Source: https://airlineinfo.com/ostcarrier/hainan.html
Timestamp: 2019-08-20 04:56:41
Document Index: 711538945

Matched Legal Cases: ['§40109', '§41307', '§40109', '§41301', 'art 212', 'art 212', 'art 212', '§40109', '§41307', '§40109', '§41307', '§41301', '§41301', '§40109', '§41301', '§41307', '§40109', '§41307', '§ 40109', '§40109', '§41307', '§40109', '§41307', '§40109', '§41307', '§41301', 'art 212', '§40109', '§40109', '§41307', '§41307']

Counsel: Pillsbury Winthrop, Josh Romanow
Application for Exemption and Foreign Air Carrier Permit - Bookmarked
Hainan Airlines seeks authority to conduct scheduled foreign air transportation of persons, property, and mail between Beijing, People's Republic of China, on the one hand, and Seattle, Washington, on the other hand on a daily basis. Hainan Airlines proposes to commence this service in June of 2008 and intends to initially utilize either Boeing 767-300 aircraft with 233 seats or Airbus 330-200 aircraft with 222 seats. Eventually, Hainan Airlines will use Boeing 787-8 aircraft for the route, with a seating capacity of between 184 and 215.
Hainan Airlines recently accepted delivery of its first A330-300, and expects to receive six additional A330s.
Counsel: Pillsbury Winthrop, Josh Romanow, 202-663-8000, romanow@pillsburywinthrop.com
Answer of the Port of Seattle - Bookmarked
Granting Hainan Airlines application to operate nonstop service from SEA to Beijing will serve to connect cities in the Pacific Northwest and other Western states that are not currently served to China. Doing so will further the trade and cultural ties that have long been an integral part of our Western region.
Counsel: Isabel Safora, 206-728-3216, safora.i@portseattle.org
Re: Washington State Congressional Delegation Support Letter
On behalf of the Port of Seattle, we hereby submit a letter from the Washington State Congressional delegates In support of Hainan Airlines' application for Seattle-Beijing service in the above-captioned docket.
Counsel: Port of Seattle, Isabel Safora, 206-728-3216, safora.i@portseattle.org
Motion for Confidential Treatment Under Rule 12
This information is being submitted in the form of a Confidential Exhibit to Hainan's Application for an Exemption and Foreign Air Carrier Permit, filed with the Department on November 9, 2007, and is attached hereto in a sealed envelope and marked in accordance with Rule 12.
OST-1998-3304
Counsel: Pillsbury Winthrop Shaw Pittman, Robin Ferguson, 202-663-8476, robin.ferguson@pillsburylaw
Re: Updated Ownership Information
Counsel: Pillsbury Winthrop, Josh Romanow, 202-663-9264, romanow@pillsburylaw.com
Counsel: Pillsbury Winthrop, Jonathon Fogalia
Order 2008-1-29
Issued and Served January 31, 2008
By this order we grant the application of Hainan Airlines Co., Limited for an exemption, under 49 U.S.C. §40109. We also tentatively find that it is in the public interest to grant the applicant the foreign air carrier permit.
Our action granting the exemption authority described herein is effective immediately, for a period of one year from the issue date of this order, or until the attached permit becomes effective, whichever is earlier.
Governor of the State of Washington in Support
Order 2008-4-29
Issued February 25, 2008 | Served April 18, 2008
By Order 2008-1-29, issued January 31, 2008, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award a foreign air carrier permit in the form attached to the Order and subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subject to Presidential review under 49 U.S.C. §41307) which would make final the findings and conclusions of the Order.
Order 2008-9-17
OST-2007-0066 - Foreign Air Carrier Permit and Exemption - China-US Charter Passenger
Issued and Served September 12, 2008
Order Granting Exemption, Statement of Authorization, and To Show Cause
By application filed August 19, 2008, Hainan Airlines Co., Limited, a foreign air carrier of the People's Republic of China, requests an exemption under 49 U.S.C. §40109, and an amended foreign air carrier permit under 49 U.S.C. §41301, to engage in charter foreign air transportation of persons, property and mail between a point or points in the PRC and a point or points in the United States, and to engage in other charters. Hainan Airlines also requests a statement of authorization under 14 CFR Part 212 to conduct one round-trip passenger charter between Haikou, PRC, and Honolulu, Hawaii, during the period October 19-21, 2008.
Hainan Airlines currently holds a foreign air carrier permit from the Department authorizing it to engage in scheduled foreign air transportation of persons, property, and mail between Beijing, PRC, and Seattle, Washington. See Order 2008-4-29, issued February 25, 2008.
Re: Petition for Reconsideration of DANA Liquidating Trust
DANA Liquidating Trust, for the benefit of numerous aviation-related claimants, including US airlines and public aviation departments, small companies and individuals located throughout the country, obtained on August 19, 2008, an Amended Final Judgment from the United States Bankruptcy Court for the Eastern District of Virginia, ordering Hainan Airlines Co., Ltd. to pay DLT the sum of $14,068,826.33 as damages, pre-judgment interest, and attorney's fees resulting from Hainan's failure to pay for various services and goods, including aircraft parts and repairs for aircraft in its fleet. Hainan did not appeal the judgment, which is final, due and payable. Further, it has refused to comply with the Court's order. This behavior is not only disrespectful of United States law and of companies and individuals who have performed work for them, but also specifically places it in violation of Condition 11 to the charter exemption authority granted by Order 2008-9-17 (Sept 12, 2008), and in violation of Condition 11 to the proposed amended air carrier permit in the same Order. It also provides strong grounds for revocation of the Part 212 Statement of Authorization for the proposed October 19-21 Haikou-Honolulu round-trip charter flight announced in the Order. Hainan's failure to obey the Court's order relating to the conduct of its airline operations also raises serious issues regarding Hainan's basic compliance disposition, which calls into question its fundamental fitness to hold foreign air carrier authority, and is directly adverse to United States aviation interests, undercutting the Department's public interest findings. Apparently Hainan believes that it is not required to honor a final judgment of a United States Court which has directed it to pay for goods and services provided to it by American businesses and citizens for the conduct of its airline operations, even where it concedes the findings of the court.
Additionally, the failure to pay the judgment in a prompt and orderly fashion now requires BLT to formally execute upon the judgment by using judicial process to seize all manner of Hainan's assets, including aviation assets that reside within the jurisdictions of the United States. Such execution will, in all likelihood, cause disruption of Hainan's service to American airports.
Accordingly, DLT, on behalf of dozens of entities and individual claimants, herewith moves for leave to, and petitions for reconsideration of the Department's grant of charter exemption authority to Hainan and asks that it be denied or revoked; answers in opposition to the Department's proposed award of an amended foreign air carrier permit and asks that Hainan's application be denied; and moves for revocation of the Department's Part 212 statement of authorization to Hainan for the October 19-21 charter flight.
Counsel: Wiley Rein, Jason Gold, 202-719-7402
Reply to DLT Answer and Motion to Strike DLT's Filing and Reply
To the best of Hainan Airlines' knowledge, DLT does not hold certificate, permit, or exemption authority to provide commercial air transportation in the U.S.-China market. DLT has not provided any compelling, much less credible, explanation as to why it was unable to timely submit an answer to Hainan Airlines' application for exemption authority, filed in the above-captioned proceeding on August 19, 2008. Indeed, DLT had until: (i) August 28, 2008 to answer in opposition to Hainan Airlines' request for a statement of authorization; (ii) September 2, 2008 to oppose the airline's exemption request; and (iii) September 9, 2008 to answer the amended permit request. Yet, DLT did not file, nor should it be permitted to file at this late date.
Only after the established procedural deadlines for answers to Hainan Airlines' application had passed, and only after the Department issued its order granting exemption authority and statement of authorization, and tentatively amending Hainan Airlines' foreign air carrier permit, did DLT decide to participate for the first time. DLT is therefore not an "interested party" for purposes of a petition for reconsideration, given the absence of any previous DLT comments in this proceeding or any related docket.
DLT's attempt to weigh in now, at the eleventh hour, should be recognized for what it is - an attempt to bootstrap a commercial dispute, in another forum, to the Department's recent and proper decision to grant valuable air traffic rights provided for under the U.S.-China Air Services Agreement to Hainan Airlines. The Department should not tolerate DLT's disruption of orderly foreign air carrier licensing proceedings after the grant of effective authority, through the introduction of late, extraneous information-and should strike DLT's untimely petition for reconsideration.
The Department reached a similar conclusion in Sunworld International Airlines, where the Department dismissed commercial objections in an exemption proceeding for valuable international traffic rights. Notice of Action in Docket OST-1997-3043. See also Minerve Canada, Order 1989-5-15, at 4 (affirming statement of authorization for foreign charter flights and dismissing commercial objections, noting "we do not believe that the arguments concerning the contractual dispute ... warrant a different result, since that dispute is a private commercial matter more properly resolved in other forums ... we take no position on the merits of that dispute"). Given that the Department's staff acted properly and in accordance with established Department practices, DLT's arguments should be flatly rejected.
Response of Dana Liquidating Trust to Hainan Airlines' Limited Reply
Rather than provide any substantive information to the Department on the critical compliance disposition issue, Hainan attempts to trivialize the matter by comparing compliance with a United States Court order, a specific condition on its exemption and a serious matter respecting its general compliance disposition and fitness, to mere "commercial disputes' between "parties," and by arguing that DLT it not an "interested party."
Hainan was brought before a United States Court for non-payment of debts it owes to DLT, a fiduciary appointed by the U.S. Bankruptcy Court to represent 135 persons and companies. After years of litigation, in which Hainan was represented by a major American law firm, presented testimony, and was accorded every due process protection, the Court ordered Hainan to pay those debts which relate to services and parts for its fleet of aircraft. There is, therefore, no ongoing "commercial dispute" of the type referenced in the DOT decisions Hainan cites, and DLT is not an ordinary commercial "party," but rather a entity established by the Court to carry out Court-directed tasks. Hainan's attempt to suggest otherwise is a smoke screen.
Dana Liquidating Trust's Second Supplement, Answer in Opposition to Grant of Amended Permit and Motion to Revoke Statement of Authorization
Although it is operating its existing service and seeks to add service to the United States, Hainan continues to ignore the United States Federal Court's Order and refuses to pay individuals and companies that performed work for it. DLT supplements its earlier filings to show the strong economic position of Hainan and that it can pay monies owed to DLT.
As noted in DLT's September 23rd filing, Hainan is well-financed. It is the largest airline with public ownership in China. Hainan also continues to expand its operations. It provides international and domestic air passenger and cargo transportation, charter flights, and other related transportation services. As of the end of 2007, its fleet include over 100 aircraft, which are used for international routes, regional routes, and business charter services. In 2008, it will add another 17 aircraft including 10 737-800s. Hainan carries more than 14 million passengers annually and flies to more than 60 domestic and international cities, including the capitals of every Chinese province. Hainan has stated it will see a 16% increase in passenger numbers in 2008 over 2007.
Hainan could easily pay the $14 million it owes DLT. Attached are several charts based upon Hainan 2007 Annual Report showing that the amount Hainan owes to DLT is minor while its assets continue to grow. Hainan cannot be allowed to ignore a ruling of the U.S. Federal Court which it has not appealed.
It is not in the public interest for the Department to allow Hainan to continue to operate in the United States while it completely ignores conditions placed on it by the Department. Therefore, we ask that, as a minimum, the Department suspend Hainan's authority to operate charters to the United States unless it complies with Condition 11 to the "Permit to Foreign Carrier" in the "Order Granting Exemption, Statement of Authorization, and to Show Cause" issued to Hainan Airlines by the Department on September 12, 2008 by immediately paying DLT the monies owed as determined by the U.S. Federal Court.
Dana Liquidating Trust's Supplement to Motion for Leave to File a Petition for Reconsideration of Grant of Exemption Authority and Motion to Revoke Statement of Authorization
On September 23, 2008 DANA Liquidating Trust asked the Department of Transportation to reconsider and revoke an exemption granted to Hainan Airlines Co., Limited to operate to the United States and to prevent Hainan from operating charter flights to the United States. DLT filed its September 23rd Motion for numerous aviation-related claimants based on a Final Judgment, issued by the United States Bankruptcy Court for the Eastern District of Virginia, dated August 19, 2008, ordering Hainan to pay DLT the sum of $14,068,826.33 and an amount for attorney's fees resulting from Hainan's failure to pay for various services and goods, including aircraft parts and repairs for aircraft in its fleet. DLT has filed additional documents in this docket addressing Hainan's failure to comply with the Bankruptcy Court Order.
Since the September 23 filing, Hainan has obtained additional investments and has continued to expand its operations. Despite those investments and expansions, Hainan continues to ignore the United States Federal Court's Order and has not paid the sums owed to DLT. DLT submits supplements to its previous filings to show the strong economic position of Hainan and that it can pay monies owed to DLT, while it is spending hundreds of millions of dollars on other priorities. It should not be allowed to make the U.S. individuals and companies who are the beneficiaries of the DLT its lowest priority. Hainan could easily pay the sums it owes DLT and the attorney fees it owes.
The Department should not ignore its responsibility to enforce the obligation of airlines receiving authority to operate in the United States to meet mandates of U.S. courts Hainan cannot be allowed to ignore a ruling of the U.S. Bankruptcy Court which it has not appealed while it continues to expand and obtain hundreds of millions in investments. It is not in the public interest for the Department to allow Hainan to continue to operate in the United States while it completely ignores conditions placed on it by the Department. The Department should not allow Hainan to believe it need not comply with Condition 11 to the "Permit to Foreign Carrier" in the "Order Granting Exemption, Statement of Authorization, and to Show Cause" issued to Hainan Airlines by the Department on September 12, 2008. Therefore, we ask that, as a minimum, the Department suspend Hainan's authority to operate charters to the United States unless it complies with Condition 11 and the Bankruptcy Court Order and immediately pay DLT the monies owed to it.
Re: Withdrawal of Petition for Reconsideration of Dana Liquidating Trust and Answer in Opposition to Grant of Amended Foreign Air Carrier Permit
On October 27, 2008, DLT filed a "Supplement to Motion for Leave to File a Petition for Reconsideration, Answer in Opposition to Grant of Amended Permit and Motion to Revoke Statement of Authorization" with the Department. That filing included an October 21, 2008 "Certification of Judgment for Registration in Another District" issued by the clerk of the United States Bankruptcy Court for the Eastern District of Virginia which states, "no notice of appeal from this judgment has been filed, and no motions of any kind listed in Rule 4(a) of the Federal Rules of Appellate Procedure have been filed against this amended final judgment."
Recently Hainan proposed a settlement of all of the disputes between the DLT and Hainan. Based upon that settlement offer and subsequent discussions, a settlement was reached by the parties and presented to the Bankruptcy Court. On February 28, 2009, the Bankruptcy Court approved a full and final settlement of all litigation and disputes filed against Hainan by DLT. As of today, that settlement is final and this matter is closed.
Order 2009-5-7
Issued May 5, 2009 | Served May 11, 2009
By Order 2008-9-17, issued September 12, 2008, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award an amended foreign air carrier permit.
On September 23, 2008, DANA Liquidating Trust filed a responsive pleading to Order 2008-9-17 stating that, among other things, it objected to the Department’s tentative decision to award an amended foreign air carrier permit to Hainan Airlines Co., Limited. Hainan Airlines filed a reply and DLT filed additional responsive pleadings. On March 4, 2009, DLT withdrew its objection.
We make final our findings and conclusions as stated in the Order and award to Hainan Airlines Co., Limited the amended foreign air carrier permit with associated conditions attached to the Order.
Application for an Exemption and Amended Foreign Air Carrier Permit - Bookmarked
Hainan Airlines seeks authority to conduct scheduled air transportation of persons, property, and mail between Beijing, People’s Republic of China (PEK) on the one hand, and Honolulu, Hawaii on the other hand. Hainan Airlines intends to operate these scheduled combination flights using an Airbus A-340-600 aircraft with a three class configuration. Hainan Airlines proposes initially to operate one flight per week beginning this fall, and will increase the frequency to accommodate demand up to a maximum of three flights per week.
OST-2007-0066 - Amended Foreign Air Carrier Permit and Exemption - China-US
Re: Governor of Hawaii Letter in Support
Hainan Airlines has filed an application to amend their foreign air carrier permit to engage in scheduled air transportation between Beijing, People’s Republic of China and Honolulu, Hawai’i. I urge your support and ask that you approve this application.
By: Governor Linda Lingle
Order 2009-9-11
Issued and Served September 18, 2009
We grant the request of Hainan Airlines Co., Limited for an exemption under 49 USC §40109 to permit it to engage in scheduled foreign air transportation of persons, property and mail between Beijing, People’s Republic of China, and Honolulu, Hawaii.
With respect to the applicant’s request for an amended foreign air carrier permit in this proceeding, we direct all interested persons to show cause why our tentative decision on that application, set forth above, should not be made final. Any interested person objecting to the issuance of an order making final our tentative findings and conclusions with respect to the applicant’s request for a foreign air carrier permit shall, no later than twenty-one calendar days after the date of service of this order, file with the Department.
Order 2009-12-10
Issued October 13, 2009 | Served December 15, 2009
By Order 2009-9-11, issued September 18, 2009, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award an amended foreign air carrier permit in the form attached to the Order and subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subject to Presidential review under 49 USC §41307) which would make final the findings and conclusions of the Order.
Application for an Exemption and Amended Foreign Air Carrier Permit
Hainan Airlines hereby seeks authority to conduct scheduled air transportation of persons, property and mail between Beijing, People’s Republic of China on the one hand, and Chicago, Illinois on the other hand. Hainan Airlines intends to operate these scheduled flights using a Boeing B-787 aircraft with a two class configuration, or equivalent longhaul aircraft in its fleet, and proposes to operate initially four flights per week beginning in the second quarter of 2013.
Support Letter of Chicago Department of Aviation
By: Rosemarie Andolino
Order 2012-7-14
Issued and Served July 18, 2012
We grant the request of Hainan Airlines Co., Limited for an exemption under 49 USC §40109 to permit it to engage in scheduled foreign air transportation of persons, property and mail between Beijing, People’s Republic of China, and Chicago, Illinois.
Issued August 9, 2012 | Served October 11, 2012
By Order 2012-7-14, issued July 18, 2012, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award an amended foreign air carrier permit in the form attached to the Order and subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subject to Presidential review under 49 USC §41307) which would make final the findings and conclusions of the Order.
OST-2011-0228 - Statements of Authorization - US-China Reciprocal Codesharing with American Airlines
Hainan Airlines Co., Ltd., an air carrier of the People’s Republic of China, respectfully requests renewal of its exemption authority to engage in scheduled foreign air transportation of persons, property and mail between points in China and points in the United States on a codeshare basis with American Airlines, as authorized by the US-China Air Transport Agreement, as amended by Article 5 of the US-China Protocol signed on July 23, 2004 (See Notice of Action Taken dated February 15, 2012 (Docket No. OST-2011-0228)).
OST-2011-0228 - Statements of Authorization - US-China Reciprocal Codesharing
Filed February 13, 2013 | Issued March 6, 2013
Renewal of exemption from 49 USC §41301 to permit the applicant to engage in scheduled foreign air transportation of persons, property, and mail between points in China and points in the US, on a codeshare basis with American Airlines, Inc. as authorized by the US-China Air Transport Agreement, as amended by Article 5 of the US-China Protocol signed on July 23, 2004.
OST-2007-0066 - Foreign Air Carrier Permit and Exemption - China-US Scheduled Passenger
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.
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.
OST-2011-0228 - Statements of Authorization - US-China Reciprocal Codesharing with American
Hainan Airlines Co., Ltd., an air carrier of the People’s Republic of China, respectfully requests renewal of its exemption authority to engage in scheduled foreign air transportation of persons, property and mail between points in China and points in the United States on a codeshare basis with American Airlines, as authorized by the US-China Air Transport Agreement, as amended by Article 5 of the US-China Protocol signed on July 23, 2004.
By Notice of Action Taken on March 6, 2013, the Department renewed Hainan’s exemption authority to engage in scheduled foreign air transportation of persons, property and mail between points in China and points in the United States on a codeshare basis with American.
Filed February 28, 2014 | Issued April 10, 2014
Renewal of exemption from 49 USC §41301 to permit the applicant to engage in scheduled foreign air transportation of persons, property and mail between points in China and points in the US, on a code-share basis with American Airlines, Inc., as authorized by the US-China Air Transport Agreement, as amended by Article 5 of the US-China Protocol signed on July 23, 2004.
Hainan Airlines hereby seeks authority to conduct scheduled foreign air transportation of persons, property and mail between Shanghai, People’s Republic of China (PVG), 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 three flights per week beginning in the second quarter of 2015.
Since Hainan Airlines began service in 1993, it has grown steadily, and inaugurated its first non-stop service to the United States on June 9, 2008 with flights between Beijing and Seattle. On September 3, 2013, Hainan successfully launched non-stop service between Beijing and Chicago, and on June 20, 2014 initiated service between Boston and Beijing.
Hainan Airlines Co., Ltd., 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 foreign air transportation of persons, property and mail between (i) Beijing, People’s Republic of China, on the one hand, and San Jose, California, on the other hand, and (ii) Shanghai, People’s Republic of China, on the one hand, and Seattle, Washington, on the other hand. Hainan Airlines’ service to San Jose would represent the first nonstop service between China and the fast-growing Silicon Valley, and its service to Seattle would expand options for travelers in the Pacific Northwest.
Hainan intends to operate scheduled flights to San Jose using a Boeing 787-8 aircraft with a two class configuration and proposes to operate initially five flights per week beginning in the second quarter of 2015. Scheduled flights to Seattle operate would be operated with an Airbus 330-200 aircraft with a two class configuration, at a frequency of four flights per week beginning in the second quarter of 2015.
Support Letter of Mayor of San Jose
San Jose is the Capital of Silicon Valley and the region is the world's center of innovation. The highest concentration of global technology corporations are headquartered here. These companies are committed to maintaining a vibrant economy and Mineta San Jose International Airport is their airport of choice for business travel. The enthusiastic support demonstrated by our region's business community for direct air service between Silicon Valley and Beijing will ensure that the new flight is successful. After many months of ongoing business discussions with Hainan Airlines officials, we are greatly encouraged by the airline's stated intentions to operate air service to China.
By: Sam Liccardo
Support Letter of Norman Y. Mineta San Jose International Airport
Mineta San Jose International Airport just confirmed that Hainan Airlines filed its formal request for a Foreign Air Carrier Permit and associated exemption authority with the United States Department of Transportation to operate nonstop Beijing-San Jose passenger service. As Director for the San Jose International Airport, we are very supportive of this submittal and urge the Department to approve Hainan's application.
By: Director of Aviation Kim Becker Aguirre
Order 2015-2-7
Issued and Served February 13, 2015
We grant the requests of Hainan Airlines Co., Limited for an exemption under 49 USC §40109 to permit it to engage in scheduled foreign air transportation of persons, property and mail between (1) Shanghai, People’s Republic of China and Boston, Massachusetts; (2) Beijing, People’s Republic of China, and San Jose California; and (3) Shanghai, People’s Republic of China and Seattle, Washington.
With respect to the applicant’s requests for an amended foreign air carrier permit in this proceeding, we direct all interested persons to show cause why our tentative decision on those applications, set forth above, should not be made final. Any interested person objecting to the issuance of an order making final our tentative findings and conclusions with respect to the applicant’s requests for a foreign air carrier permit shall, no later than twenty-one calendar days after the date of service of this order, file with the Department.
Filed March 26, 2015 | Issued April 23, 2015
Renewal of exemption from 49 USC §41301 to permit the applicant to engage in scheduled foreign air transportation of persons, property and mail between points in China and points in the US, on a codeshare basis with American Airlines, Inc., as authorized by the US-China Air Transport Agreement, as amended by Article 5 of the US-China Protocol signed on July 23, 2004.
Order 2015-5-8
Issued March 9, 2015 | Served May 12, 2015
By Order 2015-2-7, issued February 13, 2015, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award an amended foreign air carrier permit in the form attached to the Order and subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subject to Presidential review under 49 USC §41307) which would make final the findings and conclusions of the Order.
OST-2007-0066 - Amended Foreign Air Carrier Permit and Exemption - China-US Scheduled Passenger
Hainan Airlines hereby seeks authority to conduct scheduled foreign air transportation of persons, property and mail between Changsha, People’s Republic of China, on the one hand, and Los Angeles, California, on the other hand. Hainan intends to operate scheduled flights to Los Angeles using Boeing 787 aircraft with a two (2) class configuration and proposes to operate initially two flights per week beginning in the Fall of 2015. This would represent the first non-stop scheduled service between Changsha and Los Angeles and would expand travel options for passengers in both cities.
Hainan Airlines has grown steadily since its launch in 1993, and inaugurated its first non-stop service to the United States on June 9, 2008 with flights between Beijing and Seattle. Most recently in June 2015, Hainan initiated non-stop service between Beijing and San Jose, California and between Shanghai and both Boston, Massachusetts and Seattle, Washington.
Order 2015-8-24
Issued and Served August 26, 2015
We grant the request of Hainan Airlines Co., Ltd. for an exemption under 49 USC §40109 to permit it to engage in scheduled foreign air transportation of persons, property and mail between Changsha, People’s Republic of China and Los Angeles, California.
With respect to the applicant’s request for an amended foreign air carrier permit in this proceeding, we direct all interested persons to show cause why our tentative decision on this application, set forth above, should not be made final. Any interested person objecting to the issuance of an order making final our tentative findings and conclusions with respect to the applicant’s request for an amended foreign air carrier permit shall, no later than twenty-one calendar days after the date of service of this order, file with the Department.
Order 2015-11-16
Issued September 18, 2015 | Served November 19, 2015
By Order 2015-8-24, issued August 26, 2015, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award an amended foreign air carrier permit in the form attached to the Order and subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subject to Presidential review under 49 USC §41307) which would make final the findings and conclusions of the Order.
Hainan Airlines Co., Ltd., a foreign air carrier of the People’s Republic of China, respectfully requests renewal of its exemption authority to engage in scheduled foreign air transportation of persons, property and mail between points in China and points in the United States on a codeshare basis with American Airlines, as authorized by the US-China Air Transport Agreement, as amended by Article 5 of the US-China Protocol signed on July 23, 2004.
By Notice of Action Taken on April 23, 2015, the Department renewed Hainan’s exemption authority to engage in scheduled foreign air transportation of persons, property and mail between points in China and points in the United States on a codeshare basis with American.
OST-2011-0228 - Statements of Authorization - US-China Codesharing with American Airlines
Filed April 11, 2016 | Issued July 28, 2016
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 foreign air transportation of persons, property and mail between Beijing, People’s Republic of China, on the one hand, and Las Vegas, Nevada, on the other hand. Hainan intends to operate scheduled flights to Las Vegas using Boeing 787 aircraft with a two class configuration and proposes to operate initially two flights per week beginning in late 2016.
Hainan Airlines also requests exemption authority under 49 USC § 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.
Support Letter of Clark County (Nevada) Department of Aviation
In early 2013, Las Vegas began working with Hainan Airlines to make the LAS-Beijing route a reality. Expeditious approval of Hainan Airlines' Application will allow Las Vegas to begin the work to promote the new LAS-Beijing service for the benefit of the traveling public and our region. Hainan Airlines has received the SKYTRAX five-star airline award designation for six consecutive years, solidifying its ability to provide safe, efficient and convenient air service to the Las Vegas community. Regional support and enthusiasm for Hainan's proposed LAS-Beijing route is evident in the overwhelming positive response received from both public and private organizations within Las Vegas and the surrounding community. The proposed thrice-weekly service would have an estimated annual economic impact of $33.5 million for Clark County.
In 2010, Las Vegas welcomed an estimated 125,000 arrivals by air from China. In just five years, the estimate has grown by more than 190 percent. With an estimated 363,000 arrivals by air in calendar year 2015, Las Vegas is not only the largest West Coast city without nonstop service to China but also the single largest market within the United States without nonstop service to China.
By: Steve Sisolak
Order 2016-9-9
Issued and Served September 9, 2016
We grant the request of Hainan Airlines Co., Ltd. for an exemption under 49 USC §40109 to permit it to engage in scheduled foreign air transportation of persons, property and mail between Beijing, People’s Republic of China, and Las Vegas, Nevada.
Order 2016-12-2
Issued October 3, 2016 | Served December 2, 2016
By Order 2016-9-9, issued September 9, 2016, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award an amended foreign air carrier permit in the form attached to the Order and subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subject to Presidential review under 49 USC §41307) which would make final the findings and conclusions of the Order.
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 foreign air transportation of persons, property and mail between Chongqing, People’s Republic of China (nd New York, New York (JFK) and between Chongqing and Los Angeles, California.
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) approving 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 air carrier permit to Hainan Airlines.
American does not oppose Hainan’s application for an amended foreign air carrier permit and for exemption authority to permit it to operate scheduled service between Chongqing, People’s Republic of China and New York, New York (JFK), and between Chongqing and Los Angeles, California. American notes, however, that US carriers face substantial difficulties obtaining commercially viable slots at airports in mainland China that are necessary to inaugurate US-China services, while Chinese airlines, in contrast, hold large portfolios of slots at these Chinese airports that can be (and are) used to mount US-China services and face no comparable limitations at US airports. The Department should take into consideration the competitive disadvantages US carriers face in serving US-China routes when it reviews applications from Chinese carriers to launch new US-China services.
China’s “opaque allocation system” for airport slots is well documented and shows no sign of abating. Despite diligent efforts by the US Government to secure the rights for US carriers to operate these US-China frequencies, the reality is that, due to the inability of US carriers to obtain commercially viable slots in a timely fashion, US carriers are at a competitive disadvantage vis-à-vis Chinese airlines in serving the US-China market. The Department should not ignore the challenges faced by US carriers in the US-China market in its review of applications from Chinese carriers for new service to the US.
Order 2017-1-21
Issued and Served January 18, 2017
We grant the requests of Hainan Airlines Co., Ltd. for exemptions under 49 USC §40109 to permit it to engage in scheduled foreign air transportation of persons, property and mail between: 1) Chengdu, People’s Republic of China and New York, New York; 2) Chengdu, People’s Republic of China and Los Angeles, California; 3) Chongqing, People’s Republic of China and New York, New York; and 4) Chongqing, People’s Republic of China and Los Angeles, California.
With respect to the applicant’s requests for an amended foreign air carrier permit in this proceeding, we direct all interested persons to show cause why our tentative decision on these applications, set forth above, should not be made final. Any interested person objecting to the issuance of an order making final our tentative findings and conclusions with respect to the applicant’s requests for an amended foreign air carrier permit shall, no later than twenty-one calendar days after the date of service of this order, file with the Department.
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 foreign air transportation of persons, property and mail between Changsha, People’s Republic of China and New York, New York (JFK). Hainan intends to operate this service with Boeing 787 aircraft and a two or three class configuration, and will begin service with eight flights per month beginning in the third quarter of 2017.
Hainan holds a foreign air carrier permit issued by the Department authorizing it to engage in scheduled foreign air transportation of persons, property and mail between Beijing and Seattle; Beijing and Honolulu; Beijing and Chicago; Beijing and Boston; Beijing and San Jose, California; Shanghai and Boston; Shanghai and Seattle; Changsha and Los Angeles; Beijing and Las Vegas; Chengdu and New York; Chengdu and Los Angeles; Chongqing and New York and Chongqing and Los Angeles, as well as authority to engage in charter foreign air transportation of persons, property and mail between the People’s Republic of China and the United States. (Order 2017-1-21).
Counsel: Pillsbury Law, Josh Romanow, 202-663-8000
Order 2017-4-10
Issued February 9, 2017 | Served April 12, 2017
By Order 2017-1-21, issued January 18, 2017, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award an amended foreign air carrier permit in the form attached to the Order and subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subject to Presidential review under 49 USC §41307) which would make final the findings and conclusions of the Order.
Order 2017-5-11
Issued and Served May 17, 2017
We grant the request of Hainan Airlines Co., Ltd. for an exemption under 49 USC §40109 to permit it to engage in scheduled foreign air transportation of persons, property and mail between Changsha, People’s Republic of China and New York, New York.
Hainan Airlines Holding Co., Ltd., a foreign air carrier of the People’s Republic of China, respectfully requests renewal of its exemption authority to engage in scheduled foreign air transportation of persons, property and mail between points in China and points in the United States on a codeshare basis with American Airlines, as authorized by the US-China Air Transport Agreement, as amended by Article 5 of the US-China Protocol signed on July 23, 2004.
By Notice of Action Taken on July 28, 2016, the Department renewed Hainan’s exemption authority to engage in scheduled foreign air transportation of persons, property and mail between points in China and points in the United States on a codeshare basis with American.
Order 2017-8-14
Issued June 12, 2017 | Served August 15, 2017
By Order 2017-5-11, issued May 17, 2017, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award an amended foreign air carrier permit in the form attached to the Order and subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subject to Presidential review under 49 USC §41307) which would make final the findings and conclusions of the Order.
Filed July 24, 2017 | Issued October 20, 2017
Renewal of exemption from 49 USC §41301 to permit the applicant to engage in scheduled foreign air transportation of persons, property and mail between points in China and points in the US, on a code-share basis with American Airlines, Inc, as authorized by the US-China Air Transport Agreement, as amended by Article 5 of the US-China Protocol signed on July 23, 2004.
OST-2018-0111 - Statement of Authorization - China-US Mail-Only Codesharing with Sky Lease Cargo
Hainan requests a statement of authorization of indefinite duration permitting it to display Sky Lease’s designator code for the purpose of transporting US mail on Hainan’s services over the routes authorized pursuant to Hainan’s foreign air carrier permit under a codeshare agreement with Sky Lease.
Scheduled foreign air transportation of persons, property, and mail between:
1) Beijing, People’s Republic of China, and Seattle, Washington;; 2) Beijing, People’s Republic of China, and Honolulu, Hawaii; 3) Beijing, People’s Republic of China, and Chicago, Illinois; 4) Beijing, People’s Republic of China, and Boston, Massachusetts; (5) Shanghai, People’s Republic of China, and Boston, Massachusetts; (6) Beijing, People’s Republic of China, and San Jose, California; (7) Shanghai, People’s Republic of China, and Seattle, Washington; (8) Changsha, People’s Republic of China, and Los Angeles, California; (9) Beijing, People’s Republic of China, and Las Vegas, Nevada; 10) Chengdu, People’s Republic of China, and New York, New York; (11) Chengdu, People’s Republic of China, and Los Angeles, California; (12) Chongqing, People’s Republic of China, and New York, New York; (13) Chongqing, People’s Republic of China, and Los Angeles, California; and (14) Changsha, People’s Republic of China, and New York, New York;
Counsel: Pillsbury Law, Josh Romanow, 202-663-9264
OST-2007-0066 - Exemption and Amended Foreign Air Carrier Permit - China-US Scheduled Service
Application of an Exemption and Amended Foreign Air Carrier Permit
Hainan Airlines hereby seeks authority to conduct scheduled foreign air transportation of persons, property and mail between Xi’an, People’s Republic of China (XIY) and Los Angeles, California (LAX). Hainan intends to operate this service with Boeing 787-9 aircraft and will begin service with two flights per week, Mondays and Thursdays, beginning on the 6th of December 2018.
Hainan Airlines was established in 1993, and inaugurated its first non-stop service to the United States on June 9, 2008 with flights between Beijing and Seattle. In recent years, Hainan initiated non-stop service between Beijing and the following cities: Chicago, Boston, and San Jose, California. Hainan also initiated non-stop service between Shanghai and both Boston and Seattle. In 2016, Hainan began the first ever non-stop service between Changsha and Los Angeles, and between Beijing and Las Vegas. In 2017, Hainan also began the first ever non-stop service between Chengdu and both Los Angeles and New York, and between Chongqing and both Los Angeles and New York.
Filed July 20, 2018 | Approved October 16, 2018
Application of Hainan Airlines Holding Co., Ltd. for a statement of authorization under 14 CFR Part 212 to permit Hainan for an indefinite duration to display the (GG*) designator code of Sky Lease I, Inc. on scheduled all-cargo flights operated by Hainan on routes authorized by Hainan's foreign air carrier permit, pursuant to a codesharing arrangement with Sky Lease for the carriage of mail.
We note that the applicant requested that its authority be granted for an indefinite duration. However, in the circumstances presented, we find that the public interest favors a grant of authority limited to a one-year duration. Therefore, we dismiss the applicant's request to the extent that it sought authority for a longer term. Should the applicant seek to renew this authority, we will consider such a request in the context of our public interest evaluation at that time.
Hainan Airlines recently issued a 100 million USD bond at a rate of 12%. That financing included Change of Control clause in the bond offering which read ‘Investor redemption option (101%), when substantial shareholders (1 - Substantial Shareholders means Hainan SASAC, HNA Group Co., Ltd., Grand China and Haikou Meilan) in aggregate beneficially own less than 36% of the issued share capital.’. In other words, it details if main shareholders together suddenly own less than 36% of the company, then creditors may ask Hainan Airlines to pay back this bond early at a rate of 101%.”. The main shareholders have not pledged their shares to secure Hainan Airlines obligations pursuant to the bond.
Hainan Airlines is presently considering a capital restructuring. That restructuring, if it occurs, would be designed to comply with all applicable laws, including those relating to the ownership and control of Hainan Airlines. At this time, no final decisions have been made and no actions have been taken. If the restructuring is not undertaken, Hainan Airlines anticipates that its ownership and control would remain as described herein.
Counsel: Pillsbury Law, Edward Sauer, 202-663-8311
Order 2018-12-2
Issued and Served December 4, 2018
We grant the request of Hainan Airlines Holding Company Limited for an exemption under 49 USC §40109 to permit it to engage in scheduled foreign air transportation of persons, property and mail between Xi’an, People’s Republic of China and Los Angeles, California.
Hainan Airlines hereby seeks authority to conduct scheduled foreign air transportation of persons, property and mail between Chengdu, People’s Republic of China and Chicago, Illinois. Hainan intends to operate this service with Boeing 787-8 or 787-9 aircraft and will begin service with two flights per week, Mondays and Fridays, beginning on the 15th of March 2019.
Updated Ownership Information
Hainan Airlines Holding Company, Ltd. is and continues to be substantially owned and effectively controlled by the Government and nationals of the Peoples Republic of China. On November 14, 2018, Hainan Airlines submitted to this docket updated information regarding its ownership. This ownership information is cited to in the Application. Ownership of Hainan Airlines remains the same as represented in the November 14, 2018 filing except, effective January 8, 2019, Grand China Air Co. Ltd. reduced its shareholding position from 24.33% by 0.05%, with its percentage of shares held currently at 24.28%. The reduction in the shareholding position of Grand China Air Co. Ltd. will not have any significant impact on the administrative structure, controlling rights or sustained operation of Hainan Airlines.
Re: Updated Management & Key Personnel and Financial Assistance Information
Enclosed please find updated information regarding Management & Key Personnel, as it relates to Exhibit D of the Application, along with a description of financial assistance Hainan Airlines received from the Civil Aviation Administration of China from July 1, 2018 through December 31, 2018.
On January 29, 2019, Hainan Airlines’ Board of Directors elected Xie Haoming as the Chairman, effective immediately. As such, Bao Qifa, is no longer the Chairman of the Board of Directors. Xie Haoming previously served as Chairman of Hainan Airlines from 2015 to 2016.
Hainan Airlines discloses that from July 1, 2018 through December 31, 2018, the carrier received $1,837,098 USD (12,442,852 RMB) in financial assistance from the Civil Aviation Authority of China. The remainder of the financial assistance during that period was provided by provincial governments.
Order 2019-3-16
We grant the request of Hainan Airlines Holding Company Limited for an exemption under 49 USC §40109 to permit it to engage in scheduled foreign air transportation of persons, property and mail between Chengdu, People’s Republic of China and Chicago, Illinois.
Order 2019-4-3
Issued January 30, 2019 | Served April 3, 2019
By Order 2018-12-2, issued December 4, 2018, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award an amended foreign air carrier permit in the form attached to the Order and subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subject to Presidential review under 49 USC §41307) which would make final the findings and conclusions of the Order.
Scheduled foreign air transportation of persons, property, and mail between: 1) Beijing, People’s Republic of China, and Seattle, Washington; 2) Beijing, People’s Republic of China, and Honolulu, Hawaii; 3) Beijing, People’s Republic of China, and Chicago, Illinois; 4) Beijing, People’s Republic of China, and Boston, Massachusetts; (5) Shanghai, People’s Republic of China, and Boston, Massachusetts; (6) Beijing, People’s Republic of China, and San Jose, California; (7) Shanghai, People’s Republic of China, and Seattle, Washington; (8) Changsha, People’s Republic of China, and Los Angeles, California; (9) Beijing, People’s Republic of China, and Las Vegas, Nevada; 10) Chengdu, People’s Republic of China, and New York, New York; (11) Chengdu, People’s Republic of China, and Los Angeles, California; (12) Chongqing, People’s Republic of China, and New York, New York; (13) Chongqing, People’s Republic of China, and Los Angeles, California; (14) Changsha, People’s Republic of China, and New York, New York; and (15) Xi’an, People’s Republic of China, and Los Angeles, California; and 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 2019-6-14
Issued April 22, 2019 | Served June 25, 2019
By Order 2019-3-16, issued March 29, 2019, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award an amended foreign air carrier permit in the form attached to the Order and subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subject to Presidential review under 49 USC §41307) which would make final the findings and conclusions of the Order.
Application for Renewal of a Statement of Authorization
Hainan requests a renewed statement of authorization of indefinite duration permitting it to display Sky Lease’s designator code for the purpose of transporting US mail on Hainan’s services over the routes authorized pursuant to Hainan’s foreign air carrier permit under a codeshare agreement with Sky Lease.