Application of BEFORETHE UNITED STATES DEPARTMENT OFTRANSPORTATION WASHINGTON,D.C.

CARIBBEAN AIRLINES LIMITED ) ) ) ) Foran Exemptionfrom 49 U.S.C. 

### §41301 (.JFK-Georgetown-JFK) ) DocketDOT-OST-2013- ) ) )

APPLICATION OF CARIBBEAN AIRLINES LIMITED FORAN EXEMPTIONFROM 49 U.S.C. § 41301

Communicationswith respectto this document should bedirected to:

DATED: July 18, 2013 John Maggio jmaggio(a)condonlaw.com CONDON & FORSYTH LLP 7 Times Square New York,NY 10036 (212) 894-6792 (212) 370-4453 (fax) Counselfor CARIBBEANAIRLINES LIMITED

NOTICE: Anyperson may support or opposethis application by filing an answer withthe Department ofTranspmiation and serving a copy ofthe answeron the applicantand all persons served with this applicationby August 2, 2013.Application of BEFORE THE UNITED STATES DEPARTMENT OFTRANSPORTATION WASHINGTON, D.C.

CARIBBEAN AIRLINES LIMITED ) ) ) ) Foran Exemption from 49 U.S.C. §41301 (JFK-Georgetown-JFK) ) DocketDOT-OST-2013- ) ) )

APPLICATION OF CARIBBEAN AIRLINES LIMITED FORAN 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 ofpersons, 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 ofthe Republic ofTrinidad 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 ofAction 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 suchservice 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.-GuyanaAir TransportAgreement ("'U.S.-Guyana ATA"), effective as of March 25. 2013, permits ·'airlines ofGuyana" 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 ofGuyana" is defined as an airline thathas received its Air Operator's Certificate (AOC) from and has its principal place ofbusiness in Guyana. See Article 1 ( 4). Because CAL has its AOC and principal place ofbusiness 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 !lagcarrier status to the DOTdirectly. 5. On May 2013, the Government ofGuyana 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, attachedhereto as Exhibit 1and Exhibit 2, respectively. 6. Pursuant to 49 U.S.C. § 40109(c), the Dcpmiment may grant an exemption from the provisions of49 U.S.C. § 41301 so long as it finds consistency with the public interest. See 

### Volaris, DOT-OST-2011-0117, Notice ofAction 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-pairmarket. 8. This request is limited in scope and duration because CAL seeks authorization to operate only betweenJFK 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 ofGuyana" 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 ofthis exemption fulfills the spirit and purpose ofthe 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% ofthe market. IfCAL 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 ofless than 10%. By obtaining the direct JFK-GEO route, CAL can eliminate the POSGEOunproductive leg and concomitantly increase load factors to approximately 85%. This may also reduce the costs ofthe operation and reduce the fares to the JFK-GEOpassenger. 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 exemptionwill 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 ofthis 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 ofdirect airtransportation. 14. Based on the information provided in this Application, the issuance ofexemption authority to CAL will not constitute a major regulatory action as provided for in the Energy Policyand ConservationAct of 1975 as implementedby 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 oftheDepartment'sprocedural regulations. 16. CAL respectfully requests that this application be granted as soon as possible and thatthe exemption remain in etTect for a period ofat least one year.WHEREFORE, CaribbeanAirlines Limited respectfully requests the Departmentto grant its request for exemption authority to perform the scheduled foreign air transportation requested above and to grant such other reliefas the Departmentmay deem appropriate.

Dated: July 18, 2013 Respectfully submitted, CONDON & FORSYTH LLP By: Maggio jmaggio@condonlaw.com 7Times Square New York, NewYork 10036 Telephone: (212) 894-6700 Facsimile: (212) 370-4453 Attorneys for Caribbean Airlines Limited

### CERTIFICATE OF SERVICE I hereby ce1iify that I have. this ofJuly, 2013. served the foregoing Application of Caribbean Airlines Limited for an Exemption from 49 U.S.C. §41301 by electronic mail upon thepersons whose email addresses appearbelow. and by first-class mail upon: Director, Flight Standards Federal Aviation Administration 800Independence Avenue, SW Room 821 Washington, D.C. 20591

Francis Heil Robert Wirick 1 ohn Richardson Joan Canny DanWeiss Stephen Morrissey AlexanderVanderBellen SamettaBarnett Chris Walker Edward Sauer Marshall S. Sinick JohnS. Fredericksen Joanne Young David Kirstein AnitaMosner JenniferNowak Howard Kass Benjamin Slocum Malcom Benge Jonathon H. Foglia DanWeiss 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 DeltaAir Lines sascha.vanderbellen@delta.com DeltaAirLines sametta.c.barnett@delta.com DeltaAir Lines chris.walker@delta.com Evergreen International esauer@ssd.com Florida West msinick@ssd.com MN Airlines (Suncountry) john.fredericksen@suncountry.com SpiritAirlines jyoung@yklaw.com SpiritAirlines 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/NorthAmerican 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/AirTran bob.kneisley@wnco.com

# EXHIBIT 1Pt}

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CARIBBEAN AIRLINES LTD- DESiGNATION TO OPERATE DiRECT SCHEDULED AiR SERVICES ONTHE GEORGETOWN/NEWYORKAND GEORGETOWNJTORONO ROUTES to inform you that the Government of directscheduled airservicesonthe

• Georgetown/NewYork • Georgetown/Toronto

Best

Yours

Mohamed DirectorGeneral for Caribbean to United

c. MinisterofPublic Ministry 

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air services on the Georgetown-Toronto route;

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