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OST-99-5612

Air Caribbean Limited

Air Caribbean is a private corporation incorporated under the laws of Trinidad & Tobago. It is overseen by the Republic of Trinidad & Tobago Civil Aviation Division and the Air Transport Licensing Authority of Trinidad and Tobago, both located in Port of Spain. Air Caribbean seeks authority to transport persons, property and mail in foreign scheduled air transportation between Port of Spain (POS) and Miami (MIA) directly and via intermediate point and charter authority as noted more fully above. Air Caribbean will use Boeing 737 airplanes configured for 120 - 124 passengers in serving the proposed route. Such aircraft will be compliant with the current noise regulations of the Federal Aviation Administration ('TAA") and will be fully Stage 3 compliant after December 31, 1999.

The company's Profit and Loss Statements show that for the last three years Air Caribbean has had an unbroken record of profitability with net pre-tax annual profits ranging from $205,5483 to $816,585. Air Caribbean's most recent Balance Sheet indicates $8,069,568 in fixed assets and $3,O25,248 in current assets and shareholder's equity of $2,465,756, Air Caribbean's current ratio is slightly in excess of 1:1 and the company has cash in the bank and in hand of $789.791. Historically, Air Caribbean's cash in the bank and in hand has ranged from $321,249 to $789,791.

Counsel:  Boros & Garofalo, P.C., Gary Garofalo for Air Caribbean, 202.822.9070

Air Caribbean Limited

Counsel:  Verner Liipfert, William Evans, 202-371-6031

Air Caribbean Limited

BWIA's opposition to Air Caribbean's Application must be seen for what it truly is: a flagrant anti-competitive act intended to delay or derail a new entrant's initial foray into the Trinidad and Tobago-United States market. Other than attempting to stifle competition, there is no basis for BWIA's objection

Counsel:  Boros Garofalo, Gary Garofalo, 202-822-9070

Air Caribbean Limited

Counsel:  Boros & Garofalo, P.C., Katherine Aldrich for Air Caribbean, 202.822.9070

Air Caribbean Limited

Supplementing its Application for exemption from 49 U.S.C. § 41301 to permit it to engage in scheduled foreign air transportation of persons, property and mail between Port of Spain, Trinidad and Tobago (POS) and Miami, Florida (MIA), directly and via intermediate points.1 2 Air Caribbean is supplying a revised chart  listing current management and the results of the challenge in the Trinidadian courts to its authority to serve the United States. Attachment A is the revised management chart. This replaces the chart found at Exhibit A to the Application. Although Air Caribbean’s senior management is largely unchanged, it has hired a new general manager, Capt. Eric Moswer, who had extensive experience with Air Aruba and BWIA before joining Air Caribbean. Upon information and belief, the matter BWIA addressed in its May 17, 1999 Answer to Air Caribbean’s Application – i.e. BWIA’s challenge to the Trinidadian Air Transport Licensing Authority granting of Air Caribbean’s license to operate to the United States – has been resolved in favor of ATLA and Air Caribbean. Thus, there is no basis for BWIA to continue to object to Air Caribbean’s Application other than to engage in anticompetitive behavior by seeking to preserve its position as the sole Trinidadian air carrier providing service in the Trinidad/Tobago - United States market. Air Caribbean has advised that there are no other changes to the information submitted in its Application.

Counsel:  Boros Garofalo, Katherine Aildrich, 202.822.9070

Air Caribbean Limited

On October 15, 1999 the High Court of Justice of Trinidad and Tobago permitted BWIA to withdraw its application for judicial review of the ATLA decision. Contrary to Air Caribbean's assertion, the matter was not "resolved in favor of ATLA and Air Caribbean" at the High Court. Rather, the High Court entered a Consent Order hereby the parties advised the Court of their agreement to discontinue the action. The Hi h Court made no findings as to the merits of BWIA's application. That issue aside, the limited financial information Air Caribbean has provided remains deficient in light of its rapid expansion from largely-domestic, all-turboprop operations into international, long-haul, jet service. BWIA noted in its initial answer that Air Caribbean's financial information predated this leap, and Air Caribbean responded only by noting drily its compliance with the requirement of 14 C.F.R. § 211.20(n), which only requires information concerning, the last two fiscal years. Since Air Caribbean's latest fiscal year ended September 30, it would be appropriate for the Department to req ire Air Caribbean to submit fiscal year 1998-1999 information for review. These financial statements may provide a more accurate financial picture of Air Caribbean and its experience with, and capital funding for, B737 operations.

Air Caribbean's business plans call for a dramatic transition from local turboprop operations to long-haul, international jet service. It is in the public interest for the Department to consider carefully whether Air Caribbean can make this transition successfully, and BWIA does not believe that Air Caribbean has provided sufficient support for the U.S. service it proposes. BWIA therefore continues to oppose the application.

Counsel:  Verner Liipfert, William Evans, 202-371-6031

Air Caribbean Limited

By application filed April 30, 1999, as supplemented, Air Caribbean requests exemption authority to engage in scheduled foreign air transportation of persons, property and mail between Port of Spain, Trinidad and Tobago, via the intermediate points Antigua, Barbados, Grenada, St. Kitts and St. Lucia, and the terminal point Miami, Florida; and to conduct charters in accordance with Part 212 of our rules. Air Caribbean states that upon approval of its request it intends to commence scheduled combination services between Port of Spain and Miami.

By:  Bradley Mims

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