BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, DC

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

- OST

- 20 03

- 16302

: for an exemption pursuant to 49 U.S.C. § 40109 : (Houston

- Manzanillo) :
:

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

APPLICATION OF UNITED AIRLINES, INC. FOR RENEWAL

Communications with respect to this document should be sent 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@united.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 20005 (202) 521

- 4373 (202) 521

- 4363 steve.morrissey@united.com karine.faden@united.com
May 13, 2013 Thomas Newton Bolling Vice President and Deputy General Counsel James F. Conneely Counsel

- Regulatory UNITED AIR LINES, INC. 233 South Wacker Drive 11 th Floor

- HDQLD Chicago, IL 6060 6 ( 872 ) 825

- 8068 thomas.bolling@united.com james.conneely@united.com
Douglas P. Kelley Senior Attorney

- Regulatory, Antitrust & Competition UNITED AIR LINES, INC. 1600 Smith Street HQSLG

- 15 Houston, TX 77002 (713) 324

- 5156 doug.kelley@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 Airlines , Inc.BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, DC

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

- OST

- 20 03

- 16302

: for an exemption pursuant to 49 U.S.C. § 40109 : (Houston

- Manzanillo) :
:

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

APPLICATION OF UNITED AIRLINES, INC. FOR RENEWAL

United 1 applies pursuant to 49 U.S.C. § 40109 and Subpart C of the Department's Rules

of Practice for renewal of it s exemption from 49 U.S.C. § 41101 permitting it to provide
scheduled foreign air transportation of persons, property and mail between Houston and

Manzanillo, Mexico on a seasonal basis

. 2 United asks the Department to renew this authority

effective for a period of at least two years or until the Department acts on United’s application to

amend its Route 561 certificate to incorporate Houston

- Manzanillo authority. 3

United states as follows in support of this renewal application :

1 Common names are used for airlines.

2 By Order 2011

- 3

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

- Manzanillo exemption authority that is the subject of this renewal application, in the na me of “Continental Airlines, Inc. and/or United Air Lines, Inc.” Subsequently, by Order 2013

- 3

- 14, the Department reissued United’s certificate and other economic authorities on a blanket basis to reflect the completion of the United/Continental merger

an d integration process and United’s new corporate name “United Airlines, Inc.” effective as of March 31, 2013.

3 Continental applied for Houston

- Manzanillo certificate authority in Docket DOT

OST

- 19 99

- 5868 on November 30, 2004. When the Department acts on that application, United asks that the requested authority be issued to United

.Renewal Application of United

Page 2

1. United’s exemption authority to provide scheduled service between Houston and
Manzanillo on a seasonal basis was originally granted to Continental by Notice of Action Taken

dated November 5, 2003
, and such authority was most recently renewed by Notice o f Action

Taken dated July 12, 2011
, in this docket. Absent renewal, this authority will expire July 12,

2013

.
2. Renewal of United’s exemption authority will permit it to continue providing

year

- round Houston

- Manzanillo service, either by placing its code on United Express carrier
flights or by operating its own fli ghts with larger aircraft. T he authority requested will also

allow United to continue to tailor its capacity to demand by shifting between small and large

aircraft, to offer additional on

- line U .S.

- Mexico service
, and to increase the service options
available to the U.S. traveling public. Renewal of United’s exemption authority is consistent

with the U.S.

- Mexico bilateral aviation agreement.

3. United holds various certificates of public convenienc e 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
., Orders 2007

- 4

- 19 (Blanket Open Skies), 2010

- 5

- 17 (U.S.

- Mexico) and 201 3

- 3

- 14 ( reissuing United/Continental authorities to United) ; and Notices of

Action Taken dated February 6, 2013 in Docket DOT

- OST

- 2013

- 0019 (Austin

- San Jose del

Cabo) and July 18, 2012 in Docket DOT

- OST

- 2012

- 0113 (Chicago

- Monterrey). Pursuant to
Rule 24 of the Department’s Rules of Practice, United requests that the Department take official

notice of all information and data that ha ve been filed to establish its fitness.

4. United invokes the automatic extension provisions of 5 U.S.C. § 558(c), as
implemented by Part 377 of the Department’s Special Regulations, to continue this authority in
effect pending action on this renewal application.