DISPUTE OVER NORWEGIAN AIR INTERNATIONAL PERMIT APPLICATION
February 20, 2014
On December 2, 2013, Norwegian Air International Limited (Norwegian International), a foreign air carrier of Ireland, filed an application with DOT to conduct foreign scheduled and charter air transportation of persons, property, and mail to the full extent permitted under the U.S. – E.U. Open Skies Agreement (which was amended in 2011 to include both Iceland and Norway).
The application has received significant scrutiny across the aviation industry. Opponents such as Airlines for America, ALPA, the European Cockpit Association, United Air Lines, Delta Air Lines, US Airways, and American Airlines argue that Norwegian International is an affiliate of Norwegian carrier Norwegian Air Shuttle and is being established in Ireland with the sole purpose of evading the social laws of Norway in order to lower the wages and working conditions of its crews. There is also concern that Norwegian International does not hold an Air Operator’s Certificate from Ireland (Norwegian International’s application for an AOC remains pending).
According to DOT filings, Norwegian International plans to operate transatlantic flights with European pilots who are recruited in Singapore and based in Thailand, thereby operating outside the realm of the collective labor agreement that covers Norwegian Air Shuttle pilots in Norway. ALPA and several U.S. carriers argue that the proposed operations and structure of Norwegian International are contrary to the provisions of Article 17 of the U.S. – E.U. Air Transport Agreement, which expressly prohibits the establishment of flags of convenience to evade labor protections (thus establishing a competitive advantage in the marketplace).
Proponents of the application, including Norwegian International, Broward County Aviation Department, and the City of Orlando, argue that the proposed operations are within the public interest and offer a pro-competitive, pro-consumer, and pro-growth approach that is innovative and geared to increase international service to several traditionally underserved U.S. markets such as Fort Lauderdale and Orlando, Florida.
DOT, on January 30, 2014, posted a summary of information about the current and planned long-haul operations of Norwegian Air Shuttle and its affiliated companies that was originally provided by the European Delegation to a recent U.S. – E.U Joint Committee meeting. The Department established a procedural schedule for public comments on this summary. Answers must be filed by February 13, 2014 and replies must be filed by February 20, 2014.
We will continue to keep you updated on the status of this proceeding. All of the applicable filings are available in Docket DOT-OST-2013-0204.
This Eckert Seamans Aviation Blog is intended to keep readers current on matters affecting businesses and is not intended to be legal advice. If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).