UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on Ju ly 12 , 201 1

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 20 0 3

- 16302

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. ( Continental ) , filed 6/22 /11 for :

XX Renewal of e xemption for Continental and/or United Air Lines, Inc. (United) under 49 U.S.C. 40109 to provide the following service: 1

Scheduled foreign air transportation of persons, property, and mail between Houston, Texas, and Manzanillo, Mexico

. 2

App licant R ep: Hershel I. Kamen (202) 624

- 261 7 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 was effective when taken: July 12

, 201 1

, through July 12 , 201 3 , or until 90 days after final Department action on Continental’s corresponding certificate application in Docket DOT

- OST

1999

- 5868 , whichever occurs earlier.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority grant ed 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 holder ’ s certificates of public convenie nce and necessity

XX Standard Exemption Conditions (attached)

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, and the notice requirements for

seasonal/intermittent services

, as set forth in Order 96

- 11

- 24, at 5

.

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.

The code

- share operations conducted under this authorization are subject to the following conditions:

1 Continental requests that this authority be renewed in the name “Continental and/or United,” consistent with

Order 2011

- 3

- 14. W e will grant this request.

2 Continental states that renewal of this authority will allow Continental to continue providing sea sonal service

, offering service year

- round either by placing its code on the flights of ExpressJet Airlines, Inc. (ExpressJet) or by operating its own flights with larger aircraft.(a) The code

- sharing operations conducted under this authority must comply with 14 C.F.R. 257 and with any amendments 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 co ntract 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 ExpressJet shall give any force or effect to any con tractual 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 applicant 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 witho ut 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 th is 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.govATTACHMENT

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 dat a 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 al l 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 suc h 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. agenci es 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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