BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

------------------------------------------------------------------------

:

Application of :

:

CONTINENTAL AIRLINES, INC. :

and : Docket DOT-OST-2011-___

UNITED AIR LINES, INC. :

:

for exemptions pursuant to 49 U.S.C. § 40109 :

(San Francisco - Guadalajara, Mexico) :

------------------------------------------------------------------------

APPLICATION OF CONTINENTAL AIRLINES, INC. 

AND UNITED AIR LINES, INC., FOR EXEMPTIONS

Communications with respect to this document should be sent to:

Hershel I. Kamen

Vice President – International,

 Regulatory and Policy

UNITED AIR LINES, INC. AND

CONTINENTAL AIRLINES, INC.

1350 I Street, NW

Washington, DC 20005-3389

THOMAS NEWTON BOLLING

Managing Attorney, Regulatory

CONTINENTAL AIRLINES, INC.

P.O. Box 4607 – HQSLG

Houston, TX 77210-4607

(713) 324-56906

thomas.bolling@coair.com

DANIEL A. WEISS

Managing Director, International & 

Regulatory Affairs

UNITED AIR LINES, INC. AND

CONTINENTAL AIRLINES, INC.

Jeffrey A. Manley

Senior Regulatory Advisor

UNITED AIR LINES, INC.

1025 Connecticut Avenue, NW

Washington, DC 20036

(301) 229-8571

jeffrey.manley@united.com

March 11, 2011

Notice: United and Continental are requesting expedited treatment of this application. 

United will poll air carrier representatives in the attached Service List and will 

advise the Department of the results. 
BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

------------------------------------------------------------------------

:

Application of :

:

CONTINENTAL AIRLINES, INC. :

and : Docket DOT-OST-2011-___

UNITED AIR LINES, INC. : 

:

for exemptions pursuant to 49 U.S.C. § 40109 :

(San Francisco - Guadalajara, Mexico) :

------------------------------------------------------------------------

APPLICATION OF CONTINENTAL AIRLINES, INC. 

AND UNITED AIR LINES, INC., FOR EXEMPTIONS

Continental1applies, pursuant to 49 U.S.C. § 40109 and Rule 302 of the Department’s 

Rules of Practice, for an exemption from 49 U.S.C. § 41101 and designation under the U.S.-

Mexico Air Services Agreement, as amended, (“U.S.-Mexico Agreement”) authorizing it to 

operate scheduled foreign air transportation of persons, property and mail between San 

Francisco, California and Guadalajara, Mexico (“San Francisco-Guadalajara services”). United

applies pursuant to 49 U.S.C. § 40109 for an exemption from 49 U.S.C. § 41101 and a codeshare designation to offer services in the San Francisco-Guadalajara market by placing its code 

on Continental’s flights on the route. Continental and United (collectively “Joint Applicants”) 

ask that this authority become effective as soon as possible and that the authority be effective for 

a period of at least two years. Moreover, the Joint Applicants request that the Department issue 

the requested authorities to “ Continental and/or United” consistent with other authorities 

reissued by the Department in Order 2011-3-14. 2 Continental and United will poll carrier

 

1 Common names are used for airlines.

2 Continental and United are wholly-owned subsidiaries of United Continental Holdings, Inc. which 

currently operate separately pending the completion of their operational merger. DOT’s issuance of the 
Application of Continental and United

Page 2

representatives served with this application and report the results to the Department in order to 

expedite approval. 

The Joint Applicants state as follows in support of this application:

1. Awarding these exemption authorities and designations will permit Continental 

and United to provide service that will meet travel and shipping demand on the San FranciscoGuadalajara route, thereby increasing the options available to the U.S. traveling and shipping 

public. The Joint Applicants urge the Department to act promptly so they can secure foreign 

authority, make final operating plans and begin marketing their San Francisco-Guadalajara

services well in advance of flight operations, which Continental plans to commence no later than 

June 9, 2011, provided all necessary approvals have been secured. Authorizing Continental to 

operate San Francisco-Guadalajara services and United to display the “UA*” designator code on 

Continental’s flights3 will provide substantial consumer benefits by expanding the service 

options of the U.S. traveling public, offering online connections between points on both the 

Continental and United networks via San Francisco4and providing the first U.S. carrier operated 

non-stop service in that city pair as well as offering competition for services operated by 

AeroMexico5and, potentially, two other U.S. carriers on the route. The Joint Applicants will 

comply with the Department’s rules on codesharing as set forth in Part 257 of the Department’s 

 

authority jointly as requested would provide them the flexibility to alternate between operating and 

marketing carrier as needed (subject to redesignation by the U.S. government) pending their merger into a 

single carrier. 

3 The Department has previously granted United exemption authority to codeshare with Continental on 

U.S.-Mexico markets operated Continental. See Notices of Action Taken dated January 4, 2011 in

Docket DOT-OST-2010-0295 and November 29, 2010, November 4, 2010 and September 18, 2009 in 

Docket DOT-OST-2009-0192.

4 Continental and United together serve 76 points through their combined San Francisco networks.

5 AeroMexico has recently proposed to start San Francisco-Guadalajara flights on April 1, 2011. See

Application of AeroMexico, dated March 2, 2011, in Docket DOT-OST-2011-0042.
Application of Continental and United

Page 3

Regulations. The code-share authority requested herein will have no impact on Continental’s or 

United’s Civil Reserve Air Fleet commitments. 

2. The authorities sought by the Joint Applicants comply fully with the terms of the 

U.S.-Mexico Agreement, as amended. Route 1(a) of that agreement authorizes carriers 

designated by the United States to operate from “a point or points in the United States to a point 

or points in Mexico.”

6

 The U.S.-Mexico Agreement, as amended, further provides that “each 

Party shall be entitled to designate three airlines to provide scheduled combination services 

between any point or points in the United States...and Guadalajara”7and that any designated U.S. 

airline “may enter into cooperative marketing arrangements” with another airline so long as both 

airlines “hold the appropriate authority” and “meet the requirements normally applied to such 

arrangements.”8

3. The Department’s award of the Joint Applicants’ requested authorities would not 

prejudice any other U.S. carriers that may seek to institute San Francisco-Guadalajara services

since operating and code-share designations would remain available for allocation even after the 

Department approves this application.

9

 

4. Continental holds various certificates of public convenience and necessity and 

exemptions authorizing it to engage in scheduled air transportation of persons, property and mail, 

and Continental is fit, willing and able to provide the service for which it seeks authority. (See, 

e.g., Notices of Action Taken dated January 4, 2011 in Docket DOT-OST-2010-0295, November 

4, 2010 in Docket DOT-OST-2010-0255 and September 10, 2010 in Docket DOT-OST-2010-

 

6 U.S.-Mexico Agreement, Annex I, A (1)(a).

7

See Annex I, B (5).

8

See Annex III (1).

9 Based on currently published scheduled services, there are three U.S. carrier operating designations 

available on this route, as well as a number of code-share designations. 
Application of Continental and United

Page 4

0226.) United holds various certificates of public convenience and necessity and exemptions 

authorizing it to engage in scheduled foreign air transportation of persons, property and mail, and 

United is fit, willing and able to provide the service for which it seeks authority. (See, e.g., 

Order 2010-5-17 and Notices of Action Taken dated January 4, 2011 in Docket DOT-OST-2010-

0295 and November 29, 2010, November 4, 2010 and September 18, 2009 in Docket 

DOT-OST-2009-0192.) Both Continental and United currently offer services at both San 

Francisco and Guadalajara and can start services in this new city pair expeditiously. 

5. Continental proposes to operate daily, year-round service with B737-800 (16 First 

Class/144 Economy) or other appropriate aircraft in its fleet. Continental anticipates no 

difficulty in obtaining fuel for these services.

For the foregoing reasons, the Joint Applicants respectfully request that the Department 

grant Continental an exemption and designation authorizing it to operate scheduled foreign air 

transportation of persons, property and mail between San Francisco and Guadalajara, and grant 

United an exemption and code-share designation authorizing it to display its “UA*” designator 

code on Continental-operated San Francisco-Guadalajara services. These authorities should be

issued in the name of “Continental/and or United.” The Joint Applicants also ask that the 

Department grant them such other and different relief as is consistent with this application and 

with the public interest. 

Respectfully submitted,

DANIEL A. WEISS

Managing Director, International & 

Regulatory Affairs

UNITED AIR LINES, INC. AND

CONTINENTAL AIRLINES, INC.
CERTIFICATE OF SERVICE 

I hereby certify that I have this date served a copy of the foregoing document on all 

persons named below by causing a copy to be sent via email:

carl.nelson@aa.com

efaberman@wileyrein.com (Air Tran/Frontier)

howard_kass@usairways.com

jhill@dowlohnes.com (Hawaiian/Jet Blue)

jeff.morgan@delta.com

jyoung@yklaw.com (Spirit)

john.fredericksen@suncountry.com

pmurphy@lopmurphy.com (USA3000)

barbara.russell@virginamerica.com

dkirstein@yklaw.com (Spirit)

msinick@ssd.com (Alaska)

sascha.vanderbellen@delta.com

donna.kooperstein@usdoj.gov

dwight.moore@ustranscom.mil

john.allen@faa.gov

urskr@state.gov

john.martin@flysfo.com

kandace.bender@flysfo.com

Annalei Avanceña 

International Regulatory Advisor

March 11, 2011