A4A MEMBERS FILE IATFCPA COMPLAINT AGAINST THE BAHAMAS
January 9, 2023
On December 19, 2022, members of Airlines for America (“A4A”) filed a joint complaint with DOT against the Government of the Bahamas for alleged “unjustifiable, unreasonably discriminatory, anticompetitive and unreasonable charges levied against” A4A members by the Bahamian government in violation of the U.S.-Bahamas Air Transport Agreement (the “Agreement”). A4A alleged that the Bahamas imposed “astronomical charges” for air navigation services that far exceeded the costs it incurred to provide the services to A4A members, which violates the country’s obligations under Article 10 of the Agreement to ensure “fundamental fairness” of the user charges imposed on carriers. In the complaint A4A notes that its members are subject to the highest charges for flying certain aircraft through Bahamas airspace or operating to/from the Bahamas as they must pay approximately $51.60 per nautical mile when transiting through Bahamas airspace, or $61.00 per flight when they land in or depart from the Bahamas. A4A also notes that its members alone have allegedly paid over $20 million to the Bahamas since the charges were instituted (or nearly $11 million per year), while the estimated annual total cost for the Bahamas to provide air navigation services to A4A members is only about $2 million (which includes FAA fees and other charges). Based on this, A4A requested that DOT take action based on its authority under the International Air Transportation Fair Competitive Practices Act (“IATFCPA”), and specifically issue a show cause order to curtail or suspend the authority held by air carriers of the Bahamas to provide international air transportation to the U.S. until the Bahamas ends the collection of the “unjust” charges.
A4A has requested that DOT provide answers to its complaint within 2 weeks, though under U.S. law DOT has up to 180 days (or until June 17, 2023) to take action against the Bahamas or otherwise resolve the issues raised in A4A’s complaint.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com 202-659-6622) or Drew Derco (dderco@eckertseamans.com 202-659-6665).
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