UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on January 7, 2011



### NOTICE OF ACTION TAKE N -- DOCKET DOT-OST-2003-14493

_____________________________________________________________________________________________________________________________ This serves as notice to the public of the action described below, taken by th e Department official indicated (no additional confirming order will be issued in this matter).

Applicant: CATHAY PACIFIC AIRWAYS LIMITED Date Filed: November 4, 2010 (Cathay Pacific)

Relief requested: Renewal of exemption authority under 49 USC §40109 to engage in (1) scheduled foreign air transportation of persons, property, and ma il between Hong Kong, via intermediate points, to a point or points in the United States, as coterminal points, and beyond; (2) scheduled fore ign air transportation of prope rty and mail between Hong Kong, via intermediate points, to a point or points in the United St ates, as coterminal points, and beyond and (3) charter foreign ai r transportation subject to Part 212 of the Department’s regulations.

If renewal, date and citation of last action: November 20, 2009, in the instant docket.

Applicant representative: John R. Mietus, Jr. (202) 747- 5212 DOT analyst: Thuy H. Cooper (202) 366-5423

DISPOSITION

Action: Approved (subject to conditions, see belo w). Action date: January 7, 2011

Effective date of exemption authority grante d: January 7, 2011, through January 7, 2012.

Basis for approval (bilateral agreement/reciprocity): The aut hority is provided for in the October 19, 2002 Memorandum of Understanding between the United States and the Hong K ong Special Administrative Region (SAR) of the People’s Republic of China.

Except to the extent exempted/waived, this authority is s ubject to the terms, conditions, and limitations indicated:

X Standard exemption conditions (attached)

Action taken by: Paul L. Gretch, Director

Office of International Aviation

________________________________________________________________________________________________________________________ Condition: This authority is subject to our receipt of notifica tion from the Government of Hong Kong of the points and frequencies it has allocated to Cathay Pacific for intermediate and beyond rights, consistent with the terms of the October 19, 2002 Memorandum of Understandi ng between the United States and Hong Kong.

______________________________ __________________________________________________________________________________________ Under authority assigned by the Department in its regula tions, 14 CFR Part 385, we found that (1) our action was consistent with Department policy; (2) the applicant was qua lified to perform its proposed operations; (3) grant of the authority was consistent with the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975. To the extent not granted, we denied all requests in the referenced Dockets. We may amend, modify, or revoke the au thority granted in this Notice at 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 regulations, 14 CFR §385.30, may file thei r petitions within seven (7) days after th e 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.govATTACHMENT 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 authorizati on 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 Fe deral 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 a nd 49 CFR Part 1546 or 1550, as applicable. To assure compliance with all applicable U.S. Government requirements concerning security, the holde r shall, before commencing any new service (including charter flights) from a foreign airport that would be the holde r’s last point of departure for the United States, contact its International Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the IIR of its plans and to find out whether the Transportati on 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 ev idence of such coverage, in the form of a completed OST Form 6411, with the Federal Aviation Administration’s Pr ogram Management Branch (AFS-260), Flight Standards Service (any changes to, or termination of, insu rance 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 Annex 6 of the Chicago Convention;

(5) Conform to the airworthiness and airman competency requ irements 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 au thority constitute a waiver of sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with respect to 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 inte rnational air transportation that, according to the contract of carriage, include a point in the United States as a point of orig in, 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 tribunal of the United St ates. In this condition, the term "international air transportation" means "international trans portation" as defined by the Warsaw Convention, except that all States shall be considered to be High Contr acting 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, con cerning the reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise pr ovided 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 other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department, with all applicable orders or re gulations of other U.S. agenci es and courts, and with all applicable laws of the United States.

This authority 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 otherwi se transferred without explicit Department approval under Title

49 of the U.S. Code.

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