	

                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC

                                   	Issued by the Department of
Transportation on November 17, 2004

		       NOTICE OF ACTION TAKEN -- DOCKET OST-2004-16941

________________________________________________________________________
_________________________________

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  11/3/04  for:

XX  Waiver of Dormancy Conditions for Houston-Guayaquil service and
Request for Conversion of Four Frequencies from Weekly Service to
Seasonal Service. 

On February 20, 2004, Continental was awarded seven additional weekly
U.S.-Ecuador combination frequencies to institute daily nonstop
Houston-Guayaquil service subject to the standard dormancy condition
that if any of the frequencies are not use for a period of 90 days, the
allocation as to that unused frequency will expire automatically and the
frequency will revert to the Department for reallocation. 

In the above- referenced application, Continental states that it
suspended its Houston-Guayaquil service as of August 15, 2004 due to
runway construction, which precluded Continental from operating nonstop
flights between Houston and Guayaquil and that runway construction will
be completed and Continental plans to reinstitute nonstop
Houston-Guayaquil flights three days a week effective November 18, 2004,
“slightly more than 90 days after its flights were suspended
temporarily.”  Continental further states that it plans to operate at
least three weekly nonstop Houston-Guayaquil flights year-round and to
offer seven weekly nonstop Houston-Guayaquil flights during peak periods
such as the December and Spring holiday periods.  Therefore, Continental
requests a waiver through November 17, 2004, with respect to all seven
of its Houston-Guayaquil frequencies and thereafter with respect to four
of the seven frequencies so it can provide appropriate schedules during
off-peak seasons without jeopardizing its ability to meet the demand for
daily service during peak holiday periods.

On November 4, 2004, counsel for Continental notified the Department
that it had polled all parties served with the application and that none
object to its request.

Applicant rep:    R. Bruce Keiner, Jr.  (202) 624-2615      DOT Analyst:
 Linda Senese  (202) 366-2367.

D I S P O S I T I O N

XX  Granted (subject to conditions, see below)(see also Remarks below)

(See Reverse Side)

2

The above action regarding the waiver request was effective:  November
17, 2004, through November 29, 2004.  The above action regarding
conversion of four frequencies from regular service to seasonal service
was effective:  November 17, 2004.

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation	

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

 

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

________________________

Remarks:  We have granted the application of Continental for a waiver of
the dormancy condition through November 18, 2004, the date it proposes
to resume Houston-Guayaquil service with three weekly frequencies, and
its request to convert four of its frequencies from weekly service to
seasonal service.  We also granted Continental, sua sponte, an interim
waiver for the seven frequencies from November 12, 2004 through November
17, 2004.

We found that grant of the above requests was in the public interest in
the specific circumstances presented; namely, that Continental was
unable to conduct its service due to runway construction and that no
party has opposed its request for the waiver of the dormancy provision
or its request to convert four frequencies from weekly service to
seasonal service.  

Conditions:  Consistent with our standard practice, the frequency
allocation granted for three frequencies is subject to the condition
that if any of the frequencies are not used for a period of 90 days, the
allocation as to that unused frequency will expire automatically and the
frequency will revert to the Department for reallocation.  The carrier
states it will use four of the frequencies for seasonal service.  Should
the carrier determine that these frequencies will return to year-round
operations, the carrier must notify the Department and those frequencies
will then also be subject to standard dormancy 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 and (2) grant of the authority was consistent with the public
interest.  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. 

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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 

 The 90th day was Saturday, November 13, 2004.

 Grant of the waiver through November 29 will provide time for
inauguration of the three flights.

