### BEFORE THE U.S. 

### DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of JIN AIR COMPANY, LIMITED For an exemption pursuant to 49 U.S.C. § 40109 and a foreign air carrier permit pursuant to 49 U.S.C. 

### § 41301 (Republic ofKorea- U.S.) 

### ) 

### ) ) ) 

### ) ) ) Docket No. OST-2009-0310



# __________________________________) Application of JIN AIR COMPANY, LIMITED For an exemption pursuant to 49 U.S.C. § 40109 (Republic ofKorea- U.S.) 

### ) ) ) 

### ) ) ) Docket No. OST-2012-0194



# __________________________________) APPLICATION OF JIN AIR COMPANY, LIMITED FOR RENEWAL OF EXEMPTION AND AN AMENDED FOREIGN AIR CARRIER PERMIT
Communications with respect to this document should be addressed to: Kye In Park General Manager, Planning & Strategy Team Jin Air Company, Limited 653-25 Deungchon-dong Gangseo-gu, Seoul, Republic ofKorea Phone: +82-2-3660-5823 Fax: +82-2-3660-5999 Email: kipark@jinair.com

October 3, 2014 William H. Callaway, Jr. Jonathon H. Foglia Zuckert Scoutt & Rasenberger LLP 888 Seventeenth Street, NW Washington, D.C. 20006 Phone: + 1-202-298-8660 Fax: + 1-202-342-0683 Email: whcallaway@zsrlaw.com jhfoglia@zsrlaw.com Counsel for Jin Air Company, Limited



### NOTE: Any person may support or oppose this Applicationby filing an answer and serving a copy of that answer on counsel for Jin Air Company, Limited and upon each person served with this Application. Answers are due on or before October 24, 2014.

### BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of ) ) JIN AIR COMPANY, LIMITED ) 

### ) Docket No. OST-2009-0310 For an exemption pursuant to 49 U.S.C. § 40109 ) and a foreign air carrier permit pursuant ) to 49 U.S.C. § 41301 (Republic ofKorea- U.S.) ) 

## __________________________________) Application of ) ) JIN AIR COMPANY, LIMITED ) ) Docket No. OST-2012-0194 For an exemption pursuant to 49 U.S.C. 

### § 40109 ) (Republic ofKorea- U.S.) )



# __________________________________) APPLICATION OF JIN AIR COMPANY, LIMITED FOR RENEWAL OF EXEMPTION AND AN AMENDED FOREIGN AIR CARRIER PERMIT Jin Air Company, Limited ("Jin Air"), a foreign air carrier ofthe Republic ofKorea, hereby applies, under the provisions of49 U.S.C. §§ 41301 and 40109, Subparts Band C ofthe Department's Rules ofPractice in Proceedings (14 C.F.R. §§ 302.201 and 302.301, 

### et seq.), 14 C.F.R. 

### § 211.21, and the Department's streamlined licensing procedures, 1 

### for (i) a renewed exemption and (ii) an amended foreign air carrier permit authorizing Jin Air to engage in scheduled foreign air transportation ofpersons, property and mail from points behind the Republic of Korea via the Republic ofKorea and intermediate points to a point or points in the United States and beyond, as more fully described herein. Jin Air requests that the renewed exemption authority requested herein remain in effect until such time as the Department issues

an effective amended foreign air carrier permit to Jin Air.

1 See Notice in Docket OST-2005-22228 (Aug. 23, 2005).


### 3

### Jin Air's requested authorities are fully consistent with the terms ofthe Air Transport Agreement (the "Agreement") between the United States and the Republic ofKorea, a liberalized "Open Skies" treaty. By way ofexplanation, airlines designated by the Government ofthe Republic ofKorea under the Agreement may provide scheduled air transportation "from points behind the Republic of Korea via the Republic ofKorea and intermediate points to a point

or points in the United States and beyond. " 2 

### In support ofits Application, Jin Air submits the following information: 1. 

### By Order 2010-4-12 (Apr. 20, 2010), the Department issued a foreign air carrier permit authorizing Jin Air to engage in: (i) scheduled foreign air transportation ofpersons, property, and mail between Seoul, Republic of Korea, on the one hand, and Guam, on the other hand; and (ii) charter foreign air transportation ofpersons, property, and mail between any point

or points in the Republic ofKorea and any point or points in the United States, and between any point or points in the United States and any point or points in a third country or countries, provided that such service constitutes part ofa continuous operation, with or without a change of aircraft, that includes service to the Republic ofKorea for the purpose ofcarrying local traffic between the Republic of Korea and the United States. 2. By Notice ofAction Taken in Docket DOT-OST-2012-0194 (Nov. 20, 2012), the Department issued an exemption to Jin Air to engage in scheduled foreign air transportation of persons, property, and mail from points behind the Republic ofKorea via the Republic ofKorea and intermediate points to a point or points in the United States and beyond. This exemption authority is effective through November 20, 2014. Jin Air respectfully invokes the

2 AIR TRANSPORT AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE

GOVERNMENT OF THE REPUBLIC OF KOREA (executed Jun. 9, 1998), at Annex l.

4

### Administrative Procedure Act, 5 U.S.C. § 558(c), and Part 377 ofthe Department's Economic Regulations to continue its existing exemption authority in force and effect pending a final decision on the authorities requested herein. Jin Air's renewal request is timely filed pursuant to 14 C.P.R. § 377.10(c). 3. Jin Air seeks renewed exemption authority to engage in scheduled foreign air transportation ofpersons, property, and mail from points behind the Republic ofKorea via the Republic of Korea and intermediate points to a point or points in the United States and beyond. In the interests ofefficiency and in order to minimize future administrative burdens on Jin Air and the Department in connection with repeated, periodic renewals of exemption authority, Jin Air also hereby seeks an amended foreign air carrier permit authorizing the airline to engage in scheduled foreign air transportation ofpersons, property, and mail from points behind the Republic of Korea via the Republic ofKorea and intermediate points to a point or points in the United States and beyond. 3 

### 4. Jin Air presently provides scheduled foreign air transportation between Seoul, Republic of Korea, and the United States territory of Guam. Jin Air plans to expand its service offerings to and from additional U.S. points in the near future. 5. Pursuant to 14 C.P.R.§ 302.24, Jin Air respectfully requests that the Department take official notice ofall information and data that have been previously filed to establish Jin Air's fitness. 6. The applicant's full name is Jin Air Company, Limited, and its principal place of business is 653-25 Deungchon-dong, Gangseo-gu Seoul, Republic ofKorea (157-841). Jin Air is

a corporation lawfully organized under Chapter 4, Articles 288 through 328, ofthe Commercial

3 Jin Air requests that any amended foreign air carrier permit continue to authorize the airline to engage in charter

foreign air transportation, as provided for under its currently effective foreign air carrier permit. Order 2010-4-12. 

### 5

### Law ofthe Republic ofKorea. 

### 221.20(a). 7. The government air transport authority withjurisdiction over Jin Air is the Ministry ofLand, Transport and Maritime Affairs, Office ofCivil Aviation, International Air Transport Division ("OCA"). The address ofthe OCA is as follows: 88, Gwanmun-ro, Gwacheon-si, Gyeonggi-do, Republic ofKorea (427-712). 

### 221.20(b). 8. 

### 221.20(i). 9. 

### 221.20(o). A copy ofJin Air's latest Air Operator Certificate is attached hereto as Exhibit A.

Jin Air does not receive any financial assistance from its homeland government.

10. Statement Regarding Designation: The Government ofthe Republic ofKorea has formally designated Jin Air under the Agreement to provide the services requested in this Application. Jin Air understands that the Department has previously been notified through normal diplomatic channels ofthis designation. 

### 221.20(q). 11. The Republic ofKorea's Policy towards Air Carriers ofthe United States: As noted, the Republic ofKorea is party to an Open Skies Agreement with the United States, which grants broad rights for U.S. designated air carriers. Jin Air understands that the competent authorities ofthe Republic ofKorea would authorize services similar to those requested herein for a U.S. air carrier under the Agreement. 

### 221.20(r). 12. TariffViolations 

### I Accidents: Jin Air has not been involved in any safety or tariff violations or any fatal accidents in the past five (5) years. 

### 221.20(s). 13. Updated details regarding Jin Air's directors, officers and key management personnel are attached hereto as Exhibit B. All ofthe individuals listed on Exhibit Bare citizens

6

### ofthe Republic ofKorea, and none are related by blood or marriage. 221.20(d) and 221.21 (c). 

### 14. · Updated information on the ownership ofJin Air is attached hereto as Exhibit C. 221.20(e) and 221.21 (c). 

### 15. Neither Jin Air nor any ofits officers, managers, or directors holds any interest, either directly or indirectly in: (i) any U.S. carrier; (ii) other foreign air carrier; (iii) any person engaged in the business ofaeronautics; or (iv) any common carrier, or any person whose principal business is the holding of stock in, or control of, any air carrier. Notwithstanding the foregoing, Hanjin Kal Co., Ltd., which, as set forth in Exhibit C attached hereto, holds all ofthe capital stock ofJin Air, also holds 6.76% ofthe capital stock ofKorean Air Lines Co., Ltd., a foreign air carrier ofthe Republic ofKorea. 4 221.20(/). 

### 16. As Jin Air's financial material on file with the Department is more than two (2) years old, updated financial summaries for the two (2) most recent available years are attached hereto as Exhibit D. 221.20(n) and 221.21 (c). 

### 17. Maintenance: Jin Air's maintenance program continues to comply with the

·provisions ofthe International Civil Aviation Organization's ("ICAO") Pilots and Airmen Annexes I, 6 (Part I), and 7. The Republic ofKorea is a contracting State to the Convention on International Civil Aviation, which established the ICAO. 211.21(e). 

### 18. Jin Air continues to be fit, willing and able to perform the services for which the authorities requested herein are sought. Moreover, Jin Air will abide by the Department's rules, regulations and applicable statutes, and will accept and comply with the Department's standard

4 Other than the 100% interest held in Jin Air and the 6.76% interest held in Korean Air Lines Co., Ltd., Hanjin Kal Co., Ltd. does not hold any other interest in a U.S. carrier, foreign air carrier, person engaged in the business of aeronautics, or any common carrier, or any other person whose principal business is the holding of stock in, or control of, any air carrier. 

### 7

### terms and conditions imposed on foreign air carrier exemptions and foreign air carrier permits. 19. This Application, ifgranted, would not result in a near term increase in fuel consumption often million gallons or more and, as a consequence, approval would not constitute

a "major regulatory action" under the Energy Policy and Conservation Act of 1975, as defined in 14 C.F.R § 313.4(a)(l). 20. Grant ofthe authorities sought herein is in the public interest, as it will allow Jin Air to augment its well-received, high quality service to and from the United States while providing additional competition, market development and choices for the shipping and traveling public in the U.S.-Korea market. 21. The verification required under 14 C.F .R 302.4(b) is attached hereto as Exhibit E.

8

### WHEREFORE, based upon the foregoing information, Jin Air respectfully requests that it be granted a renewed exemption and an amended foreign air carrier permit to engage in scheduled foreign air transportation ofpersons, property and mail as more fully described above. Jin Air further requests that the Department grant such other or additional relief as it considers consistent with this Application and the public interest.

October 3, 2014 Respectfully submitted,

# jl;~~..,

# II 

# tJ.,/AjjH,
William H. Callaway, Jr. Jonathon H. Foglia Zuckert Scoutt & 

### Rasenberger LLP 888 Seventeenth Street, NW Washington, D.C. 20006 Phone: 

### +1-202-298-8660 Fax: 

### +1-202-342-0683 Email: whcallaway@zsrlaw.com jhfoglia@zsrlaw.com Counsel for Jin Air Company, Limited

9

### CERTIFICATE OF SERVICE I hereby certify that I caused a copy ofthe foregoing application ofJin Air for an exemption and an amended foreign air carrier permit to be served this the 4th day ofOctober 2014, upon each of the parties below by electronic mail: howard.kass@aa.com robert.wirick@aa.com sascha.vanderbellen@delta.com sametta.c.bamett@delta.com sllunsford@fedex.com sharon.pasley@fedex.com gbleopard@fedex.com perkmann@cooley.com (Counsel for Hawaiian Airlines) jhill@cooley.com (Counsel for Hawaiian Airlines) kevin.montgomery@polaraircargo.com peter.beckett@polaraircargo.com dan.weiss@united.com wumhy@crowell.com (Counsel for United Airlines) anita.mosner@hklaw.com (Counsel for United Parcel Service) jennifer.nowak@hklaw.com (Counsel for United Parcel Service) david.christofano@dot. gov robert.finamore@dot. gov john.s.duncan@faa.gov info@airlineinfo.com

10

### Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E 

## TABLE OF EXHIBITS

Air Operating Certificate Updated Management and Key Personnel Information Updated Ownership Information Financial Summaries and Statement ofCompleteness/ Accuracy Verification Statement

# EXHIBIT A Air Operating Certificate

### -£-**~J- ~** **~** 

## R1 Air Operator Certificate 'C}1**~Ttl ~-**  

### .;::-§_45}1 

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### Korea**~nistzy** of Land, Transrx>rt and Maritime Affairs



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## ..?
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### J~~--~~~-g.~.:.t.~~~:

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### J-i%!:i l=!AJ 7J--"i.Y.**~~%** 653-25



## --..··--···--······..···········-·---..--····-..--·-..**--··-··-····----·~·-!1:~?.~-** 

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### ..._ ...........·----·..**·······---~--·~--·-·----:.·--·-** 

### ..·--·-··_ ....·--·-·-- .............._ 6.**~** 6(Fax) : 02-3660-5999

••• ..**•r••·••~--•?""'''''0"'** ....._ .. ,_, .................,,_,____._ .......,.,,,_....**-.----~-·--·.,,__,** ..... ..,.. ..._,....,•., ... ..,,. ._, .....,,.,....... ,, ,,.. .. ,.,,...,.,..-- .... • ..,,, ••-··•- •••·•••·-·--·-·-----··-·-·-·--····--·••••• ••--•·•·•• ...., • •• __,_,.,.,,__ _. .. ,......,.,. 7. E-mail :**jaekkim@jinair~GOm;.** ·;: ... · . . : .



# .....**B~~- ~i·¥---~~;~·--;** 

# ..**·~ ~~l_i:** **::** ::**·p~f**

# .AQQ7**:/i~:; )'!.::.~r~;-.~** **:;~~~ ~~** ..·--·:..···-·..-·--·............ --. ..... .• . . . ...... .. Operational**Points:i_:~f p6t)~ct:** **~~oe:· ·cie~il.s,~.** **·~f·,:w~tc~~9~P.a!l9nal** management can be

### contacte_~ ·

### :r41;he?~t·-·H,p;4ue·-·delay~·**··ar~--·11§tei{~n{fw.ffi.i?.~9>J'?:~** A007.**~** .. · ·**~,•-rt./ ~-_,** ..- . . ......**!:•-'r~7F:•_.t~·:-.** ...**~-·.,f** 9. 

### o1

### ~~;.~~**(~.)~~}'~}~7t** r-csJ--=g-ltJJ

### .::Z.~JI. oloJl

### '¥i~:~.>'£~**~{!-it7iJ ~** 

-&-OJ 

### 71**1)-Ai ~** **~ -£-"SJ-.&~~1-** **A~~;+~Joll** tt}2.}**t~J-~-£-*.A}~****~ ?~~.!E.~**  <?.!**7}S:l~g ~** **~~%.** This certificate certifies that Jin Air co., Ltd. is authorized to perform commercial air. operations, as defined in the attached operations specifications, in accordance with the Operations Manual and the Civil Aviation Act of the Republic of Korea and regulations and standards. 10. 0 

### 1**~~Al** 

### t:**OJ:£~ ~**  gA_ELtij**~.Al AtZiJ~J?:.l**  .9:.C**-!J!-:R.~:S:l7'1Lt ~\:[5}-.7.]** 

¢}-y-5}"!:::**~ .!f-71~** **-fr.E.~.** .I This certificate is not transferable and unless returned, suspended or revoked, shall continue in effect until otherwise tenninated. 11.**~-a~ ~**  A}(Date of issue) : July 15, 2008.

# EXHIBITB Updated Management and Key Personnel Information

### Full.Name . 

### MaWon
Cho Emily Lee Kang Young Sik

Cho Won Tae

Lee Seung Bum
Choi Soo II LeeKwang Chung Hun Sik

ParkKye In
Park Sung Sup
Kim Chang Dong
Ahn Hyun Seck

Chang Ju Nyu Management & 

### Key Personnel Jin Air Company, Limited Title Address President 

### & CEO 653-25 Deungchon-dong, Gangseo-gu Seoul, Republic ofKorea Director 653-25 Deungchon-dong, Gangseo-gu Seoul, Republic ofKorea Director 653-25 Deungchon-dong, Gangseo-gu Seoul, Republic ofKorea Director 653-25 Deungchon-dong, Gangseo-gu Seoul, Republic ofKorea Director 653-25 Deungchon-dong, Gangseo-gu Seoul, Republic ofKorea Director 653-25 Deungchon-dong, Gangseo-gu Seoul, Republic ofKorea Vice President, 653-25 Deungchon-dong, Management Support Gangseo-gu Division Seoul, Republic ofKorea Captain, Operations 653-25 Deungchon-dong, Division Gangseo-gu Seoul, Republic ofKorea General Manager, 653-25 Deungchon-dong, Planning 

### & Strategy Gangseo-gu Team Seoul, Republic ofKorea General Manager, 653-25 Deungchon-dong, Human Resource 

### & Gangseo-gu Finance Team Seoul, Republic ofKorea General Manager, 653-25 Deungchon-dong, Airport Customer Gangseo-gu Service Team Seoul, Republic ofKorea General Manager, 653-25 Deungchon-dong, Cargo Business 

### & Gangseo-gu Shipping Management Seoul, Republic ofKorea Team Deputy General 653-25 Deungchon-dong, Manager, Gangseo-gu Cabin Safety 

### & Seoul, Republic ofKorea

Service Team Citizenship Republic ofKorea Republic ofKorea Republic of Korea Republic ofKorea Republic ofKorea Republic ofKorea Republic of Korea Republic ofKorea Republic ofKorea Republic ofKorea Republic ofKorea Republic of Korea

Republic ofKorea

### Full Name ·Title
. Address Citizenship JungWanHo General Manager, 653-25 Deungchon-dong, Republic ofKorea Maintenance & Gangseo-gu Engineering Team Seoul, Republic ofKorea MoonJaeWoo General Manager, 653-25 Deungchon-dong, Republic of Korea Flight Operations Gangseo-gu

Control Team Seoul, Republic ofKorea KimHongKoo Deputy General 653-25 Deungchon-dong, Republic ofKorea Manager, Gangseo-gu Brand Marketing & PR Seoul, Republic ofKorea Team Kim Jin Ok General Manager, 653-25 Deungchon-dong, Republic**~f** 

### Korea Online Marketing Gangseo-gu Team Seoul, Republic ofKorea ParkHyun Su Captain, 653-25 Deungchon-dong, Republic ofKorea Safety & Security Gangseo-gu Department Seoul, Republic ofKorea

# EXHIBITC Updated Ownership InformationInformation Regarding Ownership ofJin Air Company, Limited Name: Address: Citizenship: Number (and percentage) of shares owned: Hanjin Kal Co., Ltd. 63 Namdaemun-ro, Jung-gu

Seoul, Republic ofKorea Republic ofKorea 5,400,000 (100%)
Information Regarding Ownership ofHanjin Kal Co., Ltd. 5 Name: Address: Citizenship: Number (and percentage) of shares owned: Name: Address: Citizenship: Number (and percentage) of shares owned: Name: Address: Citizenship: Number (and percentage) of shares owned:
Name: Address: Citizenship: Number (and percentage) of shares owned: National Pension Service ofKorea Kumin-Yeonkum Building, 13 Olympic-ro 35da-gil, Songpo-gu Seoul, Republic ofKorea Republic ofKorea 3,032,018 (10.49%) Hanjin Transportation Co., Ltd.

63 Namdaemun-ro, Jung-gu

Seoul, Republic ofKorea Republic ofKorea 2,799,161 (9.69%)

Truston Asset Management 1 OF, KTB Building, 66 Yeoui-daero, Yeoungdeungpo-gu, Seoul, Republic ofKorea Republic ofKorea 2,058,176 (7.12%)

Mr. Yang Ho Cho 260 Haneul-gil, Gangseo-gu

Seoul, Republic ofKorea Republic ofKorea 1,929,895 (6.68%)

5 Except as indicated in this Exhibit C, no other person (i.e., individual, corporation or partnership) holds 5% or more

ofthe capital stock ofHanjin Kal Co., Ltd.

# EXHIBITD Financial Summaries and Statements of Completeness/Accuracy

# Deloitte.

IndependentAuditors' Report English Tnlllslation ofa Report Originally Issued in Korean

To the Shareholder and the Board ofDirectors of JinAirCo., Ltd.: Deloitta Anjin LLC 9FI., One IFO,
. 10, Gukjegeumyung-ro, Youngdeungpo-gu, Seoul 150·945, Korea Tel : +82 (2) 6676 1000 Fax: +82 (2) M74**~114** www.deloltteanjln.co.kr

We have audited the accompanying finWlcial statements 

### orJin Air**Co.~** Ltd. (the "Company"). The financial statements consist of the statement offinancial position as ofDecember 31, 2013, and the related statement of comprehensive income, statement ofchanges in shareholder's equity and statement ofcash flows, all expressed in Korean won, for the year ended December 31., 2013. These financial statements are the responsibility ofthe Company's management. Our responsibility isto express an opinion on these financial statement!> based on our audit. The financial statements ofthe Gompany for the year ended December 31, 2012, presented herein for comparative putposes were audited by other auditors, KPMO SamjongAccounting Corp., whose report dated March 8, 2013, expressed anunqualified opinion on those statements. We conducted our audit in accordance with auditing standards generally aec::epted in the Republic ofKorea. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining. on a test basis, evidence SUP!'Orting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by**management~** as well as evaluating the overall financial statement presentation. We believe that our audit'provides a reasortable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position ofJin Air Co.) Ltd. as ofDecember 31, 2013, and the results ofits operations, changes in itsretained earnings and shareholder's equity, and its cash flows for t11e year then**ended~** in C<Jnfonnity with Korean International Financial Reporting Standards**(K~IFRS).** Accounting principles and auditing standards and their application in practice vazy among countries. The accompanying financial statements are not intended to present the financial position, results of' operations and cash flows in acconiance with accounting principles and practices generally accepted in countrles other than the Republic. of Korea. In addition. the procedures and practices utilized in. the Republic of Korea to audit such financial statements may differ from those generally accepted and applied in other countries. Accordingly, thi.s report and the accompanying financial statements are for use by those knowledgeable about Korean accounting principles and auditing standards and their application. inpractice.

March 17. 2014 Notice to Readers

This report is effective as ofMarch 17,**2014~** the auditors' report date. Certain subsequent events or circumstances may bave occurred between the auditors' report date and the iime the auditors• report is**~ad.** Such events or circumstances could significantly affectfue accompanying financial statements and may result in modifications to the auditors' report.

Oeloil!e refer& to ono or mOI'!l of Oaloitto rouch• Tohmlll$u llmlle<l, a UKpriVate eorn))any limited by iUaranlee ("DlTL'), il!i network of member fum$, and lhelr related •nillias. om and eacl\ ofns tn6nlbor nrm& are legally**cep"r~te** Md**indopcmtcnl~!nlities,** DTTL (nlso re(erTed to as "Delcille GloborJ does nol pl'OV!de servloes to ellen!$.**Pleo:~Se** $8& www.dcloitto.camlabcu t for 1 mora dalnlled descrlplion of OTTL11nd llr member firms. M!!mber of OeloilhtTouche Tohl'llll!sU Llml!l!dJINAIR CO., LTD. STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2013 AND 2012
NOTES 2013 2012 (In Korean won) CURRENTASSETS: Cash aud casb equivalents 28 

### w**12~574,995,010** 

### w 7,611,193,506 Short-term financial instruments 4,28 38,024,013,111 24,224,340,732 Trade and other receivables 5,28,29 7,899,418,508 8,092,110,170 Other current assets 6 4,191,042,981 3, 114,027,587 Total current assets 62,689,4692610 43,041,671,995 NON-CURRENT ASSETS: Long-term financial instruments 4,28 100,000,000 Property and equipment 7 11,279,468,015 13,542,363,497 Intangible assets 8 132,296,766 295,369,7.38 Deferred tax assets 25 2,893,519,116 3,652,730,502 Other financial assets 9,28,29 10,956,623,422 9,615,677,355 Other non-current assets 6 591,4231976 Total nonocurrent assets 25,953,331,295 27,106,141,092 Total assets 88,642,800,905 70,147,813,087 CURRENT LIABILITIES:

Trade and other payables 10,28,29 23,933,344,614 18,220,377,849 Short-term borrowings 11,28 2,000,000,000 Current obligation under finance leases 12,28,29 1,701,799,458 1,488,033,248 Provisions 15 50,000 90,375,000 Income tax payable 25 58,284,755 Other current liabilities 17 28,174,489,140 16,678,166,682 Total current liabilities 53z867 !967,967 38,476,952,779 NON-CURRENT LIABILlTlES:

Long-term trade and other payables 10,28 11,615,523 Obligation under finance leases 12,28,29 13,531,699,658 15,461,575,767 Defined benefit obligation 14 2,086,173,235 2,108,951,083 Deferred revenue 16 1,393,248,000 280,038,673 Other financial liabilities 18,28 489,978,500 Total non-current liabilities 17!011,120,893 18,352.159,546 Total liabilities 70,879,088,860 56,829,112,325 SHAREHOLDER'S EQUITY:

Capital stock 19 27,000,000,000 27,000,000,000 Accumulated deficit 20**{9,236,287,955~** {13,681,299,238} Total shareholder•s equity 17.763,712.045 13!318,700,762 Total liabilities and sl1areholder's equity 

### w 88,642,800.905 

## w 70,147.813,087

See accompanying notes to financial statements.JINAIR CO., LID. STATEMENTS OF COMPREHENSIVE INCOME FORTHE YEARS ENDED DECE.MBER 3J, 2013 AND 2012
NOTES 2013 2012 (In Korean won) SALES 21,29 

### w 283,330,353,820 

### w 247,510,250,102 COST OF SALES 26 260,689,806,414 220,296.426,228 GROSS PROFIT 22,640,547 !406 27!2132823!874 SELLING AND ADMINISTRATION EXPENSES 22,26,29 15,540,155,279 122 725 2 42lz009 OPERATING INCOME 7,1002 392.127 14A88,402,865 Financial income 23,28 1,066,347,337 865,838,964 Financial expenses 23,28 2,508,345,381 2,928,717,587 Other**non~operating** income 24,28 1,294,804,202 2,157,731,775 Other non-operating expenses 24,28 l; 788*883;,476**lt868~573,105** INCOME BEFORE INCOME TAX EXPENSE 5,164,314,809 12,714,682,912 INCOME TAX EXPENSE 25 940,956,709 2,881,961,259 NET INCOME 

## w 4,223,358,100 

### w 9,832,721,653 OTHER COMPREHENSIVE INCOME AFTER

INCOME TAX: Itetns not to be reclassified subsequent to income

or loss: Remeasurement ofdefined benefit pension plans 14 221.653,183 (666,230,256) 221,653,183 { 666,230,256} TOTAL COMPREHENSIVE INCOME 

### w 4,445,011,283 

### w 9,166.491,397 EARNINGS PER SHARE: Basic earnings per share 27 

### w 782 w 1,821

See accompanying notes to financial statements.

# ~ SAMJONG KPMGSAM.IONGAccounUngCorp. 10th Floor, Gangnam Floonco Center, 737 YtOksom-dong.**GAOQMI~U.** Seoul135·984, Republic of Korea

Independent**Auditors~** Report Based on a report originally issued in Korean
ihe Board of Directors and Stockholder Jin Air Co.• L1d,: Tel +82(2121120100 Fax +92 (2J21120101 www.J<r.kprng.com

We have audited the aceompanylng statements of financial position of Jin Air Co•• Ltd. {the "Companyu) as of December 31. 2012 and 2011, and the**r~lated** statements of comprehensive income. changes in equity and cash flows for the years then ended. Management is responsible for the prep$ration**~md** fair**pres~l"!t~tiQn** of**th~~~ flmmcl~l**  statements in. accordance with Korean International Financial Reporting Standi;trds. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the Republic of Korea. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit lnoludes exarnlning, on a test basist evidence supporting the amounts and disclosures in the financial statements. An audit also Includes assessing the accounting principles used and significant estimates made by management as well as**evaluatln~;rthe** overall financial stalement presentation. we believe that the audit evident:e we have obtained is sufficient and appropriate to provide a basis for our opinion. ln our opinion, the financial statements referred to above present fairly, in all material respects. the financial position of the company as of December 31. 2012 and 2011 and its financial performance and iw cash flows for the years then endedj in accordance wlth Korean International Financial Reporting Standards. Wrthout qualifying our opinion, we draw attention to the following: The procedures and practices utilized in the Republic of Korea 1o audit such financial statements may differ from those generally acoepted and applied in other countries. Accordingly, this report and the accompanying financial statements are for use by those knowledgeable about Korean auditing standards and their application in' practice. As discussed in note 13. 14 and 22 to the financiat statements. the Company has transactions with its related parties inolucilng Korean A;r Lines Co., Ltd. in relation to lease contracts and other transactions, which resulted in accounts receivable and payable as of December 31, 2012.

t:PMG**SamJ~Il** Ac:OIIIIti!la C(H'JI,. i c-oiJ)Oiition ntabhhtd und41**Xott~~~n** taw.lu**~'TibBr** 111m oll::PMG**lrnemallona~** 11 S\\iueoopllllloo'l.

### JIN AIR CO., LTD. Statements of 

### Financial Position Af! of Deoember 31

.. 2012 and 2011 (fn thoVfltJnds ofwon) Noto Z012 2011
Assets Cash and cash equivalents 4,25 

### w 7,611,194 10,634,030**Short~term** investments 5,9,25 24,224,341 10.074.702**Trod~** receivebtes 6,25 6,406;780 5,837,059 Other receivables 6,25 2.,335,338 1'2.7,079 Ptepayments 25 46,588 22,050 Prepaid expensils 2.417,431 2,303,976 lnventorles t484 Total current assets 43,041,672 29,600,380 Norrcurrent Investments 5,9,25 100.000**Property~** a1reraft,**furnitur~** and fixtures, net 7,13 13,542,363 15.758,603 Intangible assets, net 8 295,370 4$4,639 Gl.tilrantee deposit$ 25. 

### 9.61s.en 7,894,451**Deter(e~** tax assets 2() 3,652,731 6,334,987 Total non•current assets 27,106,141 30,652,580 TQtal assets 

### w 70,147.813 60,152,960

Sse accompanying notes to the financial statements. 3JJN AIR CO., LTD. Statements of Financial 

### Position, Continued As of Doc•mber 31

.. 2012 and 2011 (In thousands ofwon) Note 2012 2011 Liabllitles Short-term borrowings 11,25 w 2,000,000 5.000,000 Other accounts payable 1.765.'288 1,593,901 Advance r.eceipts from customers 15,344,577 15,431,752 Accrued expenses 16,455.090 11.650,332 Currant portion of obligation undar finance Teases 13,25 1,488,033 1,380,488 Other current lfebtlitles 10.25 1.423,965 &99,6S4 Total current liabilities 38,476,S53 36,056,037 Oblfgation under finance leMes 13.22.26 15,461.676 18.250,382 Defined benefit obligations 12 2.108,951 1,300,754- 0 eferred revenue 15 280,039 Long-term accounts**pt~yable** ·other 25 11,615 2?.,288 Guerentee deposits received 25 489.978 371,290 Total non-current llabmties. 19,352,159 19.944,714 Total Jla.bllltles 66,829,112 56,000.761 Equity Common stock 1,16 27.000.000 27.000,000 Capital adjustments {100,800) Accumulated deficit 17 (13,681.299} {22.746.991} Total equity 13,319,701 4,152,209 Total nablllttes and equity 

### w 70,147,813 60,162.960

St:s accomptmyingnotes to the flnanaialstatements. 4

# EXHIBITE Verification StatementVERIFICATION Pursuant to Title 18 United States Code Section 1001, I, 

# /;t)tf)IJ 

# /1a in my individual capacity and as the authorized representative ofthe pleader, have not in any manner knowingly and willfully falsified, concealed or failed to disclose any material fact or made any false, fictitious, or :fi·audulent statement or knowingly used any documents which contain such statements in connection with the preparation, filing or prosecution ofthe pleading. I understand that an individual who is found to have violated the provisions ofTitle 18 United States Code Section 1001 shall be fined or imprisoned not more than five years, or both.

Title
Jin All' Company, Limited October 2, 2014 Date