UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C.

Issued by the Department of Transportation on June 17, 2014

NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2014-0065

This serves as notice to the public of the action described below, taken by the Department official indicated (no 

additional confirming order will be issued in this matter).

Applicant: AIR CHINA CARGO COMPANY LIMITED d/b/a AIR CHINA CARGO (“Air China Cargo”)

Date Filed: April 28, 2014, as corrected May 6, 2014

Relief requested: Exemption from 49 USC §41301 to permit the applicant to engage in scheduled foreign air 

transportation of property and mail between any point or points in the People’s Republic of China (PRC), via any 

intermediate points, to any point or points in the United States open to scheduled service, and beyond to any point or 

points outside the United States. Air China Cargo requests that this authority remain in effect so long as Air China Cargo’s 

foreign air carrier permit remains in effect.1

Applicant representative: George N. Tompkins, 212-915-5624 DOT analyst: Darren Jaffe, 202-366-2512

DISPOSITION

Action: Approved in part, subject to conditions (specifically including the condition concerning coterminalization, see

remarks below), remainder (request for longer term authority) dismissed. 2

Action date: June 17, 2014

Effective dates of authority granted: June 17, 2014, through June 17, 2015. 

Basis for approval: United States-China Air Transport Services Agreement

Special conditions/Remarks: While we will now grant Air China Cargo an exemption of the bilaterally-agreed authority it 

seeks, we are not prepared at this time to permit Air China Cargo to implement new service to any of these authorized U.S. 

points on a coterminal basis, or to otherwise expand its coterminal operations. We have taken similar action limiting new 

coterminalization of U.S. points for all-cargo services by other carriers of the People’s Republic of China for the reasons 

first set forth in a Notice of Action Taken dated April 15, 2010 in Docket DOT-OST-2010-0047.3

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard 

exemption conditions (attached), and to the otherwise-applicable terms, conditions, and limitations of Air China Cargo’s

foreign air carrier permit (Order 2007-7-9).

 1 Air China Cargo currently holds a foreign air carrier permit to engage in scheduled all-cargo service between the coterminal points of 

Beijing, Guangzhou, and Shanghai, PRC; via Tokyo or another point in Japan; and the coterminal points Chicago, Dallas, Honolulu, 

Los Angeles, San Francisco, Portland, and New York; with optional technical stops at Anchorage and/or Fairbanks, and/or a point in 

Japan other than Tokyo and Osaka. See Order 2007-7-9. 2 The one-year duration of the authority we granted Air China Cargo is consistent with our usual policy of granting exemption 

authority in the circumstances presented. We therefore, dismissed the application to the extent that it sought authority for a longer 

period.

3 See, e.g., Notice of Action Taken dated October 11, 2011, in Dockets DOT-OST-1997-2653, DOT-OST-1999-5031, DOT-OST-2001-

9314, and DOT-OST-2001-10172 (China Southern); Notices of Action Taken dated January 21, 2011, and October 20, 2010, in Dockets 

DOT-OST-2006-24629 and DOT-OST-2006-24630 (Yangtze); and Notice of Action Taken dated February 11, 2014, in Docket DOTOST-2014-0014 (China Cargo Airlines code share with Southern). Our action here does not preclude the exercise of the Alaska coterminalization authority granted by Notice of Action Taken dated August 16, 2012, in Dockets DOT-OST-2010-0200, DOT-OST-1999-

5035, and DOT-OST-1996-1600.
Action taken by: Paul L. Gretch, Director, Office of International Aviation

Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent with 

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 Policy 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’sregulations, 14

CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effective 

when taken, and the filing 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 with 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 foreign 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 IIR 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 waiver 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 against 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 destination, 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 specifically 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 operations 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 limitations 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.

12/2007