BEFORE THE

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________

)

Application of )

)

HAINAN AIRLINES CO., LTD. )

) 

For an amended foreign air carrier permit ) Docket No. OST-2007-0066

pursuant to 49 U.S.C. § 41301 and exemption )

authority pursuant to 49 U.S.C. § 40109 )

)

(China-US Scheduled Service) )

__________________________________________)

APPLICATION OF HAINAN AIRLINES CO., LTD.

FOR AN EXEMPTION AND AMENDED FOREIGN AIR CARRIER PERMIT

Communications with respect to this document should be addressed to:

Joel M. Chusid

Executive Director, USA

HAINAN AIRLINES CO., LTD.

18000 International Blvd., Suite 1188

Seattle, WA 98188

Email: joel@hnair.com 

November 12, 2013

Josh Romanow

Peter Nelson

PILLSBURY WINTHROP SHAW 

PITTMAN LLP

2300 N Street, N.W.

Washington, D.C. 20037

Tel: (202) 663-8000

Fax: (202) 663-8007

E-mail: romanow@pillsburylaw.com

 peter.nelson@pillsburylaw.com

 

Counsel for Hainan Airlines Co., Ltd.

NOTE: Any person who wishes to support or oppose this Application may: (1) file an answer, and 

(2) serve that answer on counsel identified above and all persons served with a copy of this 

application. Answers to the exemption application are due on November 27, 2013; answers to the 

amended foreign air carrier permit application are due on December 3, 2013. Hainan intends to 

poll on this application and will advise the Department of the results.
BEFORE THE

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________

)

Application of )

)

HAINAN AIRLINES CO., LTD. )

) 

For an amended foreign air carrier permit ) Docket No. OST-2007-0066

pursuant to 49 U.S.C. § 41301 and exemption )

authority pursuant to 49 U.S.C. § 40109 )

)

(China-US Scheduled Service) )

__________________________________________)

APPLICATION OF HAINAN AIRLINES CO., LTD.

FOR AN EXEMPTION AND AMENDED FOREIGN AIR CARRIER PERMIT

Pursuant to 49 U.S.C. §§40109 and 41301, Part 211 of the Department’s economic 

regulations, and the Department’s rules of practice, Hainan Airlines Co., Ltd. (“Hainan 

Airlines”), an air carrier of the People’s Republic of China, respectfully requests that the 

Department amend Hainan Airlines’ foreign air carrier permit to enable it to engage in scheduled

air transportation of persons, property and mail between Beijing, People’s Republic of China 

(PEK), on the one hand, and Boston, Massachusetts (BOS), on the other hand.

Hainan Airlines also requests exemption authority under 49 U.S.C. § 40109 to the extent 

necessary so that it may exercise the rights requested in this Application prior to the issuance of 

an amended foreign air carrier permit. Consistent with the Department’s notice of August 23, 

2005 (Docket No. OST-2005-22228) (the “August 23, 2005 Notice”), Hainan Airlines requests 

that the Department process this application on an expedited basis and grant Hainan Airlines an 

amended foreign air carrier permit so that it can begin offering the proposed services as soon as 
possible. In this regard, Hainan Airlines respectfully requests that the Department issue a single 

order (1) granting the requested exemption authority for a one-year period or until after the 

effective date of the requested amended permit authority; and (2) approve the amended foreign 

air carrier permit authority under the streamlined procedures set forth in the August 23, 2005 

Notice, unless the Department deems it appropriate to proceed directly to a final order issuing an 

amended foreign carrier permit to Hainan Airlines. In support of this Application, Hainan 

Airlines states as follows:

1. Since Hainan Airlines began service in 1993, it has grown steadily, launching non-stop 

service to the United States on June 9, 2008 between Beijing and Seattle. Since 2008, the 

Beijing - Seattle route frequency has increased to daily flights during peak seasons. On 

September 3, 2013, Hainan successfully launched non-stop service between Beijing and 

Chicago.

2. Hainan Airlines has received several awards, including a five-star certification by 

Skytrax, a prestigious safety award, for three consecutive years, and it has been voted the 

"Best Airline in China" by Premier Traveler Magazine and twice by Global Traveler 

magazine. Hainan Airlines is a service-oriented airline, providing features such as 

complimentary limo service for long-haul premium travelers in Beijing, flat bed seats, 

upgraded amenities and gourmet meals. As one of the launch customers for the Boeing 

787 Dreamliner, Hainan Airlines aims to provide a high quality service option for 

passengers traveling between the People’s Republic of China and Boston. 

3. Hainan holds a foreign air carrier permit issued by the Department authorizing it to 

engage in scheduled foreign air transportation of person, property and mail between (a) 
Beijing, People’s Republic of China and Seattle and (b) Beijing and Chicago, as well as 

authority to engage in charter foreign air transportation of persons, property and mail 

between a point or points in the People’s Republic of China and a point or points in the 

United States (Order 2012-7-14).

4. Authority Requested: Hainan Airlines hereby seeks authority to conduct scheduled 

foreign air transportation of persons, property and mail between Beijing, People’s 

Republic of China (PEK) on the one hand, and Boston, Massachusetts (BOS) on the other 

hand. Hainan intends to operate these scheduled flights using a B-787 aircraft with a 

two class configuration and proposes to operate initially four flights per week beginning 

in the second quarter of 2014. 

5. Granting Hainan Airlines’ request for an amended foreign air carrier permit is fully 

consistent with the Agreement between the Government of the United States of America 

and the People’s Republic of China Relating to Civil Air Transport, signed September 17, 

1980, as amended, which authorizes airlines designated by the Chinese government to 

operate combination services from any point or points in the People’s Republic of China 

to any point or points in the United States. It would benefit travelers in both the United 

States and China by providing additional scheduled service in this market and would 

therefore serve the public interest.

6. The Government of the People’s Republic of China has authorized Hainan Airlines to 

conduct the proposed flights from Beijing to Boston. A copy of Hainan Airlines’ 

authorization issued by the Civil Aviation Administration for China (“CAAC”) is 

attached hereto as Exhibit A.
7. Hainan Airlines hereby incorporates by reference the fitness and citizenship information 

contained in its earlier applications. See Docket OST-2007-0066.

8. An updated copy of the Hainan Airlines’ Air Operator’s Certificate (AOC) is attached as 

Exhibit B.

9. An estimate showing the total traffic and the financial results of the proposed services for 

the first full year of normal operations is attached hereto as Exhibit C.

10. Grant of the authority sought herein will not result in a near-term increase in fuel 

consumption of ten million gallons or more, and therefore will not comprise a “major 

regulatory action” under the Energy Policy and Conservation Act of 1975, as defined in 

14 C.F.R. § 313(a)(1).

11. Hainan Airlines has not been involved in any safety or tariff violations or any fatal 

accidents in the past five years.

12. Hainan Airlines’ maintenance program continues to comply with the provisions of ICAO 

Pilots and Airmen Annexes 1, 6 (Part 1) and 7.

13. The verification required by 14 C.F.R. 302.4(b) is attached hereto as Exhibit D.

For the reasons set forth above, Hainan Airlines is fully qualified to operate the services 

for which authority is herein requested, and grant of the authority will serve the public interest. 

Hainan Airlines asks that the requested exemption remain in place for one year, or until the 

Department issues an amended permit authorizing the requested authority. 
WHEREFORE, based upon the foregoing information, Hainan Airlines respectfully 

requests that it be granted an exemption and amended foreign air carrier permit to engage in 

scheduled foreign air transportation of persons, property and mail as more fully described above.

Respectfully submitted,

Josh Romanow

Peter Nelson

PILLSBURY WINTHROP SHAW PITTMAN LLP

2300 N Street, N.W.

Washington, DC 20037

Phone: (202) 663-8000

Fax: (202) 663-8007

Email: romanow@pillsburylaw.com

 peter.nelson@pillsburylaw.com

November 12, 2013 Counsel for Hainan Airlines Co., Ltd.
CERTIFICATE OF SERVICE

I hereby certify that a copy of the foregoing application of Hainan Airlines Co., Ltd. for an amended 

foreign air carrier permit and exemption has been served by electronic mail this the 12th day of 

November, 2013, upon each of the parties.

David Henthorn

Rick Mayfield

Federal Aviation Administration

david.e.henthorn@faa.gov

rick.mayfield@faa.gov

Yil Surehan

Director, Airline Route Development

Massachusetts Port Authority (Massport)

Boston Logan International Airport

1 Harborside Drive, Suite 200s

East Boston, MA 02128

YSurehan@Massport.com

Sascha Vanderbellen

Delta Air Lines, Inc.

sascha.vanderbellen@delta.com

Francis Weil

Robert Wirick

American Airlines, Inc.

francis.weil@aa.com

robert.wirick@aa.com

Bailey Leopard

Federal Express Corporation

gbleopard@fedex.com

Kevin P. Montgomery

Polar Air Cargo, Inc.

kevin.montgomergy@polaraircargo.com

Russell E. Pommer

Associate General Counsel & Sr. Director

 Regulatory Affairs

Atlas Air Inc.

rpommer@atlasair.com

Edward W. Sauer

Evergreen International Airlines, Inc.

edwards.sauer@squiresanders.com

charters@evergreenairlines.com

Anita Mosner

Jennifer Nowak

anita.mosner@hklaw.com

jennifer.nowak@hklaw.com

Malcolm L. Benge

Counsel for North American Airlines/

World Airways

mlbenge@zsrlaw.com

Dan Weiss

Continental Airlines

dan.weiss@coair.com

Steve Morrissey

Counsel for United Air Lines

steve.morrissey@united.com

Howard Kass

U.S. Airways

howard.kass@usairways.com

Robert Silverberg

Counsel for ABX Air, Inc.

rsilverberg@sgbdc.com

Mark W. Atwood

Counsel for Kalitta Air

matwood@cozen.com

/s/Melinda A. Hernandez
TABLE OF EXHIBITS

Exhibit A Authorization from the Government of the People’s Republic of China

Exhibit B Air Operator’s Certificate

Exhibit C Estimate of Traffic and Financial Forecast for Proposed Operations

Exhibit D Verification
EXHIBIT A

AUTHORIZATION FROM THE 

GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA 

(ATTACHED)

EXHIBIT B

AIR OPERATOR’S CERTIFICATE

AIR OPERATOR’S CERTIFICATE

PUBLIC AIR TRANSPORT A.T. REGISTERED NO.029

Name: Hainan Airlines Company Limited

Address: Hainan Airlines Plaza, No.7 Guoxing Road, Haikou City, Hainan Province

Base Airport: Haikou Meilan International Airport

Business Entity Type: Limited Liability Company

Registered Capital: RMB 3,530,252,801

Legal Person: Ming CHEN

Scope of Operation: Authorized domestic and international air passenger, cargo and mail 

transportation (include those to Hong Kong and Macau); services related to air transportation.

Validity: from 05/10/2013 to 05/09/2016

Issued by: Civil Aviation Administration of China (Sealed)

04/10/2013
PUBLIC AIR TRANSPORT

AIR OPERATOR’S CERTIFICATE

DUPLICATE

A.T. REGISTERED NO.029

EXAMINED AND APPROVED OF THE OPERATION IN

ACCORDANCE WITH THE CIVIL AVIATION LAW OF

PEOPLE’S REPUBLIC OF CHINA.

Name: Hainan Airlines Company Limited

Address: Hainan Airlines Plaza, No.7 Guoxing Road, Haikou City, Hainan Province

Base Airport: Haikou Meilan International Airport

Business Entity Type: Limited Liability Company

Registered Capital: RMB 3,530,252,801

Legal Person: Ming CHEN

Scope of Operation: Authorized domestic and international air passenger, cargo and mail 

transportation (include those to Hong Kong and Macau); services related to air transportation.

Validity: from 05/10/2013 to 05/09/2016

Issued by: Civil Aviation Administration of China (Sealed)

04/10/2013
EXHIBIT C

ESTIMATE OF TRAFFIC AND FINANCIAL FORECAST 

FOR PROPOSED OPERATIONS

Month # of Flights Passengers Revenue

Unit: USD

Total Costs

Unit: USD

Profit

Unit: USD

Jun-14 7 1163 2,268,866.28 2,464,382.56 -195,516.28

Jul-14 17 3114 6,922,869.15 5,984,929.08 937,940.07

Aug-14 31 6207 13,767,417.96 10,913,694.21 2,853,723.75

Sep-14 30 5495 12,192,983.18 10,561,639.56 1,631,343.62

Oct-14 31 5547 10,703,216.31 10,913,694.21 -210,477.90

Nov-14 30 5495 10,604,856.54 10,561,639.56 43,216.98

Dec-14 31 5877 11,338,456.47 10,913,694.21 424,762.26

Jan-15 31 5282 10,195,024.18 10,913,694.21 -718,670.03

Feb-15 28 4652 7,619,984.28 9,857,530.26 -2,237,545.98

Mar-15 31 5414 8,863,936.37 10,913,694.21 -2,049,757.84

Apr-15 30 5368 10,358,957.12 10,561,639.56 -202,682.44

May-15 31 5679 10,957,312.37 10,913,694.21 43,618.16

Total 328 59293 115,793,880.20 115,473,925.86 319,954.35
EXHIBIT D