UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, DC

Issued by the Department of Transportation on January 19, 2010 

 NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2009-0344 _____________________________________________________________________________________________________________________ 

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). 

Application of CONTINENTAL AIRLINES, INC. (CONTINENTAL) filed 12/15/09 for: 

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

Scheduled foreign air transportation of persons, property and mail between a point or points in the 

United States and a point or points in Japan, either nonstop or via an intermediate point or points in 

third countries which are not listed in Continental’s certificate or exemption authority, by code-sharing 

on flights operated by All Nippon Airways Co., Ltd. (ANA).

Joint Application of CONTINENTAL, CONTINENTAL MICRONESIA, INC. (Continental 

Micronesia), COLGAN AIR, INC. (Colgan), and ANA, filed 12/15/09 for: 

XX Statements of authorization in order to engage in the following code-share services: 1 2 3

(A) ANA requests a statement of authorization to display Continental’s “CO” designator code on 

flights operated by ANA between: (i) a point or points in Japan and a point or points in the 

United States, either nonstop or via an intermediate point or points in third countries; (ii) any 

points in Japan, limited to Continental traffic originating or terminating outside Japan; (iii) a 

point or points in the United States and a point or points beyond the United States; and (iv) a 

point or points in Japan and a point or points beyond Japan on a blind sector basis. 

(B) Continental requests a statement of authorization to display ANA’s “NH” designator code on 

flights operated by Continental between: (i) a point or points in the United States and a point or 

points in Japan, either nonstop or via an intermediate point or points in third countries; (ii) any 

points in the United States, limited to ANA traffic originating or terminating outside the United 

States; and (iii) a point or points in the United States and a point or points beyond the United 

States on a blind sector basis.

Applicant reps: Lorraine B. Halloway, (202) 624-2538 (Continental and Continental Micronesia), 

Brian T. Hunt (901) 346-6145 (Colgan), and Charles J. Simpson (202) 973-7926 (ANA)

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

 

1

 The joint applicants state that unless the context of their application for statements of authorization requires 

otherwise, the term “Continental” includes Continental Micronesia and Colgan. 

2

 Continental Micronesia and Colgan will not be placing their codes on flights operated by ANA, but ANA will be 

placing its code on flights operated by Continental Micronesia and Colgan. 

3 See Appendix C for list of initial code-share points. 
DISPOSITION

XX Approved, subject to conditions 

The above action granting exemption authority was effective when taken: January 19, 2010, through

January 19, 2012. The above action granting statements of authorization to the referenced carriers is 

effective: January 19, 2010, 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 1998 U.S.-Japan Memorandum of Understanding, 

as amended. 

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 necessity

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

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

__________________________________________________________________________________ 

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

Continental 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 in this notice was consistent 

with Department policy; (2) grant of the exemption authority to Continental was consistent with the 

public interest; and (3) grant of that authority would not constitute a major federal 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
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 

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 and ANA continue 

to hold the necessary underlying authority to operate the code-share services at issue, and (ii) the codeshare agreement providing for the code-share operations remains in effect.4

(b) Continental and/or ANA, 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-2009-0344. 

(c) Continental and/or ANA, 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-2009-0344.5

(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 this blanket statement 

of authorization should be construed as conferring upon Continental rights (including code-share, fifth 

freedom intermediate 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 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 by virtue of the blanket 

statement of authorization 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 be entitled to use the authority at issue.6

(f) The authority granted here is specifically conditioned so that neither Continental nor ANA 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. 

 

4

 For the purposes of the statements of authorization, unless otherwise indicated, the term “Continental” includes 

Continental Micronesia and Colgan. 

5

 We expect this notification to be received within ten (10) days after such non-effectiveness or of such decision. 6

 The notice in paragraph (b) above can be used for this notification. 
Appendix C 

INITIAL LIST OF CODE-SHARE POINTS