OST-95-804 / Icelandair / Renew and Amend Exemptions / January 8, 1998
NOTICE: Interested parties may submit to the Department of Transportation answers in support of, or in opposition to, this application no later than January 23, 1998.
Application of
ICELANDAIR (Flugleidir Hf.)
to Renew and Amend its Exemptions from 49 U.S.C. § 41301
AMENDMENT TO APPLICATION OF ICELANDAIR
TO RENEW AND AMEND EXEMPTION AUTHORITY
Flugleidir Hf. ("Icelandair") hereby submits this Amendment to its Application to Renew and Amend Exemption Authority filed in this docket on November 26, 1996. In that application, Icelandair requested exemption authority to operate scheduled combination services from points behind Iceland, via Iceland and intermediate points, to a point or points in the United States and beyond; and to serve Luxembourg as a coterminal point with Iceland on scheduled operations to authorized U.S. points, subject to the current exemption conditions. /1 Icelandair hereby wishes to amend this application
1/ No one filed in opposition to the application.
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as pertains to its request for authority to serve the United States nonstop from Luxembourg. /2
Icelandair's foreign air carrier permit authorizes the carrier to provide service from Iceland to Chicago, New York and Baltimore. Icelandair currently also holds exemption authority to serve Boston, Orlando, Ft. Lauderdale, Cleveland and Detroit from Iceland, and to serve Luxembourg as a coterminal point with Iceland on scheduled operations to the carrier's authorized U.S. gateways, subject to the condition that a minimum of 50 percent of all Icelandair scheduled U.S.-Luxembourg services must operate via Iceland. See Order 96-3-33, referencing Notice of Action Taken, dated Nov. 28, 1995). Accordingly, Icelandair at present may provide direct service between Luxembourg and the U.S. points of Chicago, New York, Baltimore, Boston, Orlando, Ft. Lauderdale, Cleveland and Detroit, subject to the exemption conditions. As requested by its November 26, 1996 filing, Icelandair wishes to renew the authority to serve these points from Luxembourg as contemplated by the Memorandum of Consultation (MOC) dated March 3, 1995 between the Governments of Iceland and the United States.
2/ Icelandair continues to request full Open Skies authority between and beyond Iceland and the U.S., as set forth in the November 26, 1996 exemption application, and in the application Icelandair submitted to the Department on
June 18, 1997 to amend its foreign air carrier permit to incorporate all rights available to Icelandic carriers under the Open Skies U.S.-Iceland Air Transport Agreement.
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By this amendment to its exemption application, Icelandair also seeks authority to provide service between Luxembourg and Minneapolis/St. Paul, where the carrier plans to institute service in April 1998.
Granting Icelandair's application for renewal and amendment of its U.S.-Luxembourg exemption authority is clearly in the public interest. It will enable the carrier to flexibly respond to market demands and opportunities present in the international aviation market, and develop new competitive travel options to the benefit of the public.
Granting this amended application is consistent with the positive aviation relationship between the United States and Iceland. The U.S.-Iceland Air Transport Agreement, which took effect on June 14, 1995, brought about an Open Skies regime on routes between and beyond the two countries. In reaching this agreement, the two countries specifically contemplated continuation of Icelandair's direct service between Luxembourg and the U. S. The MOC which was agreed at the conclusion of the bilateral negotiations stated:
The Icelandic delegation expressed its concern that the route description for Icelandic carriers set forth in Annex I not be construed to prejudice the continued renewal of the longstanding authority granted by the United States for Icelandair
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to provide nonstop service between Luxembourg and the United States. In this regard, the United States delegation confirmed that the new route description is intended to enlarge upon. rather than diminish, existing route authority granted by the Department of Transportation.
(Emphasis added.)
Accordingly, the MOC specifically provides that granting Icelandair authority to continue providing service from Luxembourg to the U.S. points it is authorized to serve is fully consistent with the bilateral agreement. Furthermore, the MOC foresees expansion of Icelandair's Luxembourg authority. Accordingly, Icelandair wishes to be able to provide service from Luxembourg to Minneapolis/St. Paul in conjunction with its planned service to that point from Iceland. Icelandair believes this request advances the Department's pro competitive policies, reflects the excellent aviation relationship between the U.S. and Iceland, is supported by comity and reciprocity, and is in the public interest.
WHEREFORE, Icelandair respectfully requests the Department to renew and amend its currently effective exemptions from the requirements of 49 U.S.C. § 41301 so that the carrier is authorized to: 1) operate scheduled combination services from points behind Iceland, via Iceland and intermediate points, to a point or points in the United States and beyond; 2) to serve Luxembourg as a coterminal point with Iceland on
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scheduled operations to Chicago, New York, Baltimore, Boston, Orlando, Ft. Lauderdale, Cleveland, Detroit and Minneapolis/St. Paul subject to the condition that a minimum of 50 percent of all Icelandair scheduled U.S. - Luxembourg services must operate via Iceland; and grant such other relief as the Department deems appropriate.
Respectfully submitted,
Joanne W. Young
David M. Kirstein
BAKER & HOSTETLER LLP
Washington Square, Suite 1100
1050 Connecticut Avenue, N.W.
Washington, D.C. 20036
(202) 861-1532
Counsel for Icelandair
Dated: January 8, 1998