BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Transcription

1 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of FLY JAMAICA AIRWAYS LIMITED Docket DOT-OST For an exemption New York - Georgetown, Guyana (7 th freedom extrabilateral turn-around service ANSWER OF DELTA AIR LINES, INC. Communications with respect to this document should be addressed to: Robert J. Cortelyou Senior Vice President Network Planning DELTA AIR LINES, INC Delta Boulevard Atlanta, Georgia Alexander Van der Bellen Managing Director, Regulatory Affairs & Associate General Counsel Christopher Walker Regional Director, Regulatory Affairs DELTA AIR LINES, INC New York Avenue, N.W. Washington, D.C ( sascha.vanderbellen@delta.com chris.walker@delta.com October 15, 2013

2 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of FLY JAMAICA AIRWAYS LIMITED Docket DOT-OST For an exemption New York - Georgetown, Guyana (7 th freedom extrabilateral turn-around service ANSWER OF DELTA AIR LINES, INC. Delta Air Lines, Inc. ( Delta answers in opposition to the Petition for Review of Fly Jamaica Airways Ltd ( Fly Jamaica. Fly Jamaica has offered nothing in its Petition that would warrant disturbing the Department s correct and carefully reasoned decision in Order to deny Fly Jamaica extraordinary relief to operate extrabilateral 7 th freedom turn-around service between New York (JFK and Georgetown, Guyana (GEO. Delta fully concurs in the original Objections and subsequent Answer of Airlines for America (A4A in this docket. Any suggestion by Air Jamaica that A4A does not speak for Delta, as well as the U.S. airline industry, on this important issue is incorrect. However, as Delta has been uniquely and adversely impacted on the JFK-Georgetown route, we offer the following additional comments to amplify the points made by A4A: 1. Neither the Government of Jamaica nor the Government of Guyana bargained for 7 th freedom rights on the JFK-Georgetown route. 7 th freedom passenger rights are not and have never been part of the U.S. open skies model text and are, by definition, extrabilateral. As such, there could be no expectation on the part of any carrier or any government that such rights would be freely granted by the Department particularly

3 Delta Air Lines Answer Page 2 when seventh freedom services have a detrimental effect on the ability of U.S. carriers to develop and maintain nonstop 3 rd /4 th freedom routes from the United States. 2. Delta s decision to exit the JFK-GEO market was not taken lightly for its own commercial reasons as suggested by Fly Jamaica in its Petition. (Page 2 Rather, after five years of successfully operating nonstop service on the JFK-GEO route, Delta was forced to terminate service due to the entry of a state sponsored, state-subsided carrier using an aggressive interpretation of 5 th freedom operating rights. 3. Fly Jamaica s claim that the U.S.-Guyana market is now in total isolation as regards to nonstop air service (page 2 is simply false. In truth, the JFK-GEO market is served with four nonstop flights per week in each direction: three flights a week by Caribbean Air, and one flight a week by Fly Jamaica itself. See, Exhibit 1 (JFK-GEO nonstop schedules; Exhibit 2 (Fly Jamaica and Caribbean Air web sites offering nonstop bookings. 4. JFK-GEO is not without nonstop service. Rather, Fly Jamaica is seeking extrabilateral relief, for its commercial benefit, to completely sever this route from its home country and operate it on a pure seventh freedom basis. Indeed, one may question whether the current service should qualify as a legitimate intermediate 5 th freedom operation, given that 94% of traffic onboard Caribbean Air s nonstop JFK-GEO flights is traveling in the local market. 1 Fly Jamaica s results are no doubt similar, but have not yet been reported. 1 MIDT Data CY2013 to date.

4 Delta Air Lines Answer Page 3 5. In the DOT s recent decision to deny Fly Jamaica extrabilateral 7 th freedom authority, the Department explained its appropriately high standard for granting such relief: In considering foreign air carrier requests for extrabilateral authority, the Department weighs various criteria specific to the type of extrabilateral request, as well as any other factors that are germane to a particular case. With respect specifically to requests for extrabilateral seventhfreedom turnaround service, we have historically viewed such requests as extraordinary and have granted such authority only when the circumstances presented on the record in individual cases show compelling public interest considerations. In this regard, we have established several criteria to determine whether such authority would be in the public interest in a given case. Specifically, we must conclude that (1 a demonstrable need for the service exists, (2 there would be a negligible impact on U.S. flag carriers, and (3 the proposed operation is limited in scope. Order at 3. Those conditions have not been met here. First, nonstop service is, in fact, being provided on the JFK-GEO route. Second, the grant of seventh freedom rights would have a serious detrimental impact on the ability of U.S. carriers to develop and maintain 3 rd /4 th freedom services. Third, the relief sought by Fly Jamaica and Caribbean Air would provide open-ended seventh freedom rights in the JFK-GEO market, permanently foreclosing the possibly of reentry by U.S. flag carriers. Accordingly, Delta supports and agrees with the Department s decision not to grant extrabilateral 7 th freedom turnaround rights to Fly Jamaica and Caribbean Air. 6. Delta is actively monitoring the JFK-GEO route. In an environment free from the harmful effects of state sponsorship and subsidy, and aggressive and undue reliance on 5 th freedom operations by third country countries, Delta is fully prepared to resume service.

5 Delta Air Lines Answer Page 4 For these reasons, the Department s decision should stand, and Fly Jamaica s Petition denied. Respectfully submitted, Alexander Van der Bellen Managing Director, Regulatory Affairs & Associate General Counsel DELTA AIR LINES, INC.

6 Exhibit 1 Schedule Weekly Extract Report for all Passenger (All flights from JFK to GEO for travel in October 2013 Mktg Al Airline Alliance Op Al Orig Dest Miles Flight Equip Seats Dep Time Arr Time Block Mins Orig WAC Dest WAC Op Days Ops/Week Seats/Week BW Caribbean None BW JFK GEO 2, OJ Fly Jamaica None OJ JFK GEO 2, Schedule Weekly Extract Report run on October 10, 2013 by DL-CHWA with Parameters: Origin Airport(s JFK Destination Airport(s GEO Alliance None Seats Between 0 And 999 Origin Region Destination Region Op Days Sunday, Monday, Tuesday, Wednesday, Thursday, Friday, Saturday Use Data Loaded This Week Service Type Passenger (All Equipment All Equipment Show Origin WAC? Yes Show Destination WAC? Yes Show Restricted Flights? No Show Seats By Cabin? No Stage Length 0 To Miles Stops 0 Travel Period in October

7 Exhibit 1 Schedule Weekly Extract Report for all Passenger (All flights from GEO to JFK for travel in October 2013 Mktg Al Airline Alliance Op Al Orig Dest Miles Flight Equip Seats Dep Time Arr Time Block Mins Orig WAC Dest WAC Op Days Ops/Week Seats/Week BW Caribbean None BW GEO JFK 2, Schedule Weekly Extract Report run on October 10, 2013 by DL-CHWA with Parameters: Origin Airport(s GEO Destination Airport(s JFK Alliance None Seats Between 0 And 999 Origin Region Destination Region Op Days Sunday, Monday, Tuesday, Wednesday, Thursday, Friday, Saturday Use Data Loaded This Week Service Type Passenger (All Equipment All Equipment Show Origin WAC? Yes Show Destination WAC? Yes Show Restricted Flights? No Show Seats By Cabin? No Stage Length 0 To Miles Stops 0 Travel Period in October

8 10/11/13 Fly Jamaica Airways Ltd. - passenger information Exhibit 2 - Page 1 Book Your Flight Flight Summary Origin New York, John F Kennedy Intl US Cheddi Jagan Intl, Guyana Destination Flight Number Cheddi Jagan Intl, Guyana OJ New York, John F Kennedy Intl US OJ - 150/121 Depart Time Arrival Time 18 Oct :05 PM 21 Oct :00 AM Passengers Fare Per Passenger Services Taxes Subtotal 18 Oct :35 PM 21 Oct :15 AM 1 Adult USD USD 0.00 USD USD Total Price: USD Primary Passenger Information Type * Adult Title MR First Name * Middle Name Last Name * Address Information Address1 * Address2 City * State/Province Postal Code Country * Contact Information Home Phone * Work Phone Cell Phone * Address * Travel document one Travel document * Passport Document ID * Issuing country * Afghanistan Expiry date * DD MM YYYY Additional passport information Last name (on passport * Gender * Date of birth * 1/2

9 10/11/13 Fly Jamaica Airways Ltd. - passenger information Gender * Select Gender Date of birth * DD MM Exhibit 2 YYYY - Page 2 Nationality * Afghanistan Alien number Issuing country Afghanistan Expiry date DD MM YYYY Travel document two Travel Document two Select Additional Travel document Document ID Issuing country Afghanistan Expiry date DD MM YYYY Additional passport information Last name (on passport Gender Select Gender Date of birth DD MM YYYY Nationality Afghanistan Alien number Issuing country Afghanistan Expiry date DD MM YYYY I confirm that the passport information I have provided is correct «BACK NEXT» Radixx International 2013 Best viewed with Internet Explorer Home Flight Information Travel Agent 2/2

10 10/11/13 Caribbean Airlines Limited - Flight price confirmation Search > Select > Review > Traveller Details > Payment > Confirmation Flight price The total fare including surcharges and taxes is shown below per traveller. This fare will continue throughout the reservation process once seats remain available. Seats are not guaranteed until your final purchase. Please read the fare rules before completing your reservation. Outbound journey BW528 Economy Non stop Georgetown, C heddi Jagan Intl. Sun, 13 Oct11:20 PM New York, John F. Kennedy Intl. 5:00 AM (+1 Inbound journey BW529 Economy Non stop New York, John F. Kennedy Intl. Mon, 21 Oct7:30 AM Georgetown, C heddi Jagan Intl. 1:05 PM Air fare cost Type Travellers Net Taxes and FeesSurcharges Total Adult: 1 USD USD USD (detailsusd Total price including surcharges and taxes: USD (+1 Flight departs/arrives one day later Exhibit 2 - Page 3 1/1

11 CERTIFICATE OF SERVICE A copy of the foregoing Answer has been served this 15 th day of October, 2013, upon the following persons via pmurphy@lopmurphy.com ESahr@eckertseamans.com anita.mosner@hklaw.com Jennifer.Nowak@hklaw.com robert.wirick@aa.com francis.heil@aa.com anbird@fedex.com sllunsford@fedex.com dan.weiss@united.com howard.kass@usairways.com rsilverberg@sgbdc.com jjohnson@sgbdc.com tom.fosko@airtransport.com jcanny@amerijet.com jrichardson@johnlrichardson.com rpommer@atlasair.com john.palo@evergreenairlines.com charters@evergreenairlines.com matwood@cozen.com mlbenge@zsrlaw.com kevin.montgomery@polaraircargo.com peter.beckett@polaraircargo.com john.allen@faa.gov Russell.Bailey@alpa.org dberg@airlines.org kglatz@airlines.org paul.gretch@dot.gov todd.homan@dot.gov Peter.Irvine@dot.gov info@airlineinfo.com