 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

	     Issued by the Department of Transportation on September 9, 2002

NOTICE OF ACTION TAKEN -- DOCKET OST-2001-10172

________________________________________________________________________
________________________________________________________

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			Date Filed: 
July 12, 2002

Relief requested:  Renewal of China Eastern’s exemption from 49 U.S.C.
41301 to conduct scheduled foreign air transportation of persons,
property and mail between Shanghai and Beijing, on the one hand, and any
point in the United States, on the other hand, pursuant to a code-share
arrangement with American Airlines, Inc.

If renewal, date and citation of last action:  Order 2001-8-16, dated
August 17, 2001, in Docket OST-2001-10172. 

Applicant representative:  Evelyn Sahr   202-289-0500

Responsive pleadings:  None

	DISPOSITION

Action:  Approved									Action date:  September 9, 2002

Effective dates of authority granted:  September 9, 2002  -  September
9, 2003

Basis for approval (bilateral agreement/reciprocity):  U.S. China Air
Transport Agreement and 1999 U.S.-China Protocol

Except to the extent exempted/waived, this authority is subject to the
terms, conditions, and limitations indicated:

 X   Standard exemption conditions (attached)         X   Foreign air
carrier permit conditions (Order 92-11-7)

 X   Statement of authorization for Chinese/U.S. carrier code-share
services in Order 2001-8-16, and conditions therein.

X   Special conditions/Remarks:  China Eastern may conduct these
code-share services only to U.S. points selected by the Government of
China under the 1999 U.S.-China Protocol.

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation	

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____________________________________________________________

We found that the applicant was qualified to perform its proposed
operations.

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that  (1) our action was consistent with Department
policy; (2) grant of the authority was consistent with the public
interest; and (3) grant of the authority would not constitute a major
regulatory action under the Energy Policy 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 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 effective when 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://dms.dot.gov//reports/reports_aviation.asp

												        Appendix A

FOREIGN AIR CARRIER CONDITIONS OF AUTHORITY

In the conduct of the operations authorized, the holder 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 such authorization with the Department;

(2)  Comply with all applicable requirements of the Federal Aviation
Administration, including, but not limited to, 14 CFR Parts 129, 91, and
36, and with all applicable U.S. Government requirements concerning
security;

(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 shall 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 and 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 the 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 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); and

(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.

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 (formerly the
Federal Aviation Act of 1958, as amended).



 											

U.S. Department of Transportation	

Office of the Secretary of Transportation									        (41301/40109)
7/2002

  This was the final order in the 2001 China Code-Share Points Case,
Docket OST-2001-10172.  We subsequently granted China Eastern additional
exemption authority by Notice of Action Taken dated August 23, 2001, in
that docket.

