BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Application of 

CHINA AIRLINES, LTD. Docket DOT -OST -1997-3138 

For Renewal of Exemption Pursuant to 

49 U.S.C. § 40109 (U.S.-Taiwan Open Skies) 

APPLICATION OF CHINA AIRLINES, LTD. 

FOR RENEWAL OF EXEMPTION AUTHORITY 

Communications regarding this document should be sent to: 

Vice President. The Americas 

China Airlines, Ltd. 

200 N. Continental Boulevard 

EISegundo, CA 90245 

Dated: September 5, 2014 

\\DC· 082460/000001 5773187 V1 

Hogan Lovells US LLP 

Thirteenth Street, NW 

Washington, DC 20004-1109 

Telephone: +1 202 637 6546 

Facsimile: +1 202 637 5910 

E-mail: george.carneal@hoganlovells.com 

Counsel for China Airlines, Ltd. 
Application of 

BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

CHINA AIRLINES, L TO. Docket DOT -OST -1997-3138 

September 5, 2014 

For Renewal of Exemption Pursuant to 

49 U.S. C.§ 40109 (U.S.-Taiwan Open Skies) 

APPLICATION OF CHINA AIRLINES, L TO. 

FOR RENEWAL OF EXEMPTION AUTHORITY 

Pursuant to 49 U.S.C. § 40109(c) and Subpart C of the Department's Rules of 

Practice, China Airlines, Ltd. ("CAL") hereby applies for renewal of its exemption 

authority to: 

(a) conduct scheduled foreign air transportation of persons, property, and 

mail from points behind Taiwan, via Taiwan and intermediate points, to 

points in the United States and beyond; 

(b) conduct charter foreign air transportation of persons, property, and mail 

pursuant to the terms of the Air Transport Agreement between the 

American institute in Taiwan ("AIT") and the Taipei Economic and 

Cultural Representative Office ("TECRO"), initialed February 28, 1997 

and entered into force March 18, 1998 (the "Open Skies Agreement"); 

(c) conduct other charters pursuant to Part 212 of the Department's 

Economic Regulations; and 

(d) exercise all other rights enumerated in Annexes I and II of the Open 

Skies Agreement. 

This authority was initially granted by Notice of Action Taken dated December 11, 1997 

(Docket DOT-OST-1997-3138), and most recently renewed by Notice of Action Taken 

dated September 7, 2012 for a two year period expiring September 7, 2014. CAL 

requests that this authority be renewed for an additional two years, or until an amended 

\\DC- 082460/000001- 5773187 VI 
China Airlines, Ltd. 

Application for Renewal 

- 2 -

foreign air carrier permit granting comparable route rights becomes effective, whichever 

occurs earlierY In support of this application, CAL submits the following: 

1. CAL is a flag carrier of Taiwan. It currently serves 118 cities across the 

globe using a fleet of 80 aircraft. CAL intends to enhance its service offerings with 

newly-delivered Boeing 777-300ERs starting next month. 

2. CAL holds a foreign air carrier permit last issued by the Department by 

Order 86-5-48. CAL is authorized under its permit to provide service between the 

coterminal points Taipei and Kaohsiung, Taiwan; via intermediate points in the Pacific; 

and the coterminal points Guam; Honolulu, Hawaii; Los Angeles and San Francisco, 

California; Seattle, Washington; Dallas, Texas; and New York, New York; and beyond to 

Amsterdam, The Netherlands. CAL also is authorized by the permit to make technical 

and and provide charter foreign air 

transportation subject to the Department's regulations. 

3. CAL's exemption authorizes it to exercise rights available to Taiwanese 

carriers under the Open Skies Agreement. Notice of Action Taken dated September 7, 

2012. Pursuant to its exemption, CAL has provided service to the United States beyond 

that which is authorized under its foreign air carrier permit, including scheduled all-cargo 

service to Anchorage, Atlanta, Chicago, Dallas, Houston, Miami, and Seattle, and other 

services that are consistent with the Open Skies Agreement. CAL has also offered 

code-share service to multiple additional points in the United States and beyond with 

Delta Air Lines, Inc. and other airline partners, and intends to expand such code-sharing 

services. See Dockets DOT-OST-2013-0175 and DOT-OST-2014-0147 and -0148. 

11 By this application, CAL invokes the automatic extension prov1s1ons of the 

Administrative Procedure Act, 5 U.S.C. § 558(c), as implemented by Part 377 of the 

Department's Special Regulations. 

\\DC· 082460/000001 · 5773187 V1 
China Airlines, Ltd. 

Application for Renewal 

- 3 -

4. CAL's exemption authority is set to expire on September 7, 2014. By this 

application, CAL requests that the Department renew the exemption authority for an 

additional two years. 

5. Under 49 U.S.C. § 40109(c), the Department may renew an exemption if 

it finds that such a grant is in the public interest. Elements of the public interest include 

whether: (a) the applicant is fit, willing, and able to perform the transportation in issue 

and to conform to U.S. aviation law and the Department's regulations; and (b) the 

application is consistent with the relevant bilateral air transport agreement, or is 

consistent with principles of comity and reciprocity. Under these standards, the renewal 

requested by CAL is in the public interest. 

6. The Department has on numerous occasions found CAL fit to provide 

foreign air transportation services, and CAL continues to have the necessary 

managerial competence, financial health, and positive cornpiiance disposition 

demonstrating its fitness to provide air transportation services to and from the 

United States. 

7. The public interest in granting this renewal application is also 

demonstrated by the fact that the operations to be conducted under the renewed 

exemption authority are entirely consistent with the Open Skies Agreement governing air 

service between Taiwan and the United States. CAL has been duly designated by 

TECRO according to Article 3 of the Open Skies Agreement, and the services covered 

by this application are expressly contemplated in the Annexes to that agreement. 

8. Renewal of this exemption authority is also in the public interest because 

it will enable CAL to continue to offer valuable competitive services for passengers and 

shippers in the Taiwan-U.S. market. Such services not only benefit consumers seeking 

\\DC- 0824601000001- 5773187 V1 
China Airlines, Ltd. 

Application for Renewal 

- 4-

transportation options between the United States and Taiwan, but also enhance the 

commercial and cultural ties between the two countries. 

WHEREFORE, China Airlines, Ltd. requests that the Department promptly renew 

its exemption authority, as described herein, for an additional two years. 

September 51 2014 

\\DC- 082460/000001 - 5773187 Vl 

Respectfully submitted, 

Qeorge ~.Carneal 

Rogan Lo'vells US LLP 

555 Thirteenth Street, NW 

Washington, DC 20004-1109 

Telephone: +1 202 637 6546 

Facsimile: +1 202 637 5910 

Counsel for China Airlines, Ltd. 
China Airlines, ltd. 

Application for Renewal 

- 5 -

CERTIFICATE OF SERVICE 

I hereby certify that I have this date served a copy of the foregoing Application of 

China Airlines, ltd. for Renewal of Exemption Authority on the persons identified below 

by causing a copy to be sent by electronic mail. 

RECIPIENT COMPANY E-MAIL 

Howard Kass American Airlines howard.kass@aa.com 

Robert Wirick robert.wirick@aa.com 

Sascha Van der Bellen Delta Air Lines sascha.vanderbellen@delta.com 

Chris Walker chris.walker@delta.com 

Bailey Leopard FedEx Express gbleopard@fedex.com 

Jonathan Hill Cooley LLP jhill@cooley.com 

(for Hawaiian) 

Kevin Montgomery Polar Air Cargo kevin.montgomery@polaraircargo.com 

Daniel A. Weiss United Air Lines dan.weiss@united.com 

Stephen Morrissey I I steve.morrissey@united.com ! 

A.nita Mosner Holland & Knight mita .n 1u::.r lt::(@hk!aw 

(for UPS) 

• Jonathan Echmalian 

Dated: September 5, 2014 

\\DC· 0824601000001 · 5773187 V1