(Editor's note:  Continental Airlines has objected to Porter continuing to fly into the United States because they hold a monopoly on the Island Airport.  This is the Continental submission to the U.S. department of Transport.)

OBJECTION OF CONTINENTAL AIRLINES, INC.

In June 2007, the Department granted Porter1 Canada-U.S. exemption authority permitting it to institute U.S. service at Toronto City Centre Airport ("TCCA) based on representations from the Toronto Port Authority that it had "promptly granted US Airways' request for access to TCCA" and "has never denied a U.S. carrier access to TCCA."2 Two years and four months later, Porter continues to have a monopoly on transborder service at TCCA, and Continental's attempts to secure access to the airport for its Continental Connection service make it clear that any access to TCCA by a U.S. carrier is currently impossible. Under these circumstances, the Department should not award a permit to Porter unless and until competitive access at TCCA is secured by Continental. Continental states as follows in objection to the Department's proposal to award permit authority of indefinite duration to Porter without ensuring competitive access to TCCA.

1. Exemption authority was awarded to Porter over the objections of Continental, US Airways, Northwest, WestJet, United, Air Canada, the Regional Airline Association and the Air Transport Association of America that no authority for Porter service at TCCA should be awarded without ensuring that other airlines would have access at TCCA. Despite the "firm assurances" of the Toronto Port Authority, it is now clear that Porter's monopoly at TCCA cannot be broken for some time, if ever. Even if the Toronto Port Authority were willing to permit additional flights within the noise limits imposed on TCCA, there are currently no gates or other necessary facilities available to permit scheduled services by any U.S. or Canadian airline other than Porter. Although it is not inconceivable that the Toronto Port Authority will allow additional flights and that gates and other facilities might become available in the future, there are no assurances that competitive operations by U.S. airlines will ever be permitted.

2. Although Continental is continuing to seek access to TCCA to offer Continental Connection service there with the same aircraft type flown by Porter, until effective, competitive access to TCCA is granted the Department should not award Porter indefinite permit authority allowing Porter to maintain a monopoly on TCCA transborder service.

For the foregoing reasons, Continental objects to the Department's show-cause order proposing to award a foreign air carrier permit to Porter.

Respectfully submitted,

CROWELL & MORING LLP

Counsel for Continental Airlines, Inc.

November 3,2009