental
will place its code on flights operated by Delta.  

XX  Allocation of 3.5 U.S.-Russia code-share frequencies:

Continental requests 3.5 U.S.-Russia frequencies to permit Continental
to offer daily New York-(JFK)-Moscow service on Delta’s flights. 

Applicant rep:   R. Bruce Keiner (202) 624-2615    DOT Analyst:  Linda
L. Lundell (202) 366-2336

D I S P O S I T I O N

XX  Granted, subject to conditions (see below).

The above exemption authority granted was effective when taken:  August
21, 2003, through  August 21, 2005.   

The above frequency allocation granted was effective when taken:  
August 21, 2003, and will remain in effect indefinitely, subject to the
conditions described below.   

Action taken by:     Paul L. Gretch, Director	

		        Office of International Aviation	

XX  Authority granted is consistent with the overall aviation
relationships between the United States and the foreign countries
involved.

- see next page - 											2

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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Special Conditions/Remarks:  The U.S.-Mexico exemption authority granted
is subject to the dormancy notice requirements set forth in condition 7
of Appendix A of Order 88-10-2.   All of the exemption authority granted
is limited to service provided on a code-share basis only.  Consistent
with our standard practice, the frequency allocation granted is subject
to the condition that if the frequency is not used for a period of 90
days, the allocation as to this frequency will expire automatically and
the frequency will revert to the Department for reallocation.  The
90-day dormancy period will begin on the date of this Notice.   

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; and (b) should there be a request by any such
carrier to use the limited-entry route rights that are included in
Continental’s authority by virtue of the route integration authority
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 code-share operations conducted under this authorization are subject
to the following conditions:  (a) The code-sharing operations conducted
under this authority must comply with 14 CFR 257 and with any amendment
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
(i.e., 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 (b)	 the authority
granted here is specifically conditioned so that neither Continental nor
Delta shall give any force or effect to any contractual provisions
between themselves that are contrary to these conditions.

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 application 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_aviation.asp

										APPENDIX

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.

											8/2003

   Continental states that it will provide U.S.-Bombay service via
Paris.

   Continental states that all Mexico services will be offered on a
seasonal basis.

   Continental states that it will not offer local New York (JFK)-Madrid
service on Delta flights.

   Continental states that it requires a half frequency for each
roundtrip U.S.-Russia flight on which it codeshares.  

