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OST-2000-6824

American Airlines, Inc. and Cathay Pacific Airways, Limited

American requests a statement of authorization to display the "CX" designator code on flights operated by American or American Eagle on the U.S. domestic routes and on the intra-Americas routes listed in Annex B to the parties' codesharing agreement, a copy of which is attached to this application. Cathay Pacific requests a statement of authorization to display the "AA" designator code on flights operated by Cathay Pacific between Hong Kong, on the one hand, and Los Angeles, San Francisco, and New York, on the other, and on the intra-Asia routes listed in Annex B.

American hereby requests an exemption authorizing foreign air transportation of persons, property, and mail between points in the United States and points in the Philippines. American further requests the right to integrate such authority with its certificate of public convenience and necessity for Route 137. The exemption authority American is seeking is fully consistent with the Air Services Agreement between the United States and the Philippines.  Cathay Pacific currently lacks route authority to many of the points to which codeshare service is planned. To fill those gaps, Cathay Pacific hereby requests exemption authority to engage in scheduled foreign air transportation of persons, property, and mail between Hong Kong and the additional U.S. domestic and intra-Americas points listed in Annex B.

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@amrcorp.com, and Verner Liipfert, Russell Pommer, 202.371.6000

Counsel:  American, Carl Nelson, 202-496-5647

Although American currently provides no U.S.-Hong Kong service, the Department must evaluate American’s Cathay Pacific proposal in the context of American’s attempt to control airline routes around the world with dominant foreign partners and weigh the adverse impact of American’s expanding dominance against the alleged benefits of the American/Cathay Pacific codeshare proposal. In doing so, the Department must consider reasonable accommodations by Hong Kong required for U.S. airlines seeking the ability to compete with the American/Cathay Pacific service. For the foregoing reasons, Continental does not oppose the American/Cathay Pacific application to codeshare between the U.S. and Hong Kong so long as the Hong Kong government shows flexibility in approving requests by U.S. airlines for comparable authority under a new bilateral agreement or extrabilaterally.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202-624-2500

Northwest Airlines Inc., requests that the Department dismiss the joint application of American Airlines, Inc. and Cathay Pacific Airways, Ltd. for code-sharing and related authority or, at a minimum, take no action on the joint application until the United States has obtained a new, substantially liberalized bilateral agreement providing new service opportunities for all U.S. carriers, as further described above.

Counsel:  Northwest, Megan Rae Rosia, 202.842.3193

Hong Kong has the ability to become a premiere international aviation hub, given its strategic location and its new international airport at Chek Lap Kok, but only if it is willing to embrace the meaningful open skies liberalization needed to support alliance operations. As things now stand, Hong Kong continues to deny both airlines and consumers the many benefits generated by airline alliances, including traffic stimulation, access to expanded route networks, increased competition, coordinated schedules and seamless service. Until such time as the government of Hong Kong enters into a liberal open skies aviation agreement with the United States, providing, among other things, unlimited fifth-freedom rights and unrestricted third-country code-share opportunities, the Department should dismiss without prejudice or defer action on the American/Cathay Pacific application.

Counsel:  Kirkland Ellis, Jeffery Manley, 202.879.5161, jeffery_manley@kirkland.com

All three answers in essence urge the Department to defer action on the American/Cathay Pacific application pending negotiation of an amended U.S.-Hong Kong Air Transport Agreement, which presently does not provide for codesharing services. In our application, we recognized that discussions between the two sides were initially held on January 19-20, 2000, and that formal negotiations are scheduled for April. We then expressed our view that "the ultimate result of those negotiations will be a bilateral framework in which the American/Cathay Pacific and comparable codeshare arrangements can thrive". Accordingly, the need for a negotiated codesharing provision in the U.S.-Hong Kong bilateral agreement is not in dispute.

However, United and Northwest venture far beyond the matter of codesharing in what they would demand from the U.S.-Hong Kong negotiations. In a tactic that appears designed to protect its transpacific dominance, United insists on "a full open skies agreement," with "both third-country codeshare opportunities and fifth freedom rights to establish a competitive network of services over Hong Kong". Northwest asserts that "Hong Kong must grant the United States broad fifth freedom and third-country codesharing rights".  While American and Cathay Pacific do not believe that it is appropriate to use this proceeding to engage in an extended discussion of the pending governmental negotiations, we do wish to observe that the U.S. has added codesharing provisions to a number of bilateral agreements without insisting on full open skies, open third-country codesharing, or broad fifth freedom rights in return. In this regard, we cite the codesharing provisions in U.S. bilateral agreements with such non-open skies partners as Brazil, China, and France, to name a few.

American, for its part, also wishes to comment that it is, particularly disingenuous for United and Northwest, which have long enjoyed exclusive fifth freedom rights at Tokyo, to demand that Cathay Pacific be denied codesharing authority with its chosen U.S. partner airline unless the U.S. secures extensive new fifth freedom rights at Hong Kong. It certainly is ironic to hear United and Northwest -- the only two U.S. carriers with fifth freedom rights at Tokyo -- arguing that competition would be impaired unless they receive broad fifth freedom authority at Hong Kong as well, in return for approval of the proposed third/fourth freedom codesharing arrangement between American and Cathay Pacific. These, however, are matters that will be addressed in the upcoming U.S.-Hong Kong bilateral negotiations. American and Cathay Pacific remain confident that the two sides will achieve a balanced codesharing provision sufficient to support the grant of our joint application in full.

Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@amrcorp.com, and Verner Liipfert, Russell Pommer, 202.371.6000

American requests a statement of authorization under 14 CFR Part 212 to display the "CX" designator code on flights operated by American (or American Eagle) on the U.S. domestic routes, U.S.-Canada routes, intra-Americas routes, and trans­atlantic routes listed in amended Annex B. American hereby requests an exemption to authorize foreign air transportation of persons, property, and mail between points in the United States and points in the Philippines. Such authority is consistent with the Air Services Agreement between the United States and the Philippines. American further requests the right to integrate all of the underlying route authority it requires for code­sharing with Cathay Pacific.

Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@aa.com, and Verner Liipfert, Russell Pommer, 202.371.6000

As detailed in United's February 8, 2000 Answer, United has long sought a liberalized U.S.-Hong Kong bilateral relationship that would permit United to develop its U.S.-Hong Kong services, both individually and jointly with its code-share partners. Unfortunately, United's efforts have been stymied at every turn. If anything, the Government of Hong Kong appears to have become increasingly intransigent in its efforts to protect Cathay Pacific and to impede the development of competitive U.S. carrier service via Hong Kong.  Nevertheless, American and Cathay Pacific express their self-serving assessment that a bilateral accommodation can be reached that will support comparable code-share arrangements. See Amended Application at 4. However, only an agreement that allows open third-country code-sharing and completely eliminates any limitations on fifth freedom rights would provide U.S. carriers sufficient flexibility to compete with American/Cathay Pacific. Because Cathay Pacific has no immediate interest in any expanded U.S. rights except for its code-share service with American, the U.S. government should not give up its leverage to obtain broader liberalization by accepting Cathay Pacific's proposal that its code share be approved without such an agreement.

Counsel:  Wilmer Cutler, Jeffery Manley, 202.663.6670, jeffery_manley@wilmer.com

Northwest urges that any new U.S.-Hong Kong bilateral accord incorporate significant new fifth freedom rights for U.S. carriers, both combination and all-cargo. It is essential that U.S. carriers be allowed to operate combination and all-cargo services via intermediate points in Japan, and to third countries beyond Hong Kong, with full fifth freedom traffic rights. In addition, any new code-sharing provision must establish the right of U.S. carriers to operate code-share services to Hong Kong, including via Japan, and beyond Hong Kong to third countries. The Department should not even consider granting extra-bilateral authority to American and Cathay Pacific until a new liberalized agreement between the countries is in place.

Counsel:  Northwest, Megan Rae Rosia, 202.842.3193

American. American proposes to display the "CX*" designator code on flights operated by American, TWA Airlines LLC, American Eagle Airlines, Inc., or Executive Airlines, Inc. d/b/a American Eagle:

• (1) Between and among Cathay Pacific's U.S. and Canadian gateways. We hereby submit initial notice of code­sharing between and among Cathay Pacific's U.S. gateways of Los Angeles, San Francisco, and New York/Newark.

• (2) Beyond Cathay Pacific's U.S. and Canadian gateways to 20 U.S. points, subject to confirmation by diplo­matic note from the Government of Hong Kong to the Government of the United States, as provided in the MOU. We hereby submit initial notice (subject to confirmation by diplomatic note) by naming the following points beyond Cathay Pacific's U.S. gateways: Atlanta, Austin, Boston, Chicago, Dallas/Ft. Worth, Denver, Detroit, Ft. Lauderdale, Hartford, Houston, Las Vegas, Miami, Orlando, Philadelphia, Pittsburgh, San Diego, San Jose, San Juan, St. Louis, and Washington/Baltimore.

• (3) 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.

(4) Beyond the United States to third-country points.

Cathay Pacific. Cathay Pacific proposes to display the "AA*" designator code on flights operated by Cathay Pacific:

• (1) Between Hong Kong and its U.S. gateways, for which initial notice is given above.

• (2) Between Hong Kong and third-country points intermediate to the United States, connecting to flights operated by American between such points and the United States. We hereby submit initial notice by naming Tokyo, Japan as an intermediate codeshare point.

• (3) Beyond Hong Kong to third-country points. We hereby submit initial notice by naming Bangkok, Thailand; Kuala Lumpur and Penang, Malaysia; and Singapore as beyond codeshare points.

American has scheduled a codeshare safety audit of Cathay Pacific on November 12-14, 2002. The results of that audit will be promptly communicated to the Federal Aviation Administration in accordance with the Codeshare Safety Program  Guidelines of February 29, 2000.  

Counsel:  For Cathay Pacific: Piper Rudnick, William Evans, 202-371-6000, bill.evans@piperrudnick.com / American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

In principle, United does not oppose the Department's issuance of blanket statements of authorization in a non-open skies environment; the Department, however, should apply a consistent policy in this regard. For example, it should not grant American/Cathay Pacific a blanket statement of authorization unless it is willing to grant the same for iii of authority to United/bmi. Until the Department adopts such a policy on a consistent basis, it should grant American and Cathay Pacific code-share authority that reflects, but does not exceed, the specific terms of the MOU.

Counsel:  United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmer.com 

United devoted extensive resources over a period of years to block any liberalization of the U.S.-Hong Kong bilat­eral agreement, so it is not surprising that United would continue its campaign, even after the MOU has been achieved, in order to delay competition in the U.S.-Hong Kong and U.S.-Asia markets to the last possible day. The Department does not need to linger long over any of the matters United has raised.

United tries to distinguish Japan on the basis that codeshare frequencies there are unlimited, whereas there are frequency limitations with respect to Hong Kong. Such a distinction is irrelevant, as American and Cathay Pacific will be limited by the terms of the MOU regardless of what process the Department adopts. No such distinction can be made with respect to Australia, where U.S. codeshare points are limited.  To our knowledge, no similar agreement involving limited U.S. codeshare points has been interpreted in the manner United is seeking. A far more sensible reading is that a foreign carrier that is permitted to serve a U.S. point with its own aircraft can codeshare to that point as well, unless the bilateral agreement explicitly provides to the contrary.

Counsel:  American, Carl Nelson, 202-496-5647, carl.nelson@aa.com / Piper Rudnick, William Evans, 202-371-6000, bill.evans@piperrudnick.com

Exemptions under 49 U.S.C 40109 and Statements of Authorization under 14 CFR 212 for American Airlines, Inc.; TWA Airlines, LLC; American Eagle Airlines, Inc., or Executive Airlines, Inc. d/b/a American Eagle and Cathay Pacific Airways, Ltd. to the extent necessary to permit applicants to conduct reciprocal code share operations as follows:

American to display the "CX" designator code on flights operated by American, TWA, American Eagle or Executive Airlines d/b/a American Eagle: 

Cathay Pacific Airways, Ltd. to display the "AA" designator code on flights operated by Cathay Pacific: 

The Joint Applicants state that they give notice that they initially intend to code share between and among Cathay Pacific's U.S. gateways of Los Angeles, San Francisco, and New York/Newark and that they give initial notice of Tokyo, Japan, as an intermediate code-share point, and of Bangkok, Thailand; Kuala Lumpur and Penang, Malaysia,, and Singapore as beyond code­share points.

With respect to the Statement of Authorization for American and its affiliates, we have received confirmation by diplomatic note from the Government of Hong Kong that it selects the following 20 U.S. code-share points under the MOU: Atlanta, Austin, Boston, Chicago, Dallas/Ft. Worth, Denver, Detroit, Ft. Lauderdale, Houston, Las Vegas, Miami, New York/Newark, Orlando, Philadelphia, Pittsburgh, San Diego, San Jose, San Juan, St. Louis, and Washington/Baltimore. Consistent with the terms of the authority we are awarding and the associated conditions (see below), these 20 U.S. points are the ones that are available at this time for display of Cathay Pacific's code on flights operated by American and its affiliates. In this regard, we are dismissing the Joint Applicants' request to code share between Los Angeles and San Francisco, and to Hartford.

Finally, with respect to United's comments on the MOU's code-share frequency limitations, we have added a condition (see below) explicitly limiting the code-share operations to no more than the level of weekly frequencies permitted for code-share services under the U.S.-Hong Kong MOU.

By:  Paul Gretch

Hereby give notice that, effective May 1, 2003, it is terminat­ing display of the designator code of Cathay Pacific Airways, Ltd. on flights operated by American Eagle Airlines, Inc. between New York (JFK), on the one hand, and Baltimore, Orlando, and Pittsburgh, on the other.

Counsel:  American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

Respectfully request an amendment to the statement of authorization granted by Notice of Action Taken, dated January 8, 2003, which permits, among other things, Cathay to display American's "AA" designator code on Cathy flights between the Cathay's U.S. gateways and Hong Kong, via intermediate points, and beyond Hong Kong to third country points. Joint Applicants request that the authorization be amended to permit Cathay also to display the "AA" code on Cathay's flights for the foreign air transportation of mail.

By Notice of Action Taken, dated January 8, 2003, in Docket OST-00-6824, the Department, among other things, granted Cathay a statement of authorization to placethe "AA" designator code on Cathay flights between its U.S. gateways and Hong Kong, via intermediate points, and beyond Hong Kong to third country points. Similarly, the Department granted American exemption authority to the extent necessary to permit it to place its "AA" code on Cathay flights as described above. The Department limited the authority to code share operations under the terms of the code share agreement, which agreement governed only the code share operations of passengers. At that time Joint Applicants gave notice that Cathay would carry the "AA" designator code between its U.S. gateways-- Los Angeles, San Francisco and New York/Newark-and Hong Kong via Tokyo, Japan, and beyond Hong Kong to Bangkok, Thailand, Kuala Lumpur and Penang, Malaysia and Singapore.

Cathay and American have now determined that the transportation of mail on the code share flights would not only contribute to the economic viability of the services but also would improve mail service between the U.S. and Asia.. Consequently, Cathay and American have entered into a mail code share agreement, which provides for mail code sharing on combination and all-cargo flights operated by Cathay on the routings described herein. A redacted copy of the agreement is attached hereto.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com / Cathay, Piper Rudnick, William Evans, 202-371-6030, bill.evans@piperrudnick.com 

Joint Application of American Airlines, Inc., and Cathay Pacific Airways, Ltd., to amend Statement of Authorization of January 8, 2003, in Docket OST-2000-6824, to permit Cathay Pacific to display the "AA" designator code of American Airlines on flights operated by Cathay Pacific (between Cathay Pacific's U.S. gateways and Hong Kong, via intermediate points, and beyond Hong Kong to third-country points) for the foreign air transportation of mail.

'The Joint Applicants give notice of mail code-share operations between Chicago, Los Angeles, New York, and San Francisco, on the one hand, and Hong Kong, on the other hand, and beyond Hong Kong to Bangkok, Thailand; Kuala Lumpur and Penang Malaysia; and Singapore.

By:  Michael Bodman

May 9, 2003

Notice of Substitute Codesharing Services

American Airlines, Inc., pursuant to Notice of Action Taken in this docket, January 8, 2003, p. 4 n. 6, hereby gives notice that, effective May 21, 2003, it will display the "CX*'t designator code of Cathay Pacific Airways, Ltd. on flights operated by American between Los Angeles and San Francisco.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

May 16, 2003

Re: Polling Results

American Airlines, Inc. hereby advises the Department that it has polled all U.S. carriers authorized to serve Hong Kong with respect to American's waiver request in this docket on May 9, 2003. American is seeking a waiver of the 30-day notice requirement to display the CX* code of Cathay Pacific Airways, Ltd. on flights operated by American between Los Angeles and San Francisco, effective May 21, 2003. There are no objections.

Counsel: American, Carl nelson, 202-496-5647, carl.nelson@aa.com

May 19, 2003

Department Action on Waiver Request

By Statement of Authorization issued January 8, 2003, and amended April 16, 2003, (OST-2000-6824) American was granted authority to code share with Cathay Pacific, subject to the condition that they notify the Department no later than 30 days before they begin any new code-share service under the code-share services authorized. The carriers have requested a waiver of this requirement to enable them to begin service immediately upon confirmation by the Department. 1 There were no answers to the requested waiver. Under these circumstances, we find it in the public interest to grant the requested waiver.

By: Michael Bodman

July 23, 2003

Notice of Additional Codeshare

Effective November 1, 2003, the CX* designator code will be displayed on flights operated by American or its affiliates TWA Airlines LLC and American Eagle Airlines, Inc. between Cathay Pacific's U.S. gateways (New York, Los Angeles, and San Francisco), on the one hand, and the following five additional U.S. cities: Nashville, New Orleans, Pittsburgh, Raleigh/Durham, and Tampa.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

September 1, 2004

Notice of Cathay Pacific of Additional Codesharing Services

Cathay proposes to carry the "AA" code on flights between Hong Kong, on the one hand, and, on the other, Denpensar, Jakarta, and Surabaya, Indonesia.. The schedules will be loaded into computer reservations systems on October 17, 2004, and operations will commence on October 31, 2004.

Counsel: Piper Rudnick, William Evans, 202-861-6459, bill.evans@piperrudnick.com

November 1, 2004

Application for Renewal of Exemption

American Airlines, Inc., under 49 USC 40109 and 14 CFR Part 377, hereby applies for renewal of its exemption, granted by Notice of Action Taken in this docket on January 8, 2003, authorizing scheduled foreign air transportation of persons, property, and mail between the United States and Hong Kong, either nonstop or via intermediate points, and beyond Hong Kong to third-country points, as well as route integration authority, for purposes of codesharing with Cathay Pacific Airways, Ltd.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

December 21, 2004

Application for Renewal of Exemption Authority

In the AA/CX Notice, the Department granted Cathay exemption authority to hold out service in additional U.S. markets on a code-sharing basis as permitted by the MOU. Cathay currently uses this exemption authority to offer service to 25 U.S. points beyond Cathay's own U.S. gateways by placing its designator code on flights operated by American. The service has been well-received by the traveling public and has improved U.S.-Hong Kong air service. Cathay wishes to continue offering this service.

Counsel: Piper Rudnick, William Evans, 202-861-6459, bill.evans@piperrudnick.com

Filed December 21, 2004 | Issued March 10, 2005

Notice of Action Taken | Word

Renew exemption from 49 U.S.C. § 41301 to engage in scheduled foreign air transportation of persons, property and mail between Hong Kong, on the one hand, and twenty five (25) points in the United States, via intermediate points, pursuant to a codeshare arrangement with American Airlines, Inc.

The Government of the Hong Kong Special Administrative Region of the People's Republic of China may, at is discretion, change the codeshare points in the United States on not less than 30 days' notice in writing to the Government of the United States. By letter dated July 28, 2003, the HKSAR selected Nashville, New Orleans, Pittsburgh, Raleigh/Durham and Tampa in addition to previously selected Atlanta, Austin, Boston, Chicago, Dallas/Ft. Worth, Denver, Detroit, Ft. Lauderdale, Houston, Las Vegas, Miami, New York/Newark, Orlando, Philadelphia, San Diego, San Francisco, San Jose, San Juan, St. Louis, and Washington/Baltimore, as codeshare points under the Agreement and MOU.

By: Paul Gretch

April 25, 2005

Notice of Cathay Pacific Airways of Additional Codeshare Services

Cathay proposes to carry the "AA" code on flights between Hong Kong, on the one hand, and, on the other, Nagoya and Osaka, Japan for the purpose of transporting U.S.-Japan traffic. American does not intend to hold out service for fifth freedom or stopover traffic. The proposed operations will be commenced no sooner than 30 days from the date of this Notice.

Counsel: DLA Piper Rudnick, William Evans, 202-861-6459, william.evans@dlapiper.com

June 20, 2005

Notice of Additional Codeshare Services

American proposes to display the "CX" code on American‑operated flights between Vancouver, Canada, and Dallas/Ft. Worth, Texas, which will connect to Cathay's flights between Vancouver and Hong Kong. Cathay holds exemption authority to offer code‑share service on the Hong Kong‑Dallas/Ft. Worth route pursuant to the NOAT referred to above. In addition, Cathay proposes to display the "AA" code on Cathay‑operated flights between Vancouver and Hong Kong, which will connect to American's flights between Vancouver and Dallas/Ft. Worth. American holds authority to serve Vancouver and Hong Kong, as well as authority to integrate the routes. The proposed operations will commence on or about August 24, 2005.

Cathay proposes to display the "AA" code on Cathay‑operated flights between Hong Kong and Osaka, Japan, which will connect to American's flights between Osaka and Dallas/Ft. Worth. American holds authority to serve Hong Kong and Osaka, as well as authority to integrate the routes. The proposed operations will commence on or about November 1, 2005.

Counsel: DLA Piper Rudnick, John Mietus, 202-861-6466 for Cathay Pacific / American, Carl Nelson, 202-496-5647

OST-1995-940 - Cathay Pacific's Hong Kong-US via Vancouver Authority - Missing NOAT?
OST-2004-19450 - American Airlines' Dallas/Ft. Worth-Osaka Authority

Filed November 1, 2004 | Issued September 15, 2005

Notice of Action Taken | Word

Scheduled foreign air transportation of persons, property, and mail between the United States and Hong Kong, either nonstop or via intermediate points, and beyond Hong Kong to third country points, and to integrate this authority with its existing exemption and certificate authority. American operates this service pursuant to a code-share arrangement with Cathay Pacific Airways, Ltd.

By: Paul Gretch

February 20, 2007

Application for Renewal of Exemptions

By this application, Cathay seeks renewal of its exemption authority to engage in foreign air transportation of persons, property and mail by displaying its designator code on flights operated by American (1) between Hong Kong and 25 U.S. points beyond Cathay's U.S. and Canadian gateways; (2) between the United States and third-country points intermediate to Hong Kong connecting to Cathay flights between such points and Hong Kong, and (3) beyond the United States to third-country points. The exemption was last renewed by Notice of Action Taken, dated March 10, 2005, and is scheduled to terminate on March 10, 2007. Cathay seeks a two-year renewal of the authority.

The currently selected points are Atlanta, Austin, Boston, Chicago, Dallas/Ft. Worth, Denver, Detroit, Ft. Lauderdale, Houston, Las Vegas, Miami, Nashville, New Orleans, New York/Newark, Orlando, Philadelphia, Pittsburgh, Raleigh/Durham, San Diego, San Francisco, San Jose, San Juan, St. Louis, Tampa and Washington/Baltimore.

Cathay currently provides extensive combination and all-cargo service between Hong Kong and the U.S., with B-747 and Airbus 360 aircraft.

Counsel: Law Office of John Mietus, William Evans, 301-571-9334, bill@mietuslaw.com

July 10, 2007

Application for Renewal of Exemption

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

Filed July 10, 2007 | Issued July 30, 2007

Notice of Action Taken | Word

Renewal of scheduled foreign air transportation of persons, property, and mail between the United States and Hong Kong, either nonstop or via intermediate points, and beyond Hong Kong to third country points.  American operates this service pursuant to a code-share arrangement with Cathay Pacific Airways, Ltd.

By: Paul Gretch

Filed February 20, 2007 | Issued December 20, 2007

Notice of Action Taken

Renewal of exemption from 49 U. S. C. §41301 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 Pacific states that it offers these services by displaying its "CX*" designator code on flights operated by American Airlines.

The Government of the Hong Kong Special Administrative Region of the People's Republic of China may, at its discretion, change the codeshare points in the United States on not less than 30 days' notice in writing to the Government of the United States. By letter dated July 28, 2003, the HKSAR selected Nashville, New Orleans, Pittsburgh, Raleigh/Durham and Tampa in addition to previously selected Atlanta, Austin, Boston, Chicago, Dallas/Ft. Worth, Denver, Detroit, Ft. Lauderdale, Houston, Las Vegas, Miami, New York/Newark, Orlando, Philadelphia, San Diego, San Francisco, San Jose, San Juan, St. Louis, and Washington/Baltimore, as codeshare points under the Agreement and MOU.

By: Paul Gretch

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