Application of 

BEFORE THE UNITED STATES 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

CARIBBEAN AIRLINES LIMITED 

) 

) 

) 

) 

For an Exemption from 49 U.S.C. § 41301 

( .JFK-G eorgetown-JFK) 

) Docket DOT-OST-2013-

) 

) 

) 

APPLICATION OF 

CARIBBEAN AIRLINES LIMITED 

FOR AN EXEMPTION FROM 49 U.S.C. § 41301 

Communications with respect to this document should be directed to: 

DATED: July 18, 2013 

John Maggio 

j maggio(a)condonlaw .com 

CONDON & FORSYTH LLP 

7 Times Square 

New York, NY 10036 

(212) 894-6792 

(212) 370-4453 (fax) 

Counsel for 

CARIBBEAN AIRLINES LIMITED 

NOTICE: Any person may support or oppose this application by filing an answer with the 

Department of Transpmiation and serving a copy of the answer on the applicant and all persons 

served with this application by August 2, 2013. 
Application of 

BEFORE THE UNITED STATES 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

CARIBBEAN AIRLINES LIMITED 

) 

) 

) 

) 

For an Exemption from 49 U.S.C. § 41301 

( JFK-Georgetown-JFK) 

) Docket DOT -OST -2013-

) 

) 

) 

APPLICATION OF 

CARIBBEAN AIRLINES LIMITED 

FOR AN EXEMPTION FROM 49 U.S.C. § 41301 

Pursuant to 49 U.S.C. § 40109(c), Caribbean Airlines Limited (''CAL'') respectfully 

requests an exemption from the provisions of 49 U.S.C. § 41301 to the extent necessary to 

permit it to engage in scheduled foreign air transportation of persons, property and mail between 

New York, New York (JFK) and Georgetown, Guyana. Specifically, CAL proposes to 

inaugurate daily non-stop service between JFK and Georgetown, with service to begin 

immediately. The exemption is requested for one year. In support of this application, CAL 

states as tallows: 

1. CAL is a flag carrier of the Republic of Trinidad and Tobago and currently holds 

various exemptions authorizing service between Trinidad and Tobago and Jamaica, on the one 

hand, and various U.S. points, on the other, via various intermediate and beyond points. CAL 

provides air service to and from the U.S. pursuant to this authority. 

2. By Notice of Action Taken, dated February 29, 2008, in Docket OST-08-0053, 

the Department found that CAL was financially and operationally qualified to conduct services 

from the United States to Georgetown, Guyana, as an intermediate point between Trinidad and 

Tobago and as a point behind Trinidad and Tobago. The Department found that permitting such 
service was consistent with Department policy and consistent with the public interest. 

Accordingly, CAL has been servicing Guyana as an intermediate point from New York (JFK) 

since 2008. 

3. The U.S.-Guyana Air Transport Agreement ("'U.S.-Guyana ATA"), effective as of 

March 25. 2013, permits ·'airlines of Guyana" to perform international air transportation ''from 

points behind Guyana via Guyana and intermediate points to any point or points in the United 

States." See Article 2( 1 )(a)(ii). An "airline of Guyana" is defined as an airline that has received 

its Air Operator's Certificate (AOC) from and has its principal place of business in Guyana. See 

Article 1 ( 4 ). Because CAL has its AOC and principal place of business in Trinidad, not Guyana, 

CAL requires extra-bilateral authority to operate direct service on the New York-Georgetown 

route. 

4. On December 4, 2012, CAL was granted flag carrier status from the Republic of 

Guyana. It is our understanding that the Guyana Ministry of Foreign Affairs sent otricial 

documentation regarding this !lag carrier status to the DOT directly. 

5. On May 2013, the Government of Guyana designated CAL to operate direct 

scheduled air services between Georgetown and New York. See Correspondence from the 

Guyana Civil Aviation Authority, dated May 22, 2013, and Cabinet Decision Regarding Flag 

Carrier Status, dated May 3, 2013, attached hereto as Exhibit 1 and Exhibit 2, respectively. 

6. Pursuant to 49 U.S.C. § 40109(c), the Dcpmiment may grant an exemption from 

the provisions of 49 U.S.C. § 41301 so long as it finds consistency with the public interest. See 

Volaris, DOT-OST-2011-0117, Notice of Action Taken, July 11,2011 (granting extra-bilateral 

exemption authority in the public interest); Lan Airlines/Lan Car[;o, DOT-OST-2005-23236, 

Notice of Action Taken, April 13, 2006 (granting extra-bilateral exemption authority in the 
public interest); Delta Airlines/Varig, SA., Order 94-3-33, March 18, 1994 (granting extrabilateral exemption authority in the public interest). 

7. The necessary public interest findings can and should be made here because 

CAL's request is limited in scope and duration, is consistent with the aviation relations between 

the U.S. and Guyana, and will not impact U.S. carriers in the city-pair market. 

8. This request is limited in scope and duration because CAL seeks authorization to 

operate only between JFK and Georgetown, and the exemption is requested for one year. 

9. Granting this exemption is consistent with the aviation relations between the U.S. 

and Guyana because the exemption serves a route that is already authorized by the U.S.-Guyana 

Agreement. Moreover. no "airline of Guyana" currently offers transportation between Guyana 

and the U.S., and the Guyana Civil Aviation Authority has designated CAL to operate directly 

between Georgetown and New York. Therefore, in ensuring that at least one Guyanesedcsignated airline is offering direct air services to the U.S., the grant of this exemption fulfills the 

spirit and purpose of the U.S.-Guyana Agreement. 

10. There is a compelling need for CAL to initiate direct transportation between JFK 

and Georgetown. CAL currently operates two routes to JFK. The first is the POS-GEO-JFK 

route, which operates four times per week using 767 equipment; the second is the GEO-POSJFK route, which operates daily using 737 equipment. For the GEO-POS-JFK route, the total 

market share in 2012 was approximately 145,000 passengers. CAL's share ofthis market was 

approximately 98,000 passengers, i.e., approximately 68% of the market. If CAL obtains this 

exemption, CAL can operate at an even higher frequency and capacity and, as an initial estimate, 

would be able to transport approximately 115,000 passengers and satisfy approximately 80% of 

the market. 
11. Obtaining an exemption to service the JFK-GEO route will also increase CAL's 

load factors. Currently, the load factor on the POS-GEO-JFK route is approximately 75-78%. 

However, this service is impacted by an unproductive leg (POS-GEO), which averages a load 

factor of less than 10%. By obtaining the direct JFK-GEO route, CAL can eliminate the POSGEO unproductive leg and concomitantly increase load factors to approximately 85%. This may 

also reduce the costs of the operation and reduce the fares to the JFK-GEO passenger. 

12. CAL is the only carrier presently ofJering transportation directly between New 

York and Georgetown. In particular, although Delta Air Lines and EZJet Air Services 

previously serviced this route. Delta ceased its services in May 2013 and EZJet ceased its 

services in November 2012. Accordingly, CAL is the only carrier offering transportation 

between Georgetown and New York, and granting this exemption will not impact U.S. carriers. 

13. CAL is fit, willing and able to perform the services for which the exemption 

authority is sought. Therefore, granting an extension of this exemption authority will be in the 

public interest as it will permit CAL to provide direct services to passengers traveling between 

New York and Georgetown, a route that is in need of direct air transportation. 

14. Based on the information provided in this Application, the issuance of exemption 

authority to CAL will not constitute a major regulatory action as provided for in the Energy 

Policy and Conservation Act of 1975 as implemented by 14 C.F.R. Part 313. 

15. CAL files its application for exemption authority with reliance upon 5 U.S.C. 

§ 558(c) and Part 377 ofthe Department's procedural regulations. 

16. CAL respectfully requests that this application be granted as soon as possible and 

that the exemption remain in etTect for a period of at least one year. 
WHEREFORE, Caribbean Airlines Limited respectfully requests the Department to grant 

its request for exemption authority to perform the scheduled foreign air transportation requested 

above and to grant such other relief as the Department may deem appropriate. 

Dated: July 18, 2013 

Respectfully submitted, 

CONDON & FORSYTH LLP 

By: 

Maggio 

jmaggio@condonlaw.com 

7 Times Square 

New York, New York 10036 

Telephone: (212) 894-6700 

Facsimile: (212) 370-4453 

Attorneys for 

Caribbean Airlines Limited 
CERTIFICATE OF SERVICE 

I hereby ce1iify that I have. this of July, 2013. served the foregoing Application of 

Caribbean Airlines Limited for an Exemption from 49 U.S.C. § 41301 by electronic mail upon 

the persons whose email addresses appear below. and by first-class mail upon: 

Director, Flight Standards 

Federal Aviation Administration 

800 Independence A venue, SW 

Room 821 

Washington, D.C. 20591 

Francis Heil 

Robert Wirick 

1 ohn Richardson 

Joan Canny 

Dan Weiss 

Stephen Morrissey 

Alexander Vander Bellen 

Sametta Barnett 

Chris Walker 

Edward Sauer 

Marshall S. Sinick 

JohnS. Fredericksen 

Joanne Young 

David Kirstein 

Anita Mosner 

Jennifer Nowak 

Howard Kass 

Benjamin Slocum 

Malcom Benge 

Jonathon H. Foglia 

Dan Weiss 

Karine Faden 

Oracio Marquez 

Bob Cohn 

Pat Rizzi 

Robert Land 

Jonathan Hill 

Bob Kneisley 

American Airlines francis.heil@aa.com 

American Airlines robert.wirick@aa.com 

Amerijet International jrichardson@johnlrichardson.com 

Amerijet International jcanny@amerijet.com 

Continental/United dan. weiss@united.com 

Continental/United steve.morrissey@united.com 

Delta Air Lines sascha.vanderbellen@delta.com 

Delta Air Lines sametta.c.barnett@delta.com 

Delta Air Lines chris.walker@delta.com 

Evergreen International esauer@ssd.com 

Florida West msinick@ssd.com 

MN Airlines (Suncountry) john.fredericksen@suncountry.com 

Spirit Airlines jyoung@yklaw.com 

Spirit Airlines dkirstein@yklaw.com 

UPS anita.mosner@hklaw.com 

UPS jennifer.nowak@hklaw.com 

US Airways howard~kass@usairways.com 

US Airways benjamin.slocum@usairways.com 

World/North American mlbenge@zsrlaw.com 

World /North American jhfoglia@zsrlaw.com 

United Continental Holdings dan.weiss@united.com 

United Continental Holdings karine.faden@united.com 

United Continental Holdings oracio.marquez@united.com 

Frontier/Republic robert.cohn@hoganlovells.com 

Frontier/Republic patrick.rizzi@hoganlovells.com 

JetBlue Airways robert.land@jetblue.com 

JetBlue Airways jhill@dowlohnes.com 

Southwest/Air Tran bob.kneisley@wnco.com 
EXHIBIT 1 
Pt} 

OOl 

001 

NOS: 

Our TM 

2013 

Moonan 

!ere House, Golden Grove Road 

Trlnidad 

fJt:ar Mr. 

NOS: 

225-0508 

CARIBBEAN AIRLINES LTD- DESiGNATION TO OPERATE DiRECT SCHEDULED AiR 

SERVICES ON THE GEORGETOWN/NEW YORK AND GEORGETOWNJTORONO ROUTES 

to inform you that the Government of 

direct scheduled air services on the 

• Georgetown/New York 

• Georgetown/Toronto 

Best 

Yours 

Mohamed 

Director General 

for Caribbean 

to United 

c. MinisterofPublic 

Ministry 

will of 
EXHIBIT 2 
,, _____________ _ 

CABINET OFFICE 

Office of th~~ i:Jresident 

61rfEETJNG H!JLD ON 201 3-04-JfJl 

CABINET Df:~CISION 

REQUEST BY CARIBBEAN AIRLINES l.I11111TED TO BE GRANTED FLAG 

CARRIER STATUS BY THE G()VERNMENT OF GUY:4NA 

the abovementioned m1;morandum CP(2013)4:5:V by the 

and (!J?f!.roved tfte {otlow.fjj'lfl:::. 

c:·~:>ignated to 

York route; 

air services on the Georgetown-Toronto route; 

of Pub/1.-: Works 

f'enmmenl 

of Public