BEFORE THE UNITED STATES DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

______) Application of ) ) CARIBBEAN LIMITED ) ) Docket DOT-OST-2006-26586 For Renewal and Expansion of Exemption Authority) (Trinidad and Tobago-US) ) ) ______)

APPLICATION OF CARIBBEAN AIRLINES LIMITED FOR REINSTATEMENT AND EXPANSION OF AN EXEMPTION FROM 49 U.S.C. § 41301

Communications with respect to this document should be directed to:

John Maggio [email protected] CONDON & FORSYTH LLP 7 Times Square New York, NY 10036 (212) 894-6792 (212) 370-4453 (fax)

Counsel for CARIBBEAN AIRLINES LIMITED

DATED: April 8, 2020

NOTICE: Any person may support or oppose this application by filing an answer with the Department of Transportation and serving a copy of the answer on the applicant and all persons served with this application on or before April 23, 2020.

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BEFORE THE UNITED STATES DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

______) Application of ) ) CARIBBEAN AIRLINES LIMITED ) ) Docket DOT-OST-2006-26586 For Renewal and Expansion of Exemption Authority) (Trinidad and Tobago-US) ) ) ______)

APPLICATION OF CARIBBEAN AIRLINES LIMITED FOR RENEWAL AND EXPANSION OF AN EXEMPTION FROM 49 U.S.C. § 41301

Pursuant to 49 U.S.C. § 40109(c), Caribbean Airlines Limited (“CAL”) respectfully

requests reinstatement of the above-captioned exemption authority, which permits CAL to engage in:

(a) scheduled foreign air transportation of persons, property and mail (1) between Trinidad and Tobago via the intermediate points of , Aruba, the Bahamas, Barbados, Belize, Bermuda, Bonaire and Curacao, the Cayman Islands, , Grenada, , Haiti, Jamaica, , St. Kitts, and St. Lucia, to the U.S. Virgin Islands, San Juan, New York, Miami, Orlando, Boston, and Washington, D.C. and beyond San Juan to Zurich and Stockholm, beyond New York to Toronto, and beyond Miami and San Juan to Mexico and points in Central America except Belize; (2) between Trinidad and Tobago via Antigua, Barbados, Grenada, St. Lucia and St. Maarten to San Juan and beyond to Jamaica; and (3) between Trinidad and Tobago via the intermediate point of St. Vincent and the Grenadines, to New York;

(b) charter foreign air transportation of persons, property and mail between points in Trinidad and Tobago and points in the United States; and

(c) other charters pursuant to Part 212 of the Department’s rules.

Consistent with the above referenced authority, CAL also respectfully requests to expand its exemption authority to permit scheduled foreign air transportation of persons, property and

mail between Trinidad and Tobago via the intermediate points of and , British

Virgin Islands, to San Juan, .

In support of this application, CAL states as follows: 2

CAL’s Request for Reinstatement of its Current Authority

1. CAL is a flag carrier of the Republic of Trinidad and Tobago and currently holds

various exemptions authorizing service between Trinidad and Tobago and Jamaica, on the one

hand, and various U.S. points, on the other, via various intermediate and beyond points. CAL

provides air service to and from the U.S. pursuant to this authority.

2. By Notice of Action Taken, dated December 21, 2017 (the “Notice”), the

Department granted CAL the authority in this docket on the basis of reciprocity. This authority was renewed for two years, expiring on December 21, 2019.

3. Due to administrative oversight, the authority granted in this docket has lapsed.

CAL hereby seeks to reinstate the same authority exemption it has been granted and it operated under for over a decade under this docket. Reinstatement will result in no additional impact on

U.S. carriers. CAL is simply seeking the same exemption authority it would have sought if it made this application prior to December 21, 2019. Accordingly, CAL invokes the automatic extension provisions of the Administrative Procedure Act, 5 U.S.C. § 558(c), as implemented by

Part 377 of the Department’s Regulations, so that it may continue operations pending a final decision by the Department on this renewal request.1

4. Under the 2010 Air Transport Services Agreement between the Republic of

Trinidad and Tobago and the United States,2 airlines of the Republic of Trinidad and Tobago

have the right to perform international air transportation “from points behind Trinidad and

Tobago via Trinidad and Tobago and intermediate points to any point or point in the United

States and beyond; and for all-cargo service, between the United States and any point or points . .

1 Further, CAL will be filing an application for a Foreign Air Carrier Permit under the U.S. and Trinidad and Tobago bilateral aviation services treaty in the coming months. 2 The Air Transport Services Agreement between the Republic of Trinidad and Tobago and the United States is dated May 2010, but appears to have been formalized in 2013. See Air Transport Agreements Between the U.S. and Trinidad and Tobago, https://www.state.gov/e/eb/rls/othr/ata/t/td/. 3

. .” CAL has been properly designated under the Agreement and continues to hold authority from the Republic of Trinidad and Tobago to operate the relevant routes.

5. Pursuant to 49 U.S.C. § 40109(c), the Department may grant an exemption from the provisions of 49 U.S.C. § 41301, so long as it finds consistency with the public interest.

Given CAL’s designation of this route under the bilateral agreement between the Republic of

Trinidad and Tobago and the United States, such a public interest finding is warranted. See Link

Conexion Aera S.A. de C.V. d/b/a Tar Aerolinas, OST-2016-0036, Notice of Action Taken, dated

August 7, 2017 (granting exemption authority that was consistent with the bilateral agreement

between the United States and Mexico). As CAL has successfully operated the routes in this

docket since January 1, 2007, renewal of the current authority will continue to provide benefits

for consumers, and further demonstrates that renewal of the exemption is consistent with the

public interest.

CAL’s Proposed Expansion of its Authority in this Docket

6. CAL’s request to expand its current authority to permit scheduled foreign air

transportation of persons, property and mail between Trinidad and Tobago via the intermediate

point of Dominica and Tortola, , to San Juan, Puerto Rico, is consistent

with its current authority in this docket. See Caribbean Airlines Limited (Caribbean Airlines),

OST-2006-26586, Notice of Action Taken, dated December 27, 2006 (granting CAL the

authority to permit scheduled foreign air transportation of persons, property and mail between

Trinidad and Tobago via several intermediate points in the Caribbean, to New York and other

U.S. destinations).

7. CAL seeks expansion of its authority in this docket for three routes. The routes

that CAL requests are flights that begin and end in Port of Spain, Trinidad, with various stopping

points, including in Dominica and Tortola, British Virgin Islands, and San Juan, Puerto Rico.

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8. The first route begins and ends in Port of Spain, with stopping points in

Dominica, Barbados, Antigua, Tortola, and San Juan (POS-DOM-BGI-ANU-EIS-SJU-EIS-

ANU-BGI-DOM-POS). In this route, the aircraft will stay overnight in San Juan. CAL’s

proposed schedule is as follows:

Flight # Effect Frequency From To Equip Depart Arrive 208 1-Aug-20 3,6 POS DOM ATR 1400 1545 3,6 DOM BGI ATR 1615 1715 3,6 BGI SXM ATR 1745 1945 3,6 SXM EIS ATR 2015 2055 3,6 EIS SJU ATR 2125 2200

211 2-Aug-20 4,7 SJU EIS ATR 0525 0600 4,7 EIS SXM ATR 0630 0715 4,7 SXM BGI ATR 0745 0945 4,7 BGI DOM ATR 1015 1115 4,7 DOM POS ATR 1145 1330

9. The second route begins and ends in Port of Spain, with stopping points in

Dominica, Barbados, St. Maarten, Tortola, and San Juan (POS-DOM-BGI-SXM-EIS-SJU-EIS-

SXM-BGI-DOM-POS). In this route, the aircraft will stay overnight in San Juan. CAL’s proposed schedule is as follows:

Flight # Effect Frequency From To Equip Depart Arrive 206 3-Aug-20 1,4 POS DOM ATR 1345 1530 1,4 DOM BGI ATR 1600 1700 1,4 BGI ANU ATR 1730 1855 1,4 ANU EIS ATR 1925 2025 1,4 EIS SJU ATR 2055 2130

209 4-Aug-20 2,5 SJU EIS ATR 0530 0605 2,5 EIS ANU ATR 0635 0730 2,5 ANU BGI ATR 0800 0945 2,5 BGI DOM ATR 1015 1115 2,5 DOM POS ATR 1145 1330

10. The third route begins and ends in Port of Spain, with stopping points in

Dominica, Barbados, St. Kitts, Antigua, Guadeloupe, and San Juan (POS-DOM-BGI-SKB-

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ANU-PTP-SJU-PTP-ANU-SKB-BGI-DOM-POS). In this route, the aircraft will stay overnight in San Juan. CAL’s proposed schedule is as follows:

Flight # Effect Frequency From To Equip Depart Arrive 206 4-Aug-20 2,5,7 POS DOM ATR 1400 1545 2,5,7 DOM BGI ATR 1615 1715 2,5,7 BGI SKB ATR 1745 1935 2,5,7 SKB EIS ATR 2005 2050 2,5,7 EIS SJU ATR 2120 2155

209 5-Aug-20 1,3,6 SJU EIS ATR 0530 0605 1,3,6 EIS ANU ATR 0635 0730 1,3,6 ANU BGI ATR 0800 0945 1,3,6 BGI DOM ATR 1015 1115 1,3,6 DOM POS ATR 1145 1330

11. Granting CAL the authority to operate the three routes above would be consistent

with the Air Transport Services Agreement between the Republic of Trinidad and Tobago and

the United States, which grants CAL the right to perform international air transportation from

points behind Trinidad and Tobago via Trinidad and Tobago and intermediate points to any point

or point in the United States.

12. CAL’s request to expand its authority to service Dominica and Tortola, British

Virgin Islands, also furthers the public interest because such authority is limited in scope, will

address a compelling need for service by consumers, and will not have a significant impact on

U.S. carriers in the city-pair market.

13. This request is limited in scope because CAL only seeks authorization to

commence operations on limited routes covered in CAL’s current authority under this docket

with only two additional stopping points.

14. There is a compelling need for CAL to offer transportation on the three routes.

CAL’s proposed routes will provide increased connections between the English- and Spanish-

speaking Caribbean nations. Further, because there are a greater number of air carriers operating 6

between San Juan and the U.S. mainland, CAL’s service will provide U.S. nationals with greater

access to the Caribbean islands and Caribbean nationals with greater access to mainland U.S.

15. Additionally, each year, thousands of U.S. citizens visit Dominica and Tortola,

and while tourism declined in the aftermath of , overall tourism increased in

2019, a trend expected to continue. CAL will provide a much-needed capacity to serve the

Eastern and Northern Caribbean markets where the drop in traffic after Hurricane Maria has yet

to reach pre-Maria levels.

16. CAL anticipates it will improve the Dominica market to 2017 pre-Maria levels of

approximately 32,000 passengers per annum from the loss of 75% of Dominica-Puerto Rico

traffic.3 CAL’s internal market intelligence data shows a total of 12,266 passengers carried on the route in 2018, which reveals the route is underserved. 4 CAL’s current estimation is an

increase of 100% in passengers, assuming low-frequency flights.

17. CAL’s proposed intermediate stop in Tortola will help support and grow the St.

Maarten & Antigua-Puerto Rico market. CAL’s internal market intelligence data showed a

decrease of 35% in traffic on the route from past highs.5 As with Dominica, Tortola has been

underserved following Hurricane Maria. The inclusion of Tortola will strengthen the overall

Caribbean market by providing greater connectivity for the region.

18. However, there are no U.S. carriers that service a route from Trinidad and Tobago

via intermediary points to San Juan, Puerto Rico. Further, no U.S. carriers service either

Dominica or Tortola on their own aircraft for any route. U.S. carriers currently serving

Dominica and Tortola are , Delta Airlines, JetBlue, and , and

do so via interline and/or codeshare agreements with Leeward Transport, Windward

3 Amadeus Travel Intelligence; Market Information Data Tapes – 2018 Data, Official Guide. 4 IATA Passenger Intelligence Service – 2018 Data. 5 History of Traffic, Amadeus Travel Intelligence; Market Information Data Tapes – 2018 Data, Official Airline Guide. 7

Islands Airways, and Seaborne Airlines.6 By offering service between Trinidad and Tobago and

San Juan on the proposed routes, CAL will offer an alternative route for the thousands of U.S. citizens who visit Dominica and Tortola annually, as well as the other intermediate points in the above three routes. Moreover, because no other carrier offers direct service on this route, granting this exemption will not have a significant impact on U.S. carriers. With this additional service CAL supports Dominica and Tortola economy by connecting the islands and dependencies with their most populous diaspora and largest source market for tourism.

19. CAL is fit, willing and able to perform the services for which the exemption authority is sought. Therefore, granting an extension of this exemption authority will be in the public interest as it will permit CAL to provide services to passengers traveling between Trinidad and Tobago and Dominica and Tortola, a route that is in need of air transportation.

20. Based on the information provided in this Application, the issuance of exemption authority to CAL will not constitute a major regulatory action as provided for in the Energy

Policy and Conservation Act of 1975 as implemented by 14 C.F.R. Part 313.

21. CAL files its application for exemption authority with reliance upon 5 U.S.C. §

558(c) and Part 377 of the Department’s procedural regulations.

22. CAL respectfully requests that this application be granted as soon as possible and that the exemption remain in effect for a period of at least two years.

WHEREFORE, Caribbean Airlines Limited respectfully requests that the Department (1) renew the above-captioned exemption; (2) grant its request for exemption authority to perform the scheduled foreign air transportation requested above; and (3) grant such other relief as the

Department may deem appropriate.

6 See https://discoverdominica.com/en/airlines (last visited March 23, 2020); https://www.bvitourism.com/sites/default/files/North%20America%20Flight%20Information%2 0Winter-Holiday%202019-2020%20%28USA%20%26%20Canada%29.pdf (last visited March 23, 2020). 8

Respectfully submitted,

CONDON & FORSYTH LLP

By: ______John Maggio [email protected] 7 Times Square New York, New York 10036 Telephone: (212) 894-6700 Facsimile: (212) 370-4453 Attorneys for Caribbean Airlines Limited

Dated: April 8, 2020

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CERTIFICATE OF SERVICE

I hereby certify that I have, this 8th day of April, 2020, served the foregoing Application of Caribbean Airlines Limited for Renewal and Expansion of an Exemption from 49 U.S.C. §

41301 by electronic mail upon the following persons:

John B. Williams American Airlines [email protected] Robert Wirick American Airlines [email protected] J Canny [email protected] Russell E. Pommer [email protected] Naveen Rao Atlas Air [email protected] Dan Weiss Continental/United [email protected] Stephen Morrissey Continental/United [email protected] Amna Arshad Counsel for United [email protected] Steven Seiden [email protected] Christ Walker Delta Air Lines [email protected] Alex Krulic Delta Air Lines [email protected] Marshall S. Sinick Florida West [email protected] John S. Fredericksen MN Airlines (Suncountry) [email protected] Joanne Young [email protected] David Kirstein Spirit Airlines [email protected] Anita Mosner Counsel for UPS [email protected] Dontai Smalls UPS [email protected] Anne Bechdolt Federal Express [email protected] Howard Kass US Airways [email protected] Benjamin Slocum US Airways [email protected] Malcom Benge World/North American [email protected] Jonathon H. Foglia World /North American [email protected] Karine Faden United Continental Holdings [email protected] Oracio Marquez United Continental Holdings [email protected] Bob Cohn Frontier/Republic [email protected] Pat Rizzi Frontier/Republic [email protected] Howard Diamond Frontier [email protected] Robert Land JetBlue Airways robert.land@.com Eileen McCarthy JetBlue Airways [email protected] Jonathan Hill JetBlue Airways [email protected] Matthew Wood [email protected] Bob Kneisley Southwest/Air Tran [email protected]

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Department of State [email protected] John S. Duncan Federal Aviation [email protected] Administration Robert Finamore Department of [email protected] Transportation Brett Kruger Department of [email protected] Transportation

______John Maggio