### BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Application of
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### 0fl. l l a ni I1 T l n ~ ~ 

### d/b/a AIR CHINA ) Dockets OST-2003-16213 ) OST-2008-0068 

### for renewal of exemption authority Pursuant to 49 U.S.C. ) § 40109 (U.S. — People's Republic of China Code-Sharing) )

APPLICATION OF AIR CHINA LIMITED d/b/a AIR CHINA FOR RENEWAL OF EXEMPTION AUTHORITY Communications with respect to this document should be sent to:
George N. Tompkins, Jr. Wilson, Elser, Moskowitz, Edelman & Dicker LLP.

150 East 42" d Street New York, New York 10017-5639 (212) 915-5624 (Phone) 

### (212) 490-3038 (Fax) george.tompkinsjr@wilsonelser.com Counsel for AIR CHINA LIMITED

DATED: September 18, 2014 Notice: Any person may support or oppose this application by filing an answer on or before October 3, 2014 and serving a copy upon the undersigned and all persons served with this application.

6341 121 v.l

### BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Application of )

) 

### AIR CIIINA LIMITED ) d/b/a AIR CHINA ) Docket OST-2003-16213 ) OST-2008-0068 for renewal of exemption authority Pursuant to 49 U.S.C. ) § 40109 (U.S. — People's Republic of China Code-Sharing) )

APPLICATION OF AIR CHINA LIMITED d/b/a AIR CHINA FOR RENEWAL OF EXEMPTION AUTHORITY
l. Pursuant to 49 U.S.C. § 40109, Air China Limited d/b/a Air China ("Air China") hereby applies for the renewal of exemption authority granted in the Notice of Action Taken (NOAT) issued on September 18, 2013 by the Department of Transportation in Dockets OST-2003-16213 and OST-2008-0068, (Exhibit "A" hereto) permitting Air China to engage in scheduled foreign air transportation of persons, property, and mail, in combination, or separately, between any point or points in the People's Republic of China, on the one hand, and any point or points in the United States, on the other hand, under a code-share arrangement with United Air Lines, h1c. 

### ("United") (Docket OST-2003-16213) and United Express Carriers in Docket OST-2008-0068. This exemption authority expires on September 18, 2014. By this Application, Air China respectfully requests that this exemption authority be renewed for a period of two (2) years to expire on September 18, 2016, pursuant to NOAT issued September 18, 2013 in Dockets OST-2003-16213 and OST-2008-0068.
2. Air China relies upon the automatic extension provisions of 5 U.S.C. § 558(c), as implemented by 14 C.F.R. Part 377, to continue this exemption authorization in effect

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### pending final Department action on this renewal application. This application is timely filed

under 14 C.F.R. § 377.10(c). WHEREFORE, Air China respectfully requests that the Department of Transportation renew the existing exemption authority applied for herein for a period of two (2) years to September 18, 2016 or until the Department grants Air China's application for renewal. Air China further requests that the Department grant such other and further relief as the Department finds to be consistent with this application.
Respectfully submitted,

~ 

### George N. Tompkins, Jv, Wilson, Elser, Moskowitz, Edelman & Dicker LLP. 150 East 42" a Street New York, New York 10017-5639 (212) 915-5624 (Phone) (212) 490-3038 (Fax) george.tompkinsjr@wilsonelser.com Counsel for AIR CHINA LIMITED

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# EXHIBIT A

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## ~ CJNITED STATIJS OI+ AMERTCA



## ~~ DEPARTMLNT OF TI2ANSYORTATION OFI+TCI; OF TI-IR SECl2ETARY WASIIINGTON, DC lssued by the Department of Transportation on Septembe • 18, 2013
NOTICE Of' ACTION TAKEN -- DOCKETS DOT-OST-2003-16213 and DOT-OST-2008-0068 This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be issued in this matter). DOCKETS DOT-OST-2003-16213 and DOT-OST-2008-0068 Joint Application of UNITED AIR LINES, INC. (,United) and A7R CHINA LIMTTED {Air China filed 8/27/13 for: XX Renewed and amended exemption for Air China under 49 U.S.C. 40109 to provide tlle following service: Scheduled foreign air transportation of persons, property, and mail, in combination or separately, behween points in the United States and points in third eountries pursuant to its eode share with United.' D.QCKET DOT-OST-2003-16213 XX Amended statement of authorization for United under CFR Part 212 to: Display the "CA" designatoi• code of Air Chhia to now include flights operated by United between Air China's United States gateways, on the oyie hand, and beyond to points in third countries solely on a blind sector basis.2 3 Applicant representatives: llaniel A. Weiss (872) 825-6828 (United) and George N. Tomnkins, Jr. (212) 915-5624 (Air China) DOT Analyst: Darren Jaffe (202) 366-2512

' Ah• China's existing exemption authority permits it to engage in sclhedulcd iorcign air pransportation of persons, property, and mail, in combination or separately, betNveen any points or points in the Yeople's ttepublic ol'China, and any point or points in the tJrnited States, pursuant to its code-sharc arrangements with United Air l,ines, Ine. in I?0T-OS'1'-2003-1 62 1 3 and the tJnited [:xpress carricrs in Docket DO"1'-OST-2008-0068. We note that Air C.hina also had pending in the above rei'erenced Dockets an exemption renewal application dated November 30, 2009. We are addressing both its renewal and anendment applications in our present action. 2 Additional code-share points are listed in Appendix C. ' We note that the City of I-louston, 'I'exas, through the Department of Aviation, subinilted a letter in support of the Joint Application in Docket DOT-OS'I'-2003-16213,DISI'OSITION

XX Granted, renewed and amended exemption authoi•ity for Air China (subject to conditions, see Attacliment A below). XX Granted, amended statement of authorization for United (subject to conditions, see Attachment B below). The above action granting renewed and amended exemption autho •ity for Air China was effective when taken: Septembelr 1$, 2013, tlirougli Sgptem

~ jer 1$, 2014. The above action amending tile statement of authorization granted for United was effective when taken: Sel,)tember 18, 2013, and will remain in effect indefinitely, subject to the conditions listed below. Action taken by: Paul L. Gr•etch, llirector

Office of' International Aviation XX The authority graitted is consistent with the Air Transport Agreement, as amended, between the United States and the People's Republic of China. Except to the extent exempted o • waived, this authority is.subject to the ter ns, conditions, and limitations indicated: XX United's certificatesof public convenience and necessity XX Foi•eign Aix• Cari•ier Lxemption Conditions for Air Ciiina XX Statements of Authorization approving the United/Air China code-sliare operations dated October 24, 2003 and conditions therein (see Notice of Action Taken in Docket DOT-OST-2003-16213) On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant qualified to provide the services authorized. Under authority assigned by the Depat•tment in its regulations, 14 CFR Pa •t 385, we found that (1) our action was consistent with Departnient policy; (2) grant of the authority was consistent with the public interest; and (3) grant of the authority would not constitute a major regulatory action under the Energy 1'olicy 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 authority 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 CrR §385.30, may file their petitions within seven (7) days after the 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 versioh of this cloctrrr7errt is anallable oa tlre 14%rld 14lide 1'yeb al:

htlp:. , /draas.dot.gorL/reporls/relrorts aviation.asllAttachment A

Foreil4n Carrier Exemntion 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 authorization from its homeland for such operations, and it ]has filed a copy of such autliorization with the Department; (2) Coinply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Govermnent requirements concerning security, including, but not liinited to, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1546 or 1550, as applicable. To assure compliance with all applicable U.S. Government requirements concerning security, the holder sliall, before commencing any new ser•vice (including charter flights) from a foreign airport that would be the holder's last point of departure for the United States, contact its International Industry Representative (IIR) (formerly referred to as International Principal Security hnspector) to advise the IIR of its plans and to find out wliether the Transportation Security Administration lias deterinined that secia•ity is adequate to allow such airport(s) to be served; (3) Comply with the requirements for mininnun insurance coverage contained in 14 CFR Part 205, and, prior to the commencement of any operations under this authority, file evidence of such covet•age, in the form of a completed OST Form 6411, with the Federal Aviation Administration's Program lvlanagemerit Brancli (AFS-260), Flight Standards Service (any changes to, or termination of, insurance 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 Cllicago Convention; (5) Conform to the airwortliiness and airman coinpetency requirements of its Governinent for international air services; (6) Fxcept as specifically exempted or otlier

- wise provided for in a Department Order, comply witlh the requirements of 14 CFR Part 203, concerning waiver of Warsaw Convention liability limits and defenses; (7) Agree that operations under• this authority constitute a waiver of sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only witlh respect to those actions or pr•oceedings instituted against it in any court or otlier tribunal in tile United States that are: (a) based on its operations in international air transportation that, according to the conh•act of carriage, include a point in the United States as a point of origin, point of destination, or , agreed stopping place, or for whiclh the contract of carriage was pLu•chased 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 States. In this condition, the term "international air transportation" means "international transportation" as defined by the Warsaw Convention, except that all States shall be considered to be I-ligh Contracting Parties for the purpose of this definition; (8) Except as specifically authorized by the Deparhnent, originate or terininate all fliglits to/from the United States in its homeland; (9) Comply witli the requireinents of 14 CFR Part 217, concerning the reporting of sc}heduled, nornseheduled, and charter data; (10) lf clharter operations are authorized, except as otllerwise provided in the applicable aviation agreement, comply with the Department's rules governing charters (including 14 CFR Parts 212 and 380); and (11) Coinply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Departrinent, with all applicable orders or regulations of otlier U.S. agencies 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 otlierwise transferred witllotut explicit Departinent approval under Title 49 of the U.S. Code.

12/2007Attachment B

The statenients of authot•ization, as amended, are subject to the following conditions:'' (a) The statements of authorization will remain in effect only as long as (i) United and Air China continue to hold the necessary underlying authority to operate the code-share services at issue, and (ii) the code-sllare agreetnent providing for the code-share operations remains in effect. (b) United and/or Aii• Cliina must promptly notify the Deparhnent (Office of International Aviation) if the code-shat•e agreement providing for the code-share operations is no longer effective or if the carriers decide to cease operating all or a portion of the approved code-sliare services. Sucli notices should be filed in Docket OST-2003-16213. 5 (c) United and/or Air Clhina must notify the Department no later than 30 days before they begirn any new code-sllare scrvice under the code-share services autllorized here. Sucli notice shall identify the market(s) to be scrved, which carrier will be operating the airct•aft in the code-share market added, and the date on which the service will begin. (Such notice sliould be filed in this Docket.) (d) The code-sharing conducted under this authority nuist comply witli Part 257 and witli any amendments to the Department's regulations concerning code-share arrangetnents that may be adopted. Notwit}hstanding any provisions in the contract between the carriers, our approval here is expressly conditioned upon the requirements that the subject foreign air tratisportation be sold in the name of the carrier lholding out such service in the computer reservation systems and elsewhere; that the carrier selling such transportation (i.e., the carrier shown on the ticket) accept responsibility for the entirety of the codesliare journey for all obligations established in its contract of carriage witli the passenger; and that the passenger liability of the operating carrier be unaffected. Ftu

- ther, the operating carrier s11a11 not permit the code of its U.S. air carrier code-sllaring patiner to be carried on any flights that enter, depart, or transit the airspace of any area for whose airspace the Federal Aviation Administration lias issued a flight prollibition. (e) The autliority granted here is specifically conditioned so that neither Unitedaior Air Cliina s11a11 give any force or effect to any contractual provisions between themselves that are contrary to these colldltlonS. 6 (f) The authority for Air China to display its code on flights opei

- ated by United, and the authority for United to display its code on flights operated by Air China, shall be limited to those code-share points whicli may be served under• the av'tation agreeinent between the United States and the People's Republic of China. (g) We tnay amcnd, tnodify, or revoke the authority gratlted at any time without hearing at our discretion.

4 The conditions applicable to the United/Air China codeshare operations appi

- oved in this docket are repeated here in their entirety for case of refe-rence. 5 We expect this notification to be received Nvithin 10 days of such non-effcctiveness or of such decision. r ' We note that the code-share agreement as subinitted did not include provisions regarding exclusive dealings betwcen the code-share parties. Should the parties subsequently amend their code-share agreement or any other agreeinent affeeting the eode-share serviees to inelude a provision relating to an exclusive arrangement between the parties, that amended language must fn•st be submitted for consideration by the Departinent.Attachment C Additional CA*/UA Code Share Markets Houston-Cancun Houston-Mexico City

### CERTIFICATE OF SERVICE

I hereby certify that I have this date served a copy of the foregoing Application of Air China Limited d/b/a Air China for renewal of exemption authority by electronic mail upon the following:
msinick(cz

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### ssd.com (Alaska) Francis.heiln,aa.com Robert.wiricknaa.com rsilverberggsgbdc.com (ABX/Air Transport Intl.) jrichardsona johnlrichardson.com (Amerijet)
: c anny ~ 

### ,amerijet.com rpommer cr,atlasair.com Sascha.vanderbellencr,delta.com chartersa,evergreenairlines.com (Evergreen) cefeltsgfedex.com anbird a,fedex.com nssparksa,fedex.com Robert.cohna,hoganlovells.com (Frontier) Dwight.moorenustranscom.mil John.allen( faa.gov Annalei.avancena a,united.eom

Dated: September 18, 2014 matwood(cr,cozen.com (kalitta) Kevin.mont o

g lnery a,polaraircar o.

g com bob.kneisleygwnco.com (AirTran/Southwest) leslie.abbottgwnco.com (AirTran/Southwest) dkirsteina

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### yklaw.com (Spirit) jyoung(

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### yklaw.com (Spirit) john.fredericksengsuncountr . Y com anita.mosner a,hlclaw.com (UPS) jennifer.nowak cr,hklaw.com (UPS) Howard kass

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### usairways.com barbara.russelL

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### virginamerica.com William.stallings(

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### a,usdoi.gov Patrick.rizzi @hoganlovells.com ihill o dowlohnes.com (Hawaiian/Jetblue)
dan.weissncoair.com

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### Hilines Luna Paralegal

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