### THE SECRETARY OF TRANSPORTATION WASH INGTON , DC 20590



### The Honorable Rick Larsen Ranking Member Subcommittee on Aviation March 10,2014

Committee on Transportation and Infrastructure U.S. House ofRepresentatives Washington, DC 20515 Dear Congressman Larsen: Thank you for your letter regarding the application ofNorwegian Air International Limited (NAI) for authority to conduct U.S. services. Given that a number ofinterested 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 response in Docket DOT-OST-2013 -0204, as a contact outside the record ofthis case. You may track the progress ofthis case and view the publicly available documents filed in the docket by accessing the Federal Docket Management System at www.regulations
.gov and searching for Docket DOT-OST-2013-0204. I hope this information is helpful.

Anthony R. Foxx

### THE SECRETARY OF TRANSPORTATION WASHINGTON , DC 20590

The Honorable Frank A. LoBiondo Chairman Subcommittee on Aviation March 10,20 14

Committee on Transportation and Infrastructure U.S. House ofRepresentatives Washington, DC 20515 Dear Congressman LoBiondo: 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 response in Docket DOT-OST-2013-0204, as a contact outside the record ofthis case. You may track the progress ofthis case and view the publicly available documents filed in the docket by accessing the Federal Docket Management System at www.r egulations
.gov and searching for Docket DOT -OST-201 3-0204. I hope this information is helpful.

### THE SECRETAR Y OF TRANSPORTATIO N WAS HI NGT ON , DC 20590

The Honorable Nick J. Rahall , II Ranking Member March 10,2014

Committee on Transportation and Infrastructure U.S. House ofRepresentatives Washington, DC 20515 Dear Congressman Rahall: Thank you for your letter regarding the application ofNorwegian Air International Limited (NAI) for authority to conduct U
.S
. services. Given that a number ofinterested 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 response in Docket DOT

-OST-2013

-0204, as a contact outside the record ofthis case. You may track the progress ofthis case and view the publicly available documents filed in the docket by accessing the Federal Docket Management System at www.regulations.gov and searching for Docket DOT-OST-2013-0204. I hope this information is helpful. Sincerely,

# ~ Anthony R
. Foxxi!JUl**S~ust.er <n~atrman**  

## <nnmmitttt nn IDranspnrtatinn an.b lnfrastructurt**llt.~.** 

## Jlnust nf 1Rtprtstntatiuts**l!las~ingtnn.** 

# men 20515

Christopher P. Bertram, Staff D irector The Honorable Anthony Foxx Secretary U.S. Department ofTransportation 1200 New Jersey Avenue SE Washington, DC 20590 Dear Secretary Foxx: January 7, 2014 Ntck 3.1
.**&~au.** JHJ f!tanktng**~ember**

J ames H
. Zoia, Democrat Staff Director

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 ofconvenience 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 ifthe 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 10-140108-006standard 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)(l))
. 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 ifthe 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 Woodruff Lyons at (202) 226-3220 or Giles Giovinazzi at (202) 225-9161 ifyou have any questions or require additional information.

# &~~ Nick J. Rahall, II Ranking Member Committee on Transportation

& Infrastructure



# s 10-140108-006 Sincerely,

Chairman Subcommittee on Aviation

2

# "~ Rick Larsen Ranking Member Subcommittee on Aviation