BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

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1 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of CATHAY PACIFIC AIRWAYS LIMITED DOCKET OST for renewal of exemption authority (Hong Kong-U.S.-Third Country Code-Sharing with American APPLICATION OF CATHAY PACIFIC AIRWAYS LIMITED FOR RENEWAL OF AN EXEMPTION Communications with respect to this document should be sent to: John R. Mietus, Jr. Law Office of John Mietus, LLC 6701 Democracy Blvd., Suite 300 Bethesda, MD ( Counsel for CATHAY PACIFIC AIRWAYS LIMITED NOTICE: Any person may support or oppose this application by filing an answer and serving a copy of the answer on counsel for Cathay and upon persons served with this application no later than February 6, January 22, 2014

2 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of CATHAY PACIFIC AIRWAYS LIMITED DOCKET OST for renewal of exemption authority January 22, 2014 (Hong Kong-U.S.-Third Country Code-Sharing with American APPLICATION OF CATHAY PACIFIC AIRWAYS LIMITED FOR RENEWAL OF AN EXEMPTION Pursuant to 49 U.S.C (c, Cathay Pacific Airways Limited ("Cathay" respectfully requests renewal of the above-captioned exemption, granted by Notice of Action Taken dated January 27, 2012 (the Notice, for an additional, two-year period. The Notice permits Cathay, under its codesharing agreement with American Airlines, Inc. ("American" to engage in scheduled foreign air transportation of persons, property and mail: (1 between Hong Kong and 25 points beyond Cathay Pacific s U.S. and Canadian gateways; (2 between the United States and third-country points intermediate to Hong Kong, connecting to flights operated by Cathay Pacific between such points and Hong Kong; and (3 beyond the United States to third-country points. Cathay intends to invoke the automatic extension

3 - 2 - Cathay Pacific Renewal Application provisions of 5 U.S.C. 558(c and Part 377 of the Department's Special Regulations. In support of this application, Cathay states as follows: 1. Cathay is a flag carrier of the Hong Kong Special Administrative Region ("HKSAR" and currently holds permit and exemption authority that authorizes it to operate combination and all-cargo service between Hong Kong and the United States. Pursuant to that authority, Cathay provides extensive combination and all-cargo service between Hong Kong and the U.S. with its own aircraft. Cathay also markets service to points in the U.S., Mexico, and Brazil under code-sharing agreements with two U.S. airlines and certain of their commuter affiliates; it also markets code-share operations transiting the United States with several foreign airlines. 2. By this application, Cathay seeks renewal for an additional two years of the exemption authority described above, which is scheduled to expire on January 27, Pursuant to this authority, Cathay markets service beyond its U.S. gateways, on aircraft operated by American and American Eagle, to most of the U.S. points currently selected by the HKSAR under Annex 2, section 4.2 of the October 19, 2002 U.S.-Hong Kong Memorandum of Understanding (the "MOU" and to Rio de Janeiro and Sao Paolo, Brazil. Cathay's code-sharing services on American/American Eagle aircraft have been well-received by the traveling public.

4 - 3 - Cathay Pacific Renewal Application 3. Under Annex 2, section 4 of the MOU, a carrier designated by the HKSAR is authorized to engage in cooperative marketing arrangements "in operating or holding out the authorized services pursuant to" the MOU, subject to the restrictions on U.S. code-share points under section 4.2. Cathay has been designated by HKSAR and therefore is entitled to conduct the code share operations described herein. 4. Under 49 U.S.C (c, the Department may grant an exemption if it finds that such a grant is consistent with the public interest. It is clear that the designation of a carrier by its homeland government is the most significant factor in determining whether grant of an application is in the public interest. See, e.g., Bluebird Cargo Ltd., Order at 3-4; Fast Air Carrier Ltda., Permit Amendment, Order at 3-4. The same findings are warranted here, where Cathay has been designated for service, including code-share operations, under the MOU. Moreover, the benefits that Cathay's service to additional U.S. points generates for business travelers, tourists, and shippers alike further demonstrate that renewal of the exemption is consistent with the public interest.

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