BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

__________________________________________ ) Application of ) ) CATHAY PACIFIC AIRWAYS LIMITE D ) 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. Law Office of John Mietus, LLC 6701 Democracy Blvd., Suite 300 Bethesda, MD 20817-7500 (202) 747-5212 (240) 396-5362 fax 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 September 27, 2012.

September 12, 2012BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

__________________________________________ ) Application of ) ) CATHAY PACIFIC AIRWAYS LIMITE D ) DOCKET OST-2010-0227 ) September 12, 2012 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 requ ests renewal of the above-captioned exemption, granted by Notice of Acti on Taken dated September 21, 2010 (the “Notice”), for an additional, two-year period. The Notice permits Cathay Pacific to engage in scheduled foreign ai r transportation of persons, property, and mail between Hong Kong and 25 U.S. code-share points beyond Cathay Pacific’s U.S. and Canadian gateways pursuant to its code-share agreement with Alaska and Horizon. Cathay Pa cific intends to invoke the automatic extension provisions of 5 U.S.C. § 558(c) and Part 377 of the Department's Special Regulations. 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 oper ate combination 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 ai rcraft. Cathay Pa cific also markets service to points in the U.S., Me xico, and Brazil under code-sharing agreements with two U.S. airlines and certain of their commuter affiliates, as well as code-share operations transiti ng the United States with several foreign airlines.

2. By this application, Cathay Pa cific seeks renewal for an additional two years of the code-sharing exemption authority described above, which is scheduled to expire on September 21, 2012. Pursuant to this authority, Cathay Pacific markets service beyond its U.S. and Canadian gateways, on aircraft operated by Alaska and Horizo n, 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 Memorandum of Understanding (the "MOU"). Cathay Pacific also places its code on certain Alaska-operated U.S.-Mexico flights to accommodate Hong Kong-Mexic o traffic. Cathay Pacific's codesharing services on Alaska/Horizon ai rcraft have been well-received by the traveling public.- 3 - Cathay Pacific Renewal Application 3. Under Annex 2, section 4 of the MOU, a carrier designated by the HKSAR is authorized to engage in c ooperative 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. Cathay Pacific has been designated by the HKSAR and therefore is entitled to conduct the code share operations described herein. 4. Under 49 U.S.C. § 40109(c), the Department may grant an exemption if it finds that a grant is consistent with the public interest. Designation of a carrier by its homeland government is the most significant factor 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. Mor eover, the benefits which the service generates for business travelers, to urists, and shippers alike further demonstrate that renewal of the exempti on is consistent with the public

interest.