UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on January 9 , 2014



### NOTICE OF ACTION TAKEN

-- DOCKET S DOT

- OST

- 20 12

- 0185

, DOT

- OST

- 20 04

- 17665

, DOT

- OST

- 2013

- 0079 and DOT

- OST

- 20 05

- 23074

________________________________________________________________________________________________ ________ This serves as notice to the public of the action described below, taken by the Departmen t official indicated (no additional confirming order will be issued in this matter).

Applicant : CHINA EASTERN AIRLINES CORPORATION LIMITED D ate Filed: October 11 , 2013

Relief requested:

Docket DOT

- OST

- 20 12

- 0185 : Renewal of e xemption from 49 USC § 41301 to permit the applicant to conduct

scheduled foreign air transportation of persons, property, and mail between Beijing, People ’ s Republic of China, and Saipan, Commonwealth of the Northern Mariana Islands.

If renewal, date and citation of last action: November 1 , 2012, in the referenced docket.

Docket DOT

- OST

- 20 04

- 17665 : Renewal of e xemption from 49 USC §41301 to permit the applicant to conduct

scheduled foreign air transportation of persons, property, and mail between Shanghai, People ’ s Republic of China

, and Saipan, Commonwealth of the Northern Mariana Islands.

If renewal, date and citation of last action: April 1 0 , 201 3 , in the referenced docket.

Do cket DOT

- OST

- 201 3

- 00 79 : Renewal of exemption from 49 USC §41301 to permit the applicant to conduct scheduled foreign air transportation of persons, property, and mail between any point or points in the People’s Republic of China

, and San Francisco, California, with all flights operating via Shanghai

.

If renewal, date and citation of last action: April 19, 2013

, in the referenced docket

.

Docket DOT

- OST

- 2005

- 23074 : Renewal of exemption from 49 USC §41301 to permit the applicant to conduct

scheduled foreign air transportation of persons, property, and mail between a point or points in the People’s Republic of China, and Los Angeles, California, with all flights operating via Shanghai and/or Beijing.

The applicant requests that its exemption authorit ies be granted for a two

- year period.

If renewal, date and citation of last action: June 12, 2013, in the referenced dockets.

Applicant representative s : Evelyn D. Sahr and Beth A. FitzPatrick, 202

- 659

- 6600

DOT analyst: Catherine C. Brown , 202

- 366

- 2390

Responsive pleadings: None.

DISPOSITION

Action: Approved in part (one

- year grant), remainder (req uest for longer

- term authority) dismissed. 1

Action date: January 9 , 2014

1 We note that China Eastern sought renewal of each exemption for a two

- year period. The one

- year duration of the authority we granted is consistent with our usual policy of granting exemption authority in the circumstances presented.Effective dates of authority granted: January 9 , 2014 , through January 9 , 2015

.

Basis for approval (bil ateral agreement/reciprocity): United States

- China Air Transport Agreement.

Except to the extent exempted/waived, th is authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached), and to the otherwise

- applicable terms, conditions, and limitations of China Eastern

Airlines foreign air carrier permit (Order 9 2

- 11

- 7 ).

Action taken by: Paul L. Gretch, Director, Office of International Aviation

________________________________________________________________________________________________________ Under authority assigned by the Department in its regulations, 14 CFR Pa rt 385, we found that (1) our action was consistent with Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consist ent with the public interest; and (4) grant of the authority would not con stitute a major regulatory action under the Energy Policy and Conservation Act of 1975. To the extent not granted/deferred/dismissed, we denied all requests in the referenced Docket s

. We may amend, modify, or revoke the authority granted in this Notice a t any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulati ons, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effective when taken, and the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

### Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant(s) shall:

(1) Not conduct any operations unless it holds a currently effective authorization from its homeland for such operations, and it has filed a copy of such authorization with the Department;

(2) Comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1546 or 1550, as applicable. To assure compliance with all applicable U.S. Government requirements concerning security, the holder sha ll, before commencing any new service (including charter flights) from a foreign airport that would be the holder’s last point of departure for the United States,

contact its International Industry Representative (IIR) (formerly referred to as Internationa l Principal Security Inspector) to advise the I IR of its plans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such airport(s) to be served ;

(3) Comply with the requirements for minimum insurance coverage contained in 14 CFR Part 205, and, prior to the commencement of any operations under this authority, file evidence of such coverage, in the form of a completed OST Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS

- 260), Flight Standards Service (any changes to, or termination of, insurance also shall be filed with that office);

(4) Not operate aircraft under this authority unless it complies with operational safety requirements at least equivalent

to An nex 6 of the Chicago Convention;

(5) Conform to the airworthiness and airman competency requirements of its Government for international air services;

(6) Except as specifically exempted or otherwise provided for in a Department Order, comply with the requirements of 14 CFR Part 203, concerning waiver of Warsaw Convention liability limits and defenses;

(7) Agree that operations under this authority constitute a waiver of sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with respect t o those actions or proceedings instituted against it in any court or other tribunal in the United States that are: (a) based on its operations in international air transportation that, according to the contract of carriage, include a point in the United St ates as a point of origin, point of destination, or agreed stopping place, or for which the contract of carriage was purchased in the United States; or (b) based on a claim under any international agreement or treaty cognizable in any court or other tribun al of the United States. In this condition, the term "international air transportation" means "international transportation" as defined by the Warsaw Convention, except that all States shall be considered to be High Contracting Parties for the purpose of this definition;

(8) Except as specifically authorized by the Department, originate or terminate all flights to/from the United States in its homeland;

(9) Comply with the requirements of 14 CFR Part 217, concerning the reporting of scheduled, nonschedul ed, and charter data;

(10) If charter operations are authorized, except as otherwise provided in the applicable aviation agreement, comply with the Department's rules governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such othe r reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department, with all applicable orders or regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

This au thority shall not be effective during any period when the holder is not in compliance with the conditions imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval

under Title 49 of the U.S. Code.

1 2/2007