European Low Fares Airline Association

46 Avenue des Arts

B-1000 Brussels

Belgium

 tel: +32 (0)2 504 90 05 – fax: +32 (0)2 732 71 76 - info@elfaa.com - www.elfaa.com

 

Registered address: 21-23, 1st Floor, West Street, Oundle, Cambridgeshire, PE8 4EJ, United Kingdom

Registered in England & Wales No. 5882574

24 January, 2014

The Honourable Anthony R. Foxx

Secretary

U.S. Department of Transportation

1200 New Jersey Avenue, S.E.

Washington, DC 20590

Re: SUBMISSION BY EUROPEAN LOW FARES AIRLINE 

ASSOCIATION TO U.S. DEPARTMENT OF TRANSPORTATION 

IN SUPPORT OF APPLICATION BY NORWEGIAN AIR 

INTERNATIONAL LIMITED IN ACCORDANCE WITH EU/U.S.

OPEN SKIES AGREEMENT.1

Docket No. OST-2013-0204

Dear Secretary Foxx,

The European Low Fares Airline Association (“ELFAA”) supports the application of

Norwegian Air International Limited (“Norwegian International”) in the above-referenced 

docket for authority to provide foreign scheduled and charter air transportation to the full 

extent permitted under the U.S.-EU-Iceland-Norway Open Skies Air Transport Agreement 

of 2011 (the “EU/U.S. Open Skies Agreement”).

ELFAA is the representative body for the major European low fares airlines, which 

constituted 43% of intra-Europe point to point scheduled traffic in 2010 and are forecast to 

represent 60% by 2020.2ELFAA member airlines carried over 202 million passengers in 

2012 to nearly 1,000 destinations, operating a combined fleet of some 900 state-of-the-art

aircraft, offering the highest level of environmental efficiency.

 

1 To the extent necessary under the Department’s Rules of Practice (14 C.F.R. Part 302), ELFAA requests 

leave to file this submission. Consideration of ELFAA’s comments will enhance the Department’s review of 

Norwegian International’s pending application and give the Department a more complete record upon which 

to make a decision in this proceeding.

2

Source: York Aviation ‘Market Share of Low Fares Airlines in Europe’ (February 2011)
tel: +32 (0)2 504 90 05 – fax: +32 (0)2 732 71 76 - info@elfaa.com - www.elfaa.com

 

Registered address: 21-23, 1st Floor, West Street, Oundle, Cambridgeshire, PE8 4EJ, United Kingdom

Registered in England & Wales No. 5882574

From intra-EU beginnings, ELFAA member airlines have progressively extended their 

networks to take advantage of opportunities, secured as part of comprehensive and 

horizontal Air Service Agreements, negotiated by the EU with non-EU states. Norwegian 

International’s proposed service to the U.S. would continue in this tradition.

The EU/U.S. Open Skies Agreement granted the right to any EU-approved carrier to 

operate air services between the EU and U.S. It further provided for mutual recognition of 

regulatory approvals and oversight by all competent U.S. or EU regulatory authorities.

Norwegian International has followed to the letter the procedures described in the Open 

Skies Agreement, having submitted applications to the Irish Civil Aviation Authority for 

an Air Operator Certificate and operating licence. Upon approval by the Irish authorities, 

Norwegian International will properly qualify for a U.S. exemption and operating permit 

under the terms of the EU/U.S. Open Skies Agreement.

The traffic rights, sought by Norwegian, were the product of an important compromise 

between the governments, and their industry stakeholders, on both sides of the Atlantic. At 

the time of the conclusion of the EU/U.S. Open Skies Agreement, the agreement was 

publicly denounced by several senior EU industry representatives. Martin Broughton, 

Chair of British Airways, likened it to the EU having given away the family silver –

access to Heathrow and intra-EU traffic rights for U.S. carriers – with no compensating 

gains for EU carriers in terms of beyond rights behind their U.S. entry points. Steve 

Ridgeway, CEO of Virgin Atlantic, was similarly critical. EU airlines were also concerned 

at the Agreement’s failure to amend ownership constraints, which remain heavily 

unbalanced in favour of the U.S.

In response, U.S. defenders of the Agreement pointed to a claimed balancing factor in the 

ability of any EU carrier – including low fares airlines – to operate between all points in 

the EU and all points in the U.S. Norwegian International is seeking to take advantage of 

this opportunity.

Since committing to Open Skies, the EU has not sought to withhold any of the freedoms 

granted to U.S. carriers, which have actively made use of them. Those U.S. carriers which 

formerly operated to Gatwick have progressively transferred to Heathrow and U.S.

carriers are exercising their intra-EU operating rights without let or hindrance.

The EU has upheld the agreement, even though the imbalance in ownership rights 

remains: Delta has been permitted to take 49% ownership of UK carrier Virgin, even 

though EU airlines remain limited to maximum 25% voting interest in U.S. carriers. 

ELFAA looks to the U.S. to honour its legal obligations under the Open Skies in its 

consideration of Norwegian International’s application, just as the EU has honoured the 

commitments it made in the Open Skies Agreement. Subject to the grant to Norwegian 

International by the Irish regulatory authority of the requisite AOC and operating permit, 

DOT should grant the exemption and operating permit, for which Norwegian International 

has applied, in accord with the Agreement.
tel: +32 (0)2 504 90 05 – fax: +32 (0)2 732 71 76 - info@elfaa.com - www.elfaa.com

 

Registered address: 21-23, 1st Floor, West Street, Oundle, Cambridgeshire, PE8 4EJ, United Kingdom

Registered in England & Wales No. 5882574

While ELFAA is aware of certain stakeholder objections to Norwegian International’s 

U.S. operating authority, primarily by labour unions from the established alliance airlines, 

ELFAA considers these ill-informed and without proper basis. 

In concluding the EU/U.S. Open Skies Agreement, both sides were motivated to increase 

competition, to the considerable benefit of consumers. ELFAA supports greater 

competition in air services between the U.S. and EU, 87% of which are at present 

controlled by carriers that are part of immunised alliances. It is no surprise that this lack of 

competition has kept fares uniformly high. For example, when travelling to the 08 January 

Joint Committee meeting in Washington from London, the cheapest economy fare which 

was available to book on traditional networks by any routing – including some 18 hour 

long itineraries – was GBP £1687. Norwegian’s LGW-OSL-JFK service would have cost 

GBP £547 but sadly did not provide a connection JFK-WAS in time for the meeting.

U.S. and EU consumers desperately need the availability of low fares between the U.S.

and the EU and this need should outweigh the defensive, protectionist concerns, expressed 

by other stakeholders. Thank you for your consideration of Norwegian International’s

application.

Sincerely,

John Hanlon

Secretary General, ELFAA

cc: steve.morrissey@united.com

thomas.bolling@united.com

dan.weiss@coair.com 

sascha.vanderbellen@delta.com

howard.kass@usairways.com

mlbenge@zsrlaw.com

rpommer@atlasair.com

russell.bailey@alpa.org

jonathan.cohen@alpa.org

edw@ttd.org

clytle@portoakland.com

kgeorge@broward.org

mrichardson@swapa.org

robert.wirick@aa.com

francis.heil@aa.com

jesse.elliot@faa.gov

nicholas.tsokris@faa.gov

john.chen@faa.gov

john.allen@faa.gov

anita.mosner@hklaw.com

jennifer.nowak@hklaw.com

nssparks@fedex.com

gbleopard@fedex.com
tel: +32 (0)2 504 90 05 – fax: +32 (0)2 732 71 76 - info@elfaa.com - www.elfaa.com

 

Registered address: 21-23, 1st Floor, West Street, Oundle, Cambridgeshire, PE8 4EJ, United Kingdom

Registered in England & Wales No. 5882574

dberg@airlines.org

jcasey@airlines.org

kglatz@airlines.org

cc@eurocockpit.be

ejames@jamhoff.com

romanow@pillsburylaw.com

peter.nelson@pillsburylaw.com

urskr@state.gov

eugene.alford@trade.gov

Matthew.Baldwin@ec.europa.eu

Felix.LEINEMANN@eeas.europa.eu

David.Batchelor@sesarju.eu

Ottar.Ostnes@sd.dep.no 

John.Hanlon@ELFAA.com 

paul.gretch@dot.gov 

Robert.Finamore@dot.gov