UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on March 17, 2011

 NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2011-0048 

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). 

Joint Application of CONTINENTAL AIRLINES, INC. (Continental) and UNITED AIR LINES, 

INC. (United), filed 3/11/11 for:

XX Exemption for Continental and/or United for two years under 49 U.S.C. 40109 to provide the 

following service:

Scheduled foreign air transportation of persons, property, and mail between San Francisco, 

California and Guadalajara, Mexico.

1

Joint Applicant Rep: Hershel I. Kamen (202) 624-2617 DOT Analyst: Brett D. Kruger (202) 366-8025

D I S P O S I T I O N

XX Granted, subject to conditions (see below)

The above action granting exemption authority was effective when taken: March 17, 2011, through 

March 17, 2013.

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

 

 The holders’ certificates of public convenience and necessity

XX Standard Exemption Conditions (attached)

Remarks: We acted on this application without awaiting expiration of the 15-day answer period with the 

consent of all parties served with the application. 

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. Consistent with our standard 

policy, the dormancy notice period will begin on June 9, 2011, the applicants’ proposed start-up date for 

the subject services.

The exemption authority granted may only be used in a manner consistent with the terms of the aviation 

agreement between the United States and Mexico. 

 1 Continental proposes to commence service no later than June 9, 2011. United will serve these markets by placing 

its designator code on Continental’s flights. The Joint Applicants request that this authority be issued in the name 

“Continental and/or United,” consistent with Order 2011-3-14, to provide the carriers with the flexibility to alternate 

between operating and marketing carrier, subject to designation by the U.S. Government.
The code-share operations conducted under this authorization are subject to the following conditions:

(a) The code-sharing operations conducted under this authority must comply with 14 CFR 257 and 

with any amendment to the Department’s regulations concerning code-share arrangements that 

may be adopted. Notwithstanding any provisions in the contract between the carriers, our 

approval here is expressly conditioned upon the requirements that the subject foreign air 

transportation be sold in the name of the carrier holding out such service in computer reservation 

systems and elsewhere; that the carrier selling such transportation (i.e., the carrier shown on the 

ticket) accept responsibility for the entirety of the code-share journey for all obligations 

established in its contract of carriage with the passenger; and that the passenger liability of the 

operating carrier be unaffected; and

(b) The authority granted here is specifically conditioned so that neither Continental nor United shall 

give any force or effect to any contractual provisions between themselves that are contrary to these 

conditions.

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the 

applicants qualified to provide the exemption 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 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:

www.regulations.gov
ATTACHMENT

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, the 

Transportation Security 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 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; 

(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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