Shanghai Airlines Cargo International Co., Ltd.

OST-2007-27598 - Exemption and Statement of Authorization - China-US Charter Cargo

March 12, 2007

Application for Exemption and Statement of Authorization - Bookmarked

Shanghai Cargo intends to commence wet lease service between Shanghai and Los Angeles on August 1, 2007; wet lease service between Shanghai and Dallas/Ft. Worth (operating via Los Angeles) will begin on December 1, 2007. Wet lease service will be operated between Shanghai and Chicago as required by Shanghai Airlines beginning August 1, 2007.

Shanghai Cargo is a Chinese carrier that was established on July 1, 2006, and is organized and exists under the laws of the People's Republic of China. Shanghai Cargo's business plan calls for the development of the Chinese air cargo market through the establishment of a hub in Shanghai. Under its corporate mandate, Shanghai Cargo focuses primarily on the international transportation of cargo, and serves Macau, Osaka, Saigon, Bangkok, Singapore and Frankfurt from its base in Shanghai using its fleet of four freighter aircraft. Shanghai Cargo anticipates beginning U.S. operations on August 1, 2007, when it will inaugurate wet lease service between Shanghai and Chicago under its agreement with Shanghai Airlines.

Shanghai Cargo understands that Shanghai Airlines is separately applying for an exemption to offer scheduled cargo service between Shanghai and Chicago and Dallas/Ft. Worth, and to co-terminalize these services with Shanghai Airlines' existing exemption authority to serve Los Angeles.

Counsel: Counsel: Squire Sanders, Charles Donley, 202-626-6840, cdonley@ssd.com

Filed March 12, 2007 | Issued May 4, 2007

Notice of Action Taken

Exemption from 49 U.S.C. 41301 to engage in charter foreign air transportation of property and mail between any point or points in the People’s Republic of China, on the one hand, and any point or points in the United States. on the other hand, and other charters pursuant to 14 CFR Part 212 of the Department’s regulations.

Statement of authorization under 14 CFR Part 212 to the extent necessary to permit Shanghai Cargo to engage in wet leasing aircraft to Shanghai Airlines Co., Ltd. for the purpose of transporting Shanghai Airlines’ cargo between Shanghai, China, on the one hand, and the coterminal points Los Angeles, California; Chicago, Illinois; and Dallas/Ft. Worth, Texas, on the other hand.

By: Paul Gretch

Filed March 12, 2007 | Issued May 4, 2007

Notice of Action Taken - Corrected Copy

Exemption from 49 U.S.C. 41301 to engage in charter foreign air transportation of property and mail between any point or points in the People’s Republic of China, on the one hand, and any point or points in the United States. on the other hand, and other charters pursuant to 14 CFR Part 212 of the Department’s regulations.

Statement of authorization under 14 CFR Part 212 to the extent necessary to permit Shanghai Cargo to engage in wet leasing aircraft to Shanghai Airlines Co., Ltd. for the purpose of transporting Shanghai Airlines’ cargo between Shanghai, China, on the one hand, and the coterminal points Los Angeles, California; Chicago, Illinois; and Dallas/Ft. Worth, Texas, on the other hand.

By: Paul Gretch

November 6, 2007

Application for Amendment of Exemption

Shanghai Cargo's current exemption permits it to operate all-cargo charter flights between China and the US, as well as other charters. Shanghai Cargo requests amendment of its exemption to permit it to additionally engage in:

scheduled foreign air transportation of property and mail from any point or points in the People's Republic of China, via any intermediate points to any point or points in the United States open lo scheduled international services, and beyond to any points outside the United States.

Shanghai Cargo plans to initially offer scheduled all-cargo flights between Shanghai and Los Angeles, Dallas/Ft. Worth and Chicago using B-747F or MD-11F aircraft. Shanghai Cargo requests that its amended exemption be granted for a period of one year.

Counsel: Squire Sanders, Charles Donley, 202-626-6840, cdonley@ssd.com

Filed November 6, 2007 | Issued December 7, 2007

Notice of Action Taken | Word

Amend existing exemption authority to the extent necessary to enable the applicant to engage in scheduled foreign air transportation of property and mail from a point or points in the People’s Republic of China, via any intermediate points to any point or points in the United States open to scheduled international service, and beyond to any points outside the United States.

On May 4, 2007, we granted Shanghai Airlines Cargo exemption authority to conduct charter foreign air transportation of property and mail between any point or points in the People’s Republic of China, on the one hand, and any point or points in the United States, on the other hand, and other charters pursuant to 14 CFR Part 212 of the Department’s regulations.

By: Paul Gretch

May 2, 2008

Application for Renewal of Exemption

Shanghai Airlines Cargo IntI. Co., Ltd. hereby requests renewal of the exemption authority granted to it by the Department of Transportation in the above-captioned docket to engage in (i) scheduled foreign air transportation of property and mail from a point or points in the People's Republic of China, via any intermediate points to any point or points in the United States open to scheduled international service, and beyond to any points outside the United States; and (ii) charter foreign air transportation of property and mail between any point in the People's Republic of China, on the one hand, and any point or points in the United States, on the other hand, and other charters pursuant to 14 C.F.R. 212. Shanghai Cargo's existing exemptions expire on May 4 and December 7, 2008.

Counsel: Squire Sanders, Charles Donley, 202-626-6840, cdonley@ssd.com