 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on May 21, 2004

      NOTICE OF ACTION TAKEN -- DOCKET OST-2004-17736

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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   5/6/04 
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 a point or points in the United States, via Amsterdam, and Riga,
Latvia and Tbilisi, Georgia.  Continental Airlines also requests
authority to integrate this authority with its existing certificate and
exemption authority.  Continental Airlines intends to operate this
service pursuant to its code-share arrangement with KLM with KLM
operating the service between Amsterdam, on the one hand, and Riga and
Tbilisi, on the other hand.

 

Applicant rep:   R. Bruce Keiner, Jr.  (202) 624-2615   DOT Analyst: 
Gerald Caolo   (202) 366-2406

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:  May 21, 2004, through  May
21, 2006

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation	

XX  The authority granted is consistent with the overall state of
aviation relations between the United States and Latvia and between the
United States and Georgia. 

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)

	    XX  Statement of Authorization approving the Continental/KLM
code-share operations

                  dated November 29, 2001, and conditions therein
(Notice of Action Taken, Docket OST-

    01-10880) 

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Conditions:  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


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

Remarks:  We acted upon this application without awaiting expiration of
the 15-day answer period with the consent of all parties served.

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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; and (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:

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.

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