UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation on June 16, 2005

   NOTICE OF ACTION TAKEN -- DOCKET OST-2005-20909

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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).

Application of EVERGREEN INTERNATIONAL AIRLINES, INC. (EVERGREEN), filed
4/4/05, and supplemented on 6/2/05 for: 

		

XX  Exemption for two years under 49 U.S.C. 40109 to provide the
following service:

Scheduled foreign air transportation of property and mail between a
point or points in the United States and any international airport in
the Liaoning area situated in China Zone 3 , and to integrate this
authority with its existing certificate and exemption authority and to
commingle traffic on all such authorized services as may be permitted
and consistent with applicable air transport agreements.

Applicant rep:  Robert P. Silverberg (202) 944-3300   DOT Analyst:  Thuy
H. Cooper (202) 366-5423

D I S P O S I T I O N

XX  Granted (subject to conditions, see below)

The above action was effective when taken: June 16, 2005, through June
16, 2007.

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation	

XX   The exemption authority granted is consistent with the aviation
agreement between the United States

and the People’s Republic of China.

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

XX  Holder’s certificate of public convenience and necessity

		XX  Standard Exemption Conditions (attached)  

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Conditions: The authority granted here is limited to services operated
only between the U.S. and the Liaoning area in China Zone 3.  

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On the basis of data officially noticeable under Rule 24(g) of the
Department’s regulations, we found the applicant qualified to provide
the services authorized. 

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 application 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, 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U.S. Carrier
Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier
applicant(s) shall:

(1)  Hold at all times effective operating authority from the government
of each country served;

(2)  Comply with applicable requirements concerning oversales contained
in 14 CFR 250 (for scheduled operations, if authorized);

(3)  Comply with the requirements for reporting data contained in 14 CFR
241;

(4)  Comply with requirements for minimum insurance coverage, and for
certifying that coverage to the Department, contained in 14 CFR 205;

(5)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR 203, concerning
waiver of Warsaw Convention liability limits and defenses;

(6)  Comply with all applicable requirements of the Federal Aviation
Administration and with all applicable U.S. Government requirements
concerning security, including, but not limited to, 49 CFR Part 1544. 
To assure compliance with all applicable U.S. Government requirements
concerning security, the holder shall, before commencing any new service
(including charter flights) to or from a foreign airport, contact its
International Principal Security Inspector (IPSI) to advise the IPSI of
its plans and to find out whether the Transportation Security
Administration has determined that security is adequate to allow such
airport(s) to be served; and

(7)  Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department of Transportation, with all applicable orders and regulations
of other U.S. agencies and courts, and with all applicable laws of the
United States.

The authority granted shall be effective only during the period when the
holder is in compliance with the conditions imposed above.

05/2004

 Under Annex V of the 1980 U.S.-China Agreement Relating to Civil Air
Transport, as amended by the Protocol to the Agreement, signed July 24,
2004 (Protocol), specifically, Article 3 of the Protocol, U.S. and
Chinese carriers may be designated to operate services between the U.S.
and points in China Zone 3 without frequency limitations.  China Zone 3
consists of the following areas: Chongqing, Gansu, Guangxi, Guizhou,
Hainan Island, Heilongjiang, Inner Mongolia, Jilin, Liaoning, Ningxia,
Qinghai, Shaanxi, Sichuan, Tibet, Xinjiang, and Yunnan.  Article 3 of
the Protocol contains certain limitations that apply in the case of
services carrying fifth-freedom traffic between Zone 3 points and
intermediate or beyond points in third countries, and in the case of
services to Zone 3 points via a point in China Zone 1 or Zone 2.  In its
June 2 supplement, Evergreen states that it does not seek any
fifth-freedom rights as referred to in Article 3 of the Protocol, nor is
it seeking to serve China Zone 3 via a point or points in China Zones 1
or 2.

