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OST-97-2845

Continental Airlines, Inc. (Exemption, San Antonio-Mexico City)

OST-97-2845 | August 22, 1997

Application for an Exemption

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Granting Continental San Antonio-Mexico City authority clearly serves the public interest. Continental will operate a daily nonstop roundtrip flight with 141-seat MD-80 aircraft beginning December 18, 1997. Continental's strong presence in San Antonio and in Mexico City will enable Continental to compete effectively with American's nonstop service scheduled to start on December 15 (according to its application filed with DOT) or on November 1 (according to its recent announcement). With both U.S.-flag Texas-Mexico carriers adding their flights to Mexicana flights between San Antonio and Mexico City, the market will be developed fully.

Answers are due by September 8, 1997

Service List

Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500


Continental Airlines, Inc. (Exemption San Antonio-Mexico City)

OST-97-2845 | September 8, 1997

Answer of United Air Lines, Inc.

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By its application, Continental requests exemption authority to operate scheduled services between San Antonio, TX, and Mexico City, Mexico. In order to operate these services, Continental will require a designation for this city-pair route under the U.S./Mexico bilateral air services agreement. As Continental notes in its application, two U.S. carriers -American and United -- are already designated for the San Antonio-Mexico City citypair route. In order for Continental, as well as the existing carriers, to operate SAT-MEX services, the governments of the U.S. and Mexico will have to agree to the designation of three carriers on this city-pair route.

Service List

Counsel: Ginsburg Feldman, Joel Burton, 202 637 9130


Continental Airlines, Inc. (Exemption, San Antonio-Mexico City)

OST-97-2845 | September 17, 1997

Reply of Continental Airlines

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The Department should issue a show-cause order this week proposing to replace United's designation for code-share service with Continental's designation for its own flights. Although Continental agrees with United that the Department should ask Mexico immediately to permit the designation of American and Continental for their own San Antonio-Mexico City flights as well as the designation of United to place its code on Mexicana's flights in that market, issuance of the show-cause order should expedite Mexico's decision to accept a third designation in the San Antonio-Mexico City market so Mexicana can continue to benefit from its relationship with United in that market.

Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500


Continental Airlines, Inc. / United Air Lines, Inc. and Compania Mexicana de Aviacion, S.A. de C.V. (San Antonio-Mexico / US-Mexico, Codeshare, Route Integration)

Order 97-11-26 | OST-97-2845 | OST-96-1988 | Issued and Served November 13, 1997

Order to Show Cause

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By this order we tentatively decide to (1) withdraw the designation and related regulatory authorities for United Air Lines, Inc., (United), to provide scheduled combination services in the San Antonio-Mexico City market pursuant to a code-share arrangement with Compania Mexicana de Aviacion, S.A. de C.V. (Mexicana); and (2) grant exemption authority to, and designate, Continental Airlines, Inc. (Continental), to provide foreign scheduled air transportation services in the San Antonio-Mexico City market with its own aircraft.

By: Patrick Murphy


Continental Airlines, Inc. / United Air Lines, Inc. and Compania Mexicana de Aviacion, S.A. de C.V. (US-Mexico)

OST-97-2845 | OST-96-1988 | November 20, 1997

Objections of United Air Lines to Order 97-11-26

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The only authorization properly at issue in this proceeding is, however, United's designation for SAT-MEX service, not the underlying exemption issued to United for SAT-MEX service or the statement of authorization issued to Mexicana. If a withdrawal is to be made in these circumstances, it is only the designation of United, which is used solely for code-share service, that needs to be withdrawn. There should be no need to withdraw other authority relating to code sharing since it may become possible for United and Mexicana to restore SAT-MEX codeshare service at a future date.

Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130


Continental Airlines, Inc. / United Air Lines, Inc. and Compania Mexicana de Aviacion, S.A. de C.V.

OST-97-2845 | OST-96-1988 | November 21, 1997

Answer of Continental Airlines

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No one has objected to the Department's proposal to award Continental authority to operate its own aircraft between San Antonio and Mexico City, although United's concurrence is contingent upon retention by United and Mexicana of their underlying operating authority to offer code-share services between San Antonio and Mexico City and reversion of the San Antonio-Mexico City designation to United if Continental discontinues service in the market with its own aircraft. In the interest of expediting action on its application, which has been pending for over 13 weeks, Continental does not object to the conditions suggested by United, at least on an interim basis, and urges the Department to act immediately on Continental's application.

Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500


Continental Airlines, Inc. / United Air Lines, Inc. and Compania Mexicana de Aviacion S.A. de C.V.

Order 97-12-10 | OST-97-2845 | OST-96-1988

Final Order

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We have decided to make final our tentative decisions in Order 97-11-26. Specifically, we will withdraw the designation and related regulatory authorities for United to provide scheduled foreign air transportation services of persons, property, and mail in the San Antonio-Mexico City market pursuant to a code-share arrangement with Mexicana, and (2) grant exemption authority and designate Continental to provide foreign scheduled air transportation services of persons, property, and mail in the San Antonio-Mexico City market with its own aircraft (direct carrier services). Continental's exemption authority will be effective immediately for a period of two years, and will be subject to the condition that it will remain effective only if Continental continues to serve the market with its own aircraft. It also will be subject to our standard 90-day dormancy notice condition.

By: Patrick Murphy


Continental Airlines, Inc.

OST-97-2845 October 6, 1999 Application for Renewal of Exemption

Scanned Copy

San Antonio- Mexico City
    Service List  

Continental currently operates daily roundtrip San Antonio-Mexico City flights utilizing B-737 aircraft.

Counsel:  Crowell Moring, Bruce Keiner, 202.624.2615


Continental Airlines, Inc.

OST-97-2845 Filed October 6, 1999
Issued October 26, 1999
Notice of Action Taken San Antonio, Texas- Mexico City, Mexico

Renewal of exemption under 49 U.S.C. 40109 to provide the following services: Scheduled foreign air transportation of persons, property, and mail between San Antonio, Texas, and Mexico City, Mex1ico. Continental requests that the authority be renewed for an indefinite period, or until final action on Continental's request to restore its San Antonio-Mexico City certificate authority in Docket OST-99-5868.

By:  Paul Gretch


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