Application

of BEFORE THE DEPARTMENT

OF TRANSPORTATION WASHINGTON,
D.C. SICHUAN AIRLINES CO.,

L TO

.

) ) ) for renewal
of an exemption pursuant

to

) Docket DOT-OST-2010-0299 ) 49 U.S

. C
. § 40109 (People's Republic

of ChinaCNMI/Guam scheduled service and PRC-U.S

. charters)

) ) APPLICATION

OF SICHUAN AIRLINES CO

. , L TO

. FOR RENEWAL
OF AN EXEMPTION Communications
with respect
to this document should be addressed
to: April 27

, 2015 \ \DC- 038020/000001

- 6535033
vi George
U. Carneal HOGAN LOVELLS
US LLP Columbia Square 555 Thirteenth Street

, NW Washington,
DC 20004 Telephone

: +1 202 637 6546 Facsimile

: +1 202 637 5910 E-mail: george

. carneal@hoganlovells.

com Counsel for SICHUAN AIRLINES CO

. , L TO.ApplicationofBEFORETHEDEPARTMENTOFTRANSPORTATIONWASHINGTON,D.C.SICHUANAIRLINESCO.,LTD.)))forrenewalofanexemptionpursuantto49U.S.C.§40109(People'sRepublicofChinaCNMI/GuamscheduledserviceandPRC-U.S.charters)April27,2015)DocketDOT-OST-2010-0299)))APPLICATIONOFSICHUANAIRLINESCO.,LTD.FORRENEWALOFANEXEMPTIONSichuanAirlinesCo.,Ltd.("SCAL")herebyappliesunder49U.S.C.§40109andSubpartCoftheDepartment'sRulesofPractice(14C.F.R.§302.301,etseq.)forrenewalofanexemptionauthorizingSCALtocontinuetoengagein(1)scheduledforeignairtransportationofpersons,property,andmailbetweenpointsinthePeople'sRepublicofChina("PRC"),ontheonehand,andGuamandtheCommonwealthoftheNorthernMarianaIslands("CNMI"),ontheotherhand;(2)charterforeignairtransportationofpersons,property,andmailbetweenthePRCandtheUnitedStates;and(3)othercharterspursuanttothepriorapprovalrequirementssetforthintheDepartment'sregulations.SCAL'sexemptionauthoritywasinitiallyapprovedforoneyearbyNoticeofActionTaken("NOAT")datedJanuary26,2011,andmostrecentlyrenewedforanadditionalyearbyNOATdatedMay1,2014(DocketDOT-OST-2010-0299).SCALrequestsrenewalforaperiodofatleastoneadditionalyear.1Infilingthisrenewalapplication,SCALinvokestheautomaticextensionprovisionsoftheAdministrativeProcedureAct,5U.S.C.§558(c),asimplementedbyPart377oftheDepartment'sSpecialRegulations.Thisapplicationistimelyfiledpursuantto§377.1O(c)(3).\\DC.038020/000001•6535033viApplication

of Sichuan Airlines Co

. , Ltd

. for Renewal

of an Exemption Page

2 In support
of this renewal application, SCAL submits the following information

: 1. Pursuant

to its existing exemption authority, SCAL currently operates four weekly Chengdu-Shanghai-Saipan roundtrip flights and two weekly ChengduGuangzhou-Saipan roundtrip flights using A-330-243

or A-330-343 aircraft each configured with 24-36 business class and 209-265 economy seats. The traveling public has continued

to respond well to these services. SCAL seeks
to renew its exemption authority
so that

it may continue

to conduct
its scheduled flights between the PRC and Saipan.

2 2 . 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 SCAL

is clearly

in the public interest. 3. SCAL continues

to be fit, willing, and able to provide the foreign air transportation described

in this renewal application, remains properly licensed
by its homeland and substantially owned and effectively controlled

by citizens
of the PRC, maintains insurance coverage

in accordance with 14 C

. F.R. Part 205, and otherwise continues

to meet the requirements imposed
on foreign air carriers serving the United States. SCAL requests that the Department take official notice pursuant

to 2 SCAL reserves the right to modify the routes, frequencies,
and equipment
for its scheduled PRC-Saipan services and to provide charter services

to the United States

in accordance with its exemption authority and the opportunities available under the PRC-U

. S
. Civil Air Transport Agreement. However, SCAL will submit applications

for statements

of authorization

to conduct any charter flights subject
to the Department's prior approval requirements

. 1 \DC- 038020/000001

. 6S3S033

viApplication

of Sichuan Airlines Co., Ltd. for Renewal
of an Exemption Page

3 Rule 24 of the Department's Rules of Practice

of all data on file with the Department necessary

to establish SCAL's continuing qualifications

to engage

in foreign air transportation

to and from the United States. 4. SCAL's exemption authority continues

to be consistent with the U.S.-PRC Agreement Relating

to Civil Air Transport, signed September

17, 1980, under which SCAL has been designated, constituting prima facie evidence that renewal

is in the public interest. 5. Furthermore, renewal

is in the public interest because SCAL's scheduled service will continue

to promote foreign travel and tourism

to the CNMI. As the Department

is well aware, air transportation plays

a crucial role in the CNMI's economy. See Order 2007-2-23

at 7 ("[w]e recognize that air service

is vitally important

to the CNMI, and that the CNMI
... is geographically isolated and heavily dependent

on air transportation

as a vital element

of its economy.")

As SCAL anticipated when

it filed its initial exemption application

on December
22, 2010 (see Application,

pp. 6-7), its scheduled flights
to Saipan have helped
to meet and stimulate demand for passenger air transportation between the PRC and the CNMI,
to the benefit
of the CNMI's economy. SCAL has maintained

a schedule

of six weekly PRC-CNMI flights, demonstrating

the continued success and substantial public benefits

of its scheduled service. The Department should promptly renew SCAL's exemption

so that these valuable services may continue without disruption and,

if warranted, expand

in the future. \ \DC- 038020

1 000001

• 6535033

viApplication

of Sichuan Airlines Co., Ltd. for Renewal
of an Exemption Page4 WHEREFORE, Sichuan Airlines Co., Ltd. respectfully requests that the Department renew its exemption authorizing
the scheduled and charter foreign air transportation described herein, and grant such further and additional relief as the public interest may require. \ \DC- 038020

1 000001

• 6535033
vi Respectfully submitted, Columbia Square 555 Thirteenth Street, NW Washington,

DC 20004 Telephone:

+1 202 637 6546 Facsimile:

+1 202 637 5910 E-mail: george.carneal@hoganlovells.com Counsel for SICHUAN AIRLINES CO.,

L TO.CERTIFICATEOFSERVICEIherebycertifythatacopyoftheforegoingApplicationofSichuanAirlinesCo.,Ltd.forRenewalofanExemptionhasbeenservedthis27thdayofApril,2015,onthefollowingaddressees:robert.wirick@aa.com;howard.kass@aa.comsascha.vanderbellen@delta.com;chris.walker@delta.comgbleopard@fedex.comjhill@cooley.com;perkmann@cooley.commatwood@cozen.comkevin.montgomery@polaraircargo.comagoerlich@ggh-airlaw.comdan.weiss@united.com;steve.morrissey@united.comanita.mosner@hklaw.com;jennifer.nowak@hklaw.comenglets@state.govDaniel.W.Abdon@faa.govJonathanEchmalian\\DC·038020/000001-6535033vi