### THE SECRETARY OF TRANSPORTATION WASH I NGTON , D .C. 20590



### The Honorable Peter A. DeFazio U.S. House of Representatives Washington, DC 20515 Dear Congressman DeFazio: March 10,2014

Thank you for your letter regarding the app lic ation 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 applic ation. I assure you , however, that we will give full and careful consideration to all of the pleadings filed on the record before we reach a determination in this matter. As is our standard practice, I am placing a copy of your letter and my response in Docket DOT-OST -2013-0204, as a contact outside the record ofthis case. You may track the progress of this case and view the publicly availab le 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.

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I am writing to express my deep concern over the application before your Department by Norwegian Air International Limited (NAI) for exemption authority and a foreign air carrier permit. Approval ofthis application (Docket DOT-OST-2013-0204) would not be in the public interest. NAI is trying to get around labor laws and regulations by registering its aircraft in Ireland, just like ships in the maritime industry are registered (or flagged) in countries with less stringent environmental and labor standards in order to cut costs. These " Flag of Convenience " ships are notorious for poorly trained, poorly paid crews, and poorly maintained ships. I've spent years fighting this type of activity by the owners of ships , and am extremely concerned the same practices are about to begin with airlines looking to cut corners and save money. Behind the NAI application is a global outsourcing business model for its pilots and flight attendants (or ' 'aircrew") that will put U
. S. airlines and their employees at a competitive disadvantage. Indeed, this airline bearing the name "Norwegian" describes itself in the application a s "a foreign carrier of Ireland. " NAI's application provides little information about itself or its plans, but based on the media reports, it appears to be in the same corporate family with another carrier , a rapidly-growing low-cost airline, Norwegian Air Shuttle (NAS). I am concerned by NAS' publicly-stated desire to avoid the obligations ofNorwegian labor law. NAS has stated that , to conduct its new long-haul operations , including those to the U.S
.. it will seek to register its aircraft in, and receive an air operator ' s certificate from , a European Union country whose labor Jaws , unlike Norway ' s, will allow outsourcing of aircrew beyond the EU. NAS!NAl has chosen Ireland. NAS has stated that it plans to operate this Irish subsidiary-registered aircraft to fly from Norway and other EU points to the United States with outsourced lower-wage aircrew, based in Southeast Asia , under individual employment contracts governed by Singapore law. It appears that NAS intends to use NAI as its Irish affiliate to bring its plan to fruition. NAl/NAS ' s business model is designed expressly to undermine fair wages and working conditions. It would also put U.S. carriers who are following U.S. regulations at a competitive



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o ar e f oll ow in g U.S. r egul a ti ons at a co mp etiti ve di sad va nta ge . A ppro v al of NA I' s appli cati o n for auth o rit y wo uld be in co n s is te nt w ith th e Co ng ress ion a ll y -es tabli she d public inte res t as se t f o rth in th e a v iati o n s ta tute s a nd se t a da nge ro u s prece de nt. · I urge D OT to de ny NA I' s ap pli ca ti o n a nd do every thin g in it s p owe r to d isco urage additi o na l a irlin es f ro m a tt e mptin g s imil ar -- Fl ag o f Co nve n ien ce· ' sc he m es. Th a nk y ou f o r yo ur c on s ide ration
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