UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on September 27 , 20 10



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2007

- 28655

_____________________________________________________________________________________________________________________________ ___ This serves as notice to the public of the action described below, taken by the Department official indicated (no

additional co nfirming order will be issued in this matter).

Applicant: GREAT WALL AIRLINES CO., LTD. (Great Wall)

Date Filed: August 18 , 20 10

Relief requested: Renew al of exemption from 49 U.S.C. § 41301(1) to engage in scheduled foreign air transportation of pro perty and mail between any point or points in the People’s Republic of China, via any intermediate points to any point or points in the United States open to scheduled international service, and beyond to any points outside the United States; (2) charter f oreign air transportation of property and mail 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, and (3) other charters pursuant to 14 C.F.R. 212 of the Departme nt’s regulations.

Renew statement of authorization under 14 C.F.R. Part 212 to the extent necessary to permit it to operate once

- weekly cargo charters between Shanghai, China, and Atlanta, Georgia, with a technical stop in Anchorage, Alaska

.

Date and citation of last action: September 10, 2009, in this docket.

Applicant representative: Charles F. Donley , 202

- 626

- 6840 DOT analyst: Brett D. Kruger , 202

- 366

- 8025

Responsive pleadings: None.

DISPOSITION

Action: Approved , subject to conditions ( specifically including the condition concerning coterminalization, see Remarks below).

Action date: September 27 , 20 10

Effective dates of authority granted: September 27 , 20 10 , through September 27 , 20 1 1

.

Basis for approval: United States

- China Air Transport Services Agreement

Special conditions/Remarks: By Notice of Action Taken (NOAT) dated April 15, 2010, in Docket DOT

- OST

- 2010

- 0047, we specifically limited new coterminalization of U.S. points by China Southern Airlines Company Limited (China Southern) until such time as China’s General Administration of Civil Aviation (CAAC) confirms the ability of Federal Express Corporation (FedEx) to implement new coterminalized segments on i ts U.S.

- China all

- cargo services. We are imposing the same condition on Great Wall here. 1 While we will now grant Great Wall a renewal of the bilaterally

- agreed authority it currently holds to serve U.S. points, we are not prepared at this time to permit Great Wall to implement new

service to any of these authorized points on a coterminal basis, or to otherwise expand its coterminal operations. 2

1 We recently took similar action limiting new coterminalization of U.S. points by another carrier 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).

2 To the extent Great Wall is currently exercising coterminalized authority, nothing in the instant Notice of Action Taken is intended to restrict those operations. Furthermore, our action here does not preclude Great Wall from exercising the Alaska coterminalization authority granted by Notice of Action Taken dated Au gust 19, 2010, in Dockets DOT

- OST

- 2010

- 0200, DOT

OST

- 1999

- 5035, and DOT

- OST

- 1996

- 1600.Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of o ur 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 ith Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consist en t 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 entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulati ons, 14 CFR § 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 version of this document is a vailable on the World Wide Web at: http://www.regulations.gov

### 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 of such authorization with the Department;

(2) Comply with all applicable requirements of the Federal Aviation Administration, t he 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

app licable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flights) from a foreign airport that would be the holder’s last point of departure for the United States,

contact its Internati onal Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the I IR of its 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 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 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 soverei gn 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 t hat, 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 term "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 authorized by the Department, originate or terminate all flights to/from the United States in its homeland;

(9) Comply with the req uirements of 14 CFR Part 217, concerning the reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations 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. a gencies 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 tr ansferred without explicit Department approval

under Title 49 of the U.S. Code.

1 2/2007