DOT DENIES A4A’S IATFCPA COMPLAINT AGAINST THE BAHAMAS
March 13, 2023
On February 21, 2023, DOT issued an Order denying Airlines for America’s (“A4A”) International Air Transportation Fair Competitive Practices Act (“IATFCPA”) complaint against the Commonwealth of the Bahamas for alleged unreasonable, discriminatory, and anticompetitive acts related to air navigation services charges imposed on foreign carriers.
As you may recall from a prior update, A4A filed the complaint in December 2022 alleging that the Bahamian government violated the U.S.-Bahamas Air Transport Agreement (the “Agreement”) by imposing “astronomical” charges on A4A members for air navigation services that exceeded the costs the government incurred to provide the services to the carriers. A4A alleged its members have been required to pay the highest charges for flying certain aircraft through Bahamian airspace or operating to/from the Bahamas. In explaining its decision, DOT decided to deny A4A’s complaint because it did not believe the complaint successfully alleged a claim under IATFCPA, but noted that it did have “serious concerns” that the overflight charges imposed by the Bahamas Air Navigation Services Authority may not fall within a reasonable level given the costs cited for providing the air navigation services. DOT also said it plans to initiate formal consultations under Article 13 of the Agreement to further address the issue.
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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