US Congress tries to block Flag-of-Convenience model for Norwegian Longhaul

[BILL LUMBERG]

Well done Wave....

DOT never has to respond to their full application to fly here. What they do have to respond to is a deadline of August 30 to the application waiver they applied for which basically requested that they go around the full process and get granted a certificate "just because".

It would be a win, but not the full war if they deny this. A full NO to the original application would make this dead in the water but again, no deadline is attached and IMHO they are slow rolling it to make them go away.

 

[BILL LUMBERG]

fvcking A bubba... good deal. Let's hope the lib senate doesn't pull some crap... the way our government is sold out to big business you never know until the end. But a good sign was the unaminous vote... shows good promise. We'll take this as a victory for now.

tailhookah

Pelosi just signed a second letter to DOT this urging them to deny NAI and senate leadership never sends letters to government agencies. Apparently it's rare for leadership to do,that according to Politico.

She may be lib, but she's pushing in our direction.

 

[waveflyer]

Norwegian CEO Declares He Needs No ?Plan B?
Aviation week
Norwegian Air Shuttle CEO Bjorn Kjos is confident that the airline?s newly established Irish subsidiary Norwegian Air International (NAI) will be granted a foreign air carrier permit by the U.S. Transportation Department (DOT) despite the sizeable objections against the application.

Kjos maintains there is ?no need for a Plan B. I?m positive we will receive a foreign air carrier permit from the U.S. authorities in the coming weeks.?

Dublin-based NAI obtained its air operator certificate (AOC) from the Irish Aviation Authority and the air carrier operating license (ACOL) from the Commission for Aviation Regulation on Feb. 14. ?NAI is an established EU carrier and there is no reason why it would not be granted a foreign air carrier permit from the U.S authorities under the EU-U.S. Open Skies agreement. We have the support from the Norwegian, Irish and EU authorities,? Kjos told Aviation Week on the sidelines of the ?Transport: Driving Europe?s Economy? conference organized by the European Commission?s Directorate-General for Mobility and Transport in Brussels last week.

Norwegian?s new long-haul low-cost business model, with an Irish AOC/ACOL and the use of crew contracted via agencies at operating bases outside of Europe, has met with strong opposition from labor and pilots groups in U.S. and Europe. On the European side, the Association of European Airlines (AEA) and the European Cockpit Association have submitted comments protesting the application, while also Lufthansa and SAS filed a joint reply. The latter two airlines, both members of Star Alliance, urge the DOT ?either to deny NAI?s application outright, or defer action on it.?

A senior European Commission official reiterated the executive body would be ?very angry? if the U.S. DOT refuses NAI?s application and vows remedies would be discussed at the Joint Committee?s next meeting in June in Vienna. However, the official admits the DOT has several options, including delaying the decision for an undefined period of time.

This could crimp NAI?s plan to start operating flights from London Gatwick to several U.S. airports from July aboard Boeing 787s.

Norwegian now has four 787s on its Irish AOC?the fourth aircraft arrived last week and is currently in a paint shop in Ireland to affix the prolific designs on the tail fins?and a further three 787s will be delivered in April, May and June.

If the U.S. foreign air carrier permit for NAI does not materialize before the start of the U.S. services from London Gatwick, Norwegian will have to resort to expensive ACMI lease deals for short-term capacity or put the 787s on the Norwegian AOC of its long-haul affiliate Norwegian Long Haul (but this comes with different issues such as restrictions on employing pilots contracted in non-EU/European Economic Area countries).

Norway has acceded to the EU-U.S. Open Skies air services agreement and has the rights to serve EU-U.S routes.

But, notes Kjos, it?s not about traffic rights to the U.S.

?It?s all about building a streamlined network and efficient operations. For cost and efficiency reasons it is better to have all the aircraft on one AOC. As an EU airline it is easier to get traffic rights to countries that have accepted the EU carrier designation principle,? he says. ?Norway is not part of the EU and thus a Norwegian airline is disadvantaged in this sense.?

Under EU law, every EU member state is required to grant equal market access for routes to destinations outside the EU and to any EU carrier with an establishment on its territory.

The benefits of being an EU carrier will become very important from the moment its Boeing 737 MAX aircraft start arriving, Kjos says.

?We envisage operating the MAX on long-haul routes,? he says. ?The range of the MAX offers some very attractive network prospects. We intend to operate them from several European bases to Africa, India and the U.S.?

Norwegian in 2012 ordered 372 aircraft, including 100 Boeing 737 MAX and 100 options, 100 Airbus A320neo and 50 options, and 22 Boeing 737-800s.

The LCC has earmarked Barcelona, Rome and Paris as possible future bases for short and long-haul operations, with Kjos pointing out that Norwegian is ?a leisure carrier.? Also Madrid, where the airline this summer will open its fifth Spanish base with two Boeing 737-800s and launch six medium-haul routes, could evolve to become a long-haul base. Norwegian would prefer Paris Orly Airport over Charles de Gaulle, but Kjos recognizes that slots are difficult to get at Orly. The airline needs a relatively large number of slots since it wants to connect a short/medium-haul network to long-haul routes.

 

[maru657]

The regional pilots might actually get better treatment feeding NAI, and face it, they have absolutely no reason to support the wages and benefits of some double breasted college boy.

 

[BILL LUMBERG]

Yeah Maru....

Get educated before you Flamebait.

This effects every US certified pilot. Believe it or not, your job is on the line. Ask a US merchant sailor....if you can find one.

 

[SWA Bubba]

Yeah Maru....

Get educated before you Flamebait.

This effects every US certified pilot. Believe it or not, your job is on the line. Ask a US merchant sailor....if you can find one.

He is just baiting you, Bill. His job isn't on the line at all. He's not an airline pilot of any sort anymore--he's an old, washed-up used-to-be. And he has a hardon for actual college graduates, so that probably puts Delta at the top of his "screw-with" list, since you have that requirement. Plus, he's already shown his disdain for unionized pilots--he's proudly stated on FI his willingness to cross an airline picket line. So you can pretty much just ignore everything he says.

Bubba

 

[maru657]

Got that education during the 80's and it's been a race to the bottom since.
And Bubba you seem to want appreciation for your position. There's thousands of regional pilots out there that just don't feel your pain.

 

[Rough67]

No the now..

http://www.alpa.org/Portals/Alpa/PressRoom/PressReleases/2014/9-2-14_14.76.htm


Release #14.76
September 2, 2014

ALPA Pilots Commend DOT Rejection of NAI Scheme
Safeguards Fair Competition for U.S. Airlines

WASHINGTON??Today?s announcement that the U.S. Department of Transportation (DOT) has dismissed Norwegian Air International (NAI) a temporary foreign air carrier operating authorization marks significant progress in the drive by the Air Line Pilots Association, Int?l (ALPA) to help ensure a level playing field for U.S. airlines.

?The U.S. Department of Transportation took an important stand for fair competition today by denying Norwegian Air International?s request for temporary authorization to fly to and from the United States,? said Capt. Lee Moak, ALPA?s president.

NAI has applied for both a foreign air carrier permit and an exemption, which a carrier may apply for to cover the time during which its permit application is pending. The DOT announced today that it had denied NAI?s exemption request.

?While today?s decision is extremely significant, the DOT?s work is not yet complete in making certain that NAI is not permitted to exploit international aviation policy and law to gain an unfair economic advantage over U.S. airlines,? Capt. Moak continued. ?The DOT must take the next step and deny NAI?s application for a foreign air carrier permit to serve U.S. markets.?

NAI has established itself as an Irish airline in order to avoid Norway?s employment laws and to be able to ?rent? its pilots through a Singapore employment company. The pilots, who the company says are based in Thailand, work under individual employment contracts that contain compensation and benefits substantially below that of the Norway-based pilots who fly for NAI?s parent company. NAI has applied to the U.S. DOT for a foreign air carrier permit that would allow it to compete directly with U.S. airlines on long-haul international routes.

NAI?s business plan has prompted an outpouring of bipartisan concern from more than 100 members of Congress. In a letter to the U.S. Secretary of Transportation, 40 U.S. Senators expressed concern and more than 100 members of the U.S. House of Representatives have also stated concern or outright opposition to NAI?s plan.

ALPA has been joined by a broad coalition of U.S. and European airlines, labor organizations, and trade associations in adamantly opposing the NAI application. North American and European labor groups have also expressed opposition, including the AFL-CIO Transportation Trades Department, the International Association of Machinists & Aerospace Workers, the Transport Workers Union, the Association of Flight Attendants-CWA, the European Cockpit Association, the International Transport Workers? Federation, and PARAT. The Association for European Airlines stated that serious questions regarding the NAI application needed to be answered.

In addition, the Air Crew Working Group of the Sectoral Dialogue Committee, which is recognized by the European Commission as the joint labor-management body that addresses labor issues in the airline sector in the EU, has submitted comments to the DOT opposing NAI. The former U.S. Ambassador to the International Civil Aviation Organization (ICAO) has also called for its rejection.

?Today?s decision puts the Norwegian Air International scheme on hold, but it doesn?t end the threat it poses to fair competition and U.S. aviation jobs,? said Capt. Moak. ?The DOT must heed the call made from so many in Congress from both sides of the aisle, labor groups on both sides of the Atlantic, and the European Commission?s own labor-management organization and deny NAI?s application for a U.S. foreign air carrier permit.?

Founded in 1931, ALPA is the world?s largest pilot union, representing more than 51,000 pilots at 31 airlines in the United States and Canada. Visit the ALPA website at www.alpa.org or follow us on Twitter @WeAreALPA.

 

[BILL LUMBERG]

Fights not over yet.....We won a battle....Not the war.

This application by NAI was for temporary rights to fly while the full application process played out. Once the DOT kills that, then it's time to spike the football.

 

[maru657]

Where was alpa two decades ago when they easily rolled over on scope. That immediately benefitted the select few at the vaunted majors. It is impressive to see moak making impassioned speeches on the hill, and the rest of alpa lobbying like their lives are on the line. Where was alpa on the issue of scope when it came up?

Well, looks like you've broken the code. Except scope was really destroyed in the 60's with ALPA's connivance. You had to figure that since so many pilots had in failing the IQ test convinced themselves they were republicans. This was easy since the majors had grown so large they were able effect public policy. Unfortunately, this left a large pool of pilots with less than desireable career choices. What was amazing was that ALPA, along with some of the posters on this board promise all good jobs if you'll just submit an application. That ain't happening, but they still want regional pilots to support ALPA's efforts to make life better for the chosen few at brand X. I think NAI might be a good job for Regional pilots