UN I TE D S TATE S O F A M ER I CA

DE P ART M EN T O F TRAN SP O RTAT I O N

O F F I C E O F T H E S ECRETAR Y

W AS H I NGT O N

, D

. C.

I ssued by t he D epa r t m ent o f T r a nsp o rt a t i on on June 17 , 2014



### NO T I CE OF A C TI O N T A K E N

- - DOCK E T DOT

- OS T

- 2014

- 0065

T h i s s e r v es a s n o t i ce t o t h e pub l i c o f t h e a c t i on d e sc r i b ed b e l o w

, t a k en by t he D e p a rt m ent o f f i c i al i n d i c a t e d ( no

add i ti o nal co n f i r m in g o r d e r w il l b e i ss u ed i n t h i s m a t t e r)

.

A pp li c an t : AIR CHINA CARGO COMPANY LIMITED d/b/a AIR CHINA CARGO (“Air China Cargo”)

D a t e F il e d : April 28, 2014

, as corrected May 6, 2014

R e l i ef r eq u es t ed: Exe m p t i on f r om 49 U SC §41301 t o p e r m i t t h e a p p l i ca n t t o en g a g e i n sc h ed u l ed f o r e i g n a i r

tr a n sp o rt a t i on o f p r o pe r t y and m a i l b e t w een any po i nt or p o i n t s i n t he Peo p l e ’ s R e pub l i c o f C h i n a ( P RC ) , via any

intermediate points, to any po i nt or p o i n t s i n t he U n i t ed S t a t es op e n t o sch e du l ed s e r v i c e, and beyond to any point or

points outside the U nited S tates

. 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

A ppl i c ant r e pr e se n t a t i v e: G eor g e N. Tompkins, 212

- 915

- 5624 DO T a n a l y s t : Darren Jaffe, 202

- 366

- 2512

D ISP O SI T I O N

A c ti o n: A p p r o ved in part , su b j e ct t o co n d i ti o n s ( spe c i f i c a l l y i nc l u d i ng t he con d i t i on c on c e r n i ng co t e r m i na li za ti o n , s e e

r e m a r k s be l o w ) , remainder (request for longer term authority) dismissed

. 2

A c tio n d a t e: June 17 , 20 14

E ff e c t i v e da t e s o f a u t ho r it y g r an t e d : June 17 , 20 1 4

, t h r ou g h June 17

, 2015

.

B as i s f o r ap p r o v a l : U n i t ed S t a t es

- C h i na Ai r T r a n sp o r t Se r v i ces A g r ee m ent

S p ec i a l c o n d it i o n s / R e m ar k s : 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

coterminal ization 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

E x c e p t t o t h e e x t e n t e xe m p t e d / w a i v e d

, t h i s a u t h o ri t y i s su b j ec t t o t h e te r m s

, c o n d it i o n s

, a n d l i m i tat i o n s o f o u r s t a n d ar d

e x e m p t i o n c o n d it i o n s ( att a c he d )

, a n d t o t h e o t h er w i se

- ap p li ca b l e t e r m s

, co nd i ti o n s

, a n d l i m i t a ti o n s o f Air China Cargo’s

f o r e i g n a i r ca r ri e r p er m i t ( O r d e r 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, Ho nolulu,

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

OST

- 2014

- 0014 (China Cargo Airlines code share with Southern) . Our action here does not preclude the exercise of the Alaska co

terminalization authority gr anted by Notice of Action Taken dated August 16, 2012, in Dockets DOT

- OST

- 2010

- 0200, DOT

- OST

- 1999

- 5035, and DOT

- OST

- 1996

- 1600.A c ti on t a k en b y: P a ul L

. G re t ch, D i r e c t o r, O ff i c e o f I n t ern a ti o n a l A v i a ti on

U n d er a u t h or i t y a s s i gn ed b y t h e De p a r t m e n t i n its r e g u lati o ns

, 1 4 C FR P a r t 385

, w e f oun d t h at (1 ) o u r acti o n w as c on s i s te n t w i th

De p a r t m e n t po li c y ; (2 ) t h e a pp lica n t w as q u a li f ied to p e r f o r m its propo s ed op e r ati o ns ; (3 ) g r a n t o f t h e a u t h or i t y w as c on s i s t e nt

w i t h t h e p u b lic i n te r e s t; a n d (4 ) g r a n t o f t h e a u t h or i t y w o u ld n o t c o ns t i t u te a m a j o r r e gu lat or y ac t i o n u n d er t h e E n e rg y P o l i c y a nd

C o ns e r v ati o n A c t o f 1975

. T o t h e e x t e n t n o t g r a n te d / d e f e rr e d / d i s m i s s e d

, w e d e n ied all r e q u e s t s in t h e r e f e r e n ced D o c k e t

. W e

m a y a m e n d

, m od i f y

, o r r e v ok e t h e a u t h or i t y g r a n ted i n t h is N o tice at a n y t i m e w i t h o u t h e a r i n g at o u r d i s c r eti o n

.

P e r s o n s e n titled to p etiti o n t h e De p a r t m e n t f o r r e v i e w o f t h e acti o n s et f or th i n t h i s N o tice un d er t h e De p a r t m e n t ’ s r e g u l a ti o ns

, 1 4

C F R §385. 3 0

, m a y f ile t h eir p etiti o n s w i t h in s e v e n (7 ) d a y s a f ter t h e d ate o f i s s u a n ce o f t h is N o tice. T h is acti o n w as e f f e c ti v e

w h e n ta k e n

, a n d t h e f i l i n g o f a p etiti o n f o r r e v i e w w i l l n o t al t er su ch e f f ect i v e n e ss

.

An e l e c t ron i c v e r s i on o f t h i s docu m e n t i s a v a i l a b l e on t he W or l d W i de W eb a t :

h tt p : / /

www .re g u l a ti o ns.g o v

### F o r e i gn C a r r i e r E x e m p t ion Co nd i t io n s

I n t he condu c t of t he op e r a t i ons au t h o r i z ed, t h e f o r e i g n ca r ri e r a pp l i c a n t ( s) sh a l l :

( 1 ) N o t c on d u c t an y o p er a t i o n s u n l e s s i t h o l d s a c u r re n t l y e ff e ct i v e a u t h o r i zat i o n fr o m i t s h o m e l an d f o r s u c h o p e r at i on s

,

an d i t h a s fi l e d a cop y o f s u c h a u t

h o r i za t i o n wit h t h e D e p a r t m e n t ;

( 2) C o m p l y w it h a l l ap p li c ab l e r e q u i r e m en t s o f t h e F e de r a l A v i a t i on A d m i n i s t r a ti on, t he T r a nsp o rt a t i on S e c u r i t y

A d m i n i s t r a t i on, a nd wi t h a l l ap p l i ca b l e U .S. G o v e r n m ent r equ i r e m en t s con c e r n i ng sec u r i t y

, i n c l ud i n g

, bu t n o t li m it ed

t o, 14 C FR P a r t s 129, 91, a nd 36 and 49 C FR P a r t 1 54 6 or 15 5 0, as ap p l i ca b l e. To ass u r e co m p li an c e wi t h a l l

app l i ca b l e U .S. G o v e r n m ent r e qu i r e m en t s c onc e r n i ng secu r it y

, t h e h o l d e r sh a l l , b e f o r e co m m enc i ng any new se r v i ce

(i n c l u d i ng ch a rt e r f li g h t s) f r om a f o r e i g n a i r po r t t hat w ou l d b e t h e h o l d e r’ s l a st p o i nt of dep a r t u r e f o r t h e U n it ed S t a t e s,

con t a ct i t s I n t e r n a t i on a l I n d us tr y R e p r es e n t a t i v e ( II R ) (f or m e rl y r e f e r

r ed t o as I n t e r na t i on a l P r in c ip a l S e c u r ity

I nspec t or) t o ad v i se t he I I R o f i t s p l a n s and t o fi n d o u t w he t h e r t he T r ans p o r t a t i on Secu r it y A d m i n i s t r a ti on h a s

de t e r m i ned t h at sec u r i t y i s adequ a t e t o a l l ow such a i r p or t ( s) t o b e s e r v e d ;

( 3 ) C o m p l y w i t h t h e r eq u i re m e n t s f o r m i n

i m u m i n s u r a n c e co v er a g e co n t a i n e d i n 1 4 CF R P ar t 2 0 5

, a n d

, p ri o r t o t he

co mm ence m e n t o f an y o p er a ti o n s u n d e r t h i s a u t h o ri t y

, f i l e e v i d e n c e o f s u c h c o v e r a g e

, i n t h e f o r m o f a co m p l e t e d O S T

F or m 64 1 1

, w i t h t h e F e d e r a l A v i a ti o n A d m i n is t ra t i o n ’ s P r o g r a m Ma n a g e m en t B r a n c h ( A F S

- 26 0 )

, F l i g h t S t an d a r d s

S e r v i c e ( a n y c h a n g e s t o

, o r t er m i n at i o n o f

, i n s u r a n c e als o s h al l b e fi l e d w i t h t h a t o ffi c e) ;

( 4 ) N o t op era t e ai r cr a f t u n d e r t h i s a u t h o ri t y u n l e s s i t c o m p li e s w i t h o p e r at i o n a l s a fe t y r e q u i r e m e n t s a t l e a s t e q u i v a l e n t t o

A nn e x 6 o f t h e C h i c a g o C o nv en t i on ;

( 5) C o n f o r m t o t he a i r w o r t h i ne s s a n d a i r m an co m pe t e ncy r equ i r e m en t s o f i t s G o v e r n m ent f o r i n t e r n a t i on a l a i r

se r v i c e s;

( 6 ) E x c e p t a s s p e ci f i c al l y e xe m p t e d o r o t h e r w i s e p ro v i de d f o r i n a D e p a r t m e n t O r d e r

, co m p l y w i t h t h e r e q u i r e m en t s o f 1 4

CF R P a r t 2 0 3

, c o n ce r n i n g w a i v e r o f W a r s a w C on v e n ti o n l i a b il it y l i m i t s an d d e fe n se s ;

( 7) A g r ee t h a t o p e r a t i ons u nder t h i s a u t h o r i t y cons t i t u t e a w a i v er of s o v e r e i g n i mm un it y

, f or t h e pu r pos e s of 28 U .S. C

. 1605 ( a ) , b u t o n l y w it h r es p ect t o t hose a c ti o ns o r p r o c eed i n g s i n s t i t u t ed a g a i n st i t i n a n y c o u r t o r o t h er t ri bu nal i n t he

U n it ed S t a t e s t h at a r e : ( a) based on i t s o pe r a t i ons i n i n t e r na t i o n al a i r t r an s po r t a t i on t h a t

, a cc o r d i ng t o t h e c o n tr a ct of

ca r ri a g e, i n c l ude a p o i nt i n t he U n it e d S t a t e s as a p o i nt of o r i g i n, p o i nt of d e s ti n a ti on, or a g r eed s t op p i ng p l ac e, or f or

w h i ch t he c on t r a c t o f c a r r i ag e w as purc h ased i n t he U n it e d S t a t e s; o r ( b) b as e d on a c l a i m und e r any i n t e r n a ti onal

a g r ee m ent or tr e a t y co g n i z ab l e i n any co u r t o r o t h e r t r i bunal of t he U n i t ed S t a t e s. I n t h i s con d i t i on, t he te r m

"i n t e rn a tio n al a i r t r a n s po r t a

tio n " m ea n s "i n t e rn a tio n al t r a n s p o r t a t io n " a s d e fi n ed b y th e W a r saw C on v e n t ion

, e x c e p t

t h a t a l l S t a t es s ha l l b e co n s i de r ed t o b e H i g h C on t r a c t i n g Pa rti e s f o r t he p u r p o se o f t h i s d e fi n i t i o n ;

( 8) E x ce p t as sp e c i fi c a l l y au t h o r i z ed b y th e D e p a r t m e n t, o r i g in a t e o r t e r m in at e a l l f li g h ts t o / f ro m th e U n i t ed S t a t es in

it s ho m e l and;

( 9) C o m p l y w it h t he r eq u i r e m en t s of 14 C FR Pa r t 21 7 , conc e r n i ng t he r ep o r t i ng of sc h ed u l ed, n o nsc h ed u l ed, and

cha r t e r d a t a;

(10 ) I f c h a rt e r o p e r a t io n s a r e au t ho r i z ed, ex c ept as o t h e r w i se p r o v i d e d i n t h e ap p l i c ab l e a v i a t i on a g r e e m en t , c o m p l y

w it h t he D e p a r t m en t ' s r u l es g o v e r n i ng cha r t e r s ( i nc l ud i ng 14 C FR Pa rt s 212 a n d 3 80 ) ; and

( 11) C o m p l y w it h s uch o t h er r eas o na b l e t e r m s, con d i ti ons, and l i m it a t i ons r e q u i r e d by t he pu b l i c i n t e r e s t a s m a y be

p r e s c r i bed by t h e D ep a rt m en t

, wi t h a l l ap p li c ab l e o r de r s or r e g u l a ti o n s of o t h er U

. S. a g enc i e s and co u rt s, and w it h a l l

app l i ca b l e l a w s of t he U n i t ed S t a t e s

.

T h i s a u t h o r i t y sh a l l n o t b e e f f ec t i v e du r i ng any pe r i od w hen t h e ho l der i s not i n c o m p li ance w i t h t he con d i t i o ns

i m posed abo v e. M o r eo v e r

, t h i s a u t h o r i t y cannot be s o l d or o t h e r w i s e t r an s f e rr e d w it ho u t e x p l i c i t D e p a r t m ent ap p r o v al

under T i t l e 49 of t he U .S. C ode.

12 / 20 0 7