BEFORE THE U.S. DEPARTMENTOF TRANSPORTATION OFFICE OFTHE SECRETARY WASHINGTON, D.C.

Application of CHINAAIRLINES, LTD. Docket DOT-OST-1997-3138 For Renewal of Exemption Pursuantto 49 U.S.C. 

### §40109 (U.S.-Taiwan Open Skies)

APPLICATION OF CHINAAIRLINES, LTD. FOR RENEWAL OF EXEMPTIONAUTHORITY

Communications regarding this document should be sentto:
Vice President. The Americas China Airlines, Ltd. 200 N. Continental Boulevard EISegundo, CA 90245

Dated: September5, 2014

\\DC·082460/000001 5773187V1 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 ChinaAirlines, Ltd.Application of BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

CHINAAIRLINES, LTO. Docket DOT-OST-1997-3138 September5, 2014 For Renewal of Exemption Pursuantto 49 U.S.C.§40109 (U.S.-Taiwan Open Skies)
APPLICATION OF CHINAAIRLINES, L TO. FOR RENEWAL OF EXEMPTIONAUTHORITY
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 authorityto: (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 SkiesAgreement"); (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 SkiesAgreement. This authority was initially granted by Notice ofAction Taken dated December 11, 1997 (Docket DOT-OST-1997-3138), and most recently renewed by Notice ofAction 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- 5773187VIChinaAirlines, Ltd. Application for Renewal 

### - 2 - foreign air carrier permit granting comparable route rights becomes effective, whichever
occurs earlierY In support ofthis application, CAL submitsthefollowing: 1. CAL is a flag carrier ofTaiwan. 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 NewYork, NewYork; and beyond to Amsterdam, The Netherlands. CAL also is authorized by the permit to make technical and and provide charter foreign air transportation subjectto the Department's regulations. 3. CAL's exemption authorizes it to exercise rights available to Taiwanese carriers underthe Open Skies Agreement. Notice ofAction Taken dated September7, 2012. Pursuantto its exemption, CAL has provided service to the United States beyond thatwhich is authorized under its foreign aircarrier 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 otherairline 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 · 5773187V1ChinaAirlines, Ltd. Application for Renewal 

### - 3 - 4. CAL's exemption authority is setto expire on September7, 2014. Bythis application, CAL requests that the Department renew the exemption authority for an additional two years. 5. Under49 U.S.C. 

### §40109(c), the Department may renew an exemption if it finds that such a grant is in the public interest. Elements ofthe 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 ofcomity and reciprocity. Underthese standards, the renewal requested by CAL is in the public interest. 6. The Department has on numerous occasions found CAL fit to provide foreign airtransportation 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 entirelyconsistentwith the Open SkiesAgreementgoverning air service between Taiwan and the United States. CAL has been duly designated by TECRO according to Article 3 ofthe Open Skies Agreement, and the services covered bythis application are expresslycontemplated in theAnnexestothat agreement. 8. Renewal ofthis exemption authority is also in the public interest because it will enable CAL to continue to offervaluable competitive services for passengers and shippers in the Taiwan-U.S. market. Such services not only benefit consumers seeking

\\DC- 0824601000001- 5773187V1China 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. requeststhatthe Department promptly renew its exemption authority, as described herein, foran additional two years.

September

### 51 2014

\\DC- 082460/000001

-5773187Vl 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 ChinaAirlines, Ltd.ChinaAirlines, ltd. Application for Renewal 

### - 5 -
CERTIFICATE OF SERVICE I hereby certify that I have this date served acopy ofthe foregoing Application of China Airlines, ltd. for Renewal of Exemption Authority on the persons identified below by causing acopyto be sent by electronic mail.

RECIPIENT COMPANY E-MAIL Howard Kass American Airlines howard.kass@aa.com RobertWirick robert.wirick@aa.com SaschaVan 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 PolarAirCargo kevin.montgomery@polaraircargo.com DanielA. Weiss UnitedAir Lines dan.weiss@united.com Stephen Morrissey 

# I Isteve.morrissey@united.com ! A.nita Mosner Holland& Knight mita.n1u::.rlt::(@hk!aw (for UPS)

• Jonathan Echmalian Dated: September5, 2014

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