UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on December 17, 2014



### NOTICE OF ACTION TAKEN

-- DOCKET DO T

- OST

- 2010

- 0227

_____________________________________________________________________________________________________________________________ ___ This serves as notice to the public of the action described below, taken by the Department official indicated ( no additional confirming order will be issued in this matter).

Applicant : 

### Cathay Pacific A irways Limited (Cathay Pacific)

Date Filed October 8, 2014

Relief requested: Renewal of exemption from 49 USC § 41301 to permit Cathay Pacific to engage in sched uled foreign air transportation of persons, property and mail between Hong Kong and 25 U.S. code

- share points beyond Cathay Pacific’s U.S. and Canadian gateways pursuant to its code

- share agreement with Alaska Airlines, Inc. (Alaska) and

Horizon Air Indust ries, Inc. (Horizon). 1

If renewal, date and citation of last action: October 12, 2012, in this docket

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

- 5212 DOT Analyst: Shelita A. Johnson (202) 366

- 1226

Responsive pleadings: None filed

DISPO SITION

Action: Approved Action date : December 17, 2014

Effective dates of exemption authority granted: December 17, 2014

– December 17, 2016

Basis for approval (bilateral agreement/reciprocity) : U.S.

- Hong Kong Air Transport Agreement (the Agr eement) and the Memorandum of Understanding of October 19, 2001 (the MOU).

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard foreign air carrier exemption conditions attached as Appe ndix A and to the code

- share conditions previously imposed on Cathay Pacific, Alaska, and Horizon in this Docket.

Special conditions/ Remarks: The exemption authority granted to Cathay Pacific is limited to operations conducted only through code

- share ar rangements with Alaska or Horizon, on flights operated by Alaska or Horizon. Furthermore, Cathay Pacific’s code

- share operations shall be operated within the level of code

- share frequencies provided for under

the U.S.

- Hong Kong Memorandum of Understanding of October 19, 2002

. 2

Action taken by: Paul L. Gretch, Director

Office of International Aviation

1 The Government of the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR) may, at its discretion, change the code

- share points in the United States on not less than 30 days’ notice in writing to the Government of the United States. By letter dated April 28, 2011, the HKSAR confirmed that it has selected the following 25 code

- share points under the Agreement and MOU: Atlanta, Boston, Charlotte, Cleveland, Columbus, Dallas/Fort Worth, Denver, Detroit, Houston, Kansas City

, Las Vegas, Miami, Minneapolis/St. Paul, New Orleans, Orlando, Philadelphia, Phoenix, Pittsburgh, Portland, Raleigh

- Durh am, Salt Lake City, San Diego, Seattle, St. Louis, and Washington/Baltimore.

2 We note that under the MOU, Cathay Paci fic may code

- share on a total of 21 weekly round trip frequencies to each code

- share point in the United States, from each of its direct s ervice points in Canada or the United States.Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) the applicant is qualified to perform the proposed operations; (2) our action was consistent with Department policy; (3) grant of the authority was consistent with the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Policy 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 any time without hearing at our discretion.

Persons entitled to petition th e Department for review of the 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 of issuance of this Notice. This action was effective when taken, and the fil ing of a 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.gov12/2007

Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, th e 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 of such authorization with the Department;

( 2) Comply with all appli cable requirements of the 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 154 6 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 poin t 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 Administra tion 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 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 offic e);

(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 fo r 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 ope rations under this authority constitute 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) ba sed on its operations in international 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 purc hased 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 transporta tion" as defined by the Warsaw Convention, 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 t he 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 aviat ion 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 or regulations 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 abov e. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval under Title 49 of the U.S. Code.