UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on January 1 5 , 2010

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2009

-- 0347

This se rves 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 COLGAN AIR, INC. (Colgan), filed 12/17/09, for:

XX Exemption for two ye ars under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail between Houston, Texas, and Monterrey, Mexico. Colgan states that it will serve the market on a seasonal basis beginning in th e second quarter 2010

. 1

Applicant rep: Brian T. Hunt (901) 346

- 6145 DOT Analyst: Linda L. Lundell (202) 366

- 2336

D I S P O S I T I O N

XX Granted, subject to conditions (see below) 2

The above action was effective when taken: January 1 5 , 2010

, through January 1 5 , 2012

.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

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

Mexico.

Except to the extent exempted or w aived, 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)

Conditions : The U.S.

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

- 10

- 2, and the notice requirements for

seasonal/intermittent services as set forth in Order 96

- 11

- 24, at 5.

The dormancy notice period will begin on April 1, 2010, the beginning of the second quarter 2010

- the quarter in which Colgan has proposed commencement of the subject service.

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

1 Colgan states that it will operate its proposed service carrying the code of Continental Airlines, Inc. (Continental),

as well as the code of other Star Allianc e carriers to meet seasonal demand.

2 We note that Colgan has indicated that, in addition to Continental, it plans to display the codes of other Star

Alliance carriers on its Houston

- Monterrey flights. Should it seek to do so, other regulatory requirements may need to be satisfied, which we will address by separate action as needed.transpo rtation 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 Colgan nor its cod e

- share partner(s) shall give any force or effect to any contractual provisions between themselves that are contrary to these conditions. 3

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applican t 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 was consistent with Department policy; (2) grant of the authority was consistent with th e 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 re voke 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 petit ions 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 W eb at: http://www.regulations.gov

3 See note 1, above.ATTACHMENT

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 CF R 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 requir ements 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. Gove rnment 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 fli ghts) 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 ser ved;

(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 wit h 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