Laws

　　Regulations of Business Licensing for Route of Foreign Air Transport Enterprises (CCAR-287), which were passed at the executive meeting of Civil Aviation Administration of China on May 19, 2008, are hereby promulgated and shall become effective as of July 11, 2008.

Regulations of Business Licensing for Route of Foreign Air Transport Enterprises

　　Article 1　The Regulations are enacted to standardize management of routes between locations at home and abroad developed by foreign air transport enterprises, according to Civil Aviation Law of the People’s Republic of China.

　　Article 2　The routes between locations at home and abroad applied by foreign air transport enterprises (hereinafter referred to as “foreign airline”) should comply with civil aviation transport agreement between both governments or prescription of related agreement, and should be firstly confirmed by diplomatic means by homeland government except for special prescriptions defined in air transport agreement between both parties or related agreements.

　　Article 3　Civil Aviation Administration of China (hereinafter referred to as “Civil Aviation Administration”) holds responsible for management of business licensing for route between China and foreign countries.

　　Foreign airlines should apply to Civil Aviation Administration for business licenses of route between the locations in China and foreign countries after home government officially confirms the route by diplomatic means.

　　Local civil aviation administration holds responsible for supervision of route of foreign airlines within its jurisdiction.

　　Article 4　Civil Aviation Administration can execute under the principle of mutual benefit and equality while approving business license of foreign airline. If a foreign aviation administration has unreasonable restriction on business licenses applied by Chinese air transport enterprises for route between Chinese and foreign countries, Chinese Civil Aviation Administration shall adopt measures alike.

　　Article 5　Application for business licenses should be submitted by foreign airlines 60 days ahead of scheduled starting date.

　　If application time by foreign airlines does not comply with the prescription, Civil Aviation Administration shall refuse to handle it except for special prescriptions defined in air transport agreement of both parties or related agreement.

　　Article 6　Foreign airlines shall submit applications, which are issued in either Chinese or English by legal representatives of their head offices or someone with written authorization from the head offices, and the attachment to Civil Aviation Administration.

　　The applications should include: scheduled route between locations in China and foreign countries, starting date, flight No. and flight No. with shared code, weekly flights and time, type and registration No. of aircraft, which is owned by the enterprise or acquired through wet lease.

(1) Copy of route between locations in China and foreign countries appointed by foreign government;

(2) Copy of AOC for public air transportation issued by aviation administration of foreign government to the foreign airline;

(4) Enterprise rule or certificate issued by legal enterprise registration institute with main enterprise operation location, nature of the enterprise (state-owned or private owned), structure of stocks, nationality of investors, name and nationality of board directors;

(6) Formal Chinese or English name, brief introduction (including date of establishment, scale of airplanes, flight network, etc.) of the enterprise, head office, contact person in china, his address, telephone, facsimile and email address, three-character code assigned by international civil aviation organization, and two-character code assigned by international air transport association;

(7) If the aircraft is acquired through wet lease, copy of the wet lease and documents required by air transport agreement of both parties or related agreement on operation with wet leased aircraft should be provided; and

(8) Other material or document asked by Civil Aviation Administration from the foreign airline upon requirement of law, regulation and agreement between both parties.

　　Article 7　If foreign airlines want to engage in new route businesses after running business between the locations in China and foreign countries with business licenses issued by Civil Aviation Administration, they should apply to Civil Aviation Administration for business licenses of new routes.

　　Application of new route by foreign airlines does not have to provide material or document prescribed in article 6, item (2), (3), (4), (5), (6) of these Regulations.

　　Article 8　Foreign airlines fix route according to the business licenses issued by Civil Aviation Administration. If the contents of item (2), (3), (4), (5), (6), (7) in article 6 of the Regulations are changed during application process of business licenses for new routes, foreign airlines shall notify Civil Aviation Administration within 30 days of such change or during submission of applications for business licenses of the new routes.

　　Article 9　While authorizing an agency to apply for business license on behalf of Civil Aviation Administration, foreign airlines shall authorize an agency with related business capacities and also issue formal powers of attorney.

　　Article 10　Civil Aviation Administration shall conduct formal audit application materials submitted by foreign airlines. If necessary, it can conduct substantive audits.

Foreign airlines are responsible for validity of all submitted application materials.

　　Article 11　Given all application materials are available in statutory form, Civil Aviation Administration can handle them for foreign airlines. If application materials are neither complete nor in statutory form, Civil Aviation Administration shall notify the foreign airlines to supplement missed contents within 5 working days. Once the notification is overdue, the date of receiving application materials will be regarded as handling date.

After foreign airlines complete all materials, Civil Aviation Administration shall handle the applications. But if the complete materials still fail to meet the requirements, Civil Aviation Administration shall not handle the applications and shall issue written certificates explaining the reasons thereof.

　　Article 12　Civil Aviation Administration shall make decision for approval or not within 20 working days after handling the application except for otherwise being prescribed in air transport agreement between both parties or related agreement. If Civil Aviation Administration cannot make decisions within 20 working days, they can postpone 10 working days once director of Civil Aviation Administration approves, and inform the postponing reasons to the foreign airlines.

　　Article 13　After Civil Aviation Administration makes approving decision, they shall issue business licenses to foreign airlines within 10 working days after the approval. If Civil Aviation Administration decides not to approve, they shall issue written explanation for the reason to the foreign airlines.

　　Article 14　A foreign airline shall submit an application for business license to Civil Aviation Administration 30 days ahead of maturity of business license. For any overdue submission without reasonable cause, Civil Aviation Administration shall make written decision for not handling it. If a foreign airline fails to submit application for extension after business license gets matured, Civil Aviation Administration shall revoke its business license.

　　Article 15　For application of business license extension, a foreign airline shall provide the following documents:

　　（1）Copy of business license needed for extension;
　　（2）Form of route between locations in China and foreign countries.

　　Article 16　A foreign airline shall submit written application to Civil Aviation Administration to change content of business license and also list detailed content and reason for change.

　　Article 17　Civil Aviation Administration shall make decision within prescribed time limit in article 12 and 13 of the Regulations for application of extension or changing of business license submitted by the foreign airline.

　　Article 18　A foreign airline should run operation of routes between China and foreign countries within the scope and valid period permitted in the business license.

　　Article 19　A foreign airline shall adopt effective measures to keep business license, which is issued by Civil Aviation Administration, safe and sound and prevent any damage or loss.

　　Article 20　If business license is damaged or lost, the foreign airline shall report to Civil Aviation Administration in a timely manner and submit application for reissue of such license.

　　Article 21 A foreign airline is not allowed to modify, transfer, lease or sell business license issued by Civil Aviation Administration. Once the business license is modified, transferred, leased or sold, it will be invalid.

　　Article 22　During business operation within business license issued by Civil Aviation Administration, the foreign airline shall apply for separate flight schedules for summer and autumn season, and winter and spring season respectively. The application should be submitted to Civil Aviation Administration 60 days ahead of beginning of each season with the right format and content. Civil Aviation Administration shall make decision for approval or not after auditing flight schedule according to the Regulations. If the foreign airline fails to submit application for flight schedule within prescribed time limit, it’ll be asked to cease flight.

　　Article 23　Flight schedule includes route, flight order, time, flight No., aircraft type, whether the aircraft is acquired through wet lease, and whether flights are run by sharing codes and so on.

　　Article 24　A foreign airline should not change flight schedule without permission during business operation in each season. If the foreign airline needs to alter flight schedule due to commercial reason, it shall submit application to Civil Aviation Administration 30 days ahead of planned alteration and only implement it after being approved.

　　Article 25　If a foreign airline needs to alter flight schedule temporarily due to weather and airplane malfunction, it shall submit application to Civil Aviation Administration in a timely manner and only implement it after being approved.

　　Article 26　A foreign airline shall run business with routes between locations in China and foreign countries according to flight schedule approved by Civil Aviation Administration. If the foreign airline plans to stop all or part of the routes due to commercial reason, it shall notify Civil Aviation Administration with written explanation. If the foreign airline stops flight without permission, Civil Aviation Administration shall not approve flight schedule of new flight season submitted by the Civil Aviation Administration.

　　Article 27　If a foreign airline needs to arrange temporary overtime flight upon market demand, it shall submit application to Civil Aviation Administration 5 working days ahead of planned overtime flight and only can implement it after being approved except for otherwise being prescribed in air transport agreement between both parties or related agreement.

　　Except for special occasions, the weekly overtime flights applied by a foreign airline should not exceed number of regular flights. Civil Aviation Administration should not approve application for fixed overtime flight.

　　Article 28　After a foreign airline starts to run prescribed route according to business license, it shall submit route transport business statistics of the previous month to Civil Aviation Administration before 15^th of the month according to requirement of attached Statistical Reporting Form for Traffic Volume Carried by Foreign airline Carriers, and hold responsible for accuracy, validity and completeness of the material content.

　　Article 29　If a foreign airline acquires business license by means of fraud, bribe or others, Civil Aviation Administration shall revoke such business license, give warning and ask for fines below RMB30,000. Such applicant should not reapply 3 years after the license being revoked. If it’s regarded as crime, the foreign airline shall bear criminal obligation.

　　Article 30　If a foreign airline violated prescription of article 8 because of not notifying change information on time in written will be warned by Civil Aviation Administration or fined below RMB30,000.

　　Article 31　If a foreign airline violates prescription of article 21 in the Regulations because of modifying, transferring, leasing or selling business license without permission, it will be warned by Civil Aviation Administration and fined below RMB30,000. In serious circumstances, the business license will be suspended or revoked. If it is regarded as crime, the foreign airline will bear criminal obligation.

　　Article 32　If a foreign airline violates prescription of article 24 in the Regulations because of altering flight schedule without permission, it will be warned by Civil Aviation Administration and fined below RMB30,000. In serious circumstances, the business license will be suspended or revoked.

　　Article 33　If a foreign airline violates prescription of article 28 in the Regulations because of delayed or hiding report of related issue to Civil Aviation Administration and providing false material or refusing to provide status or material that reflect its business activities, it will be warned by Civil Aviation Administration and fined below RMB30,000. In serious circumstances, the business license will be suspended or revoked. If it is regarded as crime, the foreign airline will bear criminal obligation.

　　Article 34　If a foreign airline violates other prescriptions of law, regulation and rule, it will be subject to penalty according to related regulations.

　　Article 35　Air transport enterprises in HK and Macao Special Administrative Region and Taiwan shall refer to the Regulations for application business license.

　　Article 36　Regular flight between HK, Macao, Taiwan and foreign countries will be handled according to related law and procedure.

　　Article 37　The Regulations will be executed 30 days after issuance. The issued Application Procedure for Business License of Foreign Airline Enterprise (Interim) (Civil Aviation Transport Letter [1996] No. 243), which was promulgated on March 2, 1996, is therefore repealed.

AIR CARRIER NAME			CODE		STATISTICAL REPORTING PERIOD
TYPE OF FLIGHT					TYPE OF ROUTE
ROUTE STATISTICS					ON-FLIGHT ORIGIN AND DESTINATION
ROUTE	AIRCRAFT TYPE	TOTAL NUMBER OF SEATS AVAILABLE PER MONTH	TOTAL PAYLOAD PER MONTH	TOTAL NUMBER OF FLIGHTS PER MONTH	CITY-PAIR		REVENUE PASSENGER CARRIED	REVENUE CARGO & MAIL CARRIED(kg)
ROUTE	AIRCRAFT TYPE	TOTAL NUMBER OF SEATS AVAILABLE PER MONTH	TOTAL PAYLOAD PER MONTH	TOTAL NUMBER OF FLIGHTS PER MONTH	FROM	TO	REVENUE PASSENGER CARRIED	REVENUE CARGO & MAIL CARRIED(kg)

Notes to Filling of Statistical Reporting Form for Traffic Volume Carried by Foreign Air Carriers

　　1. Statistical Reporting Form for Traffic Volume Carried by Foreign Air Carriers is a regular statistics form for calculation of transport volume of foreign air enterprise, which takes off or lands in China. It’s used to reflect transport scale of international flights and provide evidence for transport organization and management of international route.

　　2. Statistical Reporting Form for Traffic Volume Carried by Foreign Air Carriers includes monthly and annual reports. A foreign air enterprise which takes off and lands in civil aviation airport of China is required to fill on-flight origin, mid stop (except stop for technical reason), route within Chinese territory and transport volume of city-pair for statistics department of Chinese Civil Aviation Administration.

　　3. Submission of monthly Statistical Reporting Form for Traffic Volume Carried by Foreign Air Carriers should not be later than 15^th of the next month; submission of annual report should not be later than March 31 of the following year.

　　4. The electronic Statistical Reporting Form for Traffic Volume Carried by Foreign Air Carriers is publicized in the website of Civil Aviation government. The foreign air enterprise shall use such electronic version to fill out statistic report and send the hardcopy as well as electronic file (EXCEL file) to Chinese Civil Aviation Administration through mail and email respectively within prescribed time limit after the hardcopy is stamped with company chop.

　　1. Company name and code: fill out full name and code of the aviation company. Among them, company name adopts IATA two-character code. For instance, company name: AIR FRANCE; code: AF.

　　2. Statistics reporting period (year, month) refers to statistics year and month of business. The reporting period adopts format of YYYYMM. For instance: Jan., 2008 is 200801.

　　3. Statistical Reporting Form for Traffic Volume Carried by Foreign Air Carriers shall be filled separately according to different flight nature and route nature. Flight nature includes “regular” and “overtime”, and route nature includes “full customers”, “full goods” and “mixture of customers and goods”. Various natures can be selected from drop down list of corresponding area in the electronic form while filling out statistics form.

　　4. Flight route: the whole actual flight course is required to fill and airport adopts IATA three-character code.

　　5. Aircraft type: the actual flying aircraft type is required to fill with aircraft type proposed to adopt IATA three-character code. If two or more aircraft types are run in the same route, they should be filled separately.

　　6. Total seats: actually input seats number of each aircraft type in every route within reporting period.

　　7. Total payload: actually input transport payload of each airplane type in every route within reporting period.

　　8. Total flight numbers: Actually implemented flight numbers of each airplane type in every route within reporting period.

　　9. Transport volume of city-pair: total revenue passenger number and total cargo and mail number carries among every city-pair of each airplane type in every route within reporting period. Transport volume of city-pair requires filling separately. No report is required for transport volume of city-pair with on-flight origin and destination out of Chinese territory.

　　For instance: for Beijing-Tokyo-New York flight, only revenue passengers and cargo and mail number between “Beijing-Tokyo and Beijing-New York” are required to fill, but No report is required for traffic volume between “Tokyo-Beijing”.

　　Statistics department of China Civil Aviation Administration is responsible for interpretation of all items in Statistical Reporting Form for Traffic Volume Carried by Foreign Air Carriers.

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