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. 

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, 2012
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

__________________________________________ 

 ) 

Application of ) 

 ) 

CATHAY PACIFIC AIRWAYS LIMITED ) 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 requests renewal of the above-captioned 

exemption, granted by Notice 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 points 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 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 operate 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 aircraft. Cathay Pacific also markets 

service to points in the U.S., Mexico, and Brazil under code-sharing 

agreements with two U.S. airlines and certain of their commuter affiliates, as 

well as code-share operations transiting the United States with several 

foreign airlines. 

 2. By this application, Cathay Pacific 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 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 Memorandum of Understanding (the "MOU"). 

Cathay Pacific also places its code on certain Alaska-operated U.S.-Mexico 

flights to accommodate Hong Kong-Mexico traffic. Cathay Pacific's codesharing 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 designated by the 

HKSAR 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. 

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. Moreover, the benefits which the service 

generates for business travelers, tourists, and shippers alike further 

demonstrate that renewal of the exemption is consistent with the public 

interest.