BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

__________________________________________ ) Application of ) ) CATHAY PACIFIC AIRWAYS LIMITED ) DOCKET OST

- 2010

- 0227 ) for renewal of exemption authority ) ( intra

- U.S. code

- sharing with ) Alaska/Horizon) ) __________________________________________)

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. L aw 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 Pacific and upon persons served with this application no later than October 23, 2014.

October 8 , 2014BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

________________________________________ __ ) Application of ) ) CATHAY PACIFIC AIRWAYS LIMITED ) DOCKET OST

- 2010

- 0227 ) October 8, 2014 for renewal of exemption authority ) ( intra

- U.S. code

- sharing with ) Alaska/Horizon) )

______________________________ ____________)

APPLICATION OF CATHAY PACIFIC AIRWAYS LIMITED FOR RENEWAL OF AN EXEMPTION Pursuant to 49 U.S.C. § 40109(c), Cathay Pacific Airways Limited ("Cathay Pacific") respectfully requests renewal of the above

- captioned exemption, granted by Noti ce of Action Taken dated September 21, 2010 (the “Notice”), for an additional, two

- year period. The Notice permits Cathay Pacific to engage in scheduled foreign air transportation of persons, property, and mail between Hong Kong and 25 U.S. code

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

- share agreement with Alaska and Horizon. Cathay Pacific intends to invoke the automatic extension provisions of 5 U.S.C. § 558(c) and Part 377 of the Department's Special Regulation s. In support of this application, Cathay Pacific states as follows:- 2

- Cathay Pacific Renewal Application 1. Cathay Pacific is a flag carrier of the Hong Kong Special Administrative Region ("HKSAR") and currently holds permit and exemption authority which authorizes it to operate combinatio n and all

- cargo service between Hong Kong and the United States. Pursuant to that authority, Cathay Pacific provides extensive combination and all

- cargo service between Hong Kong and the U.S. with its own aircraft. Cathay Pacific also markets service to po ints in the U.S., Mexico, and Brazil under code

- sharing agreements with two U.S. airlines and certain o f their commuter affiliates, as well as code

- share operations transiting the United States with several foreign airlines.

2. By this application, Catha y Pacific seeks renewal for an additional two years of the code

- sharing exemption auth ority described above, which is scheduled to expire on October 12, 2014 . Pursuant to this authority, Cathay Pacific markets service beyond its U.S. and Canadian gateways, on aircraft operated by Alaska and Horizon , to several 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 Memorandu m of Understanding (the "MOU"). Cathay Pacific also places its code on ce rtain Alaska

- operated U.S.

- Mexico flights to accommodate Hong Kong

- Mexico traffic. Cathay Pacific’s code

- sharing services on Alaska/Horizon 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 desig nated by the H KSAR 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. C athay Pacific has been designated by the HKSAR and therefore is entitled to conduct the code share operations described herein.

4

. Pursuant to 49 U.S.C. § 40109(c), the Department may grant an exemption if it finds that a grant is consistent with the public interest. Designat ion of a carrier by its homeland gov ernment is the most significant f

actor 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. Given Cathay Pacific’s designation under the U.S.

- HKSAR agreement, such a public interest finding is warranted. Moreover, the benefits which the service generates for business travelers, tourists, and shippers alike further demonstrate that re newal of the exemption is consistent with the public interest.