CIVIL AVIATION LAW

    Chapter I     General Provisions

    Chapter II    Nationality of Civil Aircraft

    Chapter III   Rights of Civil Aircraft

      Section 1   Basic Principles

      Section 2   Ownership and Mortgage of Civil Aircraft

      Section 3   Civil Aircraft Liens

      Section 4   Lease of Civil Aircraft

    Chapter IV    Airworthiness Management of Civil Aircraft

    Chapter V     Airmen

      Section 1   Basic Principles

      Section 2   Crew

    Chapter VI    Civil Airport

    Chapter VII   Air Navigation

      Section 1   Airspace Management

      Section 2   Flight Management

      Section 3   Flight Support

      Section 4   Essential Documents for Flight

    Chapter VIII  Public Air Transport Enterprise

    Chapter IX    Public Air Transport

      Section 1   Basic Principles

      Section 2   Transport Documents

      Section 3   Liability of the Carrier

      Section 4   Special Provisions  Governing Air Transport Performed

                  by Actual Carrier

    Chapter X     General Aviation

    Chapter XI    Search and Rescue and Accident Investigation

    Chapter XII   Liability for Damage to Third Parties on the Surface

    Chapter XIII  Special Provisions Governing Foreign Civil Aircraft

    Chapter XIV   Application of Law to Foreign-related Matters

    Chapter XV    Legal Liability

    Article 1  This Law is enacted with a view to safeguarding the national
sovereignty of territorial airspace and the rights of civil aviation, to
ensuring the conduct of civil aviation activities in a safe and
orderly manner, to protecting the lawful rights and interests of the parties
concerned in civil aviation activities, and to promoting the development of
civil aviation industry.

    Article 2  The airspace above the land territory and territorial waters
of the People’s Republic of China is the territorial airspace of the People’s
Republic of China. The People’s Republic of China has complete and exclusive
sovereignty over its territorial airspace.

    Article 3  The competent civil aviation authority under the State Council
exercises unified supervision and administration over civil aviation
activities in the whole country: issues regulations and decisions
concerning civil aviation activities within the scope of its authority in
accordance with laws and the decisions of the State Council.

    The regional civil aviation administrative organs set up by the competent
civil aviation authority under the State. Council supervise and administer
the civil aviation activities in their respective regions in accordance
with the authorizations of the competent civil aviation authority under
the State Council.

    Article 4  The State supports the development of civil aviation industry,
and encourages and supports the progress of scientific research and education
in the field of civil aviation and the improvement of civil
aviation science and technology.

    Article 5  “Civil aircraft” as referred to in this Law means aircraft
other than those used in flight missions of military, customs and police
services.

    Article 6  A civil aircraft performed its nationality registration with
the competent civil aviation authority under the State Council of
the People’s Republic of China according to law has the nationality of the
People’s Republic of China, and shall be issued a nationality registration
certificate by the competent civil aviation authority under the State Council.

    The competent civil aviation authority under the State Council shall set
up a Civil Aircraft Nationality Register of the People’s Republic of China to
exclusively record matters concerning nationality registration of civil
aircraft.

    Article 7  The following civil aircraft shall perform nationality
registration of the People’s Republic of China:

    (1) The civil aircraft of a State organ of the People’s a Republic
of China;

    (2) The civil aircraft of a corporate enterprise set up in accordance
with the law of the People’s Republic of China; if such corporate enterprise
has foreign investment in its registered capital, its organizational
structure and composition of personnel, and the proportion of contribution of
Chinese investor shall conform to the provisions of administrative rules and
regulations;

    (3) Other civil aircraft, the registration of which is approved by the
competent civil aviation authority under the State Council.

    Where a civil aircraft was leased form abroad, the lessee being in
conformity with the provisions of the preceding paragraph, and the crew of
the civil aircraft is provided by the lessee, the latter may apply for the
nationality registration of the People’s Republic of China, provided that the
original nationality registration of such aircraft has been cancelled.

    Article 8  A civil aircraft which has acquired the nationality of
the People’s Republic of China according to law shall display the specified
nationality mark and registration mark.

    Section 1  Basic Principles

    Article 10  The rights to a civil aircraft as referred to in this Chapter
include the rights to the airframe engines, propellers, radio apparatus of
the civil aircraft and all other articles intended for use in such civil
aircraft, no matter whether they are installed thereon or separated
temporarily therefrom.

    Article 11  The person enpost_titled to the rights of a civil aircraft shall
register the following rights respectively with the competent civil aviation
authority under the State Council.

    (1) The ownership of the civil aircraft;

    (2) The right for the acquisition and possession of the civil aircraft
through an act of purchase;

    (3) The right to possess the civil aircraft in accordance with a lease
contract covering a lease term of six months or over;

    (4) Mortgage of the civil aircraft.

  Article 12  A register of the rights of civil aircraft shall be
maintained by the competent civil aviation authority under the State Council.
Matters registered concerning the Rights of one and the same
civil aircraft shall be recorded in the same register of rights.

    Matters registered concerning the rights of civil aircraft any be made
available to the public for inquiry, reproduction or extraction.

  Article 13  Unless a civil aircraft was the subject of a forced auction
sale in accordance with the law, the nationality registration of such civil
aircraft or the registration of rights thereof shall not be transferred
abroad before the registered rights of such aircraft are compensated or
before the consent of the person enpost_titled to the aforesaid rights is given.

    Section 2  Ownership and Mortgage of Civil Aircraft

    Article 14  The acquisition, transference and extinction of the ownership
of a civil aircraft shall be registered with the competent civil aviation
authority under the State Council; no acquisition, transference or extinction
of the ownership of the civil aircraft shall act against a third party unless
registered.

    The transference of the ownership of a civil aircraft shall be made by a
contract in writing.

    Article 15  Where a State-owned civil aircraft is authorized by the State
to be operated, administered or utilized by a legal person, the provisions of
this Law concerning the owner of civil aircraft shall be applicable to such
legal person.

    Article 16  The mortgage of a civil aircraft shall be established by
registering the mortgage of the civil aircraft with the competent civil
aviation authority under the State Council jointly by the mortgagee
and the mortgagor; no mortgage may act against a third party unless registered.

  Article 17  Once a mortgage is established on a civil aircraft,
the ownership of the mortgaged civil aircraft shall not be transferred
without the consent of the mortgagee.

    Section 3  Civil Aircraft Liens

    Article 18  A civil aircraft lien is the right of the claimant, subject
to the provisions of Article 19 of this Law, to take priority in compensation
against the owner and lessee of the civil aircraft with respect to
the civil aircraft which gave rise to the said claim.

    Article 19  The following obligatory rights shall be enpost_titled to civil
aircraft liens:

    (1) Remuneration for rescuing the civil aircraft;

    (2) Necessary expenses incurred for the custody of the civil aircraft.

    With respect to the obligatory rights specified in the preceding
paragraph, that arising later shall be satisfied first.

    Article 20  The creditor of the civil aircraft liens specified in
Article 19 of this Law shall register his obligatory rights with the
competent civil aviation authority under the State Council within three
months commencing from the date of the end of rescue or custody.

    Article 21  For the common interests of creditors, the expenses incurred
in enforcing the decision of the People’s Court and in the course of auction
sale shall be deducted and paid first from the proceeds of the
auction sale of the civil aircraft.

    Article 22  A civil aircraft lien shall have priority over the mortgage
of a civil aircraft.

    Article 23  Where the obligatory rights provided in Article 19 of this Law
are transferred, the civil aircraft liens attached thereto shall be transferred
accordingly.

    Article 24  A civil aircraft lien shall be enforced by the People’s Court
by arresting the civil aircraft that gave rise to the said civil aircraft lien.

    Article 25  A civil aircraft lien shall be terminated at the expiry of
three months commencing from the date of the end of rescue or custody; except
that the creditor has registered his obligatory rights according to the
provisions of Article 20 of this Law and that the case is under one of the
following circumstances:

    (1) The creditor and debtor have reached agreement on the amount of the
said obligatory rights;

    (2) The legal action concerning the obligatory rights has started.

    A civil aircraft lien shall not be extinguished because of the
transference of the ownership of the civil aircraft; except that the civil
aircraft was the subject of a forced auction sale in accordance with law.

    Section 4  Lease of Civil Aircraft

    Article 26  A civil aircraft lease contract, including financing lease
contract and other lease contracts, shall be made in writing.

    Article 27  The “financing lease of civil aircraft”  means that the
lessor acquires a civil aircraft pursuant to the selection of the lessee
with respect to supplier and civil aircraft, and leases it to the lessee,
who shall pay rental periodically.

    Article 28  During the period of financing lease the lessor shall be
legally enpost_titled to the ownership of the civil aircraft, and the lessee shall
be legally enpost_titled to the rights of possession, utilization and earnings of the civil aircraft.

    Article 29  During the period of financing lease, the lessor shall ensure
the lessee to possess and use the civil aircraft without interference;
the lessee shall take proper care of the civil aircraft and keep it in
the condition in which it was delivered, subject to fair wear and tear and
to any modification of the civil aircraft agreed by the lessor.

    Article 30  When the financing lease contract, comes to an end,
the lessee, unless exercising a right to purchase the civil aircraft or to
hold the civil aircraft on lease for a further period in accordance with the
contract, shall return the civil aircraft to the lessor in the condition
specified in Article 29 of this Law.

    Article 31  The supplier in the financing lease of a civil aircraft shall
not be liable to both the lessor and the lessee at the same time in respect
of the same damage.

    Article 32  During the period of financing lease, the lessee may transfer
the right of the possession of the civil aircraft as well as other rights
under the lease contract only with the consent of the lessor and without
jeopardizing the interests of third parties.

    Article 34  Application shall be filed with the competent civil aviation
authority under the State Council for type certificate for the designing of
civil aircraft and its engines, propellers and on-board equipment. A
type certificate shall be issued accordingly if found qualified.

    Article 35  Application shall be filed with the competent civil aviation
authority under the State Council for production certificate and maintenance
certificate for the production and maintenance of civil aircraft and its
engines, propellers and on-board equipment. A certificate or certificates
shall be issued accordingly if found qualified.

    Article 36  Where a civil aircraft and its engines, propellers and
on-board equipment produced by a foreign manufacturer are imported into China
for the first time, such foreign manufacturer shall file an application
with the competent civil aviation authority under the State Council for type
validation certificate. A type validation certificate shall be issued if
found qualified.

    Where a civil aircraft and its engines, propellers and on-board equipment,
for which a type certificate has been issued in a foreign country, are
produced for the first time in China, the holder of the type certificate
shall file an application with the competent civil aviation authority under
the State Council for type validation certificate. A type validation
certificate shall be issued if found qualified.

    Article 37  A civil aircraft possessing the nationality of the People’s
Republic of China may fly only if it holds an airworthiness certificate
issued by the competent civil aviation authority under the State Council.

    Application shall be filed with the competent civil aviation authority
under the State Council by the manufacturer for export airworthiness
certificate with respect to the export of civil aircraft and its engines,
propellers and on-board equipment. An export airworthinees certificate
shall be issued if found qualified.

    A foreign civil aircraft on lease may fly only after the competent civil
aviation authority under the State Council has examined and rendered valid
its airworthiness certificate issued by the State in which the nationality of
such aircraft was originally registered, or has issued a new airworthinees
certificate therefor.

    The regulations for the airworthiness of civil aircraft shall be
formulated by the State Council.

    Section 1  Basic Principles

    Article 39  “Airmen” as referred to in this Law means the following
flight personnel and ground personnel engaged in civil aviation activities:

    (1) Flight personnel, including pilots, navigators, flight engineers,
flight radio operators and cabin attendants;

    (2) Ground personnel, including civil aircraft maintenance personnel,
air traffic controllers, flight dispatchers and aeronautical radio station
operators.

    Article 40  An airman may perform the duty specified in his licence only
if be bas received professional training, and has been qualified through
examination and issued a licence by the competent civil aviation
authority under the State Council.

    Flight personnel and air traffic controllers shall, before obtaining
licences, also be subject to the check of the physical examination unit
approved by the competent civil aviation authority under the State
Council, and obtain the physical examination certificate issued by the
competent civil aviation authority under the State Council.

    Article 41  Flight personnel shall in performing flight missions, carry
on their persons licences and physical examination certificates and be
subject to the check of the competent civil aviation authority under
the State Council.

    Article 42  Airmen shall be subject to the periodical or non-periodical
inspection and examination of the competent civil aviation authority under
the State Council. Only those qualified in inspection and examination
may continue to perform the duties specified in their licences.

    Flight personnel shall also take part in periodical
training of emergency procedures.

    Flight personnel who have exceeded the time limit of interruption in
flight prescribed by the competent civil aviation authority under the State
Council shall be subject to inspection and examination; with the exception of
cabin attendants, flight personnel shall also go through instruction flight.
Only those qualified through inspection, examination and instruction
flight may continue to perform the duties specified in their licenses.

    Section 2  Crew

    Article 43  The crew of a civil aircraft is composed of a pilot-in-command
and other flight personnel. The pilot-in-command shall be a pilot possessing
the technique and experience of independently piloting that type of civil
aircraft.

    The composition of a crew and the number of its members shall conform to
the regulations of the competent civil aviation authority under the State
Council.

    Article 44  The pilot-in-command is responsible for the operation of the
civil aircraft, and shall strictly perform his duties to protect the safety
of the civil aircraft and persons and property carried therein.

    The pilot-in-command issues orders within the scope of his functions and
powers, and the orders shall be implemented by the persons carried by the
civil aircraft.

    Article 45  The pilot-in-command shall carry out necessary inspection of
the civil aircraft before flight; no civil aircraft shall takeoff unless
inspected.

    Where and when a pilot-in-command discovers that the civil aircraft,
airport and weather conditions do not conform to the requirements prescribed
and cannot ensure flight safety, he has the right to refuse takeoff.

    Article 46  The pilot-in-command bas the right to take necessary and
appropriate measures in flight, under the prerequisite of ensuring flight
safety, against any acts which may destroy the civil aircraft,
interfere with the order on board and jeopardize the safety of persons or
property therein, and any other acts jeopardizing flight safety.

    In case of extraordinary circumstances in flight, the pilot-in-command
shall have authority as to the disposition of the civil aircraft so as to
ensure the safety of the aircraft and the persons therein.

    Article 47  The pilot-in-command has the right to ask for a change of
crew member(s) in order to ensure flight safety if he discovered that the
crew member(s) are not suitable for performing the flight mission.

    Article 48  In case a civil aircraft is in distress, the pilot-in-command
has the right to take all necessary measures, and direct the crew members and
other persons on board the aircraft to take rescue measures.In case of
emergency which necessitates evacuation from the civil aircraft in distress,
the pilot-in-command must take measures first to organize passengers to
leave the civil aircraft safely; no crew member shall leave the civil aircraft
unless authorized by the pilot-in-command; the pilot-in-command shall be
the last to leave the aircraft.

    Article 49  In case an accident occurred to a civil aircraft, the
pilot-in-command shall report in time the state of the accident accurately
to the competent civil aviation authority under the State Council
directly or through air traffic control unit.

    Article 50  When a pilot-in-command received SOS signals from a ship or
another aircraft, or discovered, a ship or an aircraft and the persons
therein in distress, he shall report the state of distress in time
to the nearest air traffic control unit and give possible, rational assistance.

    Article 51  In case a pilot-in-command is unable to perform his duties
in flight due to one reason or another, the pilot holding a post next only to
him shall act on his behalf, the owner or lessee of the civil aircraft shall
assign a new pilot-in-command to take over before the aircraft takes off at
the next place of stop.

    Article 53  “Civil airport” as referred to in this Law means a defined
area, including any subsidiary buildings, installations and equipment,
intended to be used for the takeoff, landing, taxiing, parking and other
activities of civil aircraft.

    The civil airport refereed to in this Law does not include temporary
airfield.

    The provisions for the management of airports used by both military and
civil air operations shall be separately formulated by the State Council and
the Central Military Commission jointly.

    Article 54  The construction and utilization of civil airports shall be
subject to overall arrangement and rational distribution, and the efficiency of airport utilization shall be raised.

    The plan of distributions and construction of civil airports in the whole
country shall be formulated jointly by the competent civil aviation authority
under the State Council and other departments concerned under the State
Council, and shall be implemented after being approved in accordance with the
procedures prescribed by the State.

    The People’s Governments of provinces, autonomous regions and
municipalities directly under the central government shall formulate
the civil airport construction plans of their own administrative areas on
the basis of the national plan of civil airport distribution and
construction, and incorporate such plans in the national economic and social
development programs at their respective levels after being approved in
accordance with the procedures prescribed by the State.

    Article 55  The civil airport constriction plan shall be coordinated
with city construction planning.

    Article 56  The constriction, modification and extension of civil
airport shall conform to the plan of civil airport distribution and
construction formulated according to law and to the standards of civil airport,
and shall be subject to the approval of the competent authority concerned and
implemented in accordance with State regulations.

    A construction project of civil airport not conforming to the plan of
civil airport distribution and construction formulated according to law shall
not be approved.

    Article 57  With respect to the construction and extension of civil
airport, an announcement shall be issued by the local People’s Government
at county or higher level of the place where the civil airport is locate.

    The announcement prescribed in the preceding paragraph shall be published
in main local newspapers, and posted in areas around the airport to be
constructed or extended.

    Article 58  The following activities are prohibited within the limits of
civil airport defined according to law and within the airport obstacle
clearance protection zone defined according to State regulations:

    (1) The construction of buildings or facilities that will possibly aff