THE SECRETARY OF TRANSPORTATION WASHINGTON , D

. C

. 20590

The Honorable Joe Garcia U.S. Hou se ofRepresentatives Washington , DC 20515 Dear Congressman Garcia: April 03, 2014

Thank you for your letter regarding the application ofNorwegian Air International Limited (NAI) for authority to conduct U.S. serv ices. Given that a number of interested pa1iies have filed respons ive 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 yo u, however, that we will give full and careful consideration to all of the pleadings filed on the record before we reach a determination in thi s matter. As is our standard practice, I am placi ng a copy ofyo ur letter and my re s ponse in Docket DOT-OST-2013-0204 , as a contact outside the record ofthis case. You may track the progress of thi s case and view the publicly avai labl e 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. FoxxJOE GARCIA

The Honorable Anthony Foxx Secretary 

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### of l\epresentatibeS'**Wa~mgton.** l!)(( 20515-0926 January 9, 2014

U.S. Department ofTransportation 1200 New Jersey Avenue SE Washington, DC 20590 Dear Secretary Foxx: 1440 LO*IIG "" Of'ITM HOUS.l Qrnu**BLM~Ot-.....,.** WA···••.... (#t()N DC 20515**.~o" n~~ns** 

I 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 of the 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. I believe there are several issues that the Department of Transportation (DOT) should consider as it reviews NAl'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 of flags ofconvenience to evade labor protections. However, it is my 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, thi s arrangement deserves intense scrutiny to determine whether it is contrary to the provisions of the 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 de scribed 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 ofa key objective ofthe DOT's public intere st



# s 10-140114-005standard to "strengthen the competitive position of [U.S.] air carriers to at least ensure equality with foreign air carriers. " (49 U.S.C. 

### §§ 4010 I(a)( 

### IS) and (e)(l ))
. Again , the imaginative arrangement being pursued by NAI should be thoroughly investigated to ens ure 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, I request that the DOT car efully consider its merits, legal s tanding, and whether or not it is in compliance with the US-EU Bilateral Agreement and in the public interest. I also respectfully request that you keep us apprised of any developments with NAI's application
. Please contact Jennifer George- Nichol at (202) 225-2778 or if you have any questions or require additional information
.

# Si**~**
Joe Garcia Member ofCongress



### 510-140114-005