364296/1/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: November 17, 2014
364296/1/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,1for a period of ninety days beginning December 1, 2014.2

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 ninety days 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.
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carrier termination of service between these points.3 Most recently, the Department

approved on August 28, 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 is still 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 December 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 remains out of service awaiting a replacement engine. Although

Polynesian believed the engine would arrive in October 2014, Polynesian now understands

it has not arrived and 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, August 28, 2014
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Polynesian will accept the conditions imposed by the Department in its August

28, 2014, Notice 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
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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
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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 are severely restricted

in their ability to obtain urgent medical care in Pago Pago. Indeed, during Polynesian’s

most recent operations in September it has been called upon to operate 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
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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 ninety-day period beginning December 1, 2014, 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: November 17, 2014
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364296/1/WASHINGTON

EXHIBIT A
LOLO M. MOLIGA 

GOVERNOR 

OFFICE OF THE GOVERNOR 

AMERICAN SAMOA GOVERNMENT 

Telephone: (684) 633-4116 Fax: (684) 633-2269 

LEMANU P. MAUGA 

LIEUTENANT GOVERNOR 

November 3, 20 14 Serial: 890 

US Depattment ofTransportation 

US Air Carrier & Foreign Air Carrier Licensing Division 

1200 New Jersey Ave, SE 

Washington, DC 20590 

Attn: Robert Finmore 

Re: Request for DOT Cabotage Exemption Extension 

Dear Mr. Finmore, 

The American Samoa Government kindly requests a Department of Transportation 

(DOT) extension of the exemption to Polynesian Airlines to continue to engage in cabotage 

operations in American Samoa due to the continued absence of U.S catTiers servicing the outer 

islands of the Territory. The extension ofthe exemption fac ilitates the provisioning of assistance 

to mitigate emergency circumstances caused by the lack of service and ultimately remedy the 

undue hardship to those affected. 

Accordingly, I support the granting of the extension of the cabotage exemption to the 

foreign air carrier Polynesia Airline of Samoa until such a time aU. S catTier can resume 

operations. Polynesian Airlines currently holds DOT authority, and is currently servicing the air 

transportation needs of the residents of the Manu'a Islands. 

Your approval of this request is greatly appreciated. 

Sincerely, 

L~ m. 1'7t~,so. Lolo M. Moliga 

Governor of American Samoa 

Cc: Honorable Lemanu P. Mauga, Lieutenant Governor 

Taimalelagi Dr. Claire Tuia Poumele, Director, Dept. of Port Administration 

Seiuli Alvin Tuala, Chief Executive Officer, Polynesian Airlines 
364296/1/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: November 17, 2014

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