UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on January 7 , 20 1 1



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2010

- 0205

_____________________________________________________________________________________________________________________________ ___ This serves as notice to the public of the action described below, taken by the Department official indicated (no
additional co nfirming order will be issued in this matter).

Applicant: JADE CARGO INTERNATIONAL COMPANY LIMITED ( Jade Cargo )

Date Filed: December 8 , 20 10

Relief requested: Amendment of e xemption under 49 USC § 4 0109 to permit the applicant to use its own aircraft and crew, as well as aircraft wet

- leased from an authorized carrier, to engage in (1) scheduled foreign air transportation of property and mail between any point or points in the People’s Republic of China (PRC) , via any intermediat e points, to any point or points in the United States open to scheduled international operations

, and beyond to any points outside
the United States ; (2) charter foreign air transportation of property and mail from any point or points in the PRC, on
the on e hand, and any point or points in the United States, on the other hand; and (3) other charters pursuant to 14 CFR Part 212 of the Department’s regulations. 1

Date and citation of last action: September 21, 2010, in this docket.

Applicant representative: David Heffernan , 202

- 6 63

- 6360 DOT analyst: Brett D. Kruger , 202

- 366

- 8025

Responsive pleadings: None.

DISPOSITION

Action: Approved

, subject to conditions ( specifically including the condition concerning coterminalization, see Remarks below).

Action date: January 7 , 20 1 1

Effective dates of authority granted: January 7 , 2011 , through January 7 , 2012

.

Basis for approval: United States

- Ch ina Air Transport Services Agreement

1 Jade Cargo currently holds exemption authority to engage in (1) scheduled foreign air transportation of property and mail between any point or points in the PRC, via any intermediate points, to any point or points in the United States open to sche d uled international operations, and beyond to any points outside the United States; (2) charter foreign air transportation of prope rty and mail from any point or points in the PRC, on the one hand, and any point or points in the United States, on the other hand; and (3) other charters pursuant to 14 CFR Part 212 of the Department’s regulations. See Notice of Action Taken dat ed September 21, 2010, in this d ocket. Jade Cargo had stated that it would initially operate utilizing aircraft wet

- leased from World Airways. Jade Cargo seeks to amend that authority here, to the extent necessary to permit Jade Cargo to operate the proposed services with its
own aircraft and crew.Special conditions/Remarks: By Notice of Action Taken dated September 21, 2010, in this d ocket, we specifically limited new coterminalization of U.S. points by Jade Cargo. For the reasons explained there, w e are cont inuing to impos e the
same condition here. 2 3

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached) . We also require Jade Cargo, in accordance with 14 CFR §212.9(d) of our regulations, to obtain prior Department approval in the form of statements of authorization, before operating any charter trips to or from
the United States.

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 w it h Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consist ent with the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Poli cy 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 e ntitled to petition the Department for review of the action set forth in this Notice under the Department’s regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effec tive
wh en 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

2 As we said in our September 21 Notice of Action Taken, o ur action here does not preclude Jade Cargo from exercising the Alaska coterminalization authority granted by Notice of Action Taken dated August 19, 2010, in Dockets DOT

- OST

- 2010

- 0200,
DOT

- OST

- 1999

- 5035, and DOT

- OST

- 1996

- 1600.

3 We have taken similar act ion limiting new coterminalization of U.S. points by other carriers of the People’s Republic of China.
See e.g., Notice of Action Taken dated April 15, 2010, in Docket DOT

- OST

- 2010

- 0047 (China Southern) ; Notice of Action Taken dated September 27, 2010, in Docket DOT

- OST

- 2007

- 28655 (Great Wall); and Notice of Action Taken dated October 20, 2010, in
Dockets DOT

- OST

- 2006

- 24629 and DOT

- OST

- 2006

- 24630 (Yangtze ).

### Foreign Carrier Exemp tion 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 suc h 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 woul d 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 I IR of its plans and to find out whether the Transpo rtation 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 sha ll 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 a nd 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 th e 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 o r 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 ma y 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.

1 2/2007