Order 2014

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation

on the 28th day of July

, 20 14

Served: September 30, 2014

D ocket DOT

- OST

- 2014

- 0087

ORDER ISSUING CERTIFICATE

Summary

By this order we grant United Airlines, Inc. ( United ) experimental certificate authority to provide

scheduled combination service between Guam and Shanghai , People’s Republic of China.

Application

By application filed May 28, 2014

, United request ed (1) an exemption under 49 U.S.C. 40109

for two years

, or until the effective date of United’s Guam

- Shanghai certificate authority, (2) a

certificate of public convenience and necessity under 49 U.S.C. 41102 and 41108 , to provide

scheduled foreign air transportation of perso ns, property, and ma il , and (3) allocation of two

weekly U.S

. - China frequencies to enable it to serve between Guam and Shanghai, People’s

Republic of China

. 1 2

1 United states that it will begin service on or about October 28, 2014.

2 This order addresses only the award of certificate authority, as we have already granted United exemption

authority and two weekly frequencies to serve between Guam and Shanghai, Peo ple’s Republic of China (see Notice

of Action Taken dated June 13, 2014 in this docket.)

Application of

UNITED AIRLINES , INC

.

f

or a n exemption pursuant to 49 U.S.C.

§ 40109, a certificate of public convenience

and necessity pursuant to 49 U.S.C. § § 41102

and 41108 and an allocation of U.S.

- China

frequencies (Guam

- Shanghai, China)No answers were filed.

Decision

We have decided, under assigned authority

, to grant United’s request for an experimental five

year certificate of public convenience and necessity to serve between Guam and Shanghai

, People’s Republic of China

. 3 The authority sought by the applicant is consistent with the civil

aviation agreement between the United States and China and uses rights for which the United

States has exchanged valuable operating rights.

Terms, Conditions, and Limitations

The experimental certificate of public convenience and necessity is subject to the standard terms,

conditions, and limitations we consistently impose in the public interest. Duration of certificate

authority is determined by the nature of the routes at issue. Where routes may be served by

multiple U.S. carriers, without restrictions on additional entrants, the certificates are of indefinite

duration. Where , as here, limited

- entry routes are involved, we issue temporary, experimental

certificates of five years’ duration under 49 U.S.C. 41102(c). 4

Findings and Conclusions

In view of the foregoi ng and all facts of record, we f ind and conclude that:

1. It is consistent with the public convenience and necessity to issue the applicant

experimental certificate authority in the form attached;

2. T he applicant is a citizen of the United States and is fit, willing, and able to perform

p roperly the foreign air transportation described in the attached certificate and to conform

to the provisions of Subtitle VII of Title 49, United States Code (Transportation), and to the

Department’s rules, regulations, and requirements;

3. The public inter est requires that the exercise of the privileges granted by the attached

experimental certificate be subject to the terms, conditions, and limitations contained in and

attached to the certificate and to such others required by the public interest as the

De partment may prescribe;

4. The issuance of this experimental certificate does not constitute a major regulatory action

under the Energy, Policy and Conservation Act of 1975, as defined by section 313.4(a)(1)

of the Department’s regulations; 5 and

3 We find that grant of this authority is consistent with the public interest and, based on officially noticeable data, we

find that United is fit to conduct the sch eduled foreign air transportation for which it seeks authority here ( s ee Order

2010

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- 24 ). United is an operating certificated air carrier, for which the authority at issue here would not

constitute a substantial change in operations requiring further re view by the Department. No information has come

to our attention which leads us to question the fitness of United to perform the authority it seeks.

4 14 CFR Part 399.120.

5 Our finding is based on the fact that grant of the application would not result in a near

- term increase in annual fuel

consumption in excess of 10 million gallons.5. The public interest does not require an oral evidentiary hearing or a show

- cause proceeding

on this application. T here are no material, determinative issues of fact requiring such

procedures for their resolution.

In view of the above, and acting under authority assigned by the Department, 14 CFR Part 385,

we find that our actions are consistent with Department policy. Persons entitled to petition the

Department for review of the action under the Department’s regulations, 14 CFR 385.30, may

file their p etitions within seven (7) days after the date of service of this O rder. This action was

effective on the date indicated below, and the filing of a petition for review will not alter such

effectiveness.

ACCORDINGLY,

1. We issue, as appropriate and as sta ted, in the form attached, a n experimental certificate of

public convenience and necessity to the applicant listed in the caption of this order;

2. The experimental certificate issued to the captioned carrier will be effective upon the service

date of this o rder;

3. We grant the request of United Airlines, Inc. for a n experimental certificate of public

convenience and necessity to engage in scheduled foreign air transportation of persons,

property, and mail between Guam and Shanghai , People’s Republic of China ;

4. Unless disapproved by the President of the United States under 49 U.S.C. 41307, this order

shall become effective on the 61 st day after its submission for section 41307 review or upon

the date of receipt of advice from the President or his designee under Executive Order 12597

and implementing regulations that he or she does not intend to disapprove the Department’s

order under t hat section, whichever occurs earlier; and 6

5. To the extent not granted, explicitly denied, or dismissed, we deny all motions and requests

in this docket;

6 This order was submitted for review under 49 USC Section 41307 on July 28, 2014 . The 61 st day is September 2 9

, 2014. Since the President’s designee did not disapprove this Order before that date it became effective on

September 29 , 2014

.6. We will serve a copy of this order on United Airlines, Inc

. , the Embassy of China in

Washington, D.C.

, the U.S. Department of State (Office of Aviation Negotiations)

, and the

Federal Aviation Administration.

By:

PAUL L. GRETCH

Director

Office of International Aviation

(SEAL)

An electronic version of this document is available on the World Wide Web at:

http://www.regulations.govAppendix A



# Experimental

Certificate of Public

Convenience and Necessity

for

ROUTE 910

This Certifies That



# UNITED AIRLINES, INC

.

i s authorized, subject to the provisions of Subtitle VII of Title 49 of United

States Code, the orders, rules, and regulations issued thereunder, and the

attached Terms, Conditions, and Limitations, to engage in foreign air

transportation of persons, property and mail.

This certificate is not transferrable without the approval of the Department of

Transportation.

By Direction of the Secretary

Issued by Order 2014

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On July 28

, 20 14 Director, Office of

Effective on September 29 , 20 1 4 International Aviation*As issued by

Order 2014

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Route 910

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Terms, Conditions, and Limitations

United Airlines , Inc.

for Route 910

is authorized to engage in scheduled foreign air transportation of persons, property, and mail between

Guam and Shanghai , People’s Republic of China

.

This authority is subject to the following conditions :

(1) The holder shall at all times conduct its operations in accordance with the regulations prescribed

by the Department of Transportation for the services authorized by this certificate, and with such other

reasonable terms, conditions, and limitations as the Department of Transportation may prescrib e in the

public interest.

(2) The holder shall at all times conduct its operations in accordance with all treaties and agreements

between the United States and other countries, and the exercise of the privileges granted by this certificate

is subject to c ompliance with such treaties and agreements and with any orders of the Department of

Transportation issued under them. To the extent that the holder has authority to serve more than one

country or points in more than one country on the same route segment, that authority does not confer

upon the holder any additional rights (including fifth

- freedom intermediate and/or beyond rights) in

limited

- entry markets unless the Department has completed any necessary carrier selection procedures to

determine which car rier(s) should be authorized to exercise such rights. In such cases, the fact that the

carrier may hold authority to serve the countries (points) at issue on the same segment will not be

considered as providing any preference to the holder in a carrier se lection proceeding.

(3) The exercise of the authority granted here is subject to the holder’s first obtaining from the

appropriate foreign governments such operating rights as may be necessary.

( 4 ) The holder’s authority is effective only to the extent that such operations comply with all

applicable requirements of the Federal Aviation Administration , the Transportation Security

Administration, and with all applicable U.S. Government requirements concerning security, i ncluding, but

not limited to, 49 CF R Part 1544. To assure compliance with all applicable U.S. Government

requirements concerning security, the holder shall, before commencing any new service (including charter

flights) to or from a foreign airport, contact its Principal Security Inspector ( PSI) to advise the PSI of its

plans and to find out whether the Transportation Security Administration has determined that security is

adequate to allow such airport(s) to be served.*As issued by

Order 2014

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Route 910

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(5 ) The holder shall at all times remain a “Citizen of the United States,” as required by 49 U.S.C.

40102(a)(15).

(6 ) The holder shall maintain in effect liability insurance coverage as required under 14 CFR Part

205. F ailure to maintain such insurance coverage will render a certificate ineffective, and this or other

failure to comply with the provisions of Subtitle VII of 49 U.S.C. or the Department’s regulations shall be

sufficient grounds to revoke this certificate.

( 7 ) The holder acknowledges that this certificate is granted to determine if the holder’s projected

services, efficiencies, methods, rates, fares, charges, and other projected results will, in fact, materialize

and remain for a sustained period of time, a nd to determine whether the holder will provide the innovative

and low

- priced air transportation it proposed in its application for this authority.

( 8 ) Should the holder propose any substantial changes in its ownership, management, or operations

(as that ter m is defined in 14 CFR 204 of the Department’s regulations) , it must first comply with the

requirements of 14 CFR 204.5.

( 9 ) In the event the holder ceases all operations for which it was found “fit, willing, and able,” its

authority under this certif icate shall be suspended under the terms of 14 CFR 204.7 and the holder may

neither re commence nor advertise such operations unless its fitness to do so has been redetermined by the

Department. Moreover, if the holder does not resume operations within one year of its cessation, its

authority shall be revoked for dormancy.

This certificate shall become effective September 29 , 2014 . It shall expire September 29

, 201 9 , unless the

Department earlier suspends, modifies, or deletes the authority.