UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on October 28, 2011

 NOTICE OF ACTION TAKEN -- DOCKETS DOT-OST-2004-19148, DOT-OST-2011-0163

and DOT-OST-2011-0164 _____________________________________________________________________________________________________________________

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).

1. Docket DOT-OST-2004-19148

Application of UNITED AIR LINES, INC. (United), filed 8/29/2011 for:

XX Exemption for United and/or Continental Airlines, Inc. (Continental) under 49 U.S.C. 40109 to 

provide the following service:

Foreign air transportation of persons, property, and mail on a code-share basis with Avianca del 

Continente Americano S.A. Avianca (Avianca) or other authorized carrier between a point or 

points in the United States and a point or points in Colombia, via intermediate and beyond points.

2. Docket DOT-OST-2011-0164

Application of AVIANCA, filed 8/29/2011 for:

XX Exemption under 49 U.S.C. 40109 to provide the following services:

Scheduled foreign air transportation of persons, property, and mail between points in Colombia

and points in the United States, via intermediate and beyond points, pursuant to its code-share 

agreement with Continental and United. The applicant requests that this authority be granted for 

a period of two years.

3. Docket DOT-OST-2011-0163

Joint Application of CONTINENTAL, UNITED, and AVIANCA, filed 8/29/2011 for:

XX Statements of authorization in order to engage in the following code-share services:

(A) Continental and United request blanket statements of authorization permitting them to display 

the Avianca (AV) designator code in conjunction with foreign air transportation of persons, 

property and mail on flights operated by United and/or Continental (1) between points in the 

United States; (2) between points in the United States and points in Colombia (either nonstop or 

via intermediate points in third countries); and (3) beyond the United States or Colombia to any 

point or points; and

(B) Avianca requests a blanket statement of authorization permitting it to display the United (UA) 

designator code in conjunction with foreign air transportation of persons, property, and mail 

on Avianca-operated flights (1) between points in Colombia; (2) points in the United States and 

points in Colombia (either nonstop or via intermediate points in third countries); and (3) 

beyond Colombia or the United States to any point or points.
Applicant reps: Lorraine B. Halloway (202) 624-2500 (Continental and United) and Richard D. 

Mathias (202) 298-8660 (Avianca)

DOT Analyst: Brett D. Kruger (202) 366-8025

DISPOSITION

XX Approved United and/or Continental’s exemption authority (subject to conditions, see below).

XX Approved in part, Avianca’s exemption authority; remainder (request for longer term 

authority) dismissed.1 (subject to conditions, see below)

XX Approved blanket statements of authorization to Continental, United, and Avianca (subject to 

conditions, see below).

The above action granting exemption authority to United/Continental is effective when taken: October

28, 2011, through October 28, 2013. The above action granting exemption authority to Avianca is 

effective when taken: October 28, 2011, through October 28, 2012. The above action granting blanket 

statements of authorization to the referenced carriers is effective: October 28, 2011, and will remain in 

effect indefinitely, subject to conditions. 

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 

Colombia.

Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations 

indicated:

XX United and Continental’s certificates of public convenience and necessity

XX Standard U.S. carrier exemption conditions (attached as Appendix A)

XX Standard foreign carrier exemption conditions (attached as Appendix B) 

XX Conditions for Statements of Authorization (attached as Appendix C)

_____________________________________________________________________________________________________________________

Conditions: Under the aviation agreement between the United States and Colombia, there are limitations 

on the points that may be served. With respect to carriers designated by the United States, the currently 

authorized Colombian points are: Barranquilla, Bogota, Cali, Cartagena de Indias, and Medellin. The 

U.S. Government may also name 6 additional points for U.S. carriers to serve exclusively via code-share 

service as a non-operating carrier. At this time, the United States has selected the following 4 code-share 

points: Bucaramanga, Cucuta, Manizales, and Pereira. With respect to carriers designated by Colombia, 

the currently authorized U.S. points are: Boston, Charlotte, Chicago, Cleveland, Columbus, Detroit,

Houston, Los Angeles, Miami, New York, San Juan, Orlando, and Washington. The Colombian 

Government may also name twelve additional points for Colombian carriers to serve exclusively via 

code-share service as a non-operating carrier. At this time, Colombia has selected the following points: 

Cincinnati, Dallas, Denver, Kansas City, New Orleans, Philadelphia, Phoenix, Pittsburgh, RaleighDurham, San Antonio, San Francisco, and Tampa.

2

 Effective January 1, 2012, there are no limitations on 

the U.S. and Colombian points that may be served on a code-share-only basis as a non-operating carrier.

 1 The one-year duration of the authority we granted to Avianca is consistent with our usual policy of granting 

exemption authority in the circumstances presented. We therefore, dismissed the application to the extent that it 

sought authority for a longer period.

2 See Appendix D for a list of initial code-share points proposed by the applicants.
The authority granted here permits the applicants to serve the code-share only points currently selected 

and those that may be selected in the future under the U.S.-Colombia agreement. This authority shall not 

be construed as to grant the applicants authority to serve any point that is not properly selected while the 

point limitations are in effect.

3

Remarks: We note that United has conducted a safety audit of Avianca under the Department’s CodeShare Safety Audit Program, and the FAA has advised us that it has reviewed the relevant audit report 

and found it to be acceptable. 

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

of 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:

http://www.regulations.gov

 3 We note that the application and initial code-share notice included the following points which have not been 

selected by the Government of Colombia: Ft. Lauderdale, Indianapolis, Richmond, and Seattle.
Appendix A

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.

 

1/2008
Appendix B

Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant(s) shall:

(1) Not conduct any operations unless it holds a currently effective authorization from its homeland for 

such operations, and it has filed a copy of such authorization with the Department;

(2) 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, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1546 or 1550, as applicable. 

To assure compliance with all applicable U.S. Government requirements concerning security, the holder 

shall, before commencing any new service (including charter flights) from a foreign airport that would be 

the holder’s last point of departure for the United States, contact its International Industry Representative 

(IIR) (formerly referred to as International Principal Security Inspector) to advise the IIR 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;

(3) Comply with the requirements for minimum insurance coverage contained in 14 CFR Part 205, and, 

prior to the commencement of any operations under this authority, file evidence of such coverage, in the 

form of a completed OST Form 6411, with the Federal Aviation Administration’s Program Management 

Branch (AFS-260), Flight Standards Service (any changes to, or termination of, insurance also shall be 

filed with that office);

(4) Not operate aircraft under this authority unless it complies with operational safety requirements at 

least equivalent to Annex 6 of the Chicago Convention;

(5) Conform to the airworthiness and airman competency requirements of its Government for 

international air services;

(6) Except as specifically exempted or otherwise provided for in a Department Order, comply with the 

requirements of 14 CFR Part 203, concerning waiver of Warsaw Convention liability limits and defenses;

(7) Agree that operations under this authority constitute a waiver of sovereign immunity, for the purposes 

of 28 U.S.C. 1605(a), but only with respect to those actions or proceedings instituted against it in any 

court or other tribunal in the United States that are: (a) based on its operations in international air 

transportation that, according to the contract of carriage, include a point in the United States as a point of 

origin, point of destination, or agreed stopping place, or for which the contract of carriage was purchased 

in the United States; or (b) based on a claim under any international agreement or treaty cognizable in 

any court or other tribunal of the United States. In this condition, the term "international air 

transportation" means "international transportation" as defined by the Warsaw Convention, except that all 

States shall be considered to be High Contracting Parties for the purpose of this definition;

(8) Except as specifically authorized by the Department, originate or terminate all flights to/from the 

United States in its homeland;

(9) Comply with the requirements of 14 CFR Part 217, concerning the reporting of scheduled, 

nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise provided in the applicable aviation 

agreement, comply with the Department's rules governing charters (including 14 CFR Parts 212 and 380); 

and

(11) Comply with such other reasonable terms, conditions, and limitations required by the public interest 

as may be prescribed by the Department, with all applicable orders or regulations of other U.S. agencies 

and courts, and with all applicable laws of the United States.

This authority shall not be effective during any period when the holder is not in compliance with the 

conditions imposed above. Moreover, this authority cannot be sold or otherwise transferred without 

explicit Department approval under Title 49 of the U.S. Code.

12/2007
Appendix C

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

(a) The statements of authorization will remain in effect only as long as (i) Continental, United, and Avianca 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-share operations remains in effect.

(b) Continental, United, and/or Avianca, 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-OST-2011-0163.

(c) Continental, United, and/or Avianca, as appropriate, must 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-OST-2011-0163.

1

(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 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; that the passenger 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 to operate to third countries is subject to the condition that any service provided under the statement 

of authorization shall be consistent with all applicable agreements between the United States and the foreign countries 

involved. Furthermore, (i) nothing in the award of these blanket statements of authorization should be construed as 

conferring upon Continental or United rights (including code-share, fifth freedom intermediate and/or beyond rights) 

to serve markets where U.S. carrier entry is limited unless Continental or United notifies the Department of their 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 (ii) should there be a request by any 

carrier to use the limited-entry route rights that are included in the authority of Continental or United by virtue of the 

blanket statements of authorization granted here, but that are not then being used by Continental or United, the holding 

of such authority will not be considered as providing any preference for Continental or United in a competitive carrier 

selection proceeding to determine which carrier(s) should be entitled to use the authority at issue.2

(f) The authority granted here is specifically conditioned so that neither Continental, United, nor Avianca shall give 

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

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

 1 We expect this notification to be received within ten (10) days after such non-effectiveness or of such decision. 2 The notice in paragraph (b) above can be used for this notification. 
Appendix D

INITIAL LIST OF CODE-SHARE POINTS