Continental Airlines, Inc.

June 26, 2003

OST-03-15519 - US-Israel Third Country Codeshare

Application

Applies for allocation of the U.S. -Israel third-country codeshare opportunity that became available under the U.S.-Israel bilateral aviation agreement on April 1, 2003, to be used in connection with Continental's codeshare arrangement with KLM. Continental asks the Department to grant the requested frequency allocation for an indefinite period.

Counsel: Crowell Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com

July 2, 2003

OST-03-15440 - Phase 3 Israel Codeshare
OST-03-15519 - American - US-Israel Codeshare
OST-03-15516 - Continental - US-Israel Codeshare

Consolidated Answer

Delta Air Lines, Inc. hereby answers in opposition to the applications of American Airlines, Inc. and Continental Airlines, Inc. for U.S.-Israel codeshare designations. Delta opposes these applications, because they are mutually exclusive to Delta's request for the same authority. The Department is required to conduct a carrier selection proceeding to consider merits of the pending applications. See, Ashbacker Radio Corp. v. FCC, 326 U.S. 327 (1945).

Counsel: Shaw Pittman, Alexander Van de Bellen, 202-663-8060

August 29, 2003

Supplement of Continental Airlines

Continental proposes to institute its U.S.-Israel codeshare service with KLM on October 4, 2003, or within 30 days of obtaining foreign governhient approvals. Continental proposes to institute service initially by providing nonstopto-nonstop on-line Continental connections between Houston and New York/Newark (Liberty International) and Tel Aviv via Amsterdam serving local Houston and New York/Newark passengers as well as passengers connecting at these Continental hubs. The total elapsed travel time (including layover time) for New York/NewarkAmsterdam- Tel Aviv roundtrip flights is 37 hours, 30 minutes (20 hours, 15 minutes eastbound; 17 hours, 15 minutes westbound); for Houston-Amsterdam-Tel Aviv, the total roundtrip elapsed time is 43 hours, 50 minutes (22 hours eastbound, 21 hours, 50 minutes westbound).2 Continental operates its Houston and New York/Newark-Amsterdam flights daily, and KLM currently operates its Amsterdam-Tel Aviv flights five days per week. Continental's New York/NewarkAmsterdam flights are operated with B-767-400 (235 seats) or B-777 (283 seats) aircraft, while its Houston-Amsterdam flights are operated with B-767-200 (174 seats) or B-767-400 (235 seats) aircraft.

The remaining information requested by the Department has already been submitted in Continental's June 26, 2003 application in Docket OST-03-15519.

Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2615