BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

__________________________________________ 

 ) 

Application of ) 

 ) 

CATHAY PACIFIC AIRWAYS LIMITED ) 

 ) DOCKET OST-2000-6824 

for renewal of exemption authority ) 

(Hong Kong-U.S.-Third Country ) 

Code-Sharing with American) ) 

__________________________________________) 

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 

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 

and upon persons served with this application no later than

February 6, 2014.

January 22, 2014
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

__________________________________________ 

 ) 

Application of ) 

 ) 

CATHAY PACIFIC AIRWAYS LIMITED ) 

 ) DOCKET OST-2000-6824 

for renewal of exemption authority ) January 22, 2014 

(Hong Kong-U.S.-Third Country ) 

Code-Sharing with American) ) 

__________________________________________) 

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 renewal of the above-captioned exemption, 

granted by Notice of Action Taken dated January 27, 2012 (the “Notice”), for 

an additional, two-year period. The Notice permits Cathay, under its codesharing agreement with American Airlines, Inc. ("American") to engage in 

scheduled foreign air transportation of persons, property and mail: (1) 

between Hong Kong and 25 points beyond Cathay Pacific’s U.S. and 

Canadian gateways; (2) between the United States and third-country points 

intermediate to Hong Kong, connecting to flights operated by Cathay Pacific 

between such points and Hong Kong; and (3) beyond the United States to 

third-country points. Cathay intends to invoke the automatic extension 
- 2 - Cathay Pacific 

Renewal Application 

provisions of 5 U.S.C. § 558(c) and Part 377 of the Department's Special 

Regulations. In support of this application, Cathay states as follows: 

1. Cathay is a flag carrier of the Hong Kong Special Administrative 

Region ("HKSAR") and currently holds permit and exemption authority that 

authorizes it to operate combination and all-cargo service between Hong 

Kong and the United States. Pursuant to that authority, Cathay provides 

extensive combination and all-cargo service between Hong Kong and the U.S. 

with its own aircraft. Cathay also markets service to points in the U.S., 

Mexico, and Brazil under code-sharing agreements with two U.S. airlines and 

certain of their commuter affiliates; it also markets code-share operations 

transiting the United States with several foreign airlines. 

2. By this application, Cathay seeks renewal for an additional two 

years of the exemption authority described above, which is scheduled to 

expire on January 27, 2014. Pursuant to this authority, Cathay markets 

service beyond its U.S. gateways, on aircraft operated by American and 

American Eagle, to most of the U.S. points currently selected by the HKSAR 

under Annex 2, section 4.2 of the October 19, 2002 U.S.-Hong Kong 

Memorandum of Understanding (the "MOU") and to Rio de Janeiro and Sao 

Paolo, Brazil. Cathay's code-sharing services on American/American Eagle 

aircraft have been well-received by the traveling public. 
- 3 - Cathay Pacific 

Renewal Application 

 3. Under Annex 2, section 4 of the MOU, a carrier designated by the 

HKSAR is authorized to engage in cooperative marketing arrangements "in 

operating or holding out the authorized services pursuant to" the MOU, 

subject to the restrictions on U.S. code-share points under section 4.2. Cathay 

has been designated by HKSAR and therefore is entitled to conduct the code 

share operations described herein. 

 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 carrier by its homeland government is the 

most significant factor in determining whether grant of an application is in 

the public interest. See, e.g., Bluebird Cargo Ltd., Order 2004-8-24 at 3-4; 

Fast Air Carrier Ltda., Permit Amendment, Order 82-2-66 at 3-4. The same 

findings are warranted here, where Cathay has been designated for service, 

including code-share operations, under the MOU. Moreover, the benefits that 

Cathay's service to additional U.S. points generates for business travelers, 

tourists, and shippers alike further demonstrate that renewal of the 

exemption is consistent with the public interest.