Untitled Document

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on July 23 , 2018



### NOTICE OF ACTION TAKEN

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_____________________________________________________________________________________________________________________________ ______ This serves as notice to the public of the action described below, taken by the Department official indicated (no

additional confirming order will be issued in this matter).

Applicant: CHINA EASTERN AIRLINES CORPORATION LIMITED (China Eastern)

Date Filed: November 14, 2017

Relief requested:

A

. Renewal of e xemption under 49 U.S.C. § 40109 to engage in scheduled foreign a ir transportation of persons, property, and mail between Chengdu, People’s Republic of China, and Los Angeles, California, via Nanjing, People’s Republic of China ;

B

. Renewal of e xemption under 49 U.S.C. § 40109 to engage in scheduled foreign air transportation of persons, property, and mail between Kunming, People’s Republic of China, and San Francisco, California, via Qing dao, People’s Republic of China;

C

. Renewal of e xemption under 49 U.S.C. § 40109 to engage in scheduled foreign air transpor tation of persons, property, and mail between any point or points in the People’s Republic of China, on the one hand, and Chicago, Illinois, Honolulu, Hawaii, Los Angeles, California, New York, New York, Saipan, Commonwealth of the Northern

Mariana Islands and San Francisco, California, on the other hand, with all flights operating via Shanghai and/or Beijing, People's Republic of China ;

D

. Renewal of e xemption under 49 U.S.C. § 40109 to engage in scheduled foreign air transportation of persons,

property, and mail, on a code

- share only basis with Delta Air Lines, Inc. (Delta) and Delta Connection, between points in the United States and behind, intermediate, and b eyond points in third countries; and

E

. Renewal of e xemption under 49 U.S.C. § 40109 to engage in scheduled foreign air transportation of persons, property and mail on a code

- share only basis with Virgin America Inc. (Virgin America) between points in the United

States.

If renewal date and citation of last action: December 15, 2016 , in the r eferenced Docket.

Applicant representative s : Evelyn D. Sahr

, Drew M. Derco, and Robert F. Foster , 202

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DOT analyst: Catherine C. Brown , 202

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Responsive pleadings: None.

DISPOSITION

Action: Approved, subject to conditions (see remarks below) Action date: July 23 , 2018

Effecti ve dates of authority granted: July 23 , 2018 , through July 23 , 2019

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Basis for approval: United States

- China Air Transport Se rvices Agreement

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Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our s tandard exemption conditions (attached), and to the otherwise

- applicable terms, conditions, and limitations of China Eastern’s foreign air carrier permit (Order 92

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- 7).Special conditions/Remarks: The exemption authority granted to China Eastern in paragraphs ( D ) and ( E ) above is

limited to code

- share only operations with Delta / Delta Connection and Virgin America, respectively

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Action taken by: Brian J. Hedberg , 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 ith Department policy; (2) the applicant was qualified to perform its prop osed operations; (3) grant of the authority was consistent 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/dis missed, 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 entitled 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 when taken, and the filing of a petition for review will not alter such ef fectiveness.

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

### Foreign Air Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant shall :

(1) Not conduct any operations unless it holds a currently effective authorization from its homeland for such operations, an d it has filed a copy of such 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 would 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 IIR of its plans and to find out whether the Transpor tation 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 shal l 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 require ments 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 and defe nses;

(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 the

Unite d 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 con tract 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 High Contracting Parties for this definition;

(8) Except as specifically authorized by the Department, originate or 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);

(11) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may 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; and

(12) Be subject to all applicable provisions of any treaty, convention or agreement affecting international air transportation now in effect, or that may become effective during the period this exemption remains in effect, to which the United States and the holder’s homeland are or shall become parties.

This authority shall not be effective during any period when the holder is no t 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.

6/2018