BEFORE THE

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Application of

Docket No. OST-2013-0204

NORWEGIAN AIR

INTERNATIONAL LI~nTED

for an exemption under 49 U.S.c. § 40109

and a foreign air carrier permit pursuant

to 49 U.S.CO § 41301 (U.S.-E.U. Open

Skies)

ANSWER OF THE ASSOCIATION OF FLIGHT ATTENDA1~TS-CWA, AFL-CIO TO

APPLICATION OF NORWEGIA1~ AIR INTERNATIONAL LIMITED FOR AN

EXEMPTION AND FOREIGN AIR CARRIER PERMIT

The Association of Flight Attendants - CW A, AFL-CIO (AFA), representing nearly 60,000

Flight Attendants at 19 international, domestic, regional and charter u.s. airlines submits these

comments in opposition to Norwegian Air Shuttle ASA's (NAS) Application to the Department

of Transportation (DOT) to operate its subsidiary, Norwegian Air International (NAI or

Norwegian), between the United States and Europe under a foreign air carrier permit

exemption. The proposed Application which is misleading and contradictory to labor standards

should not be granted.

AFA supports comments submitted by the Air Line Pilots Association (ALPA), the

Transportation Trades Department, AFL-CIO (TTD), Airlines for America (A4A), the Allied

Pilots Association (APA), and the Southwest Airline Pilots Association (SW APA) as well as the

joint reply of Delta Air Lines, Inc., United Airlines, Inc., and American Airlines, Inc./US

1
Airways, Inc. Labor and management strongly agree that NAI is seeking to circumvent current

air services agreements and that NAI service will degrade labor standards.

As the world's largest Flight Attendant union, AFA is uniquely positioned to address concems

with NAI's comments on cabin crew requirements and regulations. In support of its application,

NAI purports to be: (1) using hiring agents to minimize investment costs, (2) hiring and training

cabin crew members who will be based in the U.S. and follow U.S. law, and (3) paying cabin

crew members $37,497.16 and $34,384.75, respectively, for Senior Cabin Crew and Junior

Cabin Crew members. (Dkt. DOT-OST-2013-0204 at 2 (Application of Norwegian Air

International Limited». This Application is misleading and undermines the career path for U.S.

Flight Attendants, and fails to adhere to the minimum labor standards contained in Article 17 his

of the U.S. - EU agreement.

In its Application, NAI purports to hire domestic crews and establish crew domiciles outside of

Europe and enforce the labor laws of those countries. (Dkt. OOT-OST-2013-0204 at 2).

However, in reality, all NAI U.S. cabin crew will be employees of a hiring company, OSM

Aviation Inc. (OSM), and not NAI. C"OSM Aviation Management Cabin Crew [Ilnformation

[T]erms and [Clonditions" at 1-5) (Attached). Thus, flight crew members will not actually be

employed by an airline. Instead, cabin crew hired by OSM wiJl be hired and governed by oneyear renewable contracts. C"OSM Aviation Management Cabin Crew [l]nformation [T]erms and

[Cjonditions" at 1). This appears to be a scheme simply intended to keep pay low and refuse

recognition for experience or longevity. The OSM incentives and pay at rates above the one year

rate are merely speculative, since at this lime no U.S. based Flight Attendant employed by OSM

has earned or been guaranteed any earnings beyond the first year pay rates.

A second issue with the NAI application's limited information is that NAI cannot operate under

U.S. law, as it states in its comments. (Dkt. DOT-OST-2013-0204 at 2)("It is currently training

cabin crew members who will be based in the United States. under u.s. law.")(ItaJics added).

Pursuant to federal law, U.S. Flight Attendants must be FAA certified. 49 U.S.c. § 44728. Flight

2
Attendants employed by NAI through their hiring agent OSM are not certified to U.S. FAA

standards, and regardless cannot be certified because NAI will operate under the authority of the

Republic of Ireland. Nicola Clark. New York Times, With u.s. in Sights. Nonvegian Airline

Wins Irish License February 12, 2014. Ireland is a Member State of the European Aviation

Safety Agency Agreement ("EASA"), and NAI cabin crew should therefore be regulated under

Irish authority.

Therefore, it is AFA's understanding that the U.S. FAA will not be providing any guidance or

oversight for cabin crew training or certification. This appears to be an attempt to circumvent the

U.S. safety standards for cabin crew - a very slippery slope for U.S. aviation. The delegation's

response is specifically vague and does not specify which Member State's authority will apply to

NAI cabin crew. The first U.S. cabin crew members have already completed initial training. So,

which Member State's Cabin Crew Attestation (CCA) was applied? Did they obtain Norwegian

or Irish CCA?

In it" response, the delegation' references establishment of crew domiciles outside of Europe and

specifically mentions Thailand. (Dkt. DOT-OST-2013-0204 at 2) ("Currently, long-haul pilots

are employed by Global Crew Asia (Singapore) and cabin crew members are employed by

Adecco (Thailand)"). Questions compound: which cabin crew regulations apply to the cabin

crew based in Thailand?

All of these confusing references to different National Aviation Authorities should alert the U.S.

DOT that even the applicant is either unclear or intentionally vague on certification and training

standards. Without clearly stating which member state has the oversight authority how can one

be certain the standards are to be applied and whether they are being met? This could ultimately

reflect poorly on the cabin crew performance in an actual emergency event.

I Docket DOT-OST-2013-0204, Response 10 written summary of the January 8,2··14 U.S.-EUAir Transport

Agreement held in Washington DC

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A third issue with NAI's application is their misrepresentation of gross salary offered. Notably,

the OSM pay rates are lower than the potential earnings of the Flight Attendants who work

international routes at U.S. carriers. In recently adopted EASA regulations regarding flight times

and duty period limits, the maximum number of flight hours per year that a Flight Attendant can

fly is 900 hours in a calendar year, or 1,000 hours in any 12 consecutive calendar months, which

provides guidelines for refuting the pay assertions of NAI.

The salary calculations proposed in the written statement, (Dkt, DOT-OST-2013-0204 at 2)

(Senior Cabin Crew $37,497.16 and Junior Cabin Crew $34,384.75 in "gross payments.") are

overstated. Based upon 1st year hourly pay of $21.13 plus purser premium of $3.50 x 900 hours,

the Senior Cabin Crew pay would be closer to compensation amounts to $22,167 in a calendar

year or $24,630 in a consecutive 12 month period (1st year hour pay rate including purser pay at

1,000 hours). The maximum that a "Junior" OSM flight attendant could earn in a given calendar

year would only amount to $21,113 (hourly rate $21.13 at 1,000 hours per year) far less than

what NAI has claimed.

Moreover, to get even close to the salary put forth in NAI's comments, it is necessary to include

a per diem for an 18 day trip at $2.00 per hour, which equates to a paltry $48 per day. This

obfuscation is misleading because you can only include the per diem rate if cabin crew members

are actually utilized. Moreover, it is misleading when per diem pay is included as part of gross

salary. It is necessary for an airline to provide cabin crew with per diem payments in order to

offset the often significant expense of traveling for work. But, this is money that largely goes to

supporting cabin crews' trips - which is a necessary part of their job. Hence, it is extraordinarily

misleading to attempt to include per diem pay under the auspices of "gross payments."

Furthermore, according to OSM, cabin crew will only be guaranteed 71 hours of flight time per

month ("OSM Aviation Management Cabin Crew [l]nformation [Tjerms and

[Cjonditions'Yattached). It follows, therefore, that any additional compensation, which would

4
result in more equitable wages, is not guaranteed and is purely speculative in nature.

In comparison, most Flight Attendants employed by U.S. carriers flying international routes also

receive international premium pay and other incentives such as higher pay for language

qualification. If allowed to proceed, the NAIIOSM framework could undermine our efforts to

maintain the international premium pay standards for U.S. workers. Further, this European

standard is below the U.S. standard, which currently has no limitation on the number of Hight

hours a Flight Attendant can work in a year.

NAI's Application is also in stark contrast to Article 17, bis of the U.S.-E.U. Air Transport

Agreement because it undermines labor standards enjoyed by U.S. Flight Attendants. Pursuant to

the public interest factor that the DOT is charged to uphold, the DOT Secretary must consider

"strengthening the competitive position of air carriers to at least ensure equality with foreign air

carriers, including the attainment of the opportunity for air carriers to maintain and increase their

profitability in foreign air transportation." 49U.S.C. 40101(15). Further, the U.S.-E.U. Air

Transport Agreement provides that:

1. 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.

2. The principles in paragraph 1 shall guide the Parties as they implement the Agreement.

Article 17, bis ("Social Dimension").

Based solely on the incomplete information NAI submitted, the wages proposed are not

competitive with the pay and benefits provided by U.S. airlines to U.S. cabin crew operating

internationally. As a result, U.S. companies will struggle to compete with a foreign carrier

offering tickets that are nearly fifty percent cheaper than U.S. carriers on certain routes. lad

Mouawad, New York Times, Long-Haul Expansion bv a Nonvegian Carrier Upsets U.S. Airlines,

5
February 6,2014. Flight Attendants, who are in most cases U.S. citizens, will certainly be forced

to bear the brunt of such foreign competition.

This dynamic is contrary to the "social dimension" provision of the U.S.-E.U. Air Transport

Agreement. In this case, NAI is putting forth a classic model of the "race to the bottom" practice,

where the company with the lowest wages and benefits prospers, whereas other companies

offering fair wages and benefits are harmed, especially in the absence of strong labor laws

mandating paid sick and maternity leave, vacation, health care and retirement benefits. Since this

scheme contravenes the "social dimension" agreement, and the U.S. and E.U. are required to be

guided by the "social dimension" language, NAI must not be permitted to be established in the

United States and render U.S.-based companies uncompetitive and cause Flight Attendants to

suffer as a result.

If the NAl application is granted, we believe the Flight Attendant profession will be

compromised. We also believe the NAI model will incentivize other carriers toward creating

short-term Flight Attendant jobs rather than build fulfilling careers as aviation's first responders.

Stephen Schembs

Director of Government Affairs

Association of Flight Attendants - CW A

501 3rd Street NW, 10th Floor

Washington, DC 20001

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CERTIFICATE OF SERVICE

I certify that I have, on this 14th day of February, 2014, served the foregoing

Answer of Association of Flight Attendants - CWA to DOT Notice by causing a copy to

be sent by electronic mail to the addresses identified below:

romanow@pillsburylaw.com

peter .nelsonespillsburylaw.com

edw@ttd.org

steve.morrisseyenmited.com

dan. weiss@united.com

sascha.vanderbellensrdelta.com

howard.kass@usairways.com

robert. wirickcsaa.com

francis.heil@aa.com

michael. whitaker@faa.gov

jesse.elliotsfaa.gov

douglas.schwabsfaa.gov

nichoias.tsokris@faa.gov

john.allen@faa.gov

urskr@state.gov

westphalkl@state.gov

pvs@eurocockpit.be

leo@washingtonairports.com

russell.bailey@alpa.org

john.hanlon@elfaa.com

dbergeairlines.org

jcaseyseairlines.org

kgla tz@airlines.org

clytle@portoakland.com

kgeorge@broward.org

mrichardson@swapa.org

ejames@jamhoff.com

eugene.aiford@trade.gov

matthew.baldwin@ec.europa.eu

felix.leinemann@eeas.europa.eu

david.batchelor@sesarju.eu

ottar .ostnes@sd.dep.no

paul.gretchesdot.gov

robert.finamore®dot.gov

nssparks@fedex.com

dpdeanejarnhoff.com

vegard.einan@parat.com

thore .selstad.hal vorsoncsparat.com

ministererdttas.ie
OSiVjAviation Management

Cabin Crew information terms and conditions

About OSMAviation Inc.

OSM Aviation is a part of The OSM Group. The OSM Group is a provider of high quality

offshore, ship and aircrew management services with operations worldwide. The Group

offers a broad range of services, and has customers in all shipping, offshore and aviation

segments. We aim to deliver the best value money can buy. OSMGroup employs more than

10000 crew members.

At OSMour people are our highest priority. We place great emphasis on teamwork and on

creating an environment in which our seagoing and aircrew staff feel valued and a part of

the company. We also strive to reflect our values and vision throughout the organization in

order to provide the best possible service for our ciients. By making ail our empioyees feel

part of the OSM family, and by fully supporting their continuing education, competence

building and career development, we intend to attract the "newgeneration" of aircrew.

Employment contract

The employment contract is 1year non-binding and renewable.

Pay schedule

Flight Attendants' monthly wages based on 71 hours minimum:

All currencies in USD

~ear I 1500 I

[2f-=-~n"""d<yea ";:';;" -"-r----+!-=1:..:c

S

-=-9-=-O----1

i 3

rd year_. 11685 i

4th ear 1787 ~I!,

5th year I 1965

In addition to the above rates of pay, a Flight attendant shall be paid the following

for each credited flight hour in excess of seventy one (71) hours per month.

i 1st year 21,13

~

Znd year 22,39

.2J:dyear 23,74

,4th vear ,2516

Pursers will receive USD 3.50 for each credited flight hour in addition to the above

rates.

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OSM Aviation Management

Cabin Crew information terms and conditions

Holidays

Work during Holidays will be compensated with USD5 pr Duty Hour during the following

days:

January 1- New Years Day

May - Memorial Day

September - Labor Day

November - Thanksgiving Day

December 25 - Christmas Day

Pea-diem

Per diem rates are USD2 per hour away from homebase starting at Block off until Block on

Insurances

Health insurance - OSMwill pay 50% of premium towards health insurance

Disability insurance

Probation Six months - begins from the first day of training. Notice period during

probation is one week. Notice period after probation is 14 days.

Scheduling/Roster

All crewscheduling will be regulated by Norwegian's Operational Manual which is based on

EASAregulations. .;: f')iAnnual/eave

After 1 year of employment each Crew Member is entitled to 10 days of paid vacation per

year. The Crew Member accrues 10 vacation days per 12 months.

Vacation will be allocated subjectto Norwegian's fostering system and vacation periods.

Training

Training will commence on November 18.

Uniforms and Identification:

All uniforms/regalia and ID cards will be provided for each crew member by Norwegian.

OSM Aviation Inc. will assist with ordering and facilitating uniforms and ID cards.

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OSM Aviation Management

Cabin Crew inforrnatior terms and conditions

Travel Benefits:

Norwegian shall make ID travel benefits available to the Crew Member and his/her

qualifying family members, including ID travel, according to the current Norwegian

policies.

Ground Transportation:

During Line Training and operational duty, Norwegian shall provide ground transportation

to the Crew Members at layover stations.

Accommodation at layover stations:

Norwegian shall provide single room accommodation at layover stations other than Base.

Medical Facilities:

Norwegian shall make its best effort to assist in the provision of contact with medical

facilities should the need arise.

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AVfATJOf'! OSM Aviation Management

Cabin Crew information terms and conditions

NORWAY

Officially the Kingdom of Norway, is a Scandinavian unitary constitutional monarchy

whose territory comprises the western portion of the Scandinavian Peninsula, [an

Mayen, the Arctic archipelago of Svalbard, and the sub-Antarctic Bouvet Island. Norway

has a total area of 385,252 square kilometers (140,747 sq. mi) and a population of about

5 million. It is the second least densely populated country in Europe. The country shares

a long eastern border with Sweden (1,619 km or 1,006 mi long), which is the longest

uninterrupted border within both Europe and the Schengen Area. Norway is bordered

by Finland and Russia to the north-east, and the Skagerak Strait to the south. with

Denmark on the other side. It shares maritime borders with Russia by the Barents Sea;

Greenland, the Faroe Islands, and Iceland by the Norwegian Sea; and Sweden, Denmark,

and the United Kingdom by the North Sea. Norway's extensive coastline, facing the

North Atlantic Ocean and the Barents Sea, is laced with fjords, a renowned part of its

landscape. The capita! city Oslo is the largest in the nation, with a population of nearly 1

million.

In 1949, it abandoned neutrality becoming a founding member of NATO. Discovery of oil

and gas in adjacent waters in the late 1960s boosted Norway's economic fortunes. In

referenda held in 1972 and 1994, Norway rejected joining the European Union.

King Harald V is Norway's head of state and Erna Solberg is the prime minister as of the

middle of October 2013, replacing [ens Stoltenberg. it has administrative subdivisions

on two levels known as counties (fylke) and municipalities (kommuner). The Sami

people have a certain amount of self-determination and influence over traditional

territories through the Sami Parliament and the Finnmark Act. Although having rejected

European Union membership in two referenda, Norway maintains close ties with the

union and its member countries, as wel! as with the United States. Norway is a founding

member of the United Nations, NATO, the Council of Europe, and the Nordic Council; a

member of the European Economic Area, the WTO and the OEeD; and is also a part of

the Schengen Area.

Norway has extensive reserves of petroleum, natural gas, minerals, lumber, seafood,

fresh water, and hydropower. The country has the fourth-highest per capita income in

the world. On a per-capita basis, it is the world's largest producer of oil and natural gas

outside the Middle East, and the petroleum industry accounts for around a quarter of the

country's gross domestic product The country maintains a welfare model with universal

health care, subsidized higher education. and a comprehensive social security system.

From 2001 to 2006, and then again from 2009 to 2012, Norway had the highest Human

Development Index ranking in the world. From 2010 to 2012, Norway also topped the

Legatum Prosperity Index. Also from 2010 to 2012, Norway had the highest ranking on

the Democracy Index. The OECD ranks Norway third in social mobility and fourth on the

2013 Better Life Index Forbes rank Norway fourth in their list The World's richest

countries, which compares countries by GDP. Norway was the first independent country

to introduce women's suffrage in 1913.

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4VfATl(JN (\S \!Ii' \li ation [>./" I'...•. J(\!~, ~'nt ..I ., 1. H.. 1,... J h.~ ICtJ'J_,.lll.~ ~;

Cabin Crew information terms and cnnditions

I Capital I Oslo ~.

lNational Day ! 17th of May ,

! Royal Family I King Harald, Queen Sonja, Crownprince Haakon, Crownprincess Mette

I ! Marit -l

I

Prime ~ I

Minister Erna Solberg I

i Political . Norway is a constitutional monarchy with a parliamentary democratic i

I

I . .

stem's stem of overnance. .

! .. :~;9i~~._. I ~~:;;~~h(e:a~~~~tio~~~~ngs to~~e state EVangel.~al~~_theran

r Time i UTe + Lhr - Daylight Savings Time UTe +2 hcs

. International i

~~1Iing code I +47

!Currency --l Norwegian Krone - N_O_K . _

i Climate i Summer

i I

i

I Late June to early August is when the weather is warmest and the days

I are long and bright. Temperatures in July and August can reach 25°C -

130oe. At the same time there is hardly any humidity in the air.

I Autumn

I In the autumn the landscape is painted in golden colors. The

I temperature drops slowly through September, making for good berry I and mushroom picking weather.

I Winter

I In winter much of Norway is usually transformed into a snow-clad

i paradise.

i

I The lower inland areas, both in the southern and northern parts of

I Norway, can have very low mean temperatures in winter. I Temperatures can reach beiow -40

c

C in the inner areas of Finnmark,

I Troms, Trendelag and Eastern Norway. even if this does not happen

I every wi nter.

I

I

I Spring

l

I

May to mid-lune is when the scenery in Norway is at its most

spectacular, with trees and flowers waking to life, snow in the

II mountains and melt water swelling the waterfalls. Orchards of

flowering fruit trees along the Hardangerfjord in May are images of

. paradise.

i Language .! Nonw:gian -il·1ost peC?pleare able to iead, Wille am! speak English

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