UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation on October 12, 2005

NOTICE OF ACTION TAKEN -- DOCKET OST-2005-22515

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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             Date
Filed:  September 19, 2005

Relief requested:  Exemption from 49 USC § 41301 to permit the
applicant to engage in scheduled foreign air transportation of persons,
property, and mail between Chongqing, People’s Republic of China, and
Los Angeles, California.  China Eastern states that it will operate all
of these flights via Shanghai, People’s Republic of China.

 

If renewal, date and citation of last action:  New authority.

Applicant representative:  Evelyn D. Sahr, 202-289-0500            DOT
analyst:  Robert J. Finamore, 202-366-2405

Responsive pleadings:  On September 21, 2005, United Air Lines Inc.
filed a responsive pleading.  While it takes no position in this case,
United states “it believes foreign air carriers do not require
exemption authority from the Department to hold out the type of
behind-gateway service China Eastern is proposing.”  In support of its
position, it refers to comments it previously filed in Docket
OST-2005-20112, Notice of Regulatory Review, on July 20, 2005.

	DISPOSITION

Action:  Approved.			       			                        Action date: 
October 12, 2005

Effective dates of authority granted:  October 12, 2005, through October
12, 2006.

Basis for approval:  United States-China Air Transport Services
Agreement.

Except to the extent exempted/waived, this authority is subject to the
terms, conditions, and limitations of our standard exemption conditions
(attached), and to the otherwise-applicable terms, conditions, and
limitations of China Eastern’s foreign air carrier permit (Order
92-11-7).

Special conditions/Remarks:  Because Chongqing has not been assessed
under the Transportation Security Administration’s Foreign Airports
Assessment Program, all flights from Chongqing to Los Angeles must
operate over Shanghai.  We note that this is consistent with China
Eastern’s operating proposal as set forth in its application.  

With respect to the issue raised by United, we will address its concerns
in the context of the proceeding they were filed in, Docket
OST-2005-20112.

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation	

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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) the applicant was qualified to perform its proposed
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 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:

  HYPERLINK "http://dms.dot.gov//reports/reports_aviation.asp" 
http://dms.dot.gov//reports/reports_aviation.asp 

FOREIGN CARRIER EXEMPTION CONDITIONS                                    
                              ATTACHMENT

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 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, including, but not limited to, 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 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;

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.                    
                                                                        
       		

05/2004

 Among other things, China Eastern’s foreign air carrier permit (Order
92-11-7) authorizes it to conduct scheduled combination services between
Shanghai and Los Angeles.

 

