404363345v3

BEFORE THE

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

_____________________________________________

)

Application of )

)

YANGTZE RIVER EXPRESS AIRLINES CO., LTD. )

) Docket No. OST-2006-24629

For exemption authority under 49 U.S.C. §40109 ) OST-2006-24630

)

(China-U.S. Scheduled Cargo Service) )

_____________________________________________)

APPLICATION OF YANGTZE RIVER EXPRESS AIRLINES CO., LTD.

FOR EXEMPTION AUTHORITY

Communications with respect to this document should be addressed to:

February 21, 2014

Josh Romanow

Peter Nelson

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

 peter.nelson@pillsburylaw.com

 

Counsel for Yangtze River Express 

Airlines Co., Ltd.

NOTE: Any person who wishes to support or oppose this Application may file an answer

and 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 March 8, 2014. Yangtze 

intends to poll on this application and will advise the Department of the results.
404363345v3

BEFORE THE

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

_____________________________________________

)

Application of )

)

YANGTZE RIVER EXPRESS AIRLINES CO., LTD. )

) Docket No. OST-2006-24629

For exemption authority under 49 U.S.C. §40109 ) OST-2006-24630

)

(China-U.S. Scheduled Cargo Service) )

_____________________________________________)

APPLICATION OF YANGTZE RIVER EXPRESS AIRLINES CO., LTD. 

FOR EXEMPTION AUTHORITY

Yangtze River Express Airlines Co., Ltd. (“Yangtze”), a cargo air carrier of the People’s 

Republic of China, hereby requests exemption authority to engage in scheduled foreign air 

transportation of property and mail between from any point or points in the People’s Republic of 

China, via any intermediate points, to any point or points in the United States open to scheduled 

international operations, and beyond to any points outside the United States.

In support of this Application, Yangtze states as follows:

1. Yangtze will initially operate scheduled all-cargo flights on the following routing: 

Shanghai, China (PVG) – Anchorage (ANC) (technical stop) – Chicago (ORD) 

Frankfurt-Hahn (HHN) – Tianjin, China (TSN) – Shanghai, China (PVG). Yangtze will 

operate these flights using Boeing 747-F aircraft.

2. Approval of this application would be consistent with the Air Transport Agreement 

between the United States and the People’s Republic of China dated September 17, 1980, 

as amended, and Department precedent. (See Jade Cargo, Notice of Action Taken dated 

January 7, 2011.)
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3. A translated copy of Yangtze’s operating authority issued by the Civil Aviation 

Administration of China (“CAAC”) to conduct the proposed scheduled flights is attached 

hereto as Exhibit A.

4. An estimate showing the total traffic and the financial results of the proposed PVG-ANCORD-HHN-TSN-PVG scheduled service for the first full year of operations is attached as 

Exhibit B.

5. 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 at 

14 C.F.R. § 313(a)(1).

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

Yangtze is fully qualified to operate the services for which authority is herein requested, 

and grant of the authority will serve the public interest. Yangtze asks that the requested 

exemption remain in place for one year. 
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WHEREFORE, based upon the foregoing information, Yangtze respectfully requests that 

it be granted an exemption to engage in scheduled foreign air transportation of property and mail 

as more fully described above.

Respectfully submitted,

Josh Romanow

Peter Nelson

PILLSBURY WINTHROP

SHAW PITTMAN LLP

2300 N Street, NW

Washington, DC 20037

Phone: (202) 663-8000

Fax: (202) 663-8007

Email: romanow@pillsburylaw.com

peter.nelson@pillsburylaw.com

February 21, 2014 Counsel for Yangtze River Express Airlines Co., Ltd.
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CERTIFICATE OF SERVICE

I hereby certify that a copy of the foregoing application of Yangtze River Express Airlines Co., Ltd.

for an amended foreign air carrier permit and exemption has been served this the 21st day of 

February, 2014, 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.

sascha.vanderbellen@delta.com

Robert Wirick

Francis Heil

American Airlines, Inc.

robert.wirick@aa.com

francis.heil@aa.com

Bailey Leopard

Nancy Sparks

Federal Express Corporation

gbleopard@fedex.com

nssparks@fedex.com

Kevin P. Montgomery

Polar Air Cargo, Inc.

Kevin.montgomergy@polaraircargo.com

Russell E. Pommer

Atlas Air Inc.

rpommer@atlasair.com

Anita Mosner

Jennifer Nowak

Counsel for United Parcel Service Co

Holland & Knight

anita.mosner@hklaw.com

jennifer.nowak@hklaw.com

Malcolm L. Benge

Counsel for North American 

Airlines/World Airways

Zuckert Scoutt & Rasenberger, L.L.P.

mlbenge@zsrlaw.com

Dan Weiss

Continental Airlines

dan.weiss@coair.com

Steve Morrissey

Counsel for United Air Lines

steve.morrissey@united.com

Howard Kass

U.S. Airways

howard.kass@usairways.com

Robert Silverberg

Jeff Johnson

Counsel for ABX Air, Inc.

Silverberg, Goldman & Bikoff, LLP

rsilverberg@sgbdc.com

jjohnson@sgbdc.com

Mark W. Atwood

Counsel for Kalitta Air

Cozen O’Connor

matwood@cozen.com

/s/Melinda A. Hernandez

Melinda A. Hernandez
404363345v3

TABLE OF EXHIBITS

Exhibit A Operating Authority from CAAC

Exhibit B Traffic Projections and Financial Forecast

Exhibit C Verification
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Exhibit A

Operating Authority from CAAC

(Attached)
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The translation of the approval from CAAC will be listed as follow:

Civil Aviation Administration of China

CAAC NO. [2014] 17

Permission of PVG-ANC-ORD-HHN-TSN-PVG ALL Cargo Route

Yangtze River Express Airlines Co., Ltd,:

Civil Aviation Administration of China has discussed your application of 《Application of 

becoming to the Designated Cargo Carrier of PVG-ANC-ORD-HHN-TSN-PVG》

(Yangtze River Express Airlines [2014]18).

According to the transport agreements and protocol between Chinese and the United 

States governments, the transport agreements and protocol between Chinese and 

Germany governments, CAAC approves your application of operating all cargo route

PVG-ANC-ORD-HHN-TSN-PVG, and exercising the fifth freedom traffic rights in ORDHHN.

Please apply the flight schedule based on the rules, and operate this route based on the 

approved operation dates, frequency and transport capability.

This permission takes effect from the date this permission is issued, and is valid until 

further notice. 

Civil Aviation Administration of China

February 17, 2014

(Seal of CAAC)
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Exhibit B

Traffic Projections and Financial Forecast

Flight Route Flight Leg Cargoweight

(KG)

Rates

(All-in)

(US$)

Income

(single 

flight)

(US$000)

Income

(year)

(US$ 000)

Profit/loss

(year)

US$000)

PVG-ANC-ORD-HHNTSN-PVG

(3 flights per week)

PVG-ORD 105000 5.8 915.60 109,872.00 133.83

ORD-HHN 100000 1.5

ORD-TSN 80000 1.62

ORD-PVG 20000 1.35
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Exhibit C