/1/WASHINGTON 

### BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

In the matter of the application of ) ) POLYNESIAN LIMITED ) Docket DOT-OST-2014-0144 

### ) for an exemption pursuant to ) 49 U.S.C. 40109(g) ) (Pago Pago-Manu’a Islands) ) )

APPLICATION FOR EXEMPTION
Communications with respect to this document should be addressed to: Charles F. Donley II Squire Patton Boggs (US) LLP 1200 19th 

### Street, N.W., Suite 300 Washington, D.C. 20036 (202) 626-6840 charles.donley@squirepb.com Counsel to Polynesian Limited
DATED: February 5, 2015/1/WASHINGTON 

### BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

In the matter of the application of ) ) POLYNESIAN LIMITED ) Docket DOT-OST-2014-0144 

### ) for an exemption pursuant to ) 49 U.S.C. 40109(g) ) (Pago Pago-Manu’a Islands) ) )

APPLICATION FOR EXEMPTION Polynesian Limited (“Polynesian”) hereby requests an exemption from the provisions of 49 U.S.C. 40109(g) and 41703(c) that will permit Polynesian to continue to transport persons, property and mail between Pago Pago, American Samoa, and the Manu’a Islands, American Samoa, 1 

### for a period of six months beginning March 1, 2015. 2



### The Department of Transportation (“Department”) previously approved similar requests from Polynesian to operate between Pago Pago and the Manu’a Islands due to U.S.

1 The Manu’a Islands consist of three volcanic islands, Ofu and Olosega (joined by a bridge) and Ta'u, located approximately sixty miles east of Tutuila. Tutuila is the largest of the five islands and two coral atolls comprising American Samoa. Pago Pago is located on Tutuila.

2 Polynesian is requesting grant of this authority for six months to avoid the need to file duplicative applications with the Department. Polynesian understands that (i) any authority granted pursuant to this request will be subject to further review by the Department in the event a U.S. carrier resumes full passenger and/or cargo service between Pago Pago and the Manu’a Islands; (ii) the Department’s approvals will be valid for periods of no more than thirty days, with the remainder deferred; and (iii) Polynesian will be required to cease this service no more than five days after a U.S. carrier initiates Pago Pago-Manu’a Islands service.

### -2-

/1/WASHINGTON 

### carrier termination of service between these points. 3 

### Most recently, the Department approved on November 26, 2014, an exemption permitting Polynesian to provide cabotage service between Pago Pago and the Manu’a Islands for up to ninety days. 4



### Despite the passage of ninety days since approval of Polynesian’s last exemption request, Polynesian remains the only carrier able to transport passengers and cargo between Pago Pago and the Manu’a Islands. The Government of American Samoa has requested that Polynesian continue to provide emergency service between Pago Pago and the Manu’a Islands beginning March 1 to prevent American Samoan residents from being left without air service. Polynesian has agreed to the American Samoan Government’s request, and is prepared to continue operations.

No U.S. carrier is able to provide Pago Pago-Manu’a Islands service, nor is one likely to be in a position to provide this service in the near future. Inter Island Airways (“IIA”) (which is a U.S. carrier) previously provided this service. However, Polynesian understands IIA’s aircraft still remains out of service awaiting a replacement engine. Although Polynesian believed the engine would arrive in October 2014, it is not clear when IIA’s aircraft will return to service. As a result, there is no U.S. carrier air service—or any service, other than that operated by Polynesian—between Pago Pago and the Manu’a Islands.

3 See, Notices of Action Taken , Docket OST-2003-16163, September 23, 2003 and October 23, 2003; Notices of Action Taken , Docket OST-2003-16404 and November 7, 2003; Notices of Action Taken , Docket OST-2004-17387, March 26, 2004, April 30, 2004 and May 27, 2004; Docket OST-2004-18365, Notices of Action Taken , September 22, 2004, October 15, 2004 and November 23, 2004.

4 Notice of Action Taken , Docket DOT-OST-2014-0144, November 26, 2014.

### -3-

/1/WASHINGTON 

### Polynesian will accept the conditions imposed by the Department in its November 26, 2014, and August 28, 2014, Notices of Action Taken in continuing Pago Pago-Manu’a Islands service, and has no objection to grant of its authority for an initial thirty-day period, with deferral of the remainder.

In further support of its request for exemption, Polynesian states as follows: 1. Polynesian is a citizen of Samoa and is entirely owned by the Government of Samoa. Polynesian was established by the Samoan Government pursuant to a restructuring plan intended to isolate certain pre-existing financial obligations of Polynesian Airlines (Holdings) Limited. Pursuant to the plan, effective November 6, 1995, Polynesian assumed all of the operating authority held previously by Polynesian Airlines (Holdings) Limited.

2. In addition to its proposed Pago Pago-Manu’a Islands emergency service, Polynesian currently operates from its hub, Fagalii Airport in Apia, to Pago Pago in American Samoa and operates on-demand charter services to Maota and Asau Samoa domestic airstrips on the big island of Savaii as well as to other neighboring island countries such as Tonga and Niue utilizing Twin Otter aircraft. Polynesian’s fitness and ability to carry out the proposed flight are amply demonstrated through its regular flight operations.

3. Polynesian’s operations are regulated by the Government of Samoa, which in turn utilizes under contract the safety and technical regulatory services of the New Zealand Civil Aviation Authority. New Zealand and Samoa are contracting states to the Convention on International Civil Aviation (“Chicago Convention”) and observe all

### -4-

/1/WASHINGTON 

### applicable ICAO standards. Samoa has been determined by the FAA to be a Category 1 country. 4. Polynesian will continue to operate twice-daily flights between Pago Pago and the Manu’a Islands depending on the needs of island residents and shippers and aircraft availability, and will continue to operate medical evacuation and other emergency flights as needed. Flights will be operated with Polynesian’s 19-seat Twin Otter aircraft.

5. During September and October 2014, Polynesian transported approximately 285 and 275 passengers, respectively, between Pago Pago and the Manu’a Islands, demonstrating the need for its service.

6. Under 49 U.S.C. 40109(g), the Department may authorize a foreign air carrier to transport commercial traffic between U.S. points under limited circumstances. Specifically, the Department must find that (i) the authority is required in the public interest, (ii) because of an emergency created by unusual circumstances not arising in the normal course of business the traffic cannot be accommodated by U.S. carriers holding certificates under 49 U.S.C. 41102, (iii) all possible efforts have been made to accommodate the traffic on U.S. certificated air carriers, and (iv) the exemption is necessary to avoid unreasonable hardship for the traffic. This application is consistent with the public interest and meets all of the relevant criteria under 49 U.S.C. 40109(g) for the grant of an exemption. In fact, the Department has found previously that Polynesian’s emergency cabotage service between Pago Pago and the Manu’a Islands meets the requirements of Section 40109. 5

5 Notice of Action Taken , Docket DOT-OST-0144, August 28, 2014 (“We found that this action met all the relevant criteria of 49 USC 40109(g) for the grant of an exemption of this type, for a period of 30 days, and

### -5-

/1/WASHINGTON 

### 7. Grant of this exemption request is in the public interest and necessary to avoid an unusual hardship. IIA previously provided air service but is unable to do so until its aircraft is repaired. No other U.S. carriers are available to provide this service.

8. There is no question that the suspension of U.S. carrier air service between Pago Pago and the Manu’a Islands has resulted in severe hardship to passengers and shippers and disruption to the American Samoan economy, as confirmed by the Government of American Samoa. Not only is discretionary travel affected, Polynesian understands there are no doctors on the Manu’a Islands and residents remain severely restricted in their ability to obtain urgent medical care in Pago Pago. Indeed, during Polynesian’s most recent operations it has been called upon to operate a number of medical evacuation flights.

9. Polynesian’s request for an exemption permitting it to continue to provide limited cabotage service between Pago Pago and the Manu’a Islands is supported fully by the Government of American Samoa. Included with this application is a letter from the Governor of American Samoa supporting approval of Polynesian’s application6



### 10. An emergency created by unusual circumstances not arising in the normal course of business exists. Since IIA suspended its flight, U.S. carrier air service between Pago Pago and the Manu’a Islands is not available making it extremely difficult or

that the grant was required in the public interest.”); Notice of Action Taken , Docket OST-2004-17387, March 26, 2004 (“Given these circumstances, we find that the standards for grant of emergency cabotage authority have been met, and that grant of the exemption requested by Polynesian, for a maximum of 30 days, with deferral on the remainder, is warranted.”). See, also , Notice of Action Taken , Docket OST-2004- 18365, August 23, 2004

6 See Exhibit A

### -6-

/1/WASHINGTON 

### impossible for passengers to travel between the two points. Boat service (which does not operate reliably) is not a suitable substitute, as the arduous sixty-mile journey by sea can take eight hours or more depending on weather. Moreover, the seas between American Samoa and the Manu’a Islands can be rough, and Polynesian understands that in the past a number of critically-ill passengers have not survived the boat trip.

WHEREFORE, Polynesian Limited respectfully requests that the Department of Transportation grant this exemption application permitting it to continue to transport persons, property and mail between Pago Pago, American Samoa, and the Manu’a Islands, American Samoa, for a six-month period beginning March 1, 2015, as more fully explained herein, or grant such other relief as the Department deems necessary and appropriate. Respectfully submitted, /s/ Charles F. Donley II

___________________________ Charles F. Donley II Squire Patton Boggs (US) LLP 1200 19th 

### Street, N.W., Suite 300 Washington, D.C. 20036 (202) 626-6840 charles.donley@squirepb.com Counsel to Polynesian Limited
DATED: February 5, 2015

### -7-

/1/WASHINGTON 

### EXHIBIT ALOLO M
. MOLIGA GOVERNOR

February 4, 2015 OFFICE OF THE GOVERNOR AMERICAN SAMOA GOVERNMENT Telephone: (684) 633-4116 Fax: (684) 633- 2269

U

. S. Department ofTransportation U.S. Air Carrier & Foreign Air Carrier Licensing Division 1200 New Jersey Ave. , SE Washington, DC 20590 Attention: Robert Finmore
Re : Request for DOT Cabotage Exemption Extension
Dear Mr. Finmore: LEMANU P. MA U GA UEliTENANT GOVE RNOR

Serial: 061

The American Samoa G o vernment kindly requests a Department ofTransportation (DOT) extens ion of the ex emption to Polynesian Airlines to continue to engage in cabotage operations in American Samoa due to the continued absence ofU.S. carriers servicing the outer islands ofthe Territory. The extension ofthe exemption facilitates the provisioning of assistance to mitigate emergency circumstances caused by the lack of service and ultimatel y remedy the undue hardship to those affected

. Accordingly, I support the granting ofthe extension ofthe cabotage exemption to the foreign air carrier Polynesian Airline of Samoa until such a time a U.S. carrier can resume operations. Polynesian Airlines currently holds DOT authority, and is currently servicing the air transportation need s of the residents of the Manu ' a Islands

. Your approval ofthis request is greatly appreciated. Sincerely,



# LA If}. 

# M'4.J< Lolo M

. Moliga Governor of American Samoa

cc: Honorable Lemanu P. M auga, Lieutenant Governor Tairnalelagi Dr. Claire Tuia Poumele, Director, Dept. of Port Administration Seiuli Alvin Tuala, ChiefExecutive Officer, Polynesian Airline s/1/WASHINGTON 

### CERTIFICATE OF SERVICE I hereby certify that one copy of the foregoing Application for Exemption has this day been served on each of the following individuals via e-mail or telecopier. /s/ Charles F. Donley II

___________________________ Charles F. Donley II
DATED: February 5, 2015 Office of the Governor Executive Office Building, Third Floor, Utulei Pago Pago, American Samoa 96799 011 684-633-2269 jhill@cooley.com; perkmann@cooley.com (Hawiian) alex.sene.jr@gmail.com (IIA) steve.morrissey@united.com; dan.weiss@united.com pdoell@naca.cc