BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C.

_____________________________________________ 

 ) 

Application of ) 

 ) 

NORWEGIAN AIR INTERNATIONAL LIMITED ) Docket No. OST-2013-0204 

 ) 

for an exemption under 49 U.S.C. § 40109 and ) 

a foreign air carrier permit pursuant to ) 

49 U.S.C. § 41301 (U.S.-E.U. Open Skies) ) 

__________________________________________) 

COMMENTS OF THE AMERICAN SOCIETY OF TRAVEL AGENTS 

 IN SUPPORT OF APPLICATION OF 

NORWEGIAN AIR INTERNATIONAL LIMITED 

Communications with respect to this document should be addressed to: 

Paul M. Ruden, Esquire 

Senior Vice President, Legal & Industry Affairs 

American Society of Travel Agents 

1101 King Street, Suite 200 

Alexandria, VA 22314 

Tel: (703) 739-6854 

E-mail: pruden@asta.org 

August18, 2014
2 

BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

__________________________________________ 

 ) 

Application of ) 

 ) 

NORWEGIAN AIR INTERNATIONAL LIMITED ) Docket No. OST-2013-0204 

 ) 

for an exemption under 49 U.S.C. § 40109 and ) 

a foreign air carrier permit pursuant to ) 

49 U.S.C. § 41301 (U.S.-E.U. Open Skies) ) 

__________________________________________) 

COMMENTS OF THE AMERICAN SOCIETY OF TRAVEL AGENTS 

 IN SUPPORT OF APPLICATION OF 

NORWEGIAN AIR INTERNATIONAL LIMITED 

The American Society of Travel Agents (“ASTA”) hereby responds to the Department’s 

August 4, 2014 request for comments (“Notice”) on a July 14, 2014 meeting between 

representatives of the Departments of State and Transportation and European Commission 

officials on the legal meaning and applicability of Article 17 bis of the Air Transport Agreement 

between the U.S. and the EU (the “Agreement”) as it relates to the application of Norwegian Air 

International Limited (“Norwegian International’) for an exemption and a foreign air carrier 

permit, filed with the Department on December 2, 2013. For the reasons elaborated below, 

ASTA believes that prompt approval of Norwegian International’s application will inject sorelyneeded competition into the current trans-Atlantic air service regime, create U.S. jobs, and 

stimulate new travel between the U.S. and Europe, thereby helping the Administration to meet its 

ambitious goal of attracting 100 million international visitors annually to the U.S. by 2021. 
3 

I. INTRODUCTION – ASTA’S INTEREST IN THE PROCEEDING

ASTA, headquartered in Alexandria, VA, with over 8,000 members in all fifty states and 

120 countries, was established in 1931 and is the world’s leading professional travel trade 

organization. ASTA’s voting membership is comprised of retail travel agents, including 

traditional brick-and-mortar leisure agencies, Travel Management Companies (“TMCs”), Online 

Travel Agents (“OTAs”), as well as individual home-based travel agents and many others 

engaged in various aspects of retail and wholesale distribution of transportation services. 

ASTA is widely recognized as a responsible representative of the interests of travel 

agents and consumers and has participated in a multitude of proceedings before federal and state 

agencies. Travel agents, both online and traditional “brick and mortar” agencies, are responsible 

for the sale of the majority of airline tickets in the U.S. In 2013, online and traditional travel 

agents processed $86 billion of total air sales, including 142.6 million air transactions.1

 Travel 

agencies fulfill a range of needs for the traveling public. They save consumers money and time 

by facilitating effective comparison shopping and decision-making as to how best to spend their 

travel dollars. Travel agencies also help government and corporate organizations manage 

employee travel spending, reduce costs and negotiate savings that would otherwise be missed. 

Travel agents and the travelers they serve have an abiding interest in a healthy airline 

industry and a competitive marketplace for air travel. Robust competition between carriers was 

the central (and largely fulfilled) promise of the Airline Deregulation Act of 1978. As the 

Government Accountability Office observed in 2006, “Airfares have fallen in real terms over 

time, with round-trip median fares almost 40 percent lower since 1980...The decline in fares 

coincided with a growth in passenger traffic and increased competition over the period.”2

 

 

1

https://www.arccorp.com/news/stat/2013-12.jsp. 

2

http://gao.gov/assets/260/250422.pdf. 
4 

 With the growth of antitrust-immunized international airline alliances, however, this 

promise is under attack. For example, a 2011 U.S. Department of Justice (“DOJ”) study of transAtlantic air services found that grants of antitrust immunity to carriers, which “reduce 

competition in routes where these carriers offer competing flights,” have resulted in a situation 

where the three largest groups of antitrust immunized carriers “combine to carry over 82% of the 

U.S.-E.U. passenger traffic.”3 With regard to the fares paid by trans-Atlantic passengers, DOJ 

found that “fares...in non-stop trans-Atlantic flights are significantly higher in routes with fewer 

independent non-stop competitors. The data show that, all else equal, average one-way fares in 

routes served by one non-stop carrier are $31 higher than in routes served by 2 competing nonstop carriers, $62 higher than in routes served by 3 competing non-stop carriers, and $88 higher 

than in routes served by 4 competing non-stop carriers...This evidence supports the normal 

antitrust presumption that eliminating or substantially reducing competition through merger or 

collaboration enhances the market power of the remaining suppliers and leads to higher prices, 

harming consumers.”4

So, instead of a large number of independent carriers competing vigorously for consumer 

patronage, the industry has been reduced to a severe oligopoly model, especially as it relates to 

trans-Atlantic service. Economic theory teaches, and industry practices generally illustrate, that 

a market with a small number of dominant firms will exhibit limited entry, less competitive 

aggression, more parallel behavior, and, ultimately, a diminished response to consumer pressures 

for better options and prices. 

 

3

http://www.justice.gov/atr/public/eag/267513.htm. 

4

Ibid. 
5 

II. THE NORWEGIAN APPLICATION SQUARELY ADDRESSES BENEFITS 

THE UNITED STATES BARGAINED FOR IN THE U.S.-EUROPEAN UNION 

OPEN SKIES AGREEMENT. 

The previous section describes the competitive landscape that Norwegian International is 

now asking the Department to enter. Earlier this year, Norwegian Air Shuttle, an affiliate of 

Norwegian International, inaugurated new nonstop flights between New York and London and 

expanded its trans-Atlantic service to U.S. markets that currently lack trans-Atlantic connections 

such as Fort Lauderdale, Fla. and Oakland, Calif. Norwegian Air Shuttle is advertising one-way 

fares from New York as low as $244 to London and $201 to Copenhagen, Denmark – hundreds 

of dollars less than competitors’ fares. This kind of increased competition in a market that sorely 

needs it is reason alone to approve Norwegian International’s application without delay. 

Approval of Norwegian International’s application will also help the Administration meet 

its ambitious policy goal, set in 2012, of attracting and welcoming 100 million international 

visitors, who will spend $250 billion, annually by the end of 2021. For the past few years, 

ASTA has been working with the U.S. Travel Association, the Corporation for Travel Promotion 

and others to further this goal to increase international visitation to the U.S. While the number of 

global long-haul travelers increased by 61 million from 2000 to 2010, the number of overseas 

visitors to the United States stayed flat. This inability to keep pace has cost the U.S. economy 

billions of dollars. This is a priority issue for ASTA because not only do we have almost 800 

international members with the potential to drive “inbound” travel, but, as the May 2012 

National Travel and Tourism Strategy notes, “Travel agencies...are important sources of trip 

planning information for many international travelers.”5

 Increasing inbound travel from Europe 

will be a key component of this initiative – a goal shared by the Administration, as recently 

 

5

 National Travel and Tourism Strategy, May 2012. 
6 

outlined by President Obama in Cooperstown, New York.6 For example, the U.S. Department of 

Commerce projects international travel to the United States from Eastern Europe will grow by 56 

percent between 2013 and 2018. Approval of Norwegian International’s application is fully 

consistent with the Administration’s goals in this regard, and will do much to help get us there. 

III. IMPLICATIONS OF THE INTERGOVERNMENTAL MEETING.

ASTA’s evaluation of the intergovernmental meeting discussed in the Notice is driven by 

the valuable benefits of the Agreement and the strong consumer benefits of Norwegian 

International’s entry into the U.S. market as outlined above. The question posed by the July 14 

meeting, in our view, is directly related to those benefits. The European delegation has taken the 

position that the Agreement does not provide for one party to unilaterally reject a carrier entry 

application under Article 17 bis - and that any such action would “run[] against the letter and 

spirit of the Agreement.” 7

 

We believe DOT should consider, then, whether it would find it acceptable under the 

agreement for a EU Member State to reject an application under Article 17 bis from a U.S.-based 

airline that, for example, proposed the creation of a new competitor offering robust, low-cost 

trans-Atlantic service between the U.S. and Europe that will create jobs in the United States. 

Norwegian International has stated that “some 5,500 Americans applied for the initial 300 U.S.-

based flight attendant positions with the Norwegian group, positions offering average gross 

payments well in excess of $30,000...Norwegian International offers Americans seeking 

employment, including first-time employment, an enormously appealing and valuable 

 

6

See FACT SHEET & REPORT: President Obama Visits Cooperstown to Highlight Travel and Tourism that is 

Growing our Economy and Creating Jobs, Mar. 22, 2014 available at: http://www.whitehouse.gov/the-pressoffice/2014/05/22/fact-sheet-report-president-obama-visits-cooperstown-highlight-travel-an (“This week, the 

President has highlighted the importance of investing in America and today he is taking action to welcome more 

international visitors to our country – because making it easier for more foreign visitors to travel to and spend 

money at America’s attractions and national parks helps local businesses and grows the economy for everyone.”) 

7 Notice at 3. 
7 

opportunity.”8 Further, Norwegian International recently (January 13, 2014) announced the 

hiring of 170 US-based crew members in New York and Florida with plans to hire hundreds 

more. And this is only direct employment – indirect job creation has the potential to be 

substantial as well. According to the U.S. Travel Association, for every 33 overseas travelers 

that visit the U.S., one new American job is created.9

If the situation were reversed, would the United States accept a rejection of a carrier entry 

application offering such benefits? We would hope the answer is ‘no,’ and if it is ‘no,’ then it 

would seem obvious that Norwegian International’s application should be granted. Indeed, the 

Commission and the two directly relevant governments of Ireland and Norway, favor approval of 

the application. 

ASTA strongly believes that approval of Norwegian International’s application will increase 

competition in trans-Atlantic air service, create American jobs and help the Administration reach 

its goal of increasing international travel to the U.S. On behalf of the more than 105,000 people 

who work at travel agencies in the U.S. and the millions of travelers they serve every day, we 

urge the Department to approve Norwegian International’s application for an exemption and 

foreign air carrier permit without delay. 

Respectfully submitted, 

Paul M. Ruden, Esq. 

Attorney for American Society of Travel Agents, Inc. 

 

 

8

 Reply of Norwegian Air International, Ltd.. 

9

 Reply of the U.S. Travel Association. 
8 

CERTIFICATE OF SERVICE 

The undersigned certifies that on August 18, 2014, a true and correct copy of the 

foregoing Comments of the American Society of Travel Agents In Support of Application of 

Norwegian Air International Limited was served by electronic mail on the following persons: 

Josh Romanow 

Peter Nelson 

Counsel for Norwegian Air 

International Limited 

romanow@pillsburylaw.com 

peter.nelson@pillsburylaw.com 

Steve Morrissey 

Thomas N. Bolling 

United Airlines 

steve.morrissey@united.com 

thomas.bolling@united.com 

Dan Weiss 

Continental Airlines 

dan.weiss@coair.com 

Sascha Vanderbellen 

Delta Airlines 

sascha.vanderbellen@delta.com 

Howard Kass 

U.S. Airways 

howard.kass@usairways.com 

Malcolm L. Benge 

Counsel for North American/World 

Airways 

mlbenge@zsrlaw.com 

Russell E. Pommer 

Atlas Air Inc. 

rpommer@atlasair.com 

Russell Bailey 

Jonathan A. Cohen 

Air Line Pilots Association, Int’l 

russell.bailey@alpa.org 

jonathan.cohen@alpa.org 

Edward Wytkind 

Transportation Trades Department, 

AFL-CIO 

edw@ttd.org 

J. Christopher Lytle 

Port of Oakland 

clytle@portoakland.com

Kent George 

Broward County Aviation Department 

kgeorge@broward.org 

Mark Richardson 

Southwest Airlines Pilots’ Association 

mrichardson@swapa.org 

Robert Wirick 

Francis Heil 

American Airlines, Inc. 

robert.wirick@aa.com 

francis.heil@aa.com 

Nick Tsokris 

Jesse Elliot 

John Chen 

FAA New York IFU 

jesse.elliot@faa.gov 

nicholas.tsokris@faa.gov 

john.chen@faa.gov 

John M. Allen 

Director, Flight Standards 

Federal Aviation Administration 

john.allen@faa.gov 

Anita Mosner 

Jennifer Nowak 

Counsel for UPS 

Holland & Knight 

anita.mosner@hklaw.com 

jennifer.nowak@hklaw.com 

Nancy S. Sparks 

Bailey Leopard 

Federal Express Corporation 

nssparks@fedex.com 

gbleopard@fedex.com 

David Berg 

James L. Casey 

Keith A. Glatz 

Airlines for America 

dberg@airlines.org 

jcasey@airlines.org 

kglatz@airlines.org 

Celine Canu 

European Cockpit Association 

cc@eurocockpit.be 

Edgar N. James 

Allied Pilots Association 

ejames@jamhoff.com 

Thomas S. Engle 

Department of State 

EngleTS@state.gov 

Steve Shur 

Travel Technology Association 

sshur@traveltech.org 

Eugene Alford 

Department of Commerce 

eugene.alford@trade.gov 

Matthew Baldwin 

Director of Air Transport 

European Commission 

Matthew.Baldwin@ec.europa.eu 

Emmanuelle Maire 

DG-MOVE 

European Commission 

Emmanuelle.Maire 

@ec.europa.eu 

David Batchelor 

SJU Liason Officer 

SESAR Joint Undertaking 

Delegation of the European Union to 

the USA 

David.Batchelor@sesarju.eu 

Ottar Ostnes 

Director General, Norwegian Ministry 

of Transport and Communications 

Ottar.Ostnes@sd.dep.no 

John Hanlon 

European Low Fares Airline 

Association 

John.Hanlon@ELFAA.com 

Paul Gretch 

Robert Finamore 

U.S. Department of Transportation 

paul.gretch@dot.gov 

Robert.Finamore@dot.gov 

Paul M. Ruden