BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

---------------------------------------- ----------------------- Application of :
: CO NTINENTAL AIRLINES, INC. :
: Docket DOT

- OST

- 2000

- 7448 for an exemption under 49 U.S.C. § 40 109 : (New York/Newark

- Acapulco, Puerto Vallarta : and San Jose del Cabo) :

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

APPLICATION OF UNITED AIR LINES, INC. FOR RENEWAL
Communications with respect to this document should be sen t to:

Hershel I. Kamen Senior Vice President

- Alliances, Regulatory and Policy Daniel A. Weiss Managing Director

- International Affairs and Regulatory UNITED AIR LINES, INC. 77 West Wacker Drive HDQIZ Chicago, IL 60601 (312) 997

- 7573 hershel.kamen@unite d.com dan.weiss@united.com
Steve Morrissey Managing Director

- Regulatory Affairs and Policy Karine R. Faden Managing Counsel

- Regulatory, Antitrust & Competition UNITED AIR LINES, INC. 1225 New York Avenue, N.W. Suite 1100 DCAIZ/DCALD Washington, DC 2 0005 (202) 521

- 4373 (202) 521

- 4363 steve.morrissey@united.com karine.faden@united.com
January 3, 2013 Thomas Newton Bolling Vice President and Deputy General Counsel Jonathan T. Linde Senior Counsel

- Regulatory, Antitrust & Competition UNITED AIR LINES, INC. 77 West Wacker Drive HDQLD Chicago, IL 60601 (312) 997

- 8341 thomas.bolling@united.com jonathan.linde@united.com
Lorraine B. Halloway Gerald F. Murphy CROWELL & MORING LLP 1001 Pennsylvania Avenue, N.W. Washington, DC 20004 (202) 624

- 2500 lhalloway@ crowell.com gmurphy@crowell.com

Counsel for United Air Lines, Inc.BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

--------------------------------------------------------------- Application of :
: CONTINENTAL AIRLINES, INC. :
: Docket DOT

- OST

- 2000

- 7448 for an exemption under 49 U.S.C. § 40109 : (New York/Newark

- Acapulco, Puerto Vallarta : and San Jose del Cabo) :

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

APPLICATION OF UNITED AIR LINES , INC. F OR RENEWAL

United 1 appli es pursuant to 49 U.S.C. § 40109 and Subpart C of the Department’s Rules

of Practice for renewal of its exemption from 49 U.S.C. § 41101 permitting it to provide

scheduled foreign air transportation of persons, property and mail b etween New York/Newark
and Acapulco, Puerto Vallarta and San Jose del Cabo, Mexico, on a seasonal basis

. 2 United asks
the Department to renew this authority effective until the Department grants United ’s application

for New York/Newark

- Acapulco/Puerto Val larta/San Jose del Cabo certificate authority

. 3

United states as follows in support of its renewal application:

1. United ’s exemption authority to provide scheduled service between New

York/Newark and Acapulco
, Puerto Vallarta and San Jose del Cabo on a seasonal basis was

1 Com mon names are used for airlines.

2 By Order 2011

- 3

- 14, the Department reissued authorities previously issued only to United or Continental, including the Newark/Newark

- Acapulco/Puerto Vallarta/San Jose del Cabo exemption authority that is the subject of t his renewal application, in the name of “Continental Airlines, Inc. and/or United Air Lines, Inc.”

3 Continental applied for an amendment to its Route 561 certificate to add New York/Newark

- Acapulco/Puerto Vallarta/San Jose del Cabo authority on March 2 0, 2002 in Docket DOT

- OST

- 2002

- 11894. When the Department acts on that application, United asks that t he requested authority be issued in the name of “Continental Airlines, Inc. and/or United Air Lines, Inc.”Application of United

Pag e 2

originally granted to Continental by Notice of Action Taken June 5, 2000 in this docket
, and
such authority was most recently renewed by Notice of Action Taken March 4, 2011 in t his

docket . Absent renewal, United ’s New York/Newark

- Acapu lco/Puerto Vallarta/San Jose del

Cabo e xemption authority will expire on March 4, 2013

.
2. Renewal of United’s exemption authority is fully consistent with the terms of the

U.S.

- Mexico bilateral aviation agreement, as amended, and is clearly in the publi c interest. No
other U.S. airline offers nonstop service between Newark Liber t y International Airport and

Puerto Vallarta or San Jose del Cabo , and United has been the only U.S. airline to do so between
Newark Liberty and Acapulco

. 4 Renewal of United’s e xemption authority will allow it to

continue offering travelers and shippers options via United’s hub at N ewark Liberty which

would otherwise be unavailable to them.

3. United holds various certificates of public convenience and necessity and
exemptions authorizing it to engage in scheduled air transportation of persons, property and mail
between the U.S. and foreign countries , and United is fit, willing and able to provide the service

for which it seeks renewal

. See
, e.g., Order s 2007

- 4

- 19 (Blanket Open Skies), 2010

- 5

- 17 (U.S.

-

Mexico ) and 2011

- 3

- 14 (Continental/United route transfer); and Notice s of Action Taken dated
July 18, 2012 in Docket DOT

- OST

- 2012

- 0113 ( Chicago

- Monterrey ) and October 11, 2011 in

Docket DOT

- OST

- 1996

- 1368 ( Houston

- Mazatlan ). Pursua nt to Rule 24 of the Department’s
Rules of Practice, United requests that the Department take official notice of all data that has

been filed to establish its fitness.

4 Since the U.S.

- Mexico bilateral air trans port services agreement permits three U.S. carriers to serve each of the three named Mexico markets, at least one unused U.S. carrier operating designation remains available for each of the three routes.