 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on August 6, 2003

   NOTICE OF ACTION TAKEN -- DOCKET OST-2003-15647

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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   7/10/03  for:

XX Exemption for two years pursuant to 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, directly or via any
intermediate points, and Malabo, Equatorial Guinea and Almaty,
Kazakhstan.  Continental also requests the authority to integrate its
exemption authority here with all of its existing certificate and
exemption authorities, consistent with the applicable bilateral aviation
agreements.  Continental plans to use the exemption authority pursuant
to a code-share arrangement with KLM.    

Applicant rep:  R. Bruce Keiner (202) 624-2615  DOT Analyst:  Michael D.
Bodman  (202) 366-9667

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 6, 2003, through
August 6, 2005 

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation

XX  The exemption authority granted is consistent with the overall state
of aviation relations between the United States and Equatorial Guinea
and the overall state of aviation relations between the United States
and Kazakhstan. 

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 exemption authority granted to serve intermediate
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,
and is subject to all conditions attached to that authority. 

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 should be construed as conferring upon the holder
rights (including fifth-freedom intermediate and/or beyond rights) to
serve markets where U.S. carrier entry is limited unless the holder
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 the
holder’s authority by virtue of the route integration exemption
granted here, but that is not then being used by the holder, the holding
of such authority by route integration will not be considered as
providing any preference for the holder in a competitive carrier
selection proceeding to determine which carrier(s) should be entitled to
use the authority at issue.

______________________________________________

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:

http://dms.dot.gov//reports/reports_aviation.asp

APPENDIX

U.S. CARRIER

Standard Exemption Conditions

In the conduct of operations authorized by the attached notice, the
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,
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.

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