Continental Airlines, Inc.

OST-2008-0171 - Exemption - Houston-Queretaro

May 23, 2008

Application for an Exemption

Awarding Continental Houston-Queretaro exemption authority will permit Continental to provide seasonal Houston-Queretaro B-737 flights and to offer service either by placing its code on ExpressJet flights or by operating its own flights with larger aircraft to meet fluctuating demand. Granting the authority requested will enable Continental 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. Continental urges the Department to act promptly so Continental can secure foreign authority, make final operating plans and begin marketing its Houston-Queretaro flights well in advance of flight operations, which will commence with a once-weekly B-737 flight in December 2008 and expand to daily seasonal flights.

Continental holds various certificates of public convenience and necessity and exemptions authorizing it to engage in scheduled air transportation of persons, property and mail, and Continental is fit, willing and able to provide the service for which it seeks renewal(see e.g., Notice of Action Taken, Docket OST-2005-20122, March 9, 2007; Order 2005-3-24, Docket OST-2004-19077; Order OST-2002-7-31, Docket OST-96-2016; Order 2002-5-25, Dockets OST-98-4686 and 02-11760; Order 2001-12-8, Docket OST-96-1318; Order 2001-5-26, Docket OST-01-8910; and Order 2000-8-19, Docket OST-00-6841).

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

Filed May 23, 2008 | Issued June 17, 2008

Notice of Action Taken | Word

Scheduled foreign air transportation of persons, property, and mail between Houston, Texas, and Queretaro, Mexico. Continental states that it will provide seasonal service in the market, beginning December 2008.

Continental states that the requested authority will allow Continental to tailor its capacity to demand in the market, by shifting between large and small aircraft. Continental states that, in this regard, it will either serve the market with its own large aircraft or place its “CO* designator code on the small aircraft flights of Continental Express Airlines, Inc. d/b/a ExpressJet.

By: Paul Gretch