UNI T ED S T ATES OF A MERI C A

DEPA R T M ENT OF TR ANSPORT A TION

OFFICE OF THE SECRETARY

WASHI N GTON, D

. C.

Issued by the Department of Transportation o n January 27

, 2 012



### NOTICE O F ACTION TAK E N

-- DOCKET DOT

- OST

- 2003

- 14493

__________________________________________________________________________________________ This serves a s notice to the public of the action described below, taken by the Depar tm ent offic i al indicated (no additional

confir m ing order will be issued in this matter).

Applicant: CATHAY PACIFIC AIRWAYS LIMITED (Cathay Pacific) Date Filed: January 3

, 20 12

Relief requested: Renewal of exe m ption authori t y un d er 49 USC § 4 0109 to eng a ge in (1) scheduled foreign air

transportation of persons, p roper ty

, and m a il between Hong Ko ng

, via intermediate points, to a point or po i nts in the

Un i ted States, as coter m inal points, and b eyond ; (2) scheduled for e ign air t ransportation of prop e r t y and m ail between

Hong Kong, via intermediate points, to a point or po i nts in the Un i ted States, as cote rm inal points, and b e yond and (3)

charter foreign a i r transportation subject to Part 212 of the Department’s regulations.

If renewal, date and citation of last action: January 7

, 20 11

, in th e in stant docket.

Applicant representative: John R. Mietus, Jr. (202) 747

- 5212 DOT anal y st: Darren Jaffe ( 202 ) 366

- 2512

Action: App r oved (subject to cond i tion s

, see below )

. A ction da t e: January 27 , 2012

Effective date of exe m ption authori t y granted: January 27

, 2 0 12

, throu g h January 27

, 2 01 3

Basis for approval (bilateral agreement/reciprocit y ): The authori t y is provided f o r in the Oct o ber 19, 2 002 Me m o randum of

Understanding between the United S t ates and the Hong K ong S p ecial A d m i n istrative Region (SAR) of t h e People’s

Republic of China.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard

exemption conditions , and to the otherwise

- applicable terms, conditions, and limitations of Cathay Pacific ’s foreign air

carrier permit (Order 97

- 8

- 12).

Special c ondition s/Remarks : Th is authori t y is subject to our receipt of notific a tion from the Government of Hong Kong

of the points and frequencies it has allocated to Cathay Pacific for intermediate and beyond r ight s

, consistent with the

ter m s of the October 19, 2 002 Me m o randum of Understand i ng between the United States a n d Hong K o ng

.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

____________________________________________________________________________________________________ Under author i ty assigned by the Department in its regul a tions, 14 CFR Part 385, we found th at (1) our action was consistent with

Depar t m ent poli c y ; (2) the applicant was qu a lified to perform its proposed operations; (3) g r ant of the authori t y was consistent with

the public i n terest; and (4) grant of th e authori t y w ould not con s titute a major regulato r y action under t h e Ener g y P o licy a n d

Con s ervation Act of 19 7 5. T o t h e extent not granted, we denied all requests in the referenced Dockets. We may amend, m odif y

, or

r e voke the a u t h ori t y granted in this Notice at any ti m e without hear i ng at our discretion.

Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulations, 14

CFR §385.30, m ay file their petitions within seven (7) d a y s after t h e date of issuance of this Notice. This action was effective

when taken, and the filing of a petition for review will not alter such effectiveness.

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. go vForeign Carrier Ex e m pt io n Conditions

In the con d uct of the o p erations authori z e d

, the foreign carrier applicant(s) shall:

(1) Not conduct any oper a tions unless it holds a currently effective authorization from its h o meland for such operations,

and it has filed a copy of such authorization with the Depar t ment;

(2) Co mp ly with all appl i cable requirements of the Federal Aviation Ad m inistration, the T r ansportation Security

A dm inistration, and with all applicable U.S. Government requirements conce r ning securit y

, including, but not li m ited to,

14 CFR Parts 129, 91, and 36 a nd 49 CFR Part 1546 or 1550, as applicable. To assure c omp l i ance with all applicable

U.S. Government requirements conce r ning securit y

, the hold e r shall, before comme n cing any new service (including

charter flights) from a foreign airport th at would be th e hold e r’s la s t point of de p arture for the United States, contact its

International Indust r y Rep r esentative (I I R) (fo rm erly referred to as International Principal Securi t y Inspector) to advise

the IIR of its plans and to find out whether the Transportat i on Security Ad m inis t ration has dete rm ined that security is

adequate to allow such airport(s) to be served;

(3) Co mp ly with the requ i re m ents for mini mu m insurance coverage contained in 14 CFR P a rt 205, and, p rior to the

c o mmencement of a n y ope r ations under th is authori t y, file e v idence of such coverage, in the fo r m of a c omp leted OST

Form 6411, with the Federal Aviation A dm inistration’s Pr og ram Manage m ent Branch (AFS

- 260), Fl i ght Standards

Service (any changes to, or te rm ination of, ins u rance also shall be filed with that office);

(4) Not ope r ate airc r aft under this authority unless it c omp lies wi t h operational safety requirements at least equivalent to

Annex 6 of th e Chicago Conventio n ;

(5) Conform to the airworthiness and airman c omp et en cy req u irements of its Government for international air servic e s;

(6) Except as specifically ex em pted or otherwise provided for in a D epart m ent Order, co mp ly with the requ i re m ents of 14

CFR Part 203, concerning waiver of Warsaw Convention liabili t y l i mits and defenses;

(7) Agree that operations under this authority constitute a waiver of sovereign im m unit y

, for the purposes of 28 U.S.C.

1605(a), but on l y with re sp ect to those actions or proceedings instituted against it in any court or other tr ib unal in the

United States that are: (a) based on its operations in int e rnational air transportation that, according to the contract of

carriage, include a point in the United S t ates as a point of orig in

, po int of destina t ion, or agreed stoppi n g pl a ce, or for

which the contract of carriage was pur ch ased in the United State s ; or (b) based on a claim u nder any international

agreement or treaty cognizable in any court or o t her tribunal of th e United States. In this condition, th e term

"international air transportation" m eans "international t ran s portatio n " as defined b y the Warsaw Conventi o n, except that

all States sha l l be considered to be High Contracting P arties for the purpose of thi s definition;

(8) Except as specifically authorized by th e Depar t ment, orig in ate or ter m inate a l l flights to/f ro m the United States in its

ho m eland;

(9) Co mp ly with the requ i re m ents of 14 CFR Part 217, co n cerning the reporting of scheduled, nonschedul ed

, and charter

data;

(10) If charter operations are authorized, except as otherwise p r ovided in the app l icable aviation agree m ent, c omp ly with

the Department ' s rules governing charters (including 1 4 CFR Parts 212 and 3 8 0); and

(11) Co mp ly with such ot h er reasonable ter m s, conditions, and li m itations required b y th e p u bl i c interest as may be

prescribed by the Depar t ment, with all applicable orders or r e gulations of other U.S. agencies and courts, a nd with all

applicable laws of the United States.

This authori t y shall not be effective during a n y peri o d when the holder is not i n co mp liance with the conditions i m posed

above. Mor e over, this au t hori t y can no t be sold or o t h erw i se transferred without explicit Depart m ent approval under Tit l e

49 of th e U.S. Code.

12/2007