 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on August 11, 2005

   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. (Continental) filed 6/21/05
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 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 Mumbai, 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, 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, and New
York, New York, and Madrid and Barcelona, Spain; and between New York,
New York, and Istanbul, Turkey, as well as integration authority to
combine this exemption authority with Continental’s other current
exemption and certificate authority.  Continental states that it will
continue to provide this service pursuant to its code-share arrangement
with Delta Air Lines, Inc. (Delta), whereby Continental will place its
“CO” code on flights operated by Delta on the subject routes.      

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

	                  

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:  August 11, 2005, through  
August 11, 2007. 

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation

XX  The authority granted is consistent with the overall aviation
relationship between the United States and the foreign countries
involved.

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)

Conditions:  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, and is limited to code-share services only.  

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
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 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 exemption 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:

  HYPERLINK "http://dms.dot.gov//reports/reports_aviation.asp" 
http://dms.dot.gov//reports/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, 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 uses this authority to provide U.S.-Mumbai service via
Paris.  Continental originally got this authority as a Paris-Bombay
route.  Continental requests that the authority be renewed to reflect
the city’s current name of Mumbai.

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

   Continental states that it was originally awarded 3.5 Russian
frequencies for code-sharing services with Delta between JFK and Moscow.
 Continental is no longer code-sharing with Delta on that route and the
frequencies have been returned for dormancy.

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

   We note that, although we have granted the carrier’s request to
renew its underlying authority to serve the New York-Moscow market, the
carrier will need to obtain frequency allocations from the Department
before it can implement such services.

