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OST-1998-3771

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LIAT (1974) Limited (Emergency Exemption)

OST-1998-3771 - Exemption - Puerto Rico and St. Vincent - Port-of-Spain - Dominicana

April 24, 1998

Request for Exemption Under Emergency Exemptions

Scheduled foreign air transportation of persons, property and mail between (a) the coterminal points Antigua and Barbuda, Montserrat, and St. Kitts and Nevis, via the intermediate points Anguilla, the British Virgin Islands, and St. Maarten (Netherlands Antilles), and the U.S. coterminal points St. Croix and St. Thomas, U. S. Virgin Islands, and San Juan, Puerto Rico, and beyond to Santo Domingo, Dominican Republic-, and (b) the coterminal points Antigua and Barbuda, and St. Kitts and Nevis, via the intermediate points St. Maarten and St. Lucia, and the terminal point Miami, Florida and charter foreign air transportation of persons, property and mail, in accordance with the Department of Transportation's regulations

Service List

Counsel:  Washington Christian, James Christian

LIAT (1974) Limited

OST-98-3771 | May 8, 1998

Re:  Objection of Nevis Express

I would like to ask for a motion to file late on the subject OST-98-3771 on the grounds that I did not receive the filing request and application of Authorization for LIAT until 30 April 1998.  I will file my objection by 15 May 1998.

Service List

By:  Nevis Express, Allen Haddadi, 809-469-9065

LIAT (1974) Limited

OST-98-3771 | May 12, 1998

Objection of Daystar Airways d/b/a Nevis Express and Petition to File Late

The Request for Emergency Exemption in this docket should be denied. It should be denied because there is no real emergency justifying the action sought. It should be denied because LIAT has failed to meet the procedural requirements to justify an exemption from normal certification requirements. It should be denied because the government of Antigua & Barbuda, the domicile and homeland of LIAT, does not grant reciprocal treatment to U.S. carriers. It should be denied because LIAT and its request provide an excellent and unique opportunity to assure reciprocal treatment for U.S. carriers at Antigua & Barbuda.

Affirmation of Allen Haddadi | Appendix A - Re: Nevis Express

By: Allen Haddadi, Pres., 869.469.9065

Answer of LIAT to Daystar Airways

The current management of LIAT is doing a masterful job of addressing a series of unfortunate and unacceptable past practices from a managerial perspective which has hampered the airline's ability to track and respond to various regulatory requirements. The current management has in fact acted with dispatch and clarity of direction, (including direction in this matter) upon indication that a regulatory deficiency was in fact present. The emergency circumstances present in this instance are amply demonstrated by the consequences which would flow from a denial of LIAT's requests which ironically would also act as a punitive response for the diligent effort now undertaken to correct an unacceptable situation.

Counsel:  James Christian

LIAT (1974) Limited

OST-98-3771 | May 14, 1998

Reply of Daystar Airways d/b/a Nevis Express and Petition for Leave to File an Otherwise Unauthorized Document

Daystar Airways respectfully requests leave to file this otherwise unauthorized response to the Answer of LIAT, and reiterates its position that the requested authority be withheld until it can be proven that Antigua complies with the reciprocity requirements of law and regulations.

To some extent, the filings of LIAT and Daystar are at cross purposes. LIAT argues issues on the basis of economic need, while Daystar is addressing regulatory principles. LLAT's economic fitness is not going to be jeopardized if its exemption is delayed until reciprocity is established. LIAT has not justified emergency treatment, particularly in light of newly established scheduled service with aircraft larger than LIAT proposes to use. While this is a minor economic issue, its raises significant questions of law and regulation. The letter of the Antiguan government and LIAT's answer clearly show that it is the intent of Antigua to require registration of Daystar's aircraft in an OECS country (even though Antigua allows Cardinal Airlines of Dominica to use U.S. registered aircraft), and to take over operational control of Daystar from the F.A.A.. LIAT even argues that taking control of Daystar, already a Category I compliant carrier, would enhance Antigua's effort to upgrade its regulation to Category I. The same argument could be made about American Airlines, or Continental or the other dozen U.S. carriers operating charter service to Antigua, but hasn't. One can imagine the response if Antigua were to require American Airlines or Federal Express "to begin the process of registration and efforts to prepare a flight manual as minimal signs of willingness to establish a harmonious working relationship wherein a favorable determination of landing rights could be taken."

By: Allen Haddadi, Pres. Daystar, 869.469.9065

LIAT (1974) Limited (Notice of Action Taken)

OST-98-3771 | Undocketed | Filed April 24, 1998 | Issued June 1, 1998

Notice of Action

Emergency application to renew exemption from 49 U.S.C. 41301 for (1) scheduled foreign air transportation of persons, property and mail between (a) the coterminal points Antigua and Barbuda, Montserrat, and St. Kitts and Nevis; via the intermediate points Anguilla, the British Virgin Islands, and St. Maarten; and the coterminal points St. Croix, St. Thomas, and San Juan; and beyond to Santo Domingo, Dominican Republic; and (b) the coterrninal points Antigua and Barbuda, and St. Kitts and Nevis; via the intermediate points St. Maarten and St. Lucia; and the terminal point Miami; and (2) charter foreign air transportation of persons, property and mail pursuant to 14 CFR 212 of the Department's regulations. Renew statement of authorization pursuant to 14 CFR 212 of the Department's regulations to conduct wet-lease operations for Aerolineas Dominicana between San Juan and Santiago, Dominican Republic.

Applicant Rep:  James Christian, 202-962-3070

LIAT (1974) Limited - (Notice of Action Taken)

OST-98-3771 | Undocketed | Filed April 24, 1998 | Action Taken June 30, 1998

Notice of Action

Emergency application to: Renew exemption from 49 U.S.C. 41301 for (1) scheduled foreign air transportation of persons, property and mail between (a) the coterrninal points Antigua and Barbuda, Montserrat, and St. Kitts and Nevis; via the intermediate points Anguilla, the British Virgin Islands and St. Maarten; and the coterrninal points St. Croix, St. Thomas, and San Juan; and beyond to Santo Domingo, Dominican Republic; and (b) the coterminal points Antigua and Barbuda, and St. Kitts and Nevis; via the intermediate points St. Maarten and St. Lucia; and the terminal point Miami; and (2) charter foreign air transportation of persons, property and mail pursuant to 14 CFR 212 of the Department's regulations. Renew statement of authorization pursuant to 14 CFR 212 of the Department's regulations to conduct wet-lease operations for Aerolineas Dominicana between San Juan and Santiago, Dominican Republic.

Applicant Rep.: James Christian, 202.962.3070

LIAT (1974) Limited (Notice of Action Taken)

OST-98-3771 | Undocketed | Filed April 24, 1998 | Issued July 30, 1998

Notice of Action

Emergency application to: Renew exemption from 49 U.S.C. 41301 for (1) scheduled foreign air transportation of persons, property, and mail between (a) the coterminal points Antigua and Barbuda, Montserrat, and St. Kitts and Nevis; via the intermediate points Anguilla, the British Virgin Islands, and St. Maarten; and the coterminal points St. Croix, St. Thomas, and San Juan; and beyond to Santo Domingo, Dominican Republic; and (b) the coterrninal points Antigua and Barbuda, and St. Kitts and Nevis; via the intermediate points St. Maarten and St. Lucia; and the terminal point Miami; and (2) charter foreign air transportation of persons, property, and mail pursuant to 14 CFR Part 212 of the Department's regulations. Renew statement of authorization pursuant to 14 CFR Part 212 to conduct wet-lease operations for Aerolineas Dominicana between San Juan and Santiago, Dominican Republic.

Applicant Rep:  James Christian, 202-962-3070

LIAT (1974) LTD d/b/a LIAT

OST-98-3771	April 6, 1999 Docketed April 7, 1999	Application for Renewal of Exemption Authority	West Indies-United States Charters
	Exhibits Added 4/8	Appendix A:  Air Operator's Certificate of the Easter Caribbean States
		Appendix B:  Airplane Authorizations
		Appendix C:  Certificate of Insurance
		Appendix D:  Limits of Liability
		Appendix E:  Operating Conditions and Noise Data
		Appendix F:  Civil Aviation Security Acknowledgement

Counsel:  LIAT, Martin Camacho, 268-480-5646

LIAT (1974) Limited

By:  Paul Gretch

LIAT (1974) LTD d/b/a LIAT

Counsel:  LIAT, Martin Camacho, 268-480-5646

Daystar Airways d/b/a Nevis Express

Daystar Airways d/,b/a Nevis Express (Nevis Express) hereby renews Its application for commercial landing nights at Antigua and Barbuda from the Federation of St. Kitts and Nevis, and requests expedited action on its request.

Counsel:  Daystar Airways, Allen Haddadim 869.469.9065x22, haddadi@nevisexpress.com

Daystar Airways d/b/a Nevis Express

Nevis Express is a certificated U.S. carrier, with operating authority from the Federal Aviation Administration. Nevis Express is completing the requirements for commuter operations specifications and expects to begin scheduled service this summer. LIAT is a foreign air carrier based in Antigua. Despite its long experience in the Caribbean, and its perfect safety record, Nevis Express has been denied landing rights for even the most basic charter service at Antigua and Barbuda. In fact, all efforts of Nevis Express to obtain landing rights in this market have been met with silence. Since LIAT’s previous application to the Department two years ago, Nevis Express has filed three applications with the Government of Antigua & Barbuda (May 5, 1998, July 8, 1998 and most recently on May 8, 2000). Not a single one of these applications has been approved, or even acted upon by the Government of Antigua & Barbuda. A copy of Nevis Express’ most recent application has been filed in this docket.

Counsel:  Daystar Airways, Allen Haddadim 869.469.9065x22, haddadi@nevisexpress.com

Daystar Airways d/b/a Nevis Express

Counsel:  Daystar Airways, Allen Haddadim 869.469.9065x22, haddadi@nevisexpress.com

Counsel:  Daystar Airways, Allen Haddadim 869.469.9065x22, haddadi@nevisexpress.com

LIAT (1974) Limited

Counsel:  Daystar Airways, Allen Haddadim 869.469.9065x22, haddadi@nevisexpress.com

LIAT (1974) Limited

Counsel:  LIAT, Martin Camacho, 268-480-5646

LIAT (1974) Limited

Compared with the stability of Daystar, the situation of LIAT shows continuing deterioration. It has undergone its third reorganization since 1998. Local newspapers report that LIAT consistently loses money, and that its debt load is in default. No progress has been made in upgrading the ranking of the technical governing body, the D.C.A. It remains ranked in Category 2, the lowest category of regulatory jurisdictions assigned by the F.A.A.  The actions of LIAT and its home government are nothing more than blatant protectionism. There is no legal or regulatory reason to prevent Daystar from operating to Antigua, but the government continues to forbid Daystar from doing so.

LIAT's most recent filing contains no data which address the issues that have held up a final decision in this matter. Daystar would be happy to support the renewal of the authority sought by LIAT, and will do so as soon as reciprocal commercial authority is granted to Daystar by Antigua. Until then, Daystar remains opposed to any extension of the exemption authority. Given the continued lack of reciprocity, Daystar renews its request that a Show Cause Order be issued revoking LIAT's current exemption authority.

Counsel:  Daystar Airways, Allen Haddadi, 869.469.9755

LIAT (1974) Limited

LIAT (1974) Limited hereby replies to the Answer of Daystar Airways, Ltd. dated May 29, 2001. The pleadings of Daystar in its latest filing and in this docket generally are misdirected and inaccurate. The Department should place no credence in Daystar's spurious claims (1) that LIAT has denied Daystar landing rights on Antigua; (2) that Daystar has complied with the licensing requirements of the Air Transport Licensing Board of Antigua and Barbuda; (3) that Antigua "has lobbied" other Caribbean islands to refuse Daystar landing rights; (4) that the government of Antigua and Barbuda has asserted that "FAA and DOT oversight are inadequate;" and (5) that the Government of Antigua and Barbuda have failed to accord reciprocal rights to Daystar.

Counsel:  Roller Bauer, Lee Bauer, 202.331.3300, airlaw@rollerbauer.com 

LIAT (1974) Limited

Counsel:  Daystar Airways, Allen Haddadi, 869.469.9755

OST-1998-3771 - Exemption - Puerto Rico and St. Vincent - Port-of-Spain - Dominicana

January 19, 2007

Amendment to Application for Renewal of Exemption

Hereby amends its Application for Renewal of Exemption filed in this docket on April 28, 2000, to request authority to operate scheduled foreign air transportation (1) between San Juan, Puerto Rico, and St. Vincent, and beyond to Port-of- Spain, Trinidad; and (2) between San Juan, Puerto Rico, and Dominica. LIAT plans to commence service on these routes on or about February 1, 2007. LIAT is therefore polling the parties on the Service List and seeking expedited approval of the amended exemption from the Department.

As renewed and amended, LIAT's exemption from 49 U.S.C. § 41301 will authorize LIAT to engage in (1) scheduled foreign air transportation of persons, property, and mail (a) between the coterminal points of Antigua and Barbuda, Montserrat, and St. Kitts and Nevis; via the intermediate points Anguilla, the British Virgin Islands, and St. Maarten; and the coterminal points St. Croix, St. Thomas, and San Juan; and beyond to Santo Domingo, Dominican Republic; and (b) between the coterminal points Antigua and Barbuda, and St. Kitts and Nevis; via the intermediate points St. Maarten and St. Lucia; and the terminal point Miami; (c) from Port-of-Spain behind St. Vincent; via St. Vincent; to San Juan, Puerto Rico; (d) and between Dominica and San Juan, Puerto Rico; and (2) charter foreign air transportation of persons, property, and mail pursuant to 14 C.F.R. Part 212 of the Department's regulations.

There is no reason why the Department should not grant immediate approval of the amended exemption. Daystar Airways, Ltd., d/b/a Nevis Express, filed objections to LIAT's Application for Renewal, and LIAT filed a Reply on June 5, 2001. Daystar Airways, however, is no longer in operation, and its objections are therefore moot.

Counsel: Roller & Bauer, Lee Bauer, 202-331-3300

OST-1998-3771 - Exemption - Puerto Rico and St. Vincent - Port-of-Spain - Dominicana

January 23, 2007

Re: Polling Results

On behalf of LIAT, we have polled the representatives of all carriers on the Service List attached of the Amended Application that seeks renewal of LIAT's current exemption authority and the addition of authority to operate scheduled foreign air transportation (1) from Port-of-Spain, Trinidad and Tobago, behind St. Vincent; via St. Vincent; to San Juan, Puerto Rico; (2) and between Dominica and San Juan, Puerto Rico.

None of the carriers had any objection to the Application. Inasmuch as LIAT seeks to introduce service on the new routes on February 1, 2007, LIAT requests expedited Approval of the Amended Application.

Counsel: Roller & Bauer, Moffett Roller, 202-331-3300

Filed April 7, 2000 and May 11, 2001 | Amended January 19, 2007 | Issued January 31, 2007

Notice of Action Taken

Renew and amend exemption under 49 USC § 40109, issued May 14, 1999, in the present Docket, which currently permits the applicant to engage in (1) scheduled foreign air transportation of persons, property and mail between (a) the coterminal points Antigua and Barbuda, Montserrat, and St. Kills and Nevis; via the intermediate points Anguilla, the British Virgin Islands, and St. Maarten; and the coterminal points St. Croix, St. Thomas, and San Juan, Puerto Rico; and beyond to Santo Domingo, the Dominican Republic; and (b) the coterminal points Antigua and Barbuda, and St. Kitts and Nevis, via the intermediate points St. Maarten and St. Lucia; and the terminal point Miami, Florida; and (2) charter foreign air transportation of persons, property and mail pursuant to 14 CFR Part 212 of the Department's regulations. LIAT asks that this authority be renewed and amended to include authority to engage in scheduled foreign air transportation of persons, property and mail between (a) San Juan and St. Vincent, and beyond to Port of Spain, Trinidad; and (b) San Juan and Dominica. In its January 19, 2007, amendment, LIAT also provided updated information concerning its ownership.

LlATs May 11, 2001 filing was styled in the form of a renewal request. However, we are treating it as a supplement to the April 17, 2000 renewal application, to the extent that it provides updated information as to some aspects of the original renewal request.

In 2000 and 2001, Daystar Airways d/b/a Nevis Express filed a number of responsive pleadings to LIATs April, 2000 and May, 2001 renewal requests. LIAT responded on June 5, 2000. Daystar has filed no further pleadings. By Order 2004-6-2, dated June 4. 2004. the Department revoked Daystar's certificate of public convenience and necessity, for reasons of dormancy. We note that on May 15, 2000. Daystar filed a motion to extend the answer period for LIAT's April 7, 2000 application, and that Day star subsequently filed an answer to that application. In the circumstances presented, we will dismiss Daystar's motion as moot.

By: Paul Gretch

January 30, 2008

Application for Renewal of Exemption

LIAT hereby applies for renewal of its exemption from 49 U.S.C. §41301, which authorizes LIAT to engage in (1) scheduled foreign air transportation of persons, property and mail (a) between the coterminal points Antigua and Barbuda, Monserrat, and St. Kitts and Nevis; via the intermediate points Anguilla, the British Virgin Islands, and St. Maarten; and the coterminal points St. Croix, St. Thomas, and San Juan, Puerto Rico; and beyond to Santo Domingo, the Dominican Republic; (b) between the coterminal points Antigua and Barbuda, and St. Kitts and Nevis, via the intermediate points St. Maarten and St. Lucia; and the terminal point Miami, Florida; (c) between San Juan, Puerto Rico and St. Vincent, and beyond to Port-of-Spain, Trinidad; and (d) between San Juan, Puerto Rico and Dominica; and (2) charter foreign air transportation of persons, property and mail.

The Department granted the above authority to LIAT pursuant to a Notice of Action Taken dated January 31, 2007. LIAT requests that the Department renew this authority, which is scheduled to expire January 31, 2008, for a period of at least two years.

Counsel: Roller & Bauer, Lee Bauer, 202-331-3300, airlaw@rollerbauer.com

Filed January 30, 2008 | Issued February 28, 2008

Notice of Action Taken

Renew exemption under 49 USC §40109, issued January 31, 2007, to permit the applicant to engage in (1) scheduled foreign air transportation of persons, property and mail between (a) the coterminal points Antigua and Barbuda, Montserrat, and St. Kitts and Nevis; via the intermediate points Anguilla, the British Virgin Islands, and St. Maarten; and the coterminal points St. Croix, St. Thomas, and San Juan, Puerto Rico; and beyond to Santo Domingo, the Dominican Republic; (b) the coterminal points Antigua and Barbuda, and St. Kitts and Nevis, via the intermediate points St. Maarten and St. Lucia; and the terminal point Miami, Florida; (c) San Juan and St. Vincent, and beyond to Port of Spain, Trinidad; and (d) San Juan and Dominica; and (2) charter foreign air transportation of persons, property and mail pursuant to 14 CFR Part 212 of the Department’s regulations. LIAT asks that this authority be renewed for a period of two years.

LIAT sought authority for a two-year period. The one-year duration of the authority we granted is consistent with our usual policy of granting exemption authority in the circumstances presented. We, therefore, dismissed the application to the extent that it sought authority for a longer period.

By: Paul Gretch

October 15, 2008

Answer of Cape Air

LIAT has applied to amend its existing exemption authority to allow it to provide scheduled seventh-freedom foreign air transportation of persons, property and mail between San Juan, Puerto Rico and Tortola, British Virgin Islands.

LIAT's request that its application be granted on the basis of comity and reciprocity is similarly unsupported by the facts. Cape Air is unaware of any instances in which the government of Antigua and Barbuda has permitted U.S. carriers to conduct scheduled seventh-freedom service between Antigua and Barbuda and a third country without serving a U.S. point on the same journey, and LIAT has alleged none.

LIAT's claim that the proposed service is in the public interest is also without merit. Aside from LIAT's own unsupported statement to the contrary, there is no "demonstrated need" for additional capacity in the SJU-EIS market, which is currently served by three U.S. carriers operating an average of fifteen daily roundtrip flights each day. Cape Air has purchased additional aircraft, hired flight crews and expanded its SJU-EIS flights to attempt to ensure ample capacity that should be more than adequate to accommodate the needs of the market, and Cape Air's flights have been averaging load factors only slightly greater than 50% during the last six weeks despite American Eagle's September flight reductions. Thus, existing service by Cape Air (eight daily roundtrips with extra sections added from time to time as needed), Air Sunshine (four daily roundtrips) and American Eagle (three daily weekday roundtrips) is more than adequate to accommodate the needs of business and leisure travelers in this market, and the addition of LIAT as a fourth competitor operating nonstop turnaround SJU-EIS flights would come at the expense of U.S.-flag service, U.S. carriers and their employees and their investments in equipment and facilities to serve the SJU-EIS route. In addition to the SJU-EIS service provided by U.S. carriers outlined above, LIAT also currently operates fifth-freedom service carrying traffic between SJU and EIS (two daily departures from EIS and one from SJU with Antigua and Barbuda as a co-terminal point), and it has presented no justification whatsoever for an award of seventh-freedom authority to LIAT for this route.

Counsel: Crowell & Moring, Bruce Keiner, 202-624-2500

October 24, 2008

Reply of LIAT to Answer of Hyannis Air Service d/b/a Cape Air

Cape Air provides conflicting arguments in its assertion that there is no need for additional capacity in the SJU-EIS market. On the one hand, Cape Air states that its load factors are "only slightly greater than 50%," suggesting that it provides adequate capacity to accommodate weak market demand, while on the other hand, Cape Air states its intention to add extra sections to accommodate increasing market demand. Historically, carriers experiencing low load factors have reduced, not increased, their service capacity. In any event, even under its proposed frequency of nine daily flights, the number of passengers that Cape Air would carry under its reported load factors would not equal the capacity of one LIAT rotation.

Considering Cape Air's low load factors and the significant differences between Cape Air's Cessna 402C fleet and LIAT's Dash 8-300 aircraft, LIAT provides an option to the traveling public that is not available on Cape Air's aircraft. Furthermore, when American Eagle reduced its daily round trip flights from ten the three, the result was a reduction in market capacity of approximately 25,000 seats per month. Cape Air's nine-seat aircraft cannot fill the void created by the substantial decrease in service by American Eagle. In the words of The Honorable Julian Fraser, Minister of Communications and Works and a Member of the Legislative Council of the British Virgin Islands, "Cape Air must appreciate that LIAT's application for 7th Freedom came at the request of the BVI, and with the support of both the Government of the BVI and the UK Department of Transportation."

LIAT (1974) Limited respectfully requests that the Department approve LIAT's request to conduct stand-alone scheduled service between the British Virgin Islands and San Juan, Puerto Rico as requested in LIAT's application of September 30, 2008.

Counsel: Roller & Bauer, Lee Bauer, 202-331-3300

November 3, 2008

Re: Surreply of Hyannis Air Service d/b/a Cape Air and Motion for Leave to File

Despite LIAT's best efforts and parallel statements from the Government of the Virgin Islands' Office of the Minister for Communications and Works designed to convince the Department otherwise, there remain two compelling reasons why the Department must deny LIAT's application to provide nonstop turnaround service between San Juan, Puerto Rico and Tortola, BVI under applicable standards. First, the Bermuda II Agreement that governs aviation services between the United States and Antigua and Barbuda simply does not authorize the seventh-freedom service that LIAT now proposes. Second, the comity and reciprocity required for a grant of extra-bilateral authority to LIAT do not exist here: Since the replies of LIAT and the BVI obfuscate and mischaracterize these important issues, Cape Air seeks leave to submit this surreply so the Department will have a more complete record on which to consider LIAT's application.

There is still no evidence of the comity and reciprocity that must exist for the Department to grant LIAT's application. Nothing on the record indicates that Antigua and Barbuda does or would permit U.S. carriers to conduct the same type of seventh freedom service that LIAT now proposes. LIAT's claim that it is "ready to do its share to support continued improvement in U.S.-OECS relations and pledge [of] its support for reciprocal treatment of any applications by U.S. carriers to the Eastern Caribbean Civil Aviation Authority for Seventh Freedom authority" does not change the circumstances that exist today.

LIAT also attempts to conflate Cape Air's statements that it had been "averaging load factors only slightly greater than 50% during the last six weeks despite American Eagle's September flight reductions" (i.e., that existing capacity levels are sufficient) and that it would add extra sections "from time to time as needed" to create the false impression that Cape Air would only add extra sections at some point in the future when its planes fill up, rather than on a rolling basis as demand dictates. Cape Air has consistently demonstrated its willingness and flexibility to provide the necessary capacity in the SJU-EIS market.

Cape Air urges the Department to deny LIAT's application for an exemption authorizing it to provide scheduled foreign air transportation of persons, property and mail between San Juan, Puerto Rico and the British Virgin Islands.

Counsel: Crowell & Moring, Bruce Keiner, 202-624-2500

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