THE SECRETARY OF TRANSPORTATION WASH IN GTON , D.C

. 20590

The Ho norable Dan Coats United States Senate Washington, D C 20510
Dear Senator Coats: April 04 , 2014

Thank yo u for yo ur let ter regarding the applic atio n ofNorwegian Ai r Inte rnati o nal Limited (NAI) for au thority to co ndu ct U

. S. serv ices.
Given that a number of intere s te d partie s have fil e d respo n s ive p le ad in gs to NAI 's app licati on and thi s m atter is currently pending before the D epartment , I am sure yo u understand that I cannot comment on the merits ofNA I 's app licati o n
. I ass ure you, h owever, th at we wi ll g ive full and careful con s ideration to a ll of the pleadin gs fil ed on the record before we reach a detenninati o n in thi s m att er.
As is our s tand ard practice , I am placing a co p y of yo ur lette r and my response in Docket DOT-OST- 2 013-0204, a s a contact outs ide the record oft hi s case
. You may track the progress of thi s case and view the publicly avail ab le docum e nts fi led in the docket by accessing the Fede ral Do cke t Management Sy s te m at www .r eg ul ati ons.gov and searc hin g for D ocket DOT-OST- 2 013-0204.

I hope thi s information i s helpful.
S ince rel y ,

Anthony R

. FoxxDAN COATS I N DIA N A

The Honorable Anthony Foxx Secretary ofTransportation 

# CJ.anitcd**~tatcs ~rnatc**  WASHIN GTON , D C 20 5 10
March 6, 2014

United States Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590
Dear Secretary Foxx: C OMMI TIE E S : A PPRO P R IA TIO N S CO MMERCE , SC IENC E, AND TR ANS P ORTATION SELEC T INTE L LIGE N CE J O I N T ECONOMIC , RANK I N G

I am writing regarding Norwegian Air International Limited's (NAI) pending application for an exemption and foreign air carrier permit. Specifically, I encourage the Department of Transportation (DOT) to ensure the application is in compliance with the United States-European Union (U.S.-EU) Open Skies Agreement, is in the American public ' s interest, and leaves no ambiguity with regards to oversight of safe airline operations.
The landmark U.S.-EU Open Skies Agreement sought to increase international competition and expand aviation market access by opening the market between the United States and Europe. By and large it has led to substantial benefits through increased access to foreign markets, expanded growth opportunities for U.S. carriers and U.S. jobs, and boosted tourism and business travel to the United States. Europe has seen similar benefits, and market liberalization has created both greater service options for consumers and increased fare competition. Many ofthe benefits to U.S. and European competitiveness and job growth were a result of negotiations leading to the inclusion of strong employment protections in the U.S.-EU Open Skies Agreement. For example, the negotiators included Article 17 bis in the agreement, recognizing the importance ofhigh labor standards. Specifically, Article 17 bis states, "The opportunities created by the Agreement are not intended to undermine labour standards or the labour-related rights and principles contained in the Parties' respective laws." Article 17 his is consistent with U.S. law requiring the DOT to apply, among other factors, a public interest standard when reviewing and approving applications from foreign air carriers to provide new air service. Specifically, the DOT is required to ensure that U.S. air carriers are on at least an equal footing with foreign carriers. NAI, a subsidiary ofNorwegian Air Shuttle, is seeking to establish new service between the United States and the European Union (EU) through the new opportunities provided under the U.S.-EU Open Skies Agreement. I am concerned, however, with certain aspects ofNAI's pending application for an exemption and foreign air carrier permit. For example, NAI's parent company is based in Norway, and NAI is owned and controlled by Norwegian citizens. NAI, however, has established a "flag of convenience" in Ireland, will operate as an Irish air carrier with no intention of serving Ireland, and will hire a portion of its workforce from Singapore. NAI seeks to replace operations currently being conducted by Norwegian Air Shuttle, which is currently flying to the United States.

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· A ScOTTSI!Uilfi, I N 4 71 70 812-754-0520 493 RUSSElL SENATE BU I LDING WASHINGTON, DC 20510 202-224 -5623This structure raises a number of questions about NAI's application that should be clearly 

### answered as part of

### the application's docket, questions that are precisely the type of issues that Article 17 

### bis was intended to address. For example, NAT should clarify its reasons for moving operations from Norwegian Air Shuttle toNAl. Specifically it should address whether this arrangement was created to allow the airline to avoid Norwegian or other EU member labor and employment laws. As the DOT reviews NAI's application for an exemption and air carrier permit, I urge the Department to examine this arrangement to ensure its full compliance with the U.S.-E.U. Open Skies Agreement labor provisions and consistency with U.S. law. I also urge the Department to compel NAIto address these i ssues clearly as part ofthe docket. Additionally, I urge the DOT to ensure the safety ofNAI's operations and its compliance with accepted aviation standard s. As noted above , although NAT seeks to become an Irish airline it remains a Norwegian owned carrier that does not plan to ofier any air transportation services from Ireland

. This unique arrangement raises questions in regards to the responsibilities ofboth the Civil Aviation Authori ty ofNorway and the Irish Aviation Authority to provide safety and regulatory oversight ofNAI , including its maintenance , training, and operation s. Specifically, it is unclear which agency will be conducting oversight ofNAJ. While both the Norwegian and Irish aviation authorities are extremely capable , this ambiguou s bureaucratic arrangement should also be cl early addressed in the docket before any decision i s made on NAI's pending application.
I support the competition and increased consumer choice that the U.S.-EU Open Skies Agreement has given consumers in the United States and Europe. Benefits through the U.S.-EU Open Skies Agreement hav e come because DOT has made sure applications for permits comply with Article 17 

### bis, are fair to both U.S. and European carriers and employees, and have clear safety oversight. For the se reasons 1 urge the DOT to compel NAIto clearly address these issue s as part of the application's docket, and ensure that NAI's application is in full compliance with the U.S-E.U. Open Skies Agreement and in the public interest. Thank you for your consideration of my views, and should you or your staff have any questions please do not hesitate to contact me or Michael Quiello on my staff.



# s 10-140307-002 Dan Coats U.S. SenatorFrom: Quiello, Michael (Coats) Sent: Thursday, March 06, 2014 3:58 PM To: 'Patricia.Readinger@dot.gov' Subject: Letter from Senator Coats Hi Patty: Senator Coats sent the attached letter to Secretary Foxx today regarding Norwegian Air International’s pending application at DOT. Hope you’re well, Mike Quiello

------------------------------------------------------------------------------------------ M ICHAEL A. Q UIELLO Senior Policy Advisor O FFICE OF U NITED S TATES S ENATOR D AN C OATS 493 Russell Senate Office Building | Washington, DC 20510 phone: 202.224.5623 | fax: 202.228.1820