BROOKVIEW PLAZA | 1450 EMPIRE CEN TRAL DR., SUITE 737 | DALLAS, TX 75247
PHONE: 214.350.9237 | TOLL FREE: 800.969.7972 | FAX: 214.350.0647 | SWAPA.ORG December 23

, 2013

Paul Gretch , Director
Office of International Aviation U.S. Department of Transportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590

Docket No. OST

– 2013

– 0204

COMMENTS OF SOUTHWES T AIRLINES PILOTS ASSOCIATION OPPOSING APPROVAL OF NORWEGIAN

AIR INTERNATIONAL LIMITED FOR A FOREIGN AIR CARRIER PERMIT

Southwest Airlines Pilots Association (“SWAPA”) is the exclusive bargaining representative for the more than 6, 5 00 pilots of Southwest Airlines.

SWAPA is concerned with the future implications and precedent on fair international competition in the airline industry that could be caused by the DOT granting Norwegian Air International a foreign air carrier permit. SWAPA opposes what appears to be an attempt of Norwegian Air International to seek authority to operate i n the United States utilizing a “venue shopping” strategy, where by a carrier chooses “which” set of regulations from “what” country it chooses to follow.

Generally, industrialized countries have comprehensive aviation and labor regulations that address a wide range of areas of concern. Not all regulations match closely across all countries, but when looked upon in the aggregate, the comprehensive regulatory sets match up fairly closely across nations. While one nation may be stricter in one area, often it is less restrictive in another. In the application under consideration, Norwegian Air International appears to be using a “f lag of convenience” strategy, perhaps
modeled after the earlier cargo shipping strategies that led to an exodus of nearly all ca rgo ships in the US from US regulatory oversight to oversight by such countries such as Liberia. The US currently has a sophisticated and effective aviation regulatory structure; SWAPA strongly opposes a migration toward abdicating regulatory responsibil ity in what could be termed the “Liberia Model”.

In this application under consideration , however, we are not addressing inanimate cargo containers, but the safety and convenience of US passengers . Our “flag of convenience” argument rests upon the
followi ng:

- Norwegian Air Shuttl e, with headquarters in Fornebu, Norway, has set up a separate company and applied for an Air Operator Certifica te (AOC) in Ireland, which has been criticized for lax labor regulation

- The AOC reflects plans to continue its current practice of utilizing crews based in Thailand on contract to a Singapore company, Global Crew Asia PTE Limited (Global Crew), in an attempt to

circumvent a recent N orway government requirement that these crews obtain Norwegian work

pe rmits.BROOKVIEW PLAZA | 1450 EMPIRE CEN TRAL DR., SUITE 737 | DALLAS, TX 75247
PHONE: 214.350.9237 | TOLL FREE: 800.969.7972 | FAX: 214.350.0647 | SWAPA.ORG Since Norwegian Air Shuttle already has an AOC in Norway, has company headquarters in Norway, has training facilities in Norway and follows the well

- regarded Norwegian regula tory schema, reason that Norwegian Air Shuttle has add ed the complexity of Irish, Thai and Singaporean elements to their operation appears obvious to even the casual onlooker.

In order for the DOT to grant a permit to a carrier that allows it to engage in foreign air transportation

, the DOT must find that transportation under th e permit “will be in the public interest” (49 U.S.C. § 41302.2).

SWAPA is specifically concerned that approving the Norwegian Air International application would not
meet the “ strengthening the competitive position of air carriers to at least ensure equa lity with foreign air carriers, including the attainment of the opportunity for air carriers to maintain and increase their profitability in foreign air transportation ” stipulation 49 U.S.C. §§ 40101(a)(15).

SWAPA also argues that there is a lack of info rmation in the Norwegian Air International application t o allow a determination of whether the “ fair wages and working conditions” requirement will be met Norwegian Air Shuttle’s actions to date , as outlined in current filings by ALPA and the AFL

- CIO would suggest otherwise 49 U.S.C. §§ 40101(a)(5)

.

SWAPA agrees with the ALPA’s suggestion that “ if the DOT does not deny outright, it should defer action on it until it receives additional information ”, regarding the wages and working conditions of pilots to be employed Global Crew on behalf of Norwegian Air Intern ational. SWAPA also concur s with ALPA and that this application raises concerns about whether or not i t is consistent with the U.S.

– E.U./Iceland/Norway Air Transport Agreement (E.U.

– U. S. Ope n Skies )

.
In view of the upcoming Joint Committee meeting on January 8th and the lack of an approved AOC from
the Irish authorities

, SWAPA believes the DOT should use the upcoming Joint Committee meeting to seek additional information on the Norwegian Ai r Int ernational application if it does not choose to deny the application of Norwegian Air International outright.

Respectfully submitted,

Captain Mark Richardson
President
Southwest Airlines Pilots’ Association