BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Application of BAHAMASAIR HOLDINGS LIMITED for Renewal of Exemption Pursuant to 49 U.S.C. 40109 to Engage in Scheduled Combination Service between Miami, Florida and Turks & Caicos Islands Docket OST-98-4714 APPLICATION OF BAHAMASAIR HOLDINGS LIMITED FOR RENEWAL OF EXEMPTION AUTHORITY Communications with respect to this document should be sent to: Capt. Patrick Rolle George U. Carneal Managing Director Ronald P. Brower Hogan & Hartson L.L.P. Bahamasair House Columbia Square P.O. Box N-4881 555 Thirteenth Street, N.W. Nassau International Airport Washington, D.C. 20004-1109 Nassau, Bahamas Telephone: (202) 637-6546 Facsimile: (202) 637-5910 Counsel for Dated: December 15, 1999 NOTICE: Answers to this application must be filed and served on all persons served with this application by December 30, 1999.
BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Application of BAHAMASAIR HOLDINGS LIMITED for Renewal of Exemption Pursuant to 49 U.S.C. 40109 to Engage in Scheduled Combination Service between Miami, Florida and Turks & Caicos Islands Docket OST-98-4714 December 15, 1999 APPLICATION OF BAHAMASAIR HOLDINGS LIMITED FOR RENEWAL OF EXEMPTION AUTHORITY Pursuant to 49 U.S.C. 40109(c), and subpart D of the Department s Rules of Practice, ("Bahamasair") hereby applies for renewal of its exemption authority to conduct scheduled foreign air transportation of persons, property, and mail between Miami, Florida and the coterminal points Grand Turk and Providenciales, Turks & Caicos Islands. See Notices of Action Taken in Docket OST-98-4714, dated December 18, 1998 and January 26, 1999. Bahamasair requests that this exemption, which is scheduled to expire December 18, 1999, be renewed for an additional period of one year. By this application, Bahamasair intends to invoke the automatic extension provisions of 5 U.S.C. 558(c) and Part 377 of the Department s Special Regulations. In support of this application, Bahamasair submits the following: 1. Bahamasair, the flag carrier of The Bahamas, currently holds a foreign air carrier permit which authorizes it to provide scheduled foreign air transportation of persons property and mail [b]etween a point or points in
- 2 - The Bahamas Islands and the coterminal points Atlanta, Georgia; Chicago, Illinois; Detroit, Michigan; Houston and Dallas, Texas; Palm Beach, Fort Lauderdale, Miami, Tampa, and Orlando, Florida; Newark, New Jersey; New Orleans, Louisiana; Memphis and Nashville, Tennessee; and Charlotte, North Carolina. DOT Order 87-8-55. On August 21, 1992, Bahamasair filed an application to renew and amend its foreign air carrier permit, and subsequently filed further proposed permit amendments. That application, as amended, is still pending. 2. On December 18, 1998, the Department granted Bahamasair an exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation of persons, property, and mail between Miami, Florida and Grand Turk, Turks & Caicos Islands. See Notice of Action Taken in Docket OST-98-4714. The Department subsequently amended this exemption authority to add Providenciales as a coterminal point with Grant Turk on Bahamasair s authorized Miami-Grand Turk service. See Notice of Action Taken in Docket OST-98-4714, dated January 26, 1999. 3. As stated in Bahamasair s prior applications in this docket, Bahamasair is providing this service between the United States and the Turks & Caicos Islands at the request of the Government of the Turks & Caicos Islands. No other carrier provides scheduled passenger and cargo service between Miami and Grand Turk. The only other carrier that provides scheduled passenger and cargo service between Miami and Providenciales is American Airlines, which currently operates two daily round-trip flights in the market. The Government of the Turks & Caicos Islands asked
- 3 - Bahamasair to supplement American s existing service so that the demand for air transportation between Miami and the Turks & Caicos Islands, particularly during peak travel periods, may be fully accommodated. 4. Under 49 U.S.C. 40109(c) and 41302, the Department may renew an exemption if it finds that such a grant is in the public interest. Elements of the public interest include whether: (a) the applicant is fit, willing, and able to perform the transportation in issue and to conform to U.S. aviation law and the Department s regulations; and (b) the application is consistent with the relevant bilateral air transport agreement, or is consistent with principles of comity and reciprocity. Under these standards the renewal requested by Bahamasair is in the public interest. 5. The Department has found Bahamasair fit to provide scheduled air transportation services to and from the United States on several prior occasions, including the most recent fitness findings that the Department made when it authorized Bahamasair s Miami-Grand Turk/Providenciales service. See Notices of Action Taken in Docket OST-98-4714, dated December 18, 1998 and January 26, 1999. Bahamasair continues to be fit to provide air transportation services between the United States and the Turks & Caicos Islands. 6. Granting this renewal application is consistent with the relevant bilateral agreement. The Government of the Turks & Caicos Islands has selected Bahamasair to serve as its flag air carrier. In addition, consistent with the existing U.S.-United Kingdom bilateral agreement,
- 4 - Bahamasair has been designated by the Government of the United Kingdom to provide service between the United States and the Turks & Caicos Islands. Principles of comity and reciprocity also support granting this renewal application because Bahamasair s homeland government has adopted an open skies policy toward U.S. carriers and has freely granted them scheduled and charter authority. See DOT Order 87-8-55. 7. Granting this renewal application also is in the public interest because Bahamasair s service provides needed capacity in the Miami-Turks & Caicos market and generates important economic benefits for the economy of the Turks & Caicos Islands. Bahamasair further believes that the U.S. traveling public benefits from the additional competition that it is providing in the Miami-Turks & Caicos Islands market. 8. Finally, granting this renewal application is entirely consistent with Department precedent in cases where a foreign air carrier from one Caribbean country has been designated by another Caribbean country to become its flag air carrier. See, e.g., Notice of Action Taken in Docket OST- 99-5544, dated Aug. 16, 1999 (granting Air Jamaica, as the airline designated by Barbados, Grenada, and St. Lucia, authority to provide air transportation between New York and Barbados, Grenada, and St. Lucia); Notice of Action Taken in Docket OST-98-4714, dated December 18, 1998; DOT Order 96-11-30 (granting Air Jamaica, as the airline designated by the Government of Barbados, authority to provide air transportation between Barbados and the U.S.).
- 5 - WHEREFORE, requests that the Department renew the exemption granted to Bahamasair by the Notices of Action Taken in Docket OST-98-4714, dated December 18, 1998 and January 26, 1999, so that Bahamasair may continue providing scheduled service between Miami, Florida, on the one hand, and the coterminal points Grand Turk and Providenciales, Turks & Caicos Islands, on the other. Respectfully Submitted, Dated: December 15, 1999 George U. Carneal Ronald P. Brower Hogan & Hartson L.L.P. Columbia Square 555 Thirteenth Street, N.W. Washington, D.C. 20004-1109 Telephone: (202) 637-6546 Facsimile: (202) 637-5910 Counsel for
- 6 - CERTIFICATE OF SERVICE I hereby certify that I have this date served a copy of the foregoing Application of for Renewal of Exemption Authority on all persons named on the attached Service List by causing a copy to be sent by first class mail, postage pre-paid. Ronald P. Brower Dated: December 15, 1999