THE SECRETARY OF TRANSPORTATION WAS HI NGTON, D

. C

. 20590

The Honorable Xavier Becerra U.S. House of Representatives Washington, DC 205 15 Dear Congressman Becerra: May 

### 21,2014

Thank you for your letter regarding the application ofNorwegian Air International Limited (NAI) for authority to conduct U

.S. services. Given that a number of interested parties have filed responsive pleadings to NAI's application and this matter is currently pending before the Department, I am sure you understand that I cannot comment on the merits ofNAI ' s application. I assure you, however, that we will give full and careful consideration to all ofthe pleadings filed on the record before we reach a determination in this matter. As is our standard practice, I am placing a copy ofyour letter and my r esponse in Docket DOT-OST-2013-0204, as a contact outside the record ofthis case. You may track the progress of this case and view the publicly avai lable documents filed in the docket by accessing the Federal Docket Management System at www .r egulations .gov and searching for Docket DOT-OST-2013-0204. I hope this information is helpful.

Anthony R. FoxxCAPITOL OFFICE 1226 LONGWORTH HOUSE OFFICE BUILDING WASHINGTON, DC 20515 PHONE : (202) 225-6235

FAX: (202) 225-2202

DISTRICT OFFICE 350 SOUTH BIXEL STREET, SUITE 120 LOS ANGELES, CA 90017 PHONE: (213) 481-1425

### C!Congre~~ 

# of tbe Wniteb**~tate~** 

### f!)ouse of l\epresentatibes FAX: (213) 481-1427



### The Honorable Anthony Foxx Secretary of Transportation U.S. Department ofTransportation 1200 New Jersey Ave., SE Washington, D.C. 20590 Dear Secretary Foxx: 

### XAVIER BECERRA 34TH DISTRICT, CALIFORNIA 

### April22,2014 HOUSE DEMOCRATIC CAUCUS CHAIRMAN
COMMITTEE ON WAYS AND MEANS

RANKING MEMBER, SUBCOMMITTEE ON SOCIAL SECURITY BECERRA.HOUSE.GOV



### I write to inform you that Ijoin several ofmy colleagues who have previously written to you to express concerns over Norwegian Air International's application for a Foreign Air Carrier Permit and exemption with the Department ofTransportation. Norwegian Air International (NAI), a subsidiary ofNorwegian Air Shuttle, intends to expand its footprint globally by using a business model that calls for a carrier to register its fleet in a country outside of its headquarters; commonly referred to as a flag of convenience strategy. I understand that NAI, a Norwegian company, has successfully registered its fleet in Ireland despite its intentions to initially hire non-Irish crews and not operate flights out ofthat country. In a letter to you dated January 7, 2014, senior members ofthe House Committee on Transportation and Infrastructure, including Ranking Member Nick Rahall ofWest Virginia, detailed disturbing aspects ofNAI's permit application. (A copy ofthis letter which I will refer to as the "Rahallletter" is attached hereto.) I wish to associate myself with the Rahallletter and its expressed concerns. Maintaining a safe, healthy and competitive airline industry in America is a concern and responsibility we all share. With that in mind, I would ask that you keep me apprised of DOT's actions pertaining to the NAI permit application. Thank you for your work on behalfofour nation and for your attention to this matter.

Member of Congress



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Chrlsropher P Rertrutn**~ta U** **D~H J**  ror The Honorable Anthony Foxx Secretary U.S. Department of Transportation 1200 New Jersey Avenue SE Washington, DC 20590 Dear Secretary Foxx : January 7, 2014**~irk** 

### JJ 1Ra4all. 3HJ iRanking !Remher

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We write to you regarding Norwegian Air International Limited's (NAI) application for an exemption and foreign air carrier permit. NAI is a subsidiary ofNorwegian Air Shuttle (NAS), a Norwegian air carrier and the third largest low-cost carrier in Europe. As part ofthe process of standing up the new airline, NAI is seeking an air carrier certificate from Ireland to operate as an Irish air carrier instead of a Norwegian air carrier. In addition, NAI is hiring pilots and flight crews through a Singapore company. We believe there are several issues that the Department of Transportation (DOT) should consider as it reviews NAI's application in order to determine whether it is in compliance with the U.S.-European Union Air Transport Agreement ("the USEU Bilateral Agreement") and federal statutes. The US-EU Bilateral Agreement prohibits the establishment offlags of convenience to evade labor protections. However, it is our understanding that while NAI does not yet have an Irish air carrier certificate, the air carrier is being established in Ireland to avoid Norwegian labor and social laws. In addition, while NAI intends to operate as an Irish air carrier, it plans to employ pilots and flight crew members working under Singapore employment contracts. These employees , made available at lower labor costs , will not be covered by Norway's labor laws. When and ifthe DOT reviews NAI's application for an exemption and air carrier permit, this arrangement deserves intense scrutiny to determine whether it is contrary to the provisions ofthe US-EU Bilateral Agreement. Additionally , while the DOT is authorized to exempt foreign air carriers from certain federal statutes , it may do so only if the exemption is in the public interest. The arrangement described above is raising concerns within the U.S. airline industry. Specifically, that NAI. certificated in Ireland and employing pilots and flight crews pursuant to a Singapore contract, will provide transatlantic flights under the Norwegian brand in direct competition with U.S. carriers. According to the Airline Pilots Association, Airlines for America, and several U.S. air carriers, NAI's actions are in direct contravention of a key objective ofthe DOT's public interest

1 

# s 10-140422-084standard to' strengthen the competitive position of [U.S.] air carriers to at least ensure equality with foreign air carriers

." (49 U.S.C. §§ 40101(a)(15) and (e)(1)). Again, the imaginative arrangement being pursued by NAI should be thoroughly investigated to ensure that any action taken by the DOT is in the public interest. Commercial aviation is a crucial segment of our economy and U.S. carriers can compete globally as long as we ensure a level playing field. When and if the DOT begins reviewing NAI's application, we request that the DOT carefully consider its merits, legal standing, and whether or not it is in compliance with the US-EU Bilateral Agreement and in the public interest. We also respectfully request that you keep us apprised of any developments with NAI's application. Please contact Holly WoodruffLyons at (202) 226-3220 or Giles Giovinazzi at (202) 225-9161 ifyou have any questions or require additional information. Sincerely,

# ~~~dM~ Nick J. Rahall, II Frank A. Lo wndo Rick Larsen Ranking Member Chairman Ranking Member Committee on Transportation Subcommittee on Aviation Subcommittee on Aviation

& Infrastructure

2 

# s 10-140422-084