UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on March 25 , 20 1 1



### NOTICE OF ACTION TAKEN

-- DOCKET S DOT

- OST

- 200 6

- 24629

and DOT

- OST

- 2006

- 24630

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

Applicant: YANGTZE RIVER EXPRESS AIRLINES CO., LTD. ( Yangtze )

Date Filed: March 22, 2011

Relief requested: E xemption under 49 U.S.C. § 40109, and an amended foreign air carrier permit under 49 U.S.C. § 41301

, to engage in scheduled foreign air transportation of property and mail on a Shanghai

- Qingdao

- Los Angeles

Shanghai routing

. 1 2

Date and citation of last action: January 21, 2011 , in this docket.

Applicant representative: Josh Romanow , 202

- 6 63

- 8000 DOT analyst: Brett D. Kruger , 202

- 366

- 8025

Responsive pleadings: None.

DISPOSITION

Action: Approved request for exemption authority ( subject to conditions ); request for amended permit authority

deferred. 3

Action date: March 25 , 20 1 1 4

Effective dates of authority granted: March 25 , 20 1 1 , through March 25 , 20 1 2

.

Basis for approval: United States

- China Air Transport Services Agreement

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached).

Action taken by: Paul L. Gretch, Director

, Office of International Aviation

___________________ ____________________________________________________________________________________________________________

1 Yangtze’s existing foreign air carrier permit, issued in the above

- referenced Dockets on April 18, 2008, by Order 2008

- 4

- 27, authorizes it to engage in scheduled foreign air transportation of property and mail between Shanghai, People’s Republic of C hina, and the coterminal points Anchorage, Alaska; Boston, Massachusetts; Los Angeles, California; and New York, New York. Yangtze also holds exemption authority to engage in (1) scheduled foreign air transportation of property and mail between Shanghai, Peopl e’s Republic of China, on the one hand, and Dallas/Ft. Worth, Texas; San Francisco, California; and Chicago, Illinois; on the other hand; and (2) charter foreign air transportation of property and mail between a point or points in the People’s Republic of China, on the one hand, and a point or points in the United States, on the other hand ( See Notice s of Action Taken

dated October 20, 2010, and January 21, 2011, in the instant Dockets).

2 Although Yangtze is not seeking authority to coterminalize U.S. points here , we remind the carrier that the condi tion concerning

new coterminalization, previously pla ced on the car rier ’ s authority

, remains in effect ( See Notice s of Action Taken dated October

2 0, 2010, and January 21, 2011, in the instant dockets).

3 We will act on Yangtze’s amended permit request separately.

4 We acted on the request before the expiration of the 15

- day answer period with the consent of all parties served.Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent w ith Department policy ; (2) the applicant was qualified to perform its proposed operations; (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 Poli cy 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 the 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 effec tive when taken, and the f iling 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.gov

### Foreign Carrier Exemption Conditions

In the conduct of the 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 of such authorization wit h the Department;

(2) Comply with all applicable 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 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 foreig n airport that would be the holder’s last point of departure for the United States,

contact its International Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the I IR 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 ;

(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 office);

(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 for 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 wai ver of Warsaw Convention liability limits and defenses;

(7) Agree that operations 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 agai nst it in any court or other tribunal in the United States that are: (a) based 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 destinati on, or agreed stopping place, or for which the contract of carriage was purchased 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 transportation" 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 specificall y 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 of scheduled, nonscheduled, and charter data;

(10) If charter ope rations are authorized, except as otherwise provided in the applicable aviation 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 limita tions 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 above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval

under Title 49 of the U.S. Code.

1 2/2007