Order 20 12

- 10

- 15

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 9 th day of August , 20 12

Served: October 1 1

, 20 12

A pplication of

HAINAN AIRLINES CO., LIMITED Docket DOT

- OST

- 2007

- 0066

for an exemption under 49 U.S.C. §40109 and an amended foreign air carrier permit under 49 U.S.C. §41301

FINAL ORDER

By Order 20 12

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- 14 , issued July 18

, 2012

, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award a n amended foreign air carrier permit in the form attached to the Order an d subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subj ect to Presidential review under 49 U.S.C. §41307) which would make final the findings and conclusions of the Order.

No objections were received within the time period provided.

ACCORDINGLY,

1. We make final our findings and conclusions as stated in the Order and award to Hainan Airlines Co., Limited the amended foreign air carrier permit with associated conditions attached to the Order (and attached as the Appendix to the present order)

, subject also to the charter prior approval conditions previousl y placed on Hainan Airlines Co., Limited by Order 2009

- 5

- 7;

2. Unless disapproved by the President of the United States under 49 U.S.C. §41307, this order

shall become effective on the 61 st day after its submission for section 41307 review or upon the

da te of receipt of advice from the President or his designee under Executive Order 12597 and2

implementing regulations that he or she does not intend to disapprove the Department’s order under that section, whichever occurs earlier; 1

3. To the extent not a cted upon above, we dismiss all remaining requests for relief in Docket

DOT

- OST

- 200 7

- 0066 ; and

4 . We will serve a copy of this order on Hainan Airlines Co., Limited

, the Embassy of the People’s Republic of China in Washington, D.C. , the Department of Sta te, and the Federal

Aviation Administration.

By:

PAUL L. GRETCH

Director

Office of International Aviation

(SEAL)

Appendix

An electronic version of this document is available on the World Wide Web at: http: //www.regulations.gov

1 This order was submitted for review under 49 U.S.C . §41307 on August 9 , 2012

. The 61 st day is

October 9 , 2012 . Since the Presid ent or his designee did not disapprove this order before that date, it became

effective on October 9 , 20 12

.Issued by

Order 2012

- 10

- 15

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.



### ---------------------------------------------------------------------------- PERMIT TO FOREIGN AIR CARRIER (as amended)



### ------------------------------------------- ----------------------------------



### H ainan A irlines C o ., Limited

A Foreign Air Carrier of the People’s Republic of China

is authorized, subject to the following provisions, the provisions of Title 49 of the U.S. Code, and the orders, rules, and regu lations of the Department of Transportation, to engage in foreign air transportation of persons, property and mail, as follows:

Scheduled foreign air transportation of persons, property, and mail b etween : 1) Beijing, People’s Republic of China, and Seattl e, Washington; 2) Beijing, People’s Republic of China, and Honolulu, Hawaii; and 3) Beijing, People’s Republic of China, and Chicago, Illinois; and

Charter foreign air transportation of persons, property, and mail b etween a point or points in the People’s Republic of China and a point or points in the United States.

The holder shall also be authorized to engage in other charter trips in foreign air transportation, subject to the terms, conditions, and limitations of the Department’s regulations governing

charters.

This permit and the exercise of the privileges granted in it shall be subject to the terms, conditions and limitations in both the order issuing this permit and the attachment to this order, and to all applicable provisions of any treaty, conven tion or agreement affecting international air transportation now in effect, or that may become effective during the period this permit remains in effect, to which the United States and the holder’s homeland are or shall become parties.

This permit shall b e effective on October 9, 2012 . Unless otherwise terminated at an earlier date pursuant to the terms of any applicable treaty, convention or agreement, this permit shall terminate (1) upon the dissolution or liquidation of the holder to whom it was issued ; (2) upon the effective date of any treaty, convention, or agreement or amendment, which shall have the effect of eliminating the bilateral right for the service authorized by this permit from the service which may be operated by airlines designated by th e People’s Republic of China (or, if the rightis partially eliminated, then the authority of this permit shall terminate in like part); (3) upon the effective date of any permit granted by the Department to any other carrier designated by the Peoples’ Rep ublic of China in lieu of the holder; or (4) upon the termination or expiration of the applicable air services agreement between the United States and the People’s Republic of China. However, clause (4) of this paragraph shall not apply if prior to such t ermination or expiration, the foreign air transportation authorized herein becomes the subject of another treaty, convention or agreement to which the United States and the People’s Republic of China become parties. The Department of Transportation has ex ecuted this permit and affixed its seal on August 9

, 2012.

By:

PAUL L. GRETCH

Director

Office of International Aviation



### (SEAL)Foreign Air Carrier Permit Conditions

In the conduct of the operations authorized, the foreign carrier applicant 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 Avi ation Administration, the 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 applicable 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 International Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the IIR 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 f orm 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 constit ute a waiver of sovereign 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 internation al air transportation that, 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

Conve ntion, 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 requirements 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 Depar tment'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 regu lations of other U.S. agencies 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 transferred without explicit Department approval under Title 49 of the U.S. Code.

12/2007