UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on October 11 , 201 1

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 1996

- 1368

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 7/27 /11 for :

XX Renewal of e xemption for Continental and/or United Air Lines, Inc. (United) under 49 U.S.C. 40109 to provide the following service: 1

Scheduled foreign air transportation of persons, property, and mail between Houston, Texas, and

Mazatlan , Mexico , to allow the carrier to continue its seasonal large

- jet aircraft service in conjunction with Continental Express’ regional

- jet aircraft service in the market

. 2

Applicant R ep: Hershel I. Kamen (202) 624

- 261 7 DOT Analyst: Brett D. Kruger (202) 366

- 8025

D I S P O S I T I O N

XX Granted, subject to conditions (see below)

The above action was effective when taken: October 11

, 201 1

, through October 11 , 201 3 , or until 90 days after final Department action on the carrier’s corresponding certificate application in Docket s DOT

OST

- 1999

- 5868 and DOT

- OST

- 2005

- 22228 , whichever occurs earlier.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the av iation agreement between the United States and

Mexico.

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

indicated:

XX The holder ’ s certificates of public convenience and necessity

XX Standard Exemption Conditions (attached)

Remarks: The authority for which Continental requested renewal has expired, but has been kept in force pursuant to the provisions of the Administrative Procedure Act, 5 U.S.C. 558(c), as implemented by 14

CFR P art 377, pending action on its timely

- filed renewal application.

Conditions : The U.S.

- Mexico exemption authority granted is subject to the dormancy notice requirements set forth in condition 7 of Appendix A of Order 88

- 10

- 2, and the notice requirements f or seasonal/intermittent services

, as set forth in Order 96

- 11

- 24, at 5

.

The exemption authority granted may only be used in a manner consistent with the terms of the aviation agreement between the United States and Mexico.

1 Continental requests that this authority be renewed in the name “Continental and/or United,” consistent with

Or der 2011

- 3

- 14. We will grant this request.

2 Continental states in its application that Continental/United expects to resume large

- jet seasonal operations between Houston and Mazatlan in Spring 2012.On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant 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

ac tion 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 exte nt 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: www.regulations.govATTACHMENT

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 cert ifying 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 Par t 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 r equired 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.

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