UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Served: July 26, 2010

NOTICE

2010/2011 U.S.-China Charter Authorizations (August 1, 2010, through July 31, 2011)

By this Notice we notify U.S. carriers of pr ocedures to distribute available charter opportunities between the United States and the People’s Republic of China for the 2010/2011 charter year (August 1, 2010, through July 31, 2011).

Under the U.S.-China Air Transport Agreem ent (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’ schedul ed 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 Chin a Zone 2 (Zone 2) and U.S. points on city pairs served by Chinese carriers’ scheduled se rvices of the same type (combination or all-cargo) as the proposed charter flight. 1 These rights are available for the annual periods beginning August 1 each year.

We find that the public interest continues to warrant our placing the 75 Zone 1 charters, and the 75 Zone 2 charters, into a charte r pool for distributi on on a first-come, first-served basis, consistent with the modified procedures that were implemented for the 2007/2008 China charter year and with those used in other similar markets with limited charter opportunities. 2 These procedures have proved effective in managing the demand

for U.S.-China charter allocations and we belie ve that they will continue to facilitate effective use of these valuable rights. 3

Accordingly, the charter pool allocation pro cedures for the 2010/2011 charter year are as

follows:

1. Applications must identify the type of ch arter (combination or cargo); the date of each one-way flight; the charte rer(s); the city-pair markets (applicants should also

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 Notice dated July 26, 2007, in Docket DOT-OST-2007-28824 (China), Order 2009-1-5 (Brazil) and Orders 92-6-32 and 92-9-21 (Japan).

3 We note that frequency and designation limitations will no longer be applicable to U.S.-China scheduled all-cargo operations effective March 25, 2011. Should that change raise a need to alter the China charter allocation procedures, we will so indicate by subsequent notice.2

identify the specific Chinese carrier schedul ed services associated with the Zone 1 or Zone 2 determination); the type of ai rcraft to be used; the type of cargo transported (for cargo charters); and a statem ent affirming that the carrier has firm plans to use the charters. Applicants ma y 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 Z one 1 charters may be filed no earlier than 60 days in advance of 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 comple tes polling of interested parties;

5. Applications to operate Zone 2 charte rs may be filed as soon as charter arrangements are firm and carriers ma y apply for any number of charters;

6. Applications for Zone 1 and Zone 2 charte rs must include signed copies of the charter contract or some form of written evidence of the charter commitment;

7. Absent a showing of special needs a nd circumstances, U.S. carriers holding scheduled combination or all-cargo author ity to serve points in Zones 1 and/or 2 will not be eligible applicants until the la st two months of the charter year, when the pool will be available to al l carriers with no restrictions; 5

8. 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; 6

9. Each U.S. carrier granted a charter pool al location 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 right to perform the proposed charter operation. However, applicants should be aware that th e 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 robert.finamore@dot.gov , or by fax to 202-366-3694.

5 This limitation on eligibility would no t apply in the case of a U.S. carri er that had received new scheduled authority, but where that authority, per its terms, wa s not yet effective. Upon effectiveness of that authority, the limitation would apply.

6 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 show ing Departmental approval of the charter flights. 7

It has been our general policy where char ter opportunities are lim ited to reserve the available flights for carriers that have no other access to the market. 8 We have made exceptions to this policy only where there ar e special needs for cargo shipments (such as livestock charters) that coul d not be accommodated by scheduled services. Should such special needs arise, we would be prepared to consider them on a case-by-case basis.

We will serve this notice on all U.S. certificated air carriers. 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 Notice. This action was effective wh en taken, and the filing of a petition for review will not alter such effectiveness. 9

By:

Paul L. Gretch, Director

Office of International Aviation

Dated: July 26, 2010

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

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

8 See

, e.g ., Order 98-4-19.

9 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.