NEW

June 25, 1997

This serves as interim notice to the public of the action described below, taken orally by the Department official indicated; the confirming order or other decision document will be issued as soon as possible.

Application of Continental Airlines, Inc. filed 5/9/97 in Docket OST-97-2493 for:

XX Allocation of 7 weekly combination frequencies and exemption for two years under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail between New York/Newark and Moscow, Russia, and to combine this authority with Continental’s other exemption and certificate authority consistent with applicable international agreements. Continental states that it plans to begin the Newark-Moscow service on April 30, 1998, with DC-10-30 aircraft and needs the authority to begin marketing the service.

Delta Air Lines, Inc. and United Air Lines, Inc. filed answers to the application. Continental filed a reply. Delta stated that it had no objection to grant of Continental’s application so long as such approval would not affect Delta’s application for additional frequencies to increase its service in the market to a total of 23.5 weekly frequencies (Docket OST 96-1672). United also stated that it had no objection to Continental’s requests so long as that approval did not affect United’s existing authority to offer code-share service in the U.S.-Russia market. Continental urged the Department to grant its application for Newark-Moscow services.

Applicant rep.: R. Bruce Keiner, Jr. 202-624-2500 DOT analyst: Linda Senese, 202-366-2367

DISPOSITION

XX Granted in Part (subject to conditions, see below)
XX Balance (i.e., request for longer term authority) dismissed

The above action was effective when taken: June 25, 1997, through June 25, 1998

XX Under assigned authority (14 CFR 385) by:

Paul L. Gretch, Director
Office of International Aviation
(Petitions for review may be filed from now until
10 days after the confirming order/letter issues.
Filing of a petition shall not stay the effectiveness of
thisaction.)

XX Authority granted is consistent with the air transport agreement between the United States and the Russian Federation. The Annexes to the Agreement expired May 31, 1997. The Annexes continue to be observed on the basis of comity and reciprocity.

Except to the extent exempted or waived, this authority is subject to the terms, conditions, limitations indicated:

XX Holder’s certificate of public convenience and necessity
XX Standard exemption conditions (attached)

Special Remarks: By Notice served June 12, 1997, the Department informed all U.S. certificated air carriers that grant of this application and Delta’s application (Docket OST-96-1672) would use all of the frequencies currently available for U.S.-Russia Federation combination services and invited all U.S. carriers interested in serving the market to apply for the available frequencies. The Notice stated that should no other applications be filed by June 19, 1997, we intended to act affirmatively on the Continental and Delta applications. No additional applications were received. By Notice issued contemporaneously, we granted Delta’s application to increase its U.S.-Russia services.

Conditions: Consistent with Department practice, the 7 weekly frequencies allocated here are subject to the condition that they will expire automatically and the frequencies will revert back to the Department for reallocation if they are not used for a period of 90 days. The 90-day dormancy period will begin April 30, 1998, Continental’s proposed startup date for its Moscow services.

Dismissal: We dismissed that portion of Continental’s application to the extent it requested authority for a two-year period. It is our normal practice for limited entry markets to grant such initial authorizations for a period of one year, and we followed that practice here. Our dismissal is without prejudice to Continental filing for renewal of the authority at the appropriate time.