			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on January 4, 2006

NOTICE OF ACTION TAKEN -- DOCKET OST 2003-16210

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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 UNITED AIR LINES, INC. (UNITED), filed 7/8/05 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 Washington, D.C., and Cancun, Mexico. 

Applicant rep:   Jeffrey A. Manley (202) 663-6670    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: January 4, 2006, through
January 4, 2008.

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation

	

XX  The authority granted is consistent with the aviation agreement
between the United States and Mexico.

  

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 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.

Responsive Pleadings:  On July 18, 2005, the Metropolitan Washington
Airports Authority filed an answer supporting United’s application. 
On July 25, 2005, AirTran Airways, Inc. (AirTran) filed an answer
requesting that the Department defer action on United’s application
until the bilateral rights of U.S. air carriers to directly provide
scheduled combination services have been resolved in negotiations with
the Government of Mexico.  United filed a reply.  On September 21, 2005,
the United States and Mexico reached an agreement expanding U.S. carrier
rights to serve various Mexico points, including Cancun, and the United
States and Mexico signed the agreement in Mexico City on December 12,
2005. 
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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

  On November 23, 2004, United filed an application, in Docket
OST-1999-5846, requesting renewal of its U.S.-Mexico certificate
authority and amendment of that authority to add, inter alia, its
exemption authority for the Washington, D.C.-Cancun market to its
certificate.  In the instant docket, United requests renewal of its
Washington, D.C.-Cancun exemption authority by substantially equivalent
certificate authority, or, in the alternative, renewal of its exemption
authority for a minimum of two years.  We will address the carrier’s
request to amend its certificate authority separately.  

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