UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, DC Issued by the Department of Transportation on October 1, 2010 NOTICE OF ACTION TAKEN -- DOCKET S DOT - OST - 2005 - 20122 and DOT - OST - 2010 - 0 171

_______________________________________________________________________________________________________ ____________ __ This serves as notice to the public of the action described below, taken by the Department official indicated (no additi onal confirming order will be issued in this matter). 1. Docket DOT

- OST

- 2005

- 20122 Appl ication of CONTINENTAL AIRLINES, INC. (Continental), filed 6/29 /20 10 for: XX Amendment of exemption under 49 U.S.C. 40109 to the extent necessary to permit Continent al 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 - cou ntry code - share basis pursuant to blanket code - sharing statements of authorization previously approved by the Department. 1 2 2. Docket DOT

- OST

- 2010

- 0 1 71 Joint Application of BLUE 1 LTD. (Blue1), WIDER Ø E’S FLYVESELSKAP (Widerøe), and GOLDEN AIR FLYG AB ( Golden Air) , filed 6/29/2010 for: XX Exemption under 49 U.S.C. 40109 to provide the following service: Scheduled foreign air transportation of persons, property and mail to the extent necessary to display the Continental “CO” designator code on flight s operated (i) between EU points; (ii) between points in Norway; (iii) between points in the EU and points in the European Common Aviation Area (ECAA) w here an open skies agreement is being applied; ( i v) between the EU or Norway, and any open skies point o r points; and (v) beyond the EU or Norway to any point or points. 3

1 The authorized foreign carriers are: Compania Panamena de Aviacion, S.A. (COPA); Air Canada; Jazz Air LP d/b/a Air Canada Jazz (Air Canada Jazz); B ritish Midland Airways Limited d/b/a bmi (bmi); British Midland Regional Limited d/b/a bmi Regional (bmi Regional); Deutsche Lufthansa AG (Lufthansa); Lufthansa Cityline GmbH (Lufthansa Cityline); Air Dolomiti S.p.A. LARE (Air Dolomiti); Augsburg Airways G mbH (Augsburg); PrivatAir GmbH; PrivatAir S.A.; Contact Air Flugdienst GmbH & Co. (Contact Air); Eurowings Luftverkehrs AG (Eurowings); Cirrus Airlines Luftfahrtgesellschaft mbH (Cirrus Airlines) ; Asiana Airlines, Inc. (Asiana); Air New Zealand; Scandinavi an Airlines System (SAS); Brussels Airlines N.V./S.A. (Brussels Airlines); and Aegean Airlines Societe Anonyme d/b/a Aegean Airlines S.A. (Aegean Airlines)

. See Notice s of Action Taken on October 21, 2009, in Dockets 2005

- 20122, DOT

- OST

- 2009

- 0173, DOT

- OST

2009

- 0174, and DOT

- OST

- 2009

- 0175 ; November 20, 2009, in Dockets 2005

- 20122 and DOT

- OST

- 2009

- 0277; January 26, 2010, in Dockets DOT

- OST

- 2005

- 20122 and DOT

- OST

- 2009

- 0340; March 11, 2010, in Dockets DOT

- OST

- 2005

- 20122 and DOT

- OST

- 2010

- 0020; June 9, 2010, in Dockets DOT

- OST

- 2005

- 20122 and DOT

- OST

- 2010

- 0111 ; June 23, 2010, in Dockets DOT

- OST

- 2005

- 20122 and DOT

- OST

- 2010

- 0132; and September 9, 2010, in Dockets DOT

- OST

- 2005

- 20122 and DOT

- OST

- 2010

- 0206. 2 Continental requests that its blanket code

- share ex emption authority be amended to the extent necessary to permit it to also place its designator code on flights operated by Blue1and by Widerøe , and on certain flights operated by Golden Air on a wet lease basis for Blue1, through March 5, 2011, coextensive with its existing exemption authorit y in Docket DOT

- OST

- 2005

- 20122. 3 We note that the applicants requested specific authority to operate between points in the EU and points in Norway , and between points in the EU and points in Norway and points in the E CAA where an open skies agreement is being applied. The authority we are granting here encompasses that portion of the applicants’ request.Joint Application of BLUE 1 LTD. (Blue1), WIDER Ø E’S FLYVESELSKAP (Widerøe), and GOLDEN AIR FLYG AB (Golden Air) , filed 6/29/2010 for: Blanket statements of authorization to permit Blue 1, Widerøe, and Golden Air to display the (CO*) designator code of Continental on flights operated by Blue1 and Widerøe, and on certain flights operated by Golden Air on a wet lease basis for Blue1, in conjunction with foreign air transportation of persons , property, and mail : (i) between EU points; (ii) between points in Norway; (iii) between points in the EU and points in the European Common Aviation Area (ECAA) where an open skies agreement is being applied; ( i v) between the EU or Norway, and any open sk ies point or points; and (v) beyond the EU or Norway to any point or points. Applicant rep s : Lorraine B. Halloway (202) 624 - 2 500 (Continental) and Michael F. Goldman ( 2 0 2 ) 944 - 330 5 ( Blue1, Widerøe, and Golden Air ) DOT Analyst: Brett D. Kruger (2 02) 366 - 8025 D I S P O S I T I O N As to Continental: XX

c onditions, see discussion below). Approved in part ( amendment of Continental’s exemption authority to code share with Blue1 ) , remainder (exemption a uthority to code share with Wider øe and Golden Air) deferred (subject to
As to Blue1, Widerøe, and Golden Air: XX Approved in part, exemption authority to Blue1, remainder (exemption authority to Widerøe and Golden Air ) deferred (subject to conditions, see discussion below) . XX Approved in part, statement of authorization to Blue1, remainder (statements of authorization to Widerøe and Golden Air ) deferred (subject to conditions, see discussion below) . The above action granting amended exemption authority to Continental is effective when taken : October 1 , 2010 , through March 5 , 2011

. The above action granting exemption authority to Blue1 is effective when taken : October 1 , 2010 , through October 1 , 201 2

. The above action granting a blanket statement of authorization to Blue1 is effective: October 1 , 2010 , and will remain in effect indefinitely, subject to conditions. Action taken by: Paul L. Gretch, Director Office of International Aviation XX The autho rity granted is consist ent with the U.S. - EU Air Transport Agreement. Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations indicated: XX Continental ’s certificates of public convenience and necessi ty XX Standard U.S. carrier exemption conditions (attached as Appendix A ) XX Standard foreign carrier exemption conditions (attached as Appendix B) XX C onditions for statement of authorization granted here (attached as Appendix C ) XX Conditions attached to previously granted blanket statements of authorization 4

4 See Notices of Action Taken dated July 9, 1998 (98

- 65 , undocketed, Continental

- COPA); October 21, 2009 (Dockets D OT

- OST

- 2005

- 20122, DOT

- OST

- 2009

- 0173, DOT

- OST

- 2009

- 0174, and DOT

- OST

- 2009

- 0175, Continental.

- Air Canada and Air Canada Jazz, Continental

- bmi and bmi Regional, and Continental

- Lufthansa , Lufthansa Cityline, Air Dolomiti, Augsburg, PrivatAir GmbH, PrivatAir S.A., Contact Air, Eurowings, and Cirrus Airlines); November 20, 2009_____________________________________________________________________________________________________________________ Discussion: The joint applicants did not provide all of the evidentia ry requirements of 14 CFR Part 212.20 for Widerøe’s exemption request and state that these documents will be provided in a subsequent submission . The applicants further note that a code

- share safety audit has not yet been conducted by Continental for Gold en Air. In this regard , the applicants request that the Department approve the requests with respect to Continental placing its code on Blue1, without awaiting the additional Widerøe submissions or the safety audit of Golden Air. We accordingly grant the amended exemption to Continental for code

- share operations with Blue1 and defer action to the extent that Continental seeks to code share with Widerøe and Golden Air. Furthermore, we grant the request of Blue1 for an exemption and a statement of authoriz ation, and defer action on the requests of Widerøe and Golden Air. We note finally that Continental has conducted a safety audit of Blue1 u nder 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. Remarks / Conditions : The exemption authority granted here to Continental is for operations with the foreign code

- share partners and affiliates named above , to include Blue1

. Should Continental and any additio nal 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 partner and will need to have conducted code

- share safety audits of its foreign partners prior to receipt of authority for such code

- share services. Based on the record in this case, we found that Blue1 is operationally and financially qualified to conduct the proposed services, and t hat it is substantially owned and effectively controlled in a manner consistent with the provisions of the U.S.

- EU Agreement. 5 On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found Continental qualified to p rovide 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 interes t; 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 or deferred , we denied all requests in the referenced Docket s . We may amend, modify, or revok e 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 petition s 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

(Dockets DOT

- OST

- 2005

- 20122 and DOT

- OST

- 2009

- 0277, Continental

- Asiana); January 26, 2010 (Dockets DOT

- OST

2005

- 20122 and DOT

- OST

- 2009

- 0340, Continental

- Air New Zealand); March 11, 2010 ( Dockets DOT

- OST

- 2005

- 20122 and DOT

- OST

- 2010

- 0020, Continental

- SAS); June 9, 2010 (Dockets DOT

- OST

- 2005

- 20122 and DOT

- OST

- 2010

- 0111, Continental

- Brussels Airlines); June 23, 2010 (Dockets DOT

- OST

- 2005

- 20122 and DOT

- OST

- 2010

- 0132, Continental

Aegean Airlines ); and September 9, 2010 (Dockets DOT

- OST

- 2005

- 20122 and DOT

- OST

- 2010

- 0206, Continental

- TAP Portugal, PGA, and White Airways). 5 We make this finding based on Article 2 (Reciprocal Recognition of Regulatory Determinations with Regard to Airline Fitness a nd Citizenship) of the Protocol to amend the U.S.

- EU Air Transport Agreement, signed June 24, 2010.

### 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 fr om 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 requir ements 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 f rom 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) Co mply 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 applicab le 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 Air Carrier Exemption Conditions In the conduct of the operations authorized, the foreign carrier applicant 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 Depart ment; (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 wo uld 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 Trans portation 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 un der 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 transpo rtation" 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 a Member State of the European Union; (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 condit ions imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval under Title 49 of the U.S. Code. EU carrier 01/2008

### Appendix C The code - share operations authorized here are subject to the follo wing conditions: (a) The s tatement of authorization will remain in effect only as long as (i) Continental and Blue1 continue to hold the necessary underlying authority to operate the code

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

- share agreement providin g for the code

- share operations remains in effect. (b) Continental and/or Blue1 , 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 shal l 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. 1 Such notice should be filed in Docket DOT

- OST

- 200 5

- 20122

. (c) Continental and/or Blue1 , 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 shou ld be filed in Docket DOT

- OST

- 200 5

- 20122

. 2 (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. Notwith standing 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 reservati on 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 th is statement of authorization shall be consistent with all applicab le agreements between the United States and the foreign countries involved. Furthermore, (i) nothing in the award of th is blanket statement of authorization should be construed as conferring upon Continental rights (including code

- share , fifth freedom int ermediate 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 procedure s 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 by virtue of the blanket statement of au thorization granted here, but that are not then being used by Continental, the holding of such authority will not be considered as providing any preference for Continental in a competitive carrier selection proceeding to determine which carrier(s) should b e entitled to use the authority at issue. 3 (f) The authority granted here is specifically conditioned so that neither Continental nor Blue1 shall give any force or effect to any contractual provisions between themselves that are contrary to these conditio ns. We may amend, modify, or revoke the authority granted at any time without hearing at our discretion.

1 Pursuant to the Department’s Notice In the Matter of Blanket Notification of Code

- Share Service to Open Skies Partners and Points dated February 9, 2009, the joint applicants have provided notification of their intent to engage in code

- share services, on flights operated by Blue1, beginning on or about September 1, 2010, between Open Skies points as outlined in their applicatio n. 2 We expect this notificat ion to be received within ten (10) days after such non

- effectiveness or of such decision. 3 The notice in paragraph (b) above can be used for this notification.