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

### AIR CHINA CARGO COMPANY LIMITED d/b/a AIR CHINA CARGO for Renewal ofExemption from 49 U.S.C. §

### 41301 ) Docket DOT- OST-2014-0065 ) ) 

### )



# _________________________________ )

APPLICATION OFAIR CHINA CARGO COMPANYLIMITED d/b/a AIRCHINA CARGO FORRENEWAL OFEXEMPTION FROM49 U.S.C. §41301

Communications with respect to this Application should be sent to: George N. Tompkins, Jr., Esq. Wilson, Elser, Moskowitz, Edelman & 

### Dicker LLP 150 East 42nd Street New York, New York 10017-5639 (212) 915-5624 (Phone)

(212) 490-3038 (Fax) george.tompkinsjr@wilsonelser.com Counsel for AIR CHINA CARGO COMPANY LIMITED

Dated: June 9, 2015 NOTICE: Any person may support or oppose this Application by filing an answer on or before June 24, 2015. Applicant intends to poll the parties served with this Application.

6802844v.l

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

### Application of AIR CHINA CARGO COMPANY LIMITED d/b/a AIR CHINA CARGO for Renewal ofExemption from 49 U.S.C. §

### 41301 ) ) ) 

### ) Docket DOT- OST-2014-0065 ) 

### ) )



# ___________________________________ )

APPLICATION OF AIR CHINA CARGO COMPANY LIMITED d/b/a AIR CHINA CARGO FORRENEWAL OF EXEMPTIONFROM 49 U.S.C. §41301


### 1. 

### Air China Cargo Company Limited d/b/a Air China Cargo ("Air China Cargo"), hereby applies for the renewal of exemption authority granted in the Notice of Action Taken (NOAT) issued on June 17, 2014 by the Department of Transportation in Docket DOT-OST-2014-0065, permitting Air China Cargo to engage in scheduled foreign air transportation ofproperty and mail between any point or points in the People's Republic of China (PRC), via any intermediate points, to any point or points in the United States of America (USA) open to scheduled international operations, and beyond to any point or points outside the USA. The current exemption authority expires on June 17, 2015. See Exhibit "A" hereto. 2. Air China Cargo respectfully requests that this exemption authority be renewed for a period oftwo (2) years. 3. Air China Cargo relies upon the automatic extension provisiOns of 5 U.S.C. § 558(c), as implemented by 14 C.P.R. Part 377, to continue this exemption

6802844v.l

### authority in effect pending final Department action on this renewal application. This application is timely filed under 14 C.F.R. § 

### 377.1O(c). WHEREFORE, Air China Cargo respectfully requests that the Department of Transportation renew the exemption authority applied for herein for a period of two (2) years or until the Department grants Air China Cargo's application for renewal. Air China Cargo further requests that the Department grant such other and further relief as the Department finds to be consistent withthis application.

Dated: June 9, 2015

6802844v.l 

### Respectfully submitted,
George N. Tom kins,
. Wilson, Elser, Moskowitz, Edelman & 

### DickerLLP. 150 East 42nd Street New York, New York 10017-5639 (212) 915-5624 (Phone) (212) 490-3038 (Fax) george.tompkinsjr@wilsonel.ser.com 

### Counsel for AIR CHINA CARGO COMPANY LIMITED

# EXHIBIT A

6802844v.lUNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued by the Department ofTransportation on June 17, 2014 

### NOTICE OF ACTION TAKEN-- DOCKETDOT-OST-2014-0065 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 CARGO COMPANYLIMITED d/b/a AIR CHINA CARGO ("Air China Cargo") Date Filed: April28, 2014, as corrected May 6, 2014 Reliefrequested: Exemption from 49 USC §41301to permit the applicantto engage in scheduled foreign air transportation ofproperty and mail between any point or points in the People's Republic ofChina (PRC), via any intermediate points, to any point orpoints in the United States open to scheduled service, and beyond to any point or points outside the United States. Air ChinaCargo requests that this authority remain in effect so long as Air ChinaCargo's foreign air carrierpermit remains in effect. 1 Applicant representative: George N. Tompkins, 212-915-5624 DOT analyst: Darren Jaffe, 202-366-2512 DISPOSITION Action: Approved in part, subjectto conditions (specifically includingthe condition concerning coterminalization, see remarks below), remainder (request for longerterm authority) dismissed. 2 Action date: June 17,2014 Effective dates ofauthority granted: June 17, 2014, through June 17, 2015
. Basis for approval: United States-ChinaAir Transport Services Agreement Special conditions/Remarks: While we will now grant Air China Cargo an exemption ofthe bilaterally-agreed authority it seeks, we are notprepared at this timeto permitAirChinaCargo to implement new serviceto any ofthese authorized U.S. points on a coterminal basis, orto otherwise expand its coterminal operations. We have taken similar action limitingnew coterminalization ofU.S. points for all-cargo services by other carriers ofthe People'sRepublic ofChinafor the reasons first set forth in aNotice ofActionTaken dated Aprill5, 2010 in Docket DOT-OST-2010-0047. 3 Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations ofour standard exemption conditions (attached), and to the otherwise-applicable terms, conditions, and limitations ofAir China Cargo's foreign air carrierpermit (Order 2007-7-9).

1 Air ChinaCargo currently holds a foreign air carrier permit to engage in scheduled all-cargo service between the coterminal points of Beijing, Guangzhou, and Shanghai, PRC; viaTokyo oranother point in Japan; and the coterminal points Chicago, Dallas, Honolulu, Los Angeles, San Francisco, Portland, and New York; with optional technical stops at Anchorage and/or Fairbanks, and/or a point in Japan otherthan Tokyo and Osaka. See Order 2007-7-9. 2 The one-year duration ofthe authority we granted Air ChinaCargo is consistent with 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. 3 See, e.g., Notice ofAction Taken dated October 11,2011, in Dockets DOT-OST-1997-2653, DOT-OST-1999-5031, DOT-OST-2001- 9314, and DOT-OST-2001-10172 (ChinaSouthern); Notices ofAction Taken dated January 21,2011, and October 20, 2010, in Dockets DOT-OST-2006-24629 andDOT-OST-2006-24630 (Yangtze); and Notice ofAction Taken dated February 11,2014,inDocketDOTOST-2014-0014 (China Cargo Airlines code share with Southern). Our action here does notprecludethe exercise oftheAlaska coterrninalization authority granted by Notice ofActionTaken dated August 16,2012, in Dockets DOT-OST-2010-0200, DOT-OST-1999- 5035, and DOT-OST-1996-1600.Action taken by: PaulL. Gretch, Director, Office ofInternational Aviation Under authority assigned by the Departmentin its regulations, 14 CFRPart 385, we found that (I) our action was consistentwith Departmentpolicy; (2) the applicant was qualifiedto perform its proposed operations; (3) grant ofthe authority was consistent with the public interest; and (4) grantofthe authoritywould not constitute a majorregulatory action underthe EnergyPolicy and Conservation Act of 1975. To the extent not granted/deferred/dismissed,we denied all requests in the referenced Docket. We may amend, modify, or revoke the authority granted in this Notice at anytime withouthearing at our discretion. Persons entitled to petition the Departmentfor review ofthe action set forth in thisNotice underthe Department'sregulations, 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

### Foreign CarrierExemptjon Condjtjons In the conduct ofthe operations authorized, the foreign carrier applicant(s) 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 ofsuch authorization withthe 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 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 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 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 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 CFRPart 203, concerningwaiver ofWarsaw Convention liability limits and defenses; (7) Agree that operations underthis authority constitute a waiver ofsovereign immunity, for the purposes of28 U.S.C. 1605(a), but only withrespectto those actions or proceedings instituted against it in any court or othertribunal in the United States that are: (a) based on its operations in international airtransportation that, accordingto 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 inthe United States; or (b) based on a claim under any international agreement ortreaty cognizable in any court or othertribunal ofthe United States. In this condition, theterm "international air transportation" means "international transportation" as defined by the Warsaw Convention, except that all States shall be consideredto be High ContractingParties for the purpose ofthis 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 ofscheduled, nonscheduled, and charter data; (10) Ifcharter operations are authorized, except as otherwise provided in the applicable aviation agreement, comply with the Department's rules governing charters (including 14 CFRParts 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 oftheUnited States. This authority shall not be effective during any period whenthe holder is not in compliance with the conditions imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval underTitle 49 ofthe U.S. Code. 12/2007

### CERTIFICATE OF SERVICE 

### I hereby certify that a copy ofthe foregoing application ofAir China Cargo Company Limited for Renewal ofExemption from U.S.C. §41301 has been served by electronic mail this 9th 

### day ofJune, 2015, upon the following:
Hardie H. DeGuzman FAA

- Los Angeles International Field Office Hardie.H.DeGuzman@faa.gov

Rick Mayfield FAA

- Oakland Field Office Rick.Maytield@faa.gov
SaschaVanderbellen DeltaAirLines, Inc. sascha.vanderbellen@delta.com Robert Wirick American Airlines, Inc. robe11.wirick@aa.com Howard Kass U.S. Airways howard.kass@usairways.com

Nancy S. Sparks Bailey Leopard Federal Express Corporation nssparks@fedex.com gbleopard@fedex.com Kevin P. Montgomery PolarAir Cargo, Inc. Kevin.montgomergy@polaraircargo.com

Dated: June 9, 2015

6802844v.l AnitaMosner JenniferNowak Counsel for United Parcel Service 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 Robert Silverberg JeffJohnson Counsel for ABXAir, Inc. Silverberg, Goldman & Bikoff, LLP rsilverberg@sgbdc.com jjohnson@sgbdc.com Russell E. Pommer Associate General Counsel & Sr. Director Regulatory Affairs Atlas Air Inc. rpommer@atlasair.com