### UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION \VASHINGTON, D.C.
Application of ) ) ) 

### AIR CHINA LIMITED d/b/a AIR CHINA for renewal ofexemption authority pursuant to 49 U.S.C § 

### 40109 ) Docket DOT- OST-2013-0001 ) 

### ) )



# ___________________________________ )
APPLICATION OF AIR CHINA LIMITED d/b/a AIR CHINA FOR RENEWAL OF EXEMPTION AUTHORITY Communications with respect to this Application should be sent to: George N. Tompkins, Jr., Esq. Wilson, Elser, Moskowitz, Edelman & 

### Dicker LLP 150 East 42 11d 

### Street New York, New York 10017-5639 (212) 490-3000 Ext. 5624 (Phone) (212) 490-3038 (Fax) george.tompkinsjr@wilsonelser.com Counsel for AIR CHINA LIMITED

DATED: December 16, 2014 Notice: Any person may support or oppose this application by filing an answer on or before January 5, 2015.

6474424v.l

### UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.
Application of ) ) 

### AIR CHINA LIMITED ) d/b/a AIR CHINA ) Docket DOT- OST-2013-0001 ) 

### for renewal ofexemption authority pursuant to 49 U.S.C. § ) 

### 40109 )

------------------------------------- 

## ) APPLICATION OF AIR CHINA LIMITED d/b/a AIR CHINA FOR RENEWAL OF EXEMJ>TJON AUTHORITY

1. 

### Pursuant to 49 U.S.C. § 40109, Air China Limited, d/b/a Air China, ("Air China") hereby applies for the renewal of exemption authority granted in the Notice of Action Taken (NOAT) issued on January 16, 2014 by the Department of Transportation in Docket DOT-OST-2013-0001, permitting Air China to engage in scheduled foreign air transportation ofpersons, property and mail between Beijing, People's Republic ofChina on the one hand, and Houston, Texas, on the other hand. This exemption authority expires on January 16, 2015. By this Application, Air China respectfully requests that this exemption authority be renewed for a period oftwo (2) years to expire on January 17, 2017, pursuant to NOAT issued January 16, 2014 in Docket DOT-OST-2013-0001. See Exhibit "A" hereto.

2. Air Chinarelies upon the automatic extension provisions of5 U.S.C. § 

### 558(c),

as implemented by 14 C.F.R. Part 377, to continue this exemption authority in effect pending final Department action on this renewal application. This application is timely filed under 14 C.F.R. § 377.10(c).

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### 3. There also is pending before the Department of Transportation, in Docket DOT-OST-2013-0049, the application ofAir China for Amendment of Foreign Air Carrier Permit to include Houston, Texas as a coterminal point in the United States, together with the existing coterminal points authorized in its Foreign Air Carrier Permit. A copy of the Foreign Air Carrier Permit ofAir China is attached as Exhibit "B" hereto.
WHEREFORE, Air China respectfully requests that the Department of Transportation renew the exemption authority applied for herein for a period of two (2) years to January 16, 2017 or until the Department grants Air China's application for renewal. Air China further requests thatthe Department grant such other and further relief

as the Department finds to be consistent with this application.

DATED: December 16, 2014

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### George N. Tompk! ns, Jr. /' Wilson, Elser, Moskowitz, ( Edelman & 

### Dicker LLP. 150 East 42nd Street New York, New York 10017-5639 (212) 490-3000 Ext. 5624 (Phone) (212) 490-3038 (Fax) george.tompkinsjr@wilsonelser.com Counsel for AIR CHINA LIMITED

# EXHIBIT 

# A

6474424v.lUNITED STATES OF AMERICA

**DEI~ARTMENT** OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued bythe Department ofTransportation on January 16, 2014 

### NOTICE OF ACTION TAKEN-- DOCKET DOT-OST-2013-0001

------------------------- This serves as notice to the public ofthe action described below, taken by the Department official indicated (no additional confirming order will be issued in this matter). Applicant: AIR CHINA LIMITED d/b/a AIR CHINA (Air China) Date Filed: December 20,2013 Reliefrequested: Renewal ofexemption under 49 U.S.C. § 40109 to engage in scheduled foreign air transportation of persons, property, and mail between Beijing, People's Republic ofChina, on the one hand, and Houston, Texas, onthe otherhand. The applicantrequests thatthis authority be granted for a period oftwo years. Ifrenewal, date and citation oflast action: January 17, 2013, in this Docket. Applicant representative: George N. Tompkins, Jr., 212-490-3000 DOT analyst: Brett D. Kruger, 202-366-8025 Responsive pleadings: OnJanuary 3, 2014, the City ofHouston filed a letter in support ofAir China's request. DISPOSITION Action: Approved inpart, remainder (request for longer-term authority) dismissed. 1 Action date: January 16, 2014 Effective dates ofauthority granted: January 16,2014,through January 16, 2015. Basis for approval: United States-ChinaAirTransport Services Agreement· Except to the extent exempted/waived, this authority is subject to the tem1s, conditions, and limitations of our standard exemptionconditions (attached). Action taken by: PaulL. Gretch, Director, Office ofInternational Aviation Under authority assigned by the Department in its regulations, 14 CFRPart 385, we found that (1) our action was consistent with Department policy; (2) the applicant was qualified to perfmm its proposed operations; (3) grant ofthe authority was consistent with the public interest; and (4) grant ofthe authority would not constitute a major regulatory action under the Energy Policy and Conservation Actof 1975. To the extent not granted/deferred/dismissed, we denied all requests in the referenced Docket. We may amend, modify, orrevoke the authority granted in this Notice at any time without hearing at our discretion. Persons entitled to petition the Depmtment for review ofthe action set forth in this Notice under the Department's regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date ofissuance ofthisNotice. This action was effective when taken, and the filing ofa petition for review will not alter such effectiveness. An electronic version of this document is available on the World Wide Web at:

http://www.regulations.gov

1The one-year duration ofthe authority we granted Air China is consistentwith our usual policy ofgranting exemption authority in the circumstances presented. We therefore, dismissed the application to the extent that it sought authority for a longer period.

### Foreign Carrier Exemption Conditions In the conduct ofthe operations authorized, the foreign carrier applicant(s) shall: (1) Not conduct any operations unless it holds a cunently effective authorization from its homeland for such operations, and it has filed a copy ofsuch authorizationwith the Department; (2) Comply with all applicable requirements ofthe Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 14 CFRParts 129,91, and 36 and 49 CFRPart 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 ofdeparture for the United States, contact its International Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the IIR ofits plans and to find out whether the Transpmiation 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 ofany operations under this authority, file evidence of such coverage, in the form ofa completed OST Form 6411, with the Federal Aviation Administration's Program Management Branch (AFS-260), Flight Standards Service (any changes to, ortermination 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 ofthe Chicago Convention; (5) Conform to the airworthiness and airman competency requirements ofits 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 ofWarsaw Convention liability limits and defenses; (7) Agree that operations under this authority constitute a waiver ofsovereign immunity, for the purposes of28 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 international air transportation that, according to the contract of carriage, include a point in the United States as a point oforigin, point ofdestination, or agreed stopping place, or for which the contract ofcarriage was purchased in the United States; or (b) based on a claim under any international agreement ortreaty cognizable in any court or other tribunal ofthe United States. In this condition, the term "international air transportation" means "international transportation" as defined by the Warsaw Convention, except that all States shall be consideredto be High Contracting Parties for the purpose ofthis definition; (8) Except as specifically authorized by the Department, originate or terminate all flights to!ti·om the United States in its homeland; (9) Comply with the requirements of 14 CFRPart 217, concerningthe reporting ofscheduled, nonscheduled, and charter data; (10) Ifcharter operations are authorized, except as otherwise provided inthe applicable aviation agreement, comply with the Department'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 orregulations ofother U.S. agencies and courts, and with all applicable laws ofthe 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 otherwisetransferred without explicit Depa1iment approval under Title 49 ofthe U.S. Code. 12/2007

# EXHIBITB

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### UNITED STATES OF AMERICA DEPARTMENT OFTRANSPORTATION OFFICE OF THE SECRETARY 

### WASHINGTON, D.C.

PERMITTO FOREIGNAIR CARRIER



## Air China Limited
A Flag Carrier ofthe People's Republic ofChina 

### AppendixB Issued by Order 2007-7-9

is authorized, subject to the following provisions, the provisions ofTitle49 ofthe U.S. Code, and the orders, rules, andregulations ofthe Department ofTransportation, to engage in foreign airtransportation ofpassengers and cargo, including mail, on a scheduled combination basis only, as follows: 

### Between the coterminal points Beijing, Guangzhou, and Shanghai,thePeople'sRepublic of China; via Tokyo or another point in Japan; and the coterminal points Chicago, IL,Dallas, TX, Honolulu,HI, Los Angeles and San Francisco, CA,Portland, OR, and New York,NY; 2 

### with optional technical stops atAnchorage and/orFairbanks,AL, and/or a pointin Japan otherthan Tokyo and Osaka. Theholder shall also be authorized to engage in chartertrips in foreign air transportation, subject to the terms, conditions, and limitations ofthe Department's regulations governing charters.3 

### This permitand the exercise ofthe privileges granted in it shall be subjectto the terms, conditions and limitations in boththe order issuing this permitandthe attachmentto this order, and to all applicable provisions ofany treaty, convention or agreement affecting international air transportationnow in effect, or thatmaybecome effective during the periodthis permitremains in effect, to whichthe United States and the holder's homeland are or shall become parties. Thispermit shall be effective on July 10, 2007. Unless otherwise terminated at an earlier date pursuantto the terms ofany applicable treaty, convention or agreement, this permit shall terminate (1) upon the dissolution or liquidation ofthe holder to whom itwas issued; (2) upon the effective date ofany treaty, convention, or agreement oramendment, which shall have the effect ofeliminating the bilateralright for the service authorized bythis permit from the service which maybe operated by airlines designated bythe People'sRepublic ofChina (or, ifthe right is partially eliminated, then the authority ofthis permit shallterminate in like part); (3) uponthe effective date ofany permit granted by the Departmentto any othercarrierdesignated by the Peoples' Republic ofChina in lieu ofthe holder; or (4) upon the termination or expiration ofthe

2 ThePeople's Republic ofChina may add a total oftwo intermediate or beyond points which may be served with full traffic rights. These two points may be added to a single route or allocated between Routes I and 2 (Annex I) of the Agreement. 3 Inthe conductofcharters the holder is subjectto the prior approval requirements in Order 92-11-7.

### applicable air services agreement between the United States and the People's Republic ofChina. However, clause (4) ofthis paragraph shall not apply ifprior to such termination or expiration, the foreign air transportation authorized herein becomes the subject ofanother treaty, convention or agreement to which the United States and the People's Republic ofChina become parties. The Department ofTransportation has executed this permit and affixed its seal on May 21, 2007. By:

(SEAL) PAULL. GRETCH Director Office ofInternational AviationForeign Air Carrier Permit Conditions In the conduct ofthe operations authorized, the foreign carrier applicant shall: (1) Notconduct any operations unless it holds a currently effective authorization from its homeland for such operations, and it has filed a copy ofsuch authorization with the Department; (2) Comply with all applicable requirements ofthe Federal Aviation 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 CFRPart 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 ofdeparture for the United States, contactits International Principal Security Inspector (IPSI) to advise the IPSI ofits plans and to find outwhether the Transportation Security Administration has determined that security is adequate to allow such airport(s) to be served; (3) Comply withthe requirements for minimum insurance coverage contained in 14 CFR Part 205, and, priorto the commencement ofany operations under this authority, file evidence ofsuch coverage, in the form ofa completed OST Form 6411, with theFederal Aviation Administration's Program Management Branch (AFS-260), Flight Standards Service (any changes to, or termination of, insurance also shall be filed withthat office); (4) Not operate aircraft underthis authority unless it complies with operational safety requirements at least equivalentto Annex 6 ofthe Chicago Convention; (5) Conformto the airworthiness and airman competency requirements ofits Government for international air services; (6) Exceptas specifically exempted or otherwise provided for in a Department Order, comply with the requirements of 14 CFRPart203, concerning waiver ofWarsaw Conventionliability limits and defenses; (7) Agree that operations underthis authority constitute a waiver ofsovereign immunity, for the purposes of28 U.S.C. 1605(a), butonly withrespect to those actions orproceedings instituted against it in any courtor othertribunal in the United States that are: (a) based on its operations in international air transportationthat, according to the contract ofcarriage, include a point in the United States as a point of origin, point ofdestination, or agreed stopping place, orfor which the contractofcarriage was purchased inthe United States; or (b) based on a claim under any international agreementortreaty cognizable in any court orothertribunal ofthe United States. Inthis condition, the term "international air transportation" means "international transportation" as defined by the WarsawConvention, exceptthat all States shall be consideredto be High Contracting Parties for the purpose ofthis definition; (8) Except as specifically authorized bythe Department, originate orterminate all flights to/from the United States in its homeland; (9) Comply withthe requirements of 14 CFRPart217, concerning the reporting ofscheduled, nonscheduled, and charter data; (10) Ifcharter operations are authorized, except as otherwise provided inthe applicable aviation agreement, comply with the Department's rules governing charters (including 14 CFRParts 212 and 380); and (11) Comply with such otherreasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department, with all applicable orders orregulations ofother U.S. agencies and courts, and with all applicable laws ofthe 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 cannotbe sold or otherwise transferred without explicit Department approval underTitle 49 ofthe U.S. Code. 1112006

### CERTIFICATE OF SERVICE I hereby certify that a true and correct copy ofthe foregoing Application of Air China Limited d/b/a Air China for Renewal ofExemption Authority was served by electronic mail this 16111 

### day ofDecember 2014 upon the following: Counsel for the City ofHouston and the Greater Houston Partnership: President and ChiefExecutive Officer Greater Houston Partnership: ChiefCommercial Officer Department of Aviation City ofHouston: Airline Info: American Airlines/ US Airways:
DeltaAirlines:
HawaiianAirlines: Federal Express:
Polar Air Cargo: United Airlines, Inc.:
Counsel for United Airlines, Inc.: Counsel for United Parcel Service:
Federal Aviation Administration: Department ofTransp01iation:

December 16, 2014

6474424v.I 

### rbtrinder@zsrlaw.com jasilversmith@zsrlaw.com rharvey@houston.org mario.diaz@houstontx.gov Ian.wadsworth(cz{houstontx.gov info@airlineinfo.com robert.wirick(W,aa.com howard.kass@aa.com 

### sascha.vanderbellen@delta.com sametta.c.barnett@delta.com jhill@cooley.com cefelts@fedex.com nssparks@fedex.com 

### kevin.montgomery@polaraircargo.com dan.weiss({i{united.com steve.morrissey@united.com 

### lhalloway@crowell.com gmurphy@crowell.com jennifer.nowak@hklaw.com john.s.duncan@faa.gov 

### barbara.hairston@dot.gov Rgbert.finamore@dot.gov