BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

__________________________________________ 

 ) 

Application of ) 

 ) 

HAINAN AIRLINES CO., LTD. ) 

 ) 

For an amended foreign air carrier permit ) Docket No. OST-2007-0066 

pursuant to 49 U.S.C. § 41301 and exemption ) 

authority pursuant to 49 U.S.C. § 40109 ) 

 ) 

(China-US Scheduled Service) ) 

__________________________________________) 

APPLICATION OF HAINAN AIRLINES CO., LTD.

FOR AN EXEMPTION AND AMENDED FOREIGN AIR CARRIER PERMIT

Communications with respect to this document should be addressed to: 

Joel M. Chusid 

Managing Director, North America 

HAINAN AIRLINES CO., LTD. 

18000 International Blvd., Suite 1188 

Seattle, WA 98188 

Email: joel@hnair.com 

June 18, 2012 

Josh Romanow 

Justin Bintrim 

PILLSBURY WINTHROP SHAW 

PITTMAN LLP 

2300 N Street, N.W. 

Washington, D.C. 20037 

Tel: (202) 663-8000 

Fax: (202) 663-8007 

E-mail: romanow@pillsburylaw.com 

 justin.bintrim@pillsburylaw.com 

 

Counsel for Hainan Airlines Co., Ltd. 

NOTE: Any person who wishes to support or oppose this Application may: (1) file an answer, and 

(2) serve that answer on counsel identified above and all persons served with a copy of this 

application. Answers to the exemption application are due on July 3, 2012; answers to the 

amended foreign air carrier permit application are due on July 10, 2012. 
BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

__________________________________________ 

 ) 

Application of ) 

 ) 

HAINAN AIRLINES CO., LTD. ) 

 ) 

For an amended foreign air carrier permit ) Docket No. OST-2007-0066 

pursuant to 49 U.S.C. § 41301 and exemption ) 

authority pursuant to 49 U.S.C. § 40109 ) 

 ) 

(China-US Scheduled Service) ) 

__________________________________________)

APPLICATION OF HAINAN AIRLINES CO., LTD.

FOR AN EXEMPTION AND AMENDED FOREIGN AIR CARRIER PERMIT

Pursuant to 49 U.S.C. §§40109 and 41301, Part 211 of the Department’s economic 

regulations, and the Department’s rules of practice, Hainan Airlines Co., Ltd. (“Hainan 

Airlines”), an air carrier of the People’s Republic of China, respectfully requests that the 

Department amend Hainan Airlines’ foreign air carrier permit to enable it to engage in scheduled 

air transportation of persons, property, and mail between Beijing, People’s Republic of China 

(PEK), on the one hand, and Chicago, Illinois (ORD), on the other hand. 

Hainan Airlines also requests exemption authority under 49 U.S.C. § 40109 to the extent 

necessary so that it may exercise the rights requested in this Application prior to the issuance of 

an amended foreign air carrier permit. Consistent with the Department’s notice of August 23, 

2005 (Docket No. OST-2005-22228) (the “August 23, 2005 Notice”), Hainan Airlines requests 

that the Department process this application on an expedited basis and grant Hainan Airlines an 

amended foreign air carrier permit so that it can begin offering the proposed services as soon as 
possible. In this regard, Hainan Airlines respectfully requests the Department issue a single 

order (1) granting the requested exemption authority for a one-year period or until after the 

effective date of the requested amended permit authority; and (2) approving amended foreign air 

carrier permit authority under the streamlined procedures set forth in the August 23, 2005 Notice, 

unless the Department deems it appropriate to proceed directly to a final order issuing an 

amended foreign carrier permit to Hainan Airlines. In support of this Application, Hainan 

Airlines states as follows: 

1. Since Hainan Airlines began service in 1993, it has grown steadily, launching non-stop 

service to the United States on June 9, 2008 between Beijing and Seattle and then adding 

a Beijing to Toronto service two years later. Since 2008, the Beijing - Seattle route 

frequency has increased to daily flights. Hainan Airlines has received several awards, 

including a five-star certification by Skytrax, a prestigious safety award, for two 

consecutive years, and it has been voted the "Best Airline in China" twice by Global 

Traveler magazine. Hainan Airlines is a service-oriented airline, providing features such 

as complimentary limo service for long-haul premium travelers in Beijing, flat bed seats, 

upgraded amenities and gourmet meals. As one of the launch customers for the Boeing 

787 Dreamliner, Hainan Airlines aims to provide a high quality service option for 

passengers traveling between the People’s Republic of China and Chicago. 

2. By Order 2008-4-29 (April 18, 2008), the Department issued a foreign air carrier permit 

to Hainan Airlines authorizing it to engage in scheduled foreign air transportation of 

persons, property, and mail between Beijing, People’s Republic of China, and Seattle, 

Washington. 
3. By Order 2009-5-7, the Department issued an amended foreign air carrier permit to 

Hainan Airlines permitting it to also engage in charter foreign air transportation of 

persons, property and mail between a point or points in the People’s Republic of China 

and a point or points in the United States. 

4. Authority Requested: Hainan Airlines hereby seeks authority to conduct scheduled air 

transportation of persons, property, and mail between Beijing, People’s Republic of 

China (PEK) on the one hand, and Chicago, Illinois (ORD) on the other hand. Hainan 

Airlines intends to operate these scheduled flights using a Boeing B-787 aircraft with a 

two class configuration, or equivalent longhaul aircraft in its fleet, and proposes to 

operate initially four flights per week beginning in the second quarter of 2013. 

5. Granting Hainan Airlines’ request for an amended foreign air carrier permit is fully 

consistent with the Agreement between the Government of the United States of America 

and the People’s Republic of China Relating to Civil Air Transport signed September 17, 

1980, as amended, which authorizes airlines designated by the Chinese government to 

operate combination services from any point or points in the People’s Republic of China 

to any point or points in the United States. It would benefit travelers in both the United 

States and China by providing additional scheduled service in this market and would 

therefore serve the public interest. 

6. The Government of the People’s Republic of China has authorized Hainan Airlines to 

conduct the proposed flights from Beijing to Chicago. A copy of Hainan Airlines’ 

authorization issued by the Civil Aviation Administration for China (“CAAC”) is 

attached hereto as Exhibit A. 
7. Hainan Airlines hereby incorporates by reference the fitness and citizenship information 

contained in its November 9, 2007 and August 19, 2008 applications, given that there has 

been no material change to the information provided in those applications. See Docket 

OST-2007-0066. 

8. A copy of the airline’s Air Operator’s Certificate is incorporated by reference from its 

November 9, 2007 application. See Docket OST-2007-0066. 

9. An estimate showing the total traffic and the financial results of the proposed services for 

the first full year of normal operations is attached hereto as Exhibit B. 

10. Grant of the authority sought herein will not result in a near term increase in fuel 

consumption of ten million gallons or more, and therefore will not comprise a “major 

regulatory action” under the Energy Policy and Conservation Act of 1975, as defined in 

14 C.F.R. § 313(a)(1). 

11. Hainan Airlines has not been involved in any safety or tariff violations or any fatal 

accidents in the past five years. 

12. Hainan Airlines’ maintenance program continues to comply with the provisions of ICAO 

Pilots and Airmen Annexes 1, 6 (Part 1) and 7. 

13. The verification required by 14 C.F.R. 302.4(b) is attached hereto as Exhibit C. 

For the reasons set forth above, Hainan Airlines is fully qualified to operate the services 

for which authority is herein requested, and grant of the authority will serve the public interest. 

Hainan Airlines asks that the requested exemption remain in place for one year, or until the 

Department issues an amended permit authorizing the requested authority. 
WHEREFORE, based upon the foregoing information, Hainan Airlines respectfully 

requests that it be granted an exemption and amended foreign air carrier permit to engage in 

scheduled foreign air transportation of persons, property and mail as more fully described above. 

Respectfully submitted, 

Josh Romanow 

Justin Bintrim 

PILLSBURY WINTHROP SHAW PITTMAN LLP 

2300 N Street, N.W. 

Washington, DC 20037 

Phone: (202) 663-8000 

Fax: (202) 663-8007 

Email: romanow@pillsburylaw.com 

 justin.bintrim@pillsburylaw.com

June 18, 2012 Counsel for Hainan Airlines Co., Ltd. 
CERTIFICATE OF SERVICE

I hereby certify that a copy of the foregoing application of Hainan Airlines Co., Ltd. for an 

amended foreign air carrier permit and exemption has been served this the 18th day of June, 

2012, upon each of the parties below by electronic mail. 

David Henthorn 

International Aviation Safety Inspector 

Federal Aviation Administration 

david.e.henthorn@faa.gov

Sascha Vanderbellen 

Delta Air Lines, Inc. 

1275 K St., NW 

Washington, D.C. 20005 

sascha.vanderbellen@delta.com

Carl B. Nelson, Jr. 

Robert Wirick 

American Airlines, Inc. 

1101 Seventeenth Street, N.W. 

Suite 600 

Washington, D.C. 20036 

Carl.nelson@aa.com

Robert.wirick@aa.com

Bailey Leopard 

Federal Express Corporation 

1101 Pennsylvania Avenue, N.W., Suite 600 

Washington, D.C. 20004 

gbleopard@fedex.com

Kevin P. Montgomery 

Polar Air Cargo, Inc. 

1747 Pennsylvania Avenue, N.W. 

Suite 875 

Washington, DC 20006 

Kevin.montgomergy@polaraircargo.com

Russell E. Pommer 

Associate General Counsel & Sr. Director 

 Regulatory Affairs 

Atlas Air Inc. 

1747 Pennsylvania Avenue, NW, Suite 875 

Washington, D.C. 20006 

rpommer@atlasair.com

Sam White 

Ranjit Seth 

Evergreen International Airlines, Inc. 

1401 New York Avenue, NW, Suite 530 

Washington, DC 20005-2147 

sam.white@evergreenairlines.com

ranjit.seth@evergreenairlines.com

Anita Mosner 

Counsel for United Parcel Service Co 

Holland & Knight 

2099 Pennsylvania Avenue, N.W. 

Suite 100 

Washington, DC 20006

anita.mosner@hklaw.com

Malcolm L. Benge 

Counsel for North American 

Airlines/World Airways 

Zuckert Scoutt & Rasenberger, L.L.P. 

888 17th Street, N.W., Suite 700 

Washington, D.C., 2006-3309 

mlbenge@zsrlaw.com
Dan Weiss 

Continental Airlines 

1600 Smith Street, Ste. HQSGV 

Houston, TX 77002 

dan.weiss@coair.com

Steve Morrissey 

Counsel for United Air Lines 

steve.morrissey@united.com

Howard Kass 

U.S. Airways 

1401 H Street, NW, Suite 1075 

Washington, DC 20005 

howard.kass@usairways.com

Robert Silverberg 

Counsel for ABX Air, Inc. 

Silverberg, Goldman & Bikoff, LLP 

1101 30th Street, NW, Suite 120 

Washington, DC 20007 

rsilverberg@sgbdc.com

Mark W. Atwood 

Counsel for Kalitta Air 

Cozen O’Connor 

1627 I Street, NW 

Suite 1100 

Washington, D.C. 20006 

matwood@cozen.com

/s/Melinda A. Hernandez
TABLE OF EXHIBITS 

Exhibit A Designation from the Government of the People’s Republic of China 

Exhibit B Estimate of Traffic and Financial Forecast for Proposed Operations 

Exhibit C Verification 
EXHIBIT A

DESIGNATION FROM THE GOVERNMENT OF THE 

PEOPLE’S REPUBLIC OF CHINA 

[ATTACHED] 
r:rm~mM:~ffii 

~ 

Civil Aviation Administration of China CCAAC) 

'P~~~Ji\*11!lmi::lcUf ISS .\} 

II!Ul!&!ii~: 100710 

t:l!iiS: 86-10-64092374 

f!i }{:' 86-10-64091341 

Mr. Paul Gretch 

Director 

Office of International Aviation 

U.S. Department of Transportation 

Office of the Secretary of Transportation 

Sub: Hainan Airlines' new services 

Dear Sir, 

155 Dongsi Xidajie 

Beijing, I 00710, China 

Tel: 86- 10·64092374 

Fax: 86-10-64091341 

15 June 2011 

Department of International Affairs of the Civil Aviation Administration of China 

(CAAC) presents its compliments to the Office of International Aviation of U.S. 

Department of Transportation and has the honor to inform that this 

Administration has authorized Hainan Airlines to operate the agreed services 

on the specified routes of Beijing-Chicago v.v. from September 2011. 

It would be much appreciated if your good office could proceed to process 

Hainan Airlines' relevant applications for the planned operation on the 

above-mentioned routes. 

Yours sincerely, 

n~ Han, Jun 

Acting Director General 

Department of International Affairs 

Civil Aviation Administration of China (CAAC) 
EXHIBIT B 

ESTIMATE OF TRAFFIC AND 

FINANCIAL FORECAST FOR PROPOSED OPERATIONS 

Month # of 

Flights 

Revenue* Total Costs* Profit* 

APR 2013 17 30,995,751.19 34,027,761.68 -3,032,010.49 

MAY 2013 17 37,610,080.27 34,027,761.68 3,582,318.59 

JUN 2013 18 39,161,459.38 36,029,394.72 3,132,064.66 

JUL 2013 17 42,893,992.82 34,027,761.68 8,866,231.14 

AUG 2013 18 49,264,704.17 36,029,394.72 13,235,309.45 

SEP 2013 17 38,008,045.89 34,027,761.68 3,980,284.21 

OCT 2013 18 36,929,536.62 36,029,394.72 900,141.90 

NOV 2013 17 32,596,411.09 34,027,761.68 -1,431,350.59 

DEC 2013 18 29,737,679.55 36,029,394.72 -6,291,715.17 

JAN 2014 17 36,649,123.19 34,027,761.68 2,621,361.51 

FEB 2014 16 15,970,314.62 32,026,128.64 -16,055,814.02 

MAR 2014 18 32,574,544.86 36,029,394.72 -3,454,849.86 

Total 208 422391643.7 416,339,672.32 6,051,971.33 

 * Chinese Yuan – The dollar Renminbi exchange rate is currently 6.33163:1. 
EXHIBIT C 

VERIFICATION 

Pursuant to Title 18 United States Code§ 1001, I, HOU WEI , in my individual 

capacity and as the authorized representative of the pleader, have not in any manner knowingly 

and willfully falsified, concealed or failed to disclose any material fact or made any false, 

fictitious, or fraudulent statement or knowingly used any documents which contain such 

statements in connection with the preparation, filing or prosecution of the pleading. I understand 

that an individual who is found to have violated the provisions of 18 U.S.C. § 1001 shall be fined 

or imprisoned not more an five years, or both. 

By: ________ -*---t~~~-----

Name: HO 

Title: CHIEF MARKETING 0 FTCER 

Dated: June~' 2012 

..