BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

_____________________________________________

 ) 

Application of ) 

 ) 

YANGTZE RIVER EXPRESS AIRLINES CO., LTD. ) 

) Docket No. OST-2006-24629 

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

 ) 

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

_____________________________________________)

APPLICATION OF YANGTZE RIVER EXPRESS AIRLINES CO., LTD. 

FOR AMENDED EXEMPTION AUTHORITY

Communications with respect to this document should be addressed to: 

June 19, 2012 

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. Answers to the exemption application are due on July 5, 2012. 
BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

_____________________________________________

 ) 

Application of ) 

 ) 

YANGTZE RIVER EXPRESS AIRLINES CO., LTD. ) 

) Docket No. OST-2006-24629 

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

 ) 

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

_____________________________________________)

APPLICATION OF YANGTZE RIVER EXPRESS AIRLINES CO., LTD. 

FOR AMENDED EXEMPTION AUTHORITY

Pursuant to 49 U.S.C. §40109roma, 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 exemption authority granted previously 

via a Notice of Action Taken dated November 4, 2011 in this docket to authorize it to 

engage in scheduled foreign air transportation of property and mail on a Shanghai (PVG) 

– Anchorage (Ferry) – Chicago1

 (ORD) – Los Angeles 2 (LAX) – Shanghai (PVG) 

routing. 

 

1

 Yangtze 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 November 4, 2011. 2

 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. 
2

In support of this Application, Yangtze states as follows: 

1. Yangtze seeks to begin scheduled all-cargo operations on a PVG-ANC (Ferry)-

ORD-LAX-PVG routing in July of 2012, as soon as the Department grants this 

amended exemption authority. Yangtze will operate these flights using B747-F 

aircraft, and proposes to initially operate seven flights per week on this route. 

2. Yangtze currently holds authority from the Department to service Los Angeles 

and Chicago individually from Shanghai, but the Department has declined to 

authorize new coterminal operations by Chinese cargo carriers, citing lack of 

reciprocity as a key reason. However, the Civil Aviation Administration of China 

(“CAAC”) has recently granted new coterminal rights to a U.S. carrier 

substantially similar to those requested by Yangtze in this Application. See 

CAAC coterminalization approval for Evergreen International Airlines for a three 

year period dated May 25, 2012, attached hereto as Exhibit A. Yangtze 

respectfully submits that the CAAC’s recent action establishes the reciprocity 

necessary to make approval of the present Application appropriate. 

3. Yangtze is not seeking broad coterminal authority but simply reciprocal 

coterminal authorization on a single U.S. route (PVG-ORD-LAX-PVG), similar 

to the recent CAAC award for Evergreen for Shanghai-Chongqing 

coterminalization, two of the largest cities in China. 

4. Granting Yangtze’s request for an amended exemption is fully consistent with the 

Agreement between the Government of the United States of America and the 

People’s Republic of China Relating to Civil Air Transport, which authorizes 
3

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. 

5. A translated copy of Yangtze’s operating authority issued by the CAAC to 

conduct the proposed scheduled flights is attached hereto as Exhibit B. 

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

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

operations is attached as Exhibit C. 

7. 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). 

8. The verification required by 14 C.F.R. 302.4(b) is attached hereto as Exhibit D. 

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. 
WHEREFORE, based upon the foregoing information, Yangtze respectfully 

requests that it be granted an exemption 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

June 19, 2012 Counsel for Yangtze River Express Airlines Co., Ltd.

4
5

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 19th day 

of June, 2012, upon each of the parties below by electronic mail. 

David Henthorn 

International Aviation Safety Inspector 

Federal Aviation Administration 

david.e.henthorn@faa.gov

Sascha Vanderbellen 

Delta Air Lines, Inc. 

1275 K St., NW 

Washington, D.C. 20005 

sascha.vanderbellen@delta.com

Carl B. Nelson, Jr. 

Robert Wirick 

American Airlines, Inc. 

1101 Seventeenth Street, N.W. 

Suite 600 

Washington, D.C. 20036 

Carl.nelson@aa.com

Robert.wirick@aa.com

Bailey Leopard 

Federal Express Corporation 

1101 Pennsylvania Avenue, N.W., Suite 600 

Washington, D.C. 20004 

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

Anita Mosner 

Counsel for United Parcel Service Co 

Holland & Knight 

2099 Pennsylvania Avenue, N.W. 

Suite 100 

Washington, DC 20006

anita.mosner@hklaw.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

Steve Morrissey 

Counsel for United Air Lines 

steve.morrissey@united.com

Howard Kass 

U.S. Airways 

1401 H Street, NW, Suite 1075 

Washington, DC 20005 

howard.kass@usairways.com

Robert Silverberg 

Counsel for ABX Air, Inc. 

Silverberg, Goldman & Bikoff, LLP 

1101 30th Street, NW, Suite 120 

Washington, DC 20007 

rsilverberg@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 

403534296v2 
TABLE OF EXHIBITS 

Exhibit A Evergreen International Airlines Operating Authority from CAAC 

Exhibit B Operating Authority from CAAC 

Exhibit C Traffic Projections and Financial Forecast 

Exhibit D Verification 
Exhibit A 

Evergreen International Airlines Operating Authority from CAAC 

[Attached] 

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

Operation Permission 

CAAC foreign permission no. [2012] 48

Evergreen International Airlines, 

Civil Aviation Administration of China has considered your application of operating all 

cargo scheduled flight between New York and Chongqing. 

According to the Agreement between the Government of People’s Republic of China 

and United States of America Relating to Civil Air Transport, and route, aircraft types, 

and frequency which approves be CAAC, CAAC agrees your company to operate all 

cargo scheduled flights on the following route: 

Route: any point or points in United States of America, via any intermediate point to 

Chongqing and Shanghai, and beyond to any point outside of People’s Republic of 

China. It is not allowed to carry cargo from Chongqing to Shanghai. 

Your company must insure the availability of the Standard Airworthiness Certificate, 

Insurance Certificate, and others certificates. 

Your company has to finish the following matters before operating above route: 

1. According to the Examination Rules of Foreign Air Operator Operating Qualification 

(CCAR-129), your company has to apply to Easter Brach of CAAC for the Operation 

Specification of Foreign Air Carrier. Your company can operate flights in China after 

you obtaining approval of the Operation Specification of Foreign Air Carrier. 

2. Please send specific route and SLOT application to the Traffic Control Department 

of CAAC. 

3. Please send application of air cargo rates to the Development and Planning 

Department of CAAC. 

4. Please file seasonal flight schedule and send freight volume information to relative 

department of CAAC on time according to the Rules of Operation Permission of 

Foreign Air Carrier (CAAR-287) which was published on 11th of June, 2008. 

 

This permission is effective from the date which is issued, and becomes invalid on 31st

of March, 2015, or further notice by CAAC. The application to extend the term of validity 

of this permission has to be applied thirty days before this permission becomes invalid. 
(Seal of CAAC) 

25th of May, 2012 

CC. to: the Ministry of Foreign Affairs, Ministry of Public Security, Customs head office, 

State Administration for Industry and Commerce, State Administration of Quality 

Supervision, Inspection and Quarantine, Air Force, the Governmental of 

Chongqing, Department of Development and Planning, Department of 

International Affairs, Air Traffic Management Bureau, CAAC East China Branch, 

CAAC West-South China Branch, and Chongqing Airport 
Exhibit B 

Operating Authority from CAAC 

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

Civil Aviation Administration of China

(Stamp of CAAC) 

Approved by SHI Boli

Urgent CAAC NO. [2012] 1689

Permission for Yangtze River Express Airlines Scheduled Flight 

Adjustment 

Yangtze River Express Airlines, 

Civil Aviation Administration of China has discussed your application of becoming to the 

designated carrier of PVG-ANC-ORD-LAX-PVG. Your adjusted scheduled flight route 

and flight schedule are approved as below: 

Flight number: Y8-7477/8 

Flight route: PVG-ANC-ORD-LAX-PVG 

Frequency: 7 flights per week 

A/C type: B747-400F, A330-200F 

Operation date: 1st of July, 2012 – 27th of October, 2012 

 

Please apply the flight schedule to Air Traffic Management Bureau, and report to related 

department and authorities. Please prepare for these flights and make sure the flight 

safety. 

Department of Air Transport of CAAC 

May 30, 2012 

CC. to: Department of International Affairs, Air Traffic Management Bureau, CAAC 

East China Branch 

Traffic Control Department of CAAC, Phone: 64091902
Exhibit C 

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-ORD 40,000 3.8 

PVG-LAX 60,000 4.12 

LAX-PVG 30,000 0.8 

PVG-ORD-LAX-PVG 

(7 flights per week) 

ORD-PVG 20,000 0.7 

437.2 153,020 2,079 
Exhibit D 

Verification