BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

__________________________________________ ) Application of ) ) CATHAY PACIFIC AIRWAYS LIMITED ) ) DOCKET DOT-OST-2003-14493 for renewal of exemption authority ) (Hong Kong-United States) ) __________________________________________)

APPLICATION OF CATHAY PACIFIC AIRWAYS LIMITED FOR RENEWAL OF AN EXEMPTION

Communications with respect to this document should be sent to: John R. Mietus, Jr. Law Office of John Mietus, LLC 6701 Democracy Blvd., Suite 300 Bethesda, MD 20817-7500 (202) 747-5212 (240) 396-5362 fax john@mietuslaw.com

Counsel for CATHAY PACIFIC AIRWAYS LIMITED

NOTICE: Any person may support or oppose this application by filing an answer and serving a copy of the answer on counsel for Cathay Pacific and upon persons served with this application no later than January 18, 2012.

January 3, 2012BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

__________________________________________ ) Application of ) ) CATHAY PACIFIC AIRWAYS LIMITED ) DOCKET DOT-OST-2003-14493 ) January 3, 2012 for renewal of exemption authority ) (Hong Kong-United States) ) __________________________________________)

APPLICATION OF CATHAY PACIFIC AIRWAYS LIMITED FOR RENEWAL OF AN EXEMPTION

Pursuant to 49 U.S.C. § 40109(c), Cathay Pacific Airways Limited ("Cathay") respectfully requests rene wal of the above-captioned exemption, granted by Notice of Action Taken da ted January 7, 2011 (the “Notice”), for an additional, one-year period. The Noti ce permits Cathay to engage in: (1) scheduled foreign air transportation of persons, property, and mail between Hong Kong, via intermediate points, to a point or points in the United States, as coterminal points, and beyond; (2) scheduled foreign air transportation of property and mail between Hong Kong, via intermediate points, to a point or points in the United States, as coterm inal points, and beyond; and (3) charter foreign air transportation subject to Part 212 of the Department’s regulations. Cathay intends to invoke the automatic extension provisions of 5- 2 - Cathay Pacific Renewal Application U.S.C. § 558(c) and Part 377 of the De partment's Special Regulations. In support of this application, Cathay states as follows:

1. Cathay is a flag carrier of th e Hong Kong Special Administrative Region ("HKSAR") and currently holds permit and exemption authority which authorizes it to operate comb ination and all-cargo service between Hong Kong and the United States. Pu rsuant to that authority, Cathay provides extensive service between Ho ng Kong and the U.S. with Boeing

B747 and B777 aircraft.

2. By this application, Cathay seek s renewal for an additional year of the Hong Kong-U.S. exemption authorit y described above, which is scheduled to expire on January 7, 2012. Cathay currently provides multiple weekly nonstop combination services between Hong Kong, on the one hand, and Chicago, Los Angeles, New York and Sa n Francisco, on the other; it also serves Anchorage, Atlanta, Chicago, Dallas, Houston, Los Angeles, Miami, and New York with freighter service to and from Hong Kong. These services provide significant benefits to the traveling and shipping public.

3. Under the October 19, 2002, Memorandum of Understanding between Hong Kong and the U.S. (“MO U”), a carrier designated by the HKSAR Government is entitled to operate combination and/or all-cargo service from Hong Kong via certain intermediate points to “a point or points- 3 - Cathay Pacific Renewal Application in the United States.” Cathay has been designated by the HKSAR government to serve the relevant routes. 4. Under 49 U.S.C. § 40109(c), the Department may grant an exemption if it finds that such a grant is consistent with the public interest. It is clear that the designation of a ca rrier by its homeland government is the most significant factor in determining whether grant of an application is in the public interest. See Linea Aerea Nacional de Chile, Foreign Permit , 26 C.A.B. 604 (1958); Application of Aerovias Venezolanas S.A. , Order 86-8-88 at 3; and, Aerolineas Peruanas Foreign Permit , 31 C.A.B. 181 (1960). The same findings are warranted here, where Cathay has been designated for the relevant routes under the Agreement. Moreover, the benefits which Cathay service generates for business travelers, tourists, and shippers alike further demonstrate that renewal of the exempti on is consistent with the public

interest.