BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

_____________________________________________

 ) 

Application of ) 

 ) 

YANGTZE RIVER EXPRESS AIRLINES CO., LTD. ) 

 ) Docket No. OST-2006-24629 

For an exemption under 49 U.S.C. §40109 and an ) OST-2006-24630 

amended Foreign Air Carrier Permit pursuant to ) 

49 U.S.C. §41302 ) 

(China-U.S. Scheduled Cargo Service) ) 

_____________________________________________)

APPLICATION OF YANGTZE RIVER EXPRESS AIRLINES CO., LTD. 

FOR AN EXEMPTION AND AMENDED FOREIGN AIR CARRIER PERMIT

Communications with respect to this document should be addressed to: 

March 22, 2011 

Josh Romanow 

Justin Bintrim 

PILLSBURY WINTHROP 

 SHAW PITTMAN LLP 

2300 N Street, N.W. 

Washington, D.C. 20037 

Tel: (202) 663-8000 

Fax: (202) 663-8007 

E-mail: romanow@pillsburylaw.com 

 justin.bintrim@pillsburylaw.com 

 

Counsel for Yangtze River Express 

Airlines Co., Ltd. 

NOTE: Any person who wishes to support or oppose this Application may file an answer 

and serve that answer on counsel identified above and all persons served with a copy of this 

application. Yangtze River Express asks for expedited processing of this application and 

will poll interested parties and advise the Department of the results. Answers to the 

exemption application are due on April 6, 2011; answers to the amended foreign air carrier 

permit application are due on April 12, 2011. 
2

BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

_____________________________________________

 ) 

Application of ) 

 ) 

YANGTZE RIVER EXPRESS AIRLINES CO., LTD. ) 

 ) Docket No. OST-2006-24629 

For an exemption under 49 U.S.C. §40109 and an ) OST-2006-24630 

amended Foreign Air Carrier Permit pursuant to ) 

49 U.S.C. §41302 ) 

(China-U.S. Scheduled Cargo Service) ) 

_____________________________________________)

APPLICATION OF YANGTZE RIVER EXPRESS AIRLINES CO., LTD.

FOR AN EXEMPTION AND AMENDED FOREIGN AIR CARRIER PERMIT

Pursuant to 49 U.S.C. §§40109 and 41302, Part 211 of the Department’s 

economic regulations, and the Department’s rules of practice, Yangtze River Express 

Airlines Co., Ltd. (“Yangtze”), a cargo air carrier of the People’s Republic of China, 

respectfully requests that the Department amend Yangtze’s foreign air carrier permit to 

allow it to engage in scheduled foreign air transportation of property and mail on a 

Shanghai (PVG) - Qingdao (TAO) – Los Angeles (LAX) – Shanghai (PVG) routing. 

Additionally, Yangtze respectfully requests that the Department grant exemption 

authority under 49 U.S.C. §40109 to permit it to engage in scheduled foreign air 

transportation of property and mail on the above-mentioned PVG-TAO-LAX-PVG route 

to the extent necessary so that it may exercise all of the rights requested in this 

Application prior to the issuance of an amended foreign air carrier permit. Yangtze 

requests that the orders be issued under the streamlined procedures set forth in the 
3

Department’s August 23, 2005 Notice (Docket No. OST-2005-22228). In support of this 

Application, Yangtze states as follows: 

1. By Order 2008-4-27 (Apr. 27, 2008), the Department issued a foreign air carrier 

permit to Yangtze authorizing it to engage in scheduled foreign air transportation 

of property and mail between Shanghai, People’s Republic of China, and the coterminal points Anchorage, Alaska; Boston, Massachusetts; Los Angeles, 

California; and New York, New York. 

Yangtze also holds exemption authority to conduct scheduled air transportation of 

property and mail on the following routes: 1) Shanghai - Dallas/Fort Worth; 

2) Shanghai – Chicago; and (3) Shanghai – San Francisco. Notice of Action 

Taken dated October 20, 2010. 

Yangtze also holds exemption authority to engage in charter foreign air 

transportation of property and mail between points in China and points in the 

United States. Notice of Action Taken dated January 21, 2011.1

 

2. Authority Requested: Yangtze plans to begin scheduled all-cargo operations on 

the PVG-TAO-LAX-PVG routing on or about March 30, 2011. Yangtze will 

operate these flights using B747-400SF aircraft, and proposes to initially operate 

three flights per week on this route. 

3. Granting Yangtze’s request for an exemption and amended foreign air carrier 

permit is fully consistent with the Agreement between the Government of the 

 

1

 In the same Notice, Yangtze was also granted a Statement of Authorization to operate a series of 54 oneway third and fourth freedom charters on a Shanghai (PVG) - Qingdao (TAO) -Los Angeles (LAX) – 

Shanghai (PVG) routing between January 21, 2011 and March 28, 2011. 
4

United States of America and the People’s Republic of China Relating to Civil 

Air Transport, which authorizes designated airlines to operate cargo services from 

any point or points in the People’s Republic of China to any point or points in the 

United States of America open to scheduled international operations. 

4. Yangtze hereby incorporates by reference information previously filed with the 

Department in its foreign air carrier permit and exemption applications in Docket 

OST-2006-24629, as the information provided is substantially unchanged. 

5. A copy of Yangtze’s Air Operating Certificate is incorporated by reference from 

its April 25, 2006 application. See Docket OST-2006-24629. 

6. A translated copy of Yangtze’s operating authority issued by the General 

Administration of Civil Aviation of China (CAAC) to conduct the proposed 

scheduled flights is attached hereto as Exhibit A. 

7. Yangtze will not receive financial assistance from the government of China to 

operate the proposed flights.

8. An estimate showing the total traffic and the financial results of the proposed 

PVG-TAO-LAX-PVG scheduled service for the first full year of normal 

operations is attached as Exhibit B. 

9. Grant of the authority sought herein will not result in a near term increase in fuel 

consumption of ten million gallons or more, and therefore will not comprise a 

“major regulatory action” under the Energy Policy and Conservation Act of 1975, 

as defined at 14 C.F.R. § 313(a)(1). 
5

10. Yangtze has not been involved in any safety or tariff violations or any fatal 

accidents in the past five years.

11. Yangtze’s maintenance program continues to comply with the provisions of 

ICAO Pilots and Airmen Annexes 1, 6 (Part 1) and 7. 

12. Verification: The verification required by 14 C.F.R. 302.4(b) is attached hereto as 

Exhibit C. 

For the reasons set forth above, Yangtze is fully qualified to operate the services 

for which authority is herein requested, and grant of the authority will serve the public 

interest. Yangtze asks that the requested exemption remain in place for one year, or until 

the Department issues an effective amended permit authorizing the requested authority. 
6

WHEREFORE, based upon the foregoing information, Yangtze respectfully 

requests that it be granted an exemption and amended foreign air carrier permit to engage 

in scheduled foreign air transportation of property and mail as more fully described 

above. 

Respectfully submitted, 

Josh Romanow 

Justin Bintrim 

PILLSBURY WINTHROP 

 SHAW PITTMAN LLP 

2300 N Street, NW 

Washington, DC 20037 

Phone: (202) 663-8000 

Fax: (202) 663-8007 

Email: romanow@pillsburylaw.com 

justin.bintrim@pillsburylaw.com

March 22, 2011 Counsel for Yangtze River Express Airlines Co., Ltd.
7

CERTIFICATE OF SERVICE

I hereby certify that a copy of the foregoing application of Yangtze River Express Airlines Co., 

Ltd. for an amended foreign air carrier permit and exemption has been served this the 22nd

day of March, 2011, upon each of the parties below by electronic mail. 

Bryan Ashley 

FAA SFO FSDO/IFO 

831 Mitten Road, Room 105 

Burlingame, CA 94010 

Bryan.H.Ashley@faa.gov

Sametta C. Barnett 

Sascha Vanderbellen 

Jeff Morgan 

Delta Air Lines, Inc. 

1275 K St., NW 

Washington, D.C. 20005 

sametta.c.barnett@delta.com

sascha.vanderbellen@delta.com

jeff.morgan@delta.com

Carl B. Nelson, Jr. 

Associate General Counsel 

American Airlines, Inc. 

1101 Seventeenth Street, N.W. 

Suite 600 

Washington, D.C. 20036 

Carl.nelson@aa.com

Nancy S. Sparks 

Bailey Leopard 

Federal Express Corporation 

1101 Pennsylvania Avenue, N.W., Suite 600 

Washington, D.C. 20004 

nssparks@fedex.com

gbleopard@fedex.com

Kevin P. Montgomery 

Polar Air Cargo, Inc. 

1747 Pennsylvania Avenue, N.W. 

Suite 875 

Washington, DC 20006 

Kevin.montgomergy@polaraircargo.com

Russell E. Pommer 

Associate General Counsel & Sr. Director 

 Regulatory Affairs 

Atlas Air Inc. 

1747 Pennsylvania Avenue, NW, Suite 875 

Washington, D.C. 20006 

rpommer@atlasair.com

Sam White 

Ranjit Seth 

Evergreen International Airlines, Inc. 

1401 New York Avenue, NW, Suite 530 

Washington, DC 20005-2147 

sam.white@evergreenairlines.com

ranjit.seth@evergreenairlines.com

David L. Vaughn 

Counsel for United Parcel Service Co 

Kelley Drye & Warren LLP 

Washington Harbor 

3050 K Street, NW, Suite 400 

Washington, DC 20007-5108 

dvaughan@kelleydrye.com

Malcolm L. Benge 

Counsel for North American 

Airlines/World Airways 

Zuckert Scoutt & Rasenberger, L.L.P. 

888 17th Street, N.W., Suite 700 

Washington, D.C., 2006-3309 

mlbenge@zsrlaw.com
Dan Weiss 

Continental Airlines 

1600 Smith Street, Ste. HQSGV 

Houston, TX 77002 

dan.weiss@coair.com

Jeffrey Manley 

Counsel for United Air Lines 

jeffrey.manley@united.com

Howard Kass 

U.S. Airways 

1401 H Street, NW, Suite 1075 

Washington, DC 20005 

howard.kass@usairways.com

Robert Silverberg 

Jeff Johnson 

Counsel for ABX Air, Inc. 

Silverberg, Goldman & Bikoff, LLP 

1101 30th Street, NW, Suite 120 

Washington, DC 20007 

rsilverberg@sgbdc.com

jjohnson@sgbdc.com

Mark W. Atwood 

Counsel for Kalitta Air 

Cozen O’Connor 

1627 I Street, NW 

Suite 1100 

Washington, D.C. 20006 

matwood@cozen.com

/s/ 

Melinda A. Hernandez 
TABLE OF EXHIBITS 

Exhibit A Operating Authority from CAAC 

Exhibit B Traffic Projections and Financial Forecast 

Exhibit C Verification 
Exhibit A 

Operating Authority from CAAC 

The translation of the approval from CAAC will be listed as follow: 

Civil Aviation Administration of China

CAAC NO. [2011] 21

Permission of PVG-TAO-LAX (round trip) ALL Cargo Route 

Yangtze River Express Airlines Co., Ltd,: 

Civil Aviation Administration of China has discussed your application of 《Application of 

becoming to the Designated Cargo Carrier of PVG-TAO-LAX round trip》(Yangtze 

River Express Airlines [2011]53). 

According to the transport agreements and protocol between Chinese and the United 

States governments, CAAC approves your application of operating all cargo route PVGTAO-LAX round trip three flights per week from March of 2011. 

Please apply the flight schedule based on the rules, and operate this route based on the 

approved operation dates, frequency and transport capability. 

This permission takes effect from the date this permission is issued, and is valid until 

further notice. 

Civil Aviation Administration of China 

March 16, 2011 

(Seal of CAAC) 
Exhibit B 

Traffic Projections and Financial Forecast 

Flight Route Flight Leg Cargoweight 

(KG)

Rates 

(All-in) 

(US$)

Income 

(single 

flight) 

(US$000)

Income 

(year) 

(US$ 000)

Profit/loss 

(year) 

(US$000)

PVG-LAX 70,000 4.5 

TAO-LAX 20,000 4.2 

PVG-TAO-LAX-PVG 

(3 flights per week) 

LAX-PVG 15,000 0.8 

411 64,116 4,170