UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Served: July 19 , 2013

NOTICE

2013 /201 4 U .S.

- China Charter Authorizations (August 1, 20 1 3 , through July 31, 20 1 4 )

By this Notice we notify U.S. carriers of procedures to distribute available charter opportunities between the United States and the People’s Republic of China for the

201 3 /201 4 charter year (August 1, 20 1 3 , through July 31, 20 1 4 ).

U nder the U.S.

- China Air Transport Agreement (as amended) , each Party shall approve applications by the airlines of the other Party for 75 one

- way charter flights annually from August 1 of each year, between points in China Zone 1 (Zone 1) and U.S. points on city pairs served by Chinese carriers’ scheduled services of the same type (combination

or all

- cargo) as the proposed charter flight, and 75 one

- way charter flights annually from August 1 of each year, between points in China Zone 2 (Zone 2) and U.S. points on city pairs se rved by Chinese carriers’ scheduled services of the same type (combination or

all

- cargo) as the proposed charter flight. 1 T hese rights are available for the annual periods beginning August 1 each year.

We find that the public interest continues to warra nt our placing the 75 Zone 1 charters

, and the 75 Zone 2 charters , into a charter pool for distribution on a first

- come, first

- served basis, consistent with the modified procedures that were implemented starting

with the 200 7 /200 8 China charter year

, exce pt as noted below

. These procedures have proved effective in managing the demand for U.S.

- China charter allocations and we believe that they will continue to facilitate effective use of these valuable rights.

It has been our general policy where charter opportunities are limited to reserve the available flights for carriers that have no other access to the market. 2 However, in light of changed circumstances, specifically, that all or nearly all U.S. carriers that have operated in the U.S.

- China market in recent years currently hold scheduled authority, we have modified the allocation procedures for the 2013/2014 charter year by removing the provision that U.S. carriers holding scheduled combination or all

- cargo authority in Zone

1 and/or Zone 2 would not be eligible to request charters until the last two months of the charter year. 3

1 China Zone 1 consists of Shanghai, Beijing , and Guangzhou. China Zone 2 consists of Fujian, Guangdong (except Guangzhou), Hebei, Jiangsu, Shandong, Tianjin, and Zhejiang.

2 See

, e.g ., Order 98

- 4

- 19.

3 We recognize that these changed circumstances could prompt interested carriers to favor further modifications to the procedures beyond the one that we have just announced here. We are inviting carriers to submit suggestions for other possible modifications to the procedures , as provided below

.2

Accordingly, t he charter pool allocation procedures for the 201 3 /201 4 charter year are as follows:

1. Applications must identify the type of charter ( combination or cargo); th e date of

each one

- way flight; the charterer(s); the city

- pair markets (applicants should also identify the specific Chinese carrier scheduled services associated with the Zone 1 or Zone 2 determination); the type of aircraft to be used; the type of cargo transported (for cargo charters); and a statement affirming that the carrier has firm plans to use the charters. Applicants may request confidentiality under Rule 12 of our procedural regulations (14 CFR 302.12);

2. Applications must be sent to the U.S. Air Carrier Licensing Division (X

- 44), Office of International Aviation, 1200 New Jersey Avenue, S

. E

. , Washington, D.C. 20590; 4

3. Applications to operate Zone 1 charters may be filed no earlier than 60 days in

advance o f the flight date(s) and carriers may apply for up to ten Zone 1 charters per month;

4. Applications to operate more than ten Zone 1 charters in a given month may be considered after the applicant completes polling of interested parties;

5. Applications to op erate Zone 2 charters may be filed as soon as charter arrangements are firm and carriers may apply for any number of charters;

6. Applications for Zone 1 and Zone 2 charters must include signed copies of the

charter contract or some form of written evidence of the charter commitment ;

7. Carriers receiving a charter pool allocation shall, in writing, return any flight(s) that they will not use to the U.S. Air Carrier Licensing Division; 5 and

8. Each U.S. carrier granted a charter pool allocation is to report, in writing, to the U.S. Air Carrier Licensing Division, on its operations for the preceding month by the tenth day of each month.

If the charter allocation request is approved, we will provide the carrier with a Notice of Consistency acknowledging its rig ht to perform the proposed charter operation. However, applicants should be aware that the Notice of Consistency does not relieve U.S. carriers of their obligation to file a separate notification of proposed charter flights with

the Chinese authorities. In notifying the Chinese authorities, U.S. carriers should also

4 Requests should be sent by e

- mail to Darren.Jaffe@dot.gov or by fax to 202

- 366

- 3694.

5 This notification must be received within two business days of the carrier’s determination that an allocated flight or flights will not operate.3

submit a copy of the Notice of Consistency showing Departmental approval of the charter flights. 6

We invite U.S. carriers interested in the China market to submit suggestions for other possible modifications to the procedures. Please submit suggestions no later than August
23, 2013

, and serve them on other U.S. carriers authorized to operate large aircraft. 7

We will serve this notice on al l U.S. certificated air carriers authorized t o operate large

aircraft

. Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this N otice. This action was effective when taken, and the filing of a petition for review will not alter such effectiveness. 8

By:

Paul L. Gretch, Director

Office of International Aviation

Dated: J uly 19 , 201 3

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

6 We will post an electronic ver sion of the Notice of Consistency on the World Wide Web at: http://www.regulations.gov

7 Please send suggestions via email to the Director of the Office of International Aviation at Paul.Gretch@dot.gov with a courtesy copy to Darren.Jaffe@dot.gov

. 8 The Director of the Office of International Aviation was assigned delegated authority for this matter. See

U.S.

- China Charter Flights Notice dated August 5, 2005.