 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on March 1, 2005

   NOTICE OF ACTION TAKEN -- DOCKET OST-2005-20122

________________________________________________________________________
_________________________________

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 1/14/05 for:

XX  Exemption under 49 U.S.C. 40109 U.S. C. 40109 to the extent
necessary to permit Continental to display its designator code on
flights operated by its foreign code-share partners on the following
services:

 

Scheduled foreign air transportation of persons, property, and mail
between points in the United States and points worldwide on a
third-country code-share basis pursuant to blanket code-sharing
statements of authorization previously approved by the Department, and
to integrate this authority with its existing certificate and exemption
authority.

United Air Lines filed an answer stating that it does not oppose
Continental’s application so long as the Department contemporaneously
grants United’s application for comparable broad world-wide code-share
related exemption authority filed January 26, 2005, in Docket
OST-2004-19148.

Applicant rep:  R. Bruce Keiner, Jr. (202) 624-2615)   DOT Analyst:
Sylvia Moore (202) 366-6519

DISPOSITION

XX  Granted (subject to conditions, see remarks below)

The exemption authority granted was effective when taken:    March 1,
2005, through  March 1, 2007

Action taken by:  Paul L. Gretch, Director

                              Office of International Aviation

XX  The authority granted is consistent with the aviation agreements
between the United States and the homelands of Continental’s foreign
code-share partners listed in this Notice.

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  Conditions attached to the relevant blanket statements of
authorization

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 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
carriers(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.

Remarks:  We have decided to grant Continental’s request.  With
respect to United’s comments, we note that we have contemporaneously
issued a notice granting United’s requests.  (See Notice of Action
Taken dated March 1, 2005, in Docket OST-2004-19148.)

We note that Continental has conducted a safety audit on all of its
named foreign air carrier code-share partners and affiliates under the
Department’s Code Share Safety Program, and the FAA has advised that
it has reviewed the relevant audit program and found the program to be
acceptable.  

The exemption authority granted here is for operations with the foreign
code-share partners and affiliates named above.  Should Continental and
any new code-share partner be granted statements of authorization,
Continental will need to apply for exemption authority to the extent
necessary to permit Continental to display its code on flights operated
by the new code-share partners.

________________________________________________________________________
______________

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 federal 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.

																	  05/2004

 Societé Air France (Air France), Compania Panamena de Aviacion, S.A.
(COPA), Koninklijke Luchtvaart Maatschappij (KLM), and KLM’s regional
code-share partners KLM CityHopper and Air Excel. 

 See Notices of Action Taken dated November 12, 2004 (Docket
OST-2004-19115); July 9, 1998 (98-65 undocketed); and November 29, 2001
(Docket OST-2001-10880).

 Of course, the U.S. carriers will need to have conducted code-share
safety audits of their foreign partners prior to receipt of authority
for such code-share services.

