JetBlue criticizes DOT's feet-dragging on Norwegian Air application

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JetBlue has penned a letter to the Department of Transportation, expressing its concern that the DOT's lengthy delay in making a determination in the Norwegian Air International case could threaten the carrier's own transatlantic ambitions.

"JetBlue takes no position on the merits of this application," James Hnat, the carrier's general counsel wrote transportation secretary Anthony Foxx in an Oct. 19 letter. "However, as the most successful new entrant airline in the United States since the industry was deregulated in 1978 and as a carrier serving more than 20 nations with fully one-third of our available seat miles off shore, and more international growth planned, we consider this nearly three-year delay concerning for all carriers seeking market access and due process."

In April, when the U.S. Department of Transportation tentatively approved a foreign air carrier permit for Norwegian Air Group's Ireland-based subsidiary after 28 months of review, it explained that it had taken the unprecedented step of formally consulting the State and Justice departments.

The department took that move as it considered charges from major carriers both in the U.S. and Europe, as well as from airline labor unions, that Norwegian set up the Irish entity in order to take advantage of that country's weak labor laws. Norwegian, they say, plans to hire workers from Asia on short-term contracts at lower wages.

Norwegian Air Group, which is aggressively expanding its U.S. network under a separate entity called Norwegian Air Shuttle, denies those charges and says it has committed to using only U.S. and EU-based crew on transatlantic flights.

In April, the DOT more or less concluded that the entire debate is moot under the U.S.-EU open skies agreement. Labor provisions, the department said, don't provide a basis under the Open Skies terms for rejecting an otherwise qualified foreign air carrier permit application.

Still, six months later, the DOT has issued no final decision on the NAI application.

The delay caused the European Union in July to say that it would take the matter to arbitration.

In his letter this week, Hnat expressed concerns that the DOT could similarly delay a potential JetBlue application for transatlantic services. Such a move, he said, would work to the disadvantage of the carrier's customers, shareholders and employees.

"The U.S.-EU open skies agreement explicitly acknowledges that a party may take proportional measures in response to a violation," Hnat said. "JetBlue should not be placed in a position where it will face future harm and repercussions as a result of the department's lengthy delay in this proceeding."

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