UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on October 20 , 20 10



### NOTICE OF ACTION TAKEN

-- DOCKET S DOT

- OST

- 200 6

- 24629

and DOT

- OST

- 2006

- 24630

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

Applicant: YANGTZE RIVER EXPRESS AIRLINES CO., LTD. ( Yangtze )

Date Filed: May 5, 2010 and September 24 , 20 10

Relief requested: Renew al of exemption from 49 U.S.C. § 41301 to engage in scheduled foreign air transportation of property and mail between Shanghai, People’s Republic of China, on the one hand, and Dallas/Fort Worth, Texas on the other hand, and to coterminalize Dallas/Fort Worth with its existing authority. 1

E xe mption under 49 U.S.C. § 40109, and an amended foreign air carrier permit under 49 U.S.C. § 41301

, to engage in scheduled foreign air transportation of property and mail on a Shanghai

- San Francisco

- Chicago

- Shanghai routing, and

to coterminalize this route with its existing cargo authority for Anchorage, Alaska; Boston, Massachusetts; Los Angeles, California; Dallas/Fort Worth, Texas ; and New York, New York granted previously by the Department.

Date and citation of last action: May 6, 2009, in this docket.

Applicant representative: Josh Romanow , 202

- 6 63

- 8000 DOT analyst: Brett D. Kruger , 202

- 366

- 8025

Responsive pleadings: None.

DISPOSITION

Action: Approved request s for exemption authority , subject to conditions ( specifically including the condition concerning coterminalization, see Remarks below) ; request for amended permit authority deferred. 2

Action date: October 20 , 20 10

Effective dates of authority granted: October 20 , 20 10 , through October 20 , 20 1 1

.

Basis for approval: United States

- China Air Transport Services Agreement

Special conditions/Remarks: While we will now grant Yangtze a renewal of the bilaterally

- agreed authority it currently

holds to serve U.S. points and initial authority to serve San Francisco and Chicago independently , we are not prepared at this time to permit Yangtze to implement new service to any of these authorized points on a coterminal basis, or to otherwise expand its coterminal operations. See Notice of Action Taken (NOAT) dated April 15, 2010, in Docket DOT

OST

- 2010

- 0047, where we specifically limited new coterminalization of U.S. points by China Southern Airlines Company Limited (China Southern). 3 We are imposing the same condition on Y angtze here. 4

1 Yan g tze’s existing foreign air carrier permit, issued in the above referenced Dockets on April 18, 2008, by Order 2008

- 4

- 27, authorizes it to engage in scheduled foreign air transportation of property and mail between Shanghai, People’s Republic of C hina,

and the c oterminal points Anchorage, Alaska; Boston, Massachusetts; Los Angeles, California; and New York, New York.

2 We will act on Yangtze’s amended permit request separately.

3 We recently took similar action limiting new coterminalization of U.S. points by oth er carriers of the People’s Republic of China.

See Notice of Action Taken dated September 21, 2010, in Dockets DOT

- OST

- 2007

- 26980 and DOT

- OST

- 2010

- 0205 (Jade Cargo); and Notice of Action Taken dated September 27, 2010, in Docket DOT

- OST

- 2007

- 28655 (Great Wall).

4 To the extent Yangtze is currently exercising coterminalized authority, nothing in the instant Notice of Action Taken is inte nded to restrict those operations. Furthermore, our action here does not preclude Yangtze from exercising the Alaska cote rminalizationExcept to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached).

Action taken by: Paul L. Gretch, Director

, Office of International Aviation

_____________________________________________________________________________________________________________________________ __ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent w it h Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consist ent with the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Poli cy and Conservation Act of 1975. To the extent not granted/deferred/dismissed, we denied all requests in the referenced Docket. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

Persons e ntitled 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 Notice. This action was effec tive

wh en 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.gov

authority granted by Notice of Action Taken dated August 19, 2010, in Dockets DOT

- OST

- 2010

- 0200, DOT

- OST

- 1999

- 5035, and

DOT

- OST

- 1996

- 1600.

### 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 authorization from its homeland for such operations, and it has filed a copy o f such authorization with the Department;

(2) Comply with all applicable requirements of the Federal 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 and 49 CFR Part 1546 or 1550, as applicable. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charte r 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 Inspector) to advise the I IR of it s plans and to find out whether the Transportation 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 evidence of such coverage, in the form of a completed OST Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS

- 260), Flight Standards Service (any change s 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 Chicago Convention;

(5) Conform to the airworthiness and airman competency requirements 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 authority 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 international air transportation that, according to the contract of carriage, include a point in the United States as a point of origin, 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 States. In this condition, the t erm "international air transportation" means "international transportation" as defined by the Warsaw Convention, except that all States shall be considered to be High Contracting Parties for the purpose of this definition;

(8) Except as specifically auth orized 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, concerning the reporting of scheduled, nonscheduled, and charter data;

(10) If charter operation s are authorized, except as otherwise provided 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 regulations of other 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 otherwise transferred without explicit Department approval

under Title 49 of the U.S. Code.

1 2/2007