UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, DC

Issued by the Department of Transportation on October 13, 2010 

 NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2010-0256 

_____________________________________________________________________________________ 

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). 

Joint Application of CONTINENTAL AIRLINES, INC. (Continental) and UNITED AIR LINES, 

INC. (United) filed 10/12/10 for: 

XX Allocation of seven (7) weekly U.S.-China combination frequencies to United to serve the Los 

Angeles-Shanghai market on a non-stop basis.1 2

 

Applicant reps: Jeffrey A. Manley (301) 229-8517 DOT Analyst: Thuy H. Cooper (202) 366-5423

 

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 13, 2010.

Action taken by: Paul L. Gretch, Director 

 Office of International Aviation 

XX The authority granted is consistent with the Air Transport Agreement, as amended, between 

the United States and the People’s Republic of China. 

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

indicated: XX Holder’s certificates of public convenience and necessity 

Conditions: Consistent with our standard practice, the frequencies allocated here are subject to our 

standard 90-day dormancy condition, wherein any frequency not operated for a period of 90 days (once 

inaugurated and for any reason other than seasonal use), will be deemed dormant and the allocation as to 

that frequency will expire automatically and the frequency will revert to the Department for reallocation. 

In addition, we will allow a 10-day leeway in the proposed start-up date for United. We will allow United 

 

1

 The Joint Applicants state that United will operate the Los Angeles-Shanghai services and Continental will codeshare on those flights using the carriers’ existing same-country code-share arrangement (see Notice of Action Taken 

dated September 4, 2009, in Docket DOT-OST-2009-0193). The Joint Applicants state that both United and 

Continental hold the underlying economic authority to operate services over the Los Angeles-Shanghai route. The 

Joint Applicants note that Los Angeles-Shanghai is an authorized city pair on United’s Certificate of Public 

Convenience and Necessity for Route 246 (see Docket DOT-OST-1997-3020, renewal application pending). The 

Joint Applicants further note that Continental holds underlying economic authority to offer service to both Los 

Angeles and Shanghai on separate routes (see Order 2007-12-26 for Continental’s authority to serve Shanghai and 

Order 2000-8-19 for Continental’s authority to serve Los Angeles). Continental has notified the Department that it 

will be integrating those two points in order to offer Los Angeles-Shanghai services by code sharing on United’s 

non-stop flights pursuant to Continental’s route integration authority (see Order 2006-1-1). 2

 United states that it plans to operate daily nonstop service beginning May 20, 2011. 
to inaugurate service with all of its frequencies within 10 days of May 20, 2011 (i.e., by May 30, 2011), 

the carrier’s proposed start-up date. Any frequency not inaugurated by May 30, 2011 will revert to the 

Department. 

The code-share operations conducted under this authorization are subject to the following conditions: 

(a) The code-sharing operations conducted under this authority must comply with 14 CFR 257 and 

with any amendment 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 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; and that the passenger liability of the 

operating carrier be unaffected; and 

(b) The authority granted here is specifically conditioned so that neither Continental nor United shall 

give any force or effect to any contractual provisions between themselves that are contrary to 

these conditions. 

Remarks: We acted on this application prior to the expiration of the answer period with the consent of all 

parties served. 

_____________________________________________________________________________________ 

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 

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 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