Decision No. 364-A-2010

August 26, 2010

File No. M4835-38-7

Continental Airlines, Inc. (Continental) on behalf of itself and ExpressJet Airlines, Inc., carrying on business as, among others, Continental Express (Continental Express) and Colgan Air, Inc., carrying on business as, among others, Continental Connection (Continental Connection) and United Air Lines, Inc. (United), on behalf of itself and SkyWest Airlines, Inc., Shuttle America Corporation, Trans States Airlines, LLC and GoJet Airlines LLC, all carrying on business as, among others, United Express (United Express carriers) have applied to the Canadian Transportation Agency (Agency) for approvals to permit:

1. Continental to provide its scheduled international service between the United States of America and Canada by selling transportation in its own name on flights operated by United Express carriers; and
2. United to provide its scheduled international service between the United States of America and Canada by selling transportation in its own name on flights operated by Continental Express and Continental Connection.

These approvals are requested for an indefinite period.

It is noted that the Agency granted, by Decision No. 144-A-2010, an approval to permit Continental and United to provide their scheduled international services between the United States of America and Canada by selling transportation in their own name on each other's flights for an indefinite period.

Continental and United are licensed to operate scheduled international services in accordance with the Air Transport Agreement between the Government of Canada and the Government of the United States of America, signed on March 12, 2007 (Agreement).

The Agency has considered the applications and the material in support and is satisfied that they meet the requirements of section 8.2 of the Air Transportation Regulations (ATR).

With respect to the duration of the approvals requested, in light of the provisions of the Agreement, the Agency considers that it is appropriate to grant approval for an indefinite period.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act and section 8.2 of the ATR, approves the use by:

1. Continental of aircraft and flight crew provided by United Express carriers, and the provision by United Express carriers of such aircraft and flight crew to Continental, to permit Continental to provide its scheduled international service on licensed routes between the United States of America and Canada by selling transportation in its own name on flights operated by United Express carriers; and
2. United of aircraft and flight crew provided by Continental Express and Continental Connection, and the provision by Continental Express and Continental Connection of such aircraft and flight crew to United, to permit United to provide its scheduled international service on licensed routes between the United States of America and Canada by selling transportation in its own name on flights operated by Continental Express and Continental Connection.

These approvals are granted for an indefinite period from the date of this Decision, and are subject to the following conditions:

1. Continental and United shall continue to hold the valid licence authorities.
2. Continental and United shall apply their published tariffs, in effect, to the carriage of their traffic. Nothing in any commercial agreement between the air carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.
3. The air services approved shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
4. Continental, Continental Connection, Continental Express, United and the United Express carriers shall continue to comply with the insurance requirements set out in subsections 8.2(4), 8.2(5) and 8.2(6) of the ATR.
5. Continental, Continental Connection, Continental Express, United and the United Express carriers shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Continental and United shall provide the Agency with a copy of any new agreement or amendments to their code-sharing agreement, including any new or amended annex, without delay.

These approvals do not exempt Continental, Continental Connection, Continental Express, United and the United Express carriers from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• J. Mark MacKeigan