UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on January 11 , 20 1 1

NOTICE OF ACTION TAKEN

-- DOCKET DOT

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- 2010

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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).

Joint Applicant s : CONTINENTAL AIRLINES, INC. (Continental) and

TRANSPORTES A EROMA R
, S.A. de C.V. (Aeromar)

Date Filed: April 9 , 20 10

Relief requested: E xemption under 49 USC §40109 to permit Aeromar to conduct scheduled foreign air transportation of persons, property and mail between Houston and New York/Newark, on the one hand, and Mexico City, on the other hand, on a code

- share basis with Continental and ExpressJet Airlines, Inc.

A blanket statement of authorization under 14 CFR Part 212 to permit Aeromar to display the (CO*) designator code of Continental on flights operated by Aeromar within Mexico beyond Continental’s authorized Mexican gateways for the carriage of Continental ’s

authorized U.S.

- Mexico traffic. 1

A s tatement of authorization under 14 CFR Part 212 to permit Continental to display the (VW*) designator code of Aeromar on flights operated by Continental between Houston and New York/Newark, on the on e hand, and Mexico City, on the other hand.

Applicant representative s : Lorraine B. Halloway 202

- 624

- 2500 (Continental) & DOT analyst: Brett D. Kruger , 202

- 366

- 8025

Herbert A. Rosenthal 202

- 785

- 9773 (Aeromar)

Responsive pleadings: None.

DI SPOSITION

Action: Approved in part (statement of authorization for Aeromar), subject to conditions ; remainder ( exemption authority for

Aeromar and statement of authorization for Continental) deferred (See conditions and remarks below).

Action date: January 11 , 20 1 1

Effective dates of authority granted: The statement of authorization granted to Aeromar is effective January 11 , 201 1

, for an indefinite period.

Basis for approval (bil ateral agreement/reciprocity): United States

- Mexico Air Transport Services Agreement.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of the code

- share conditions attached as Appendix A

.

Special conditions/Remarks: We note that we have not yet received notification from the Government of Mexico that it has

authorized Aeromar to conduct code

- share services in the transborder markets listed a bove. Accordingly, we are deferring action on Aeromar’s request for an exemption and Continental’s request for a statement of authorization.

1 See Appendix B for a list of initial code

- share points.We also note that Continental has conducted a safety audit of Aeromar under the Department’s Code

- Share Safety Audit Program, and the FAA has advised us that it has reviewed the relevant audit report and found it to be acceptable.

Action taken by: Paul L. Gretch, Director, Office of International Aviation

________________________________________________________________________________ _______ __________ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent w ith Department policy; ( 2 ) grant of the authori ty 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/deferred/dismissed, we denied all requests in the ref erenced 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 effec tive 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://www.regulations.govAppendix A

The code

- share operations authorized here are subject to the following conditions:

(a) The statement of authorization will remain in effect only as long as (i) C ontinental and Aeromar continue to hold the necessary underlying authority to operate the code

- share services at issue, and (ii) the code

- share agreement providing for the code

- s hare operations remains in effect.

( b ) Continental and/or Aeromar , as appropriate, must notify the Department no later than 30 days before they begin any new code

- share service under the code

- share services authorized here. Such notice shall identify the market(s) to be served, which carrier will be operating the aircraft in the code

- share market added, and the date on which the service will begin. Such notice should be filed in Docket DOT

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.

(c ) Continental and/or Aeromar , as appropriate, m ust promptly notify the Department if the code

- share agreement providing for the code

- share operations is no longer effective or if the carriers decide to cease operating all or a portion of the approved code

- share services. Such notice should be filed in Docket DOT

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( d ) The code

- sharing operations conducted under this authority must comply with 14 CFR 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 the computer reservation systems an d 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; that the pass enger liability of the operating carrier be unaffected; and that the operating carrier shall not permit the code of its U.S. code

- sharing partner to be carried on any flight that enters, departs, or transits the airspace of any area for whose airspace the Federal Aviation Administration has issued a flight prohibition.

( e ) The authority granted here is specifically conditioned so that neither Continental nor Aeromar shall give any force or effect to any contractual provisions between themselves that are co ntrary to these conditions.

We may amend, modify, or revoke the authority granted at any time without hearing at our discretion.

2 We expect this notification to be received within ten (10) days after such non

- effectiveness or of such decision.Appendix B

INITIAL CODE

- SHARE POINTS

CO* on Aeromar Intra

- Mexico Flights (all operated by Aeromar with small aircraft)

Mexico City

- Acapulco

- Aguascalientes

- Colima

- Ciudad Victoria

- Jalapa

- Lazaro Cardenas

- Morelia

- Poza Rica

- San Luis Potosi

- Saltillo

- Tepic

- Zacatecas

- Manzanillo