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1 1 (August 22, 2019)

handle is hein.crs/govbavh0001 and id is 1 raw text is: Congressional ____ * Research Service h~forming the tegislative debate since 14 Norwegian Air International and Low-Cost Long-Haul Flights August 22, 2019 Legislation introduced in the House of Representatives in July 2019 would prohibit the U.S. Department of Transportation (DOT) from allowing a foreign airline to serve the United States if it is established in a country other than the home country of its majority owner or owners in order to avoid regulations of the home country. The bill, H.R. 3632, is the latest salvo in a prolonged battle over issuance of a foreign air camer permit that allows Norwegian Air Shuttle, which owns a group of discount carriers, to operate transatlantic flights to U.S. destinations. Norwegian Air Shuttle and its intercontinental arm, Norwegian Long Haul, hold FAA-issued airline certificates under Norwegian license and provide nonstop services to several U.S. destinations from several European countries, including Norway. These flights are authorized under the U.S.-EU air service agreement, which has applied to Norway since 2011 (even though Norway is not an EU member state). In 2013, a Norwegian Air Shuttle subsidiary, Norwegian Air International (NAI), applied for a permit to serve the United States as well. Some U.S. labor organizations objected to the application, alleging that NAI is based in Ireland because Irish labor laws allow extensive use of pilots and flight attendants who are supplied by temporary labor contractors or are self-employed. NAI supporters included some U.S. passenger and cargo carriers, U.S. airports, consumer and travel groups, former U.S. Secretaries of Transportation, EU officials, and the Irish Aviation Authority. They maintained that NAI had satisfied the legal requirements of the U.S.-EU air service agreement and that DOT approval would increase competition and reduce airfares in the transatlantic market. Several U.S. and European airlines and labor organizations, however, strongly opposed NAI's application, insisting that NAI's business model is predicated on sidestepping Norway's labor laws in favor of Ireland's less strict rules. These opponents argued that NAI's plans would violate Article 17 bis of the U.S.-EU air service agreement, which stipulates that opportunities created by the agreement are not intended to undermine labour standards or the labour-related rights and principles contained in the parties' respective laws. DOT approved NAI's application in December 2016, stating that the labor- related provision in the U.S.-EU air service agreement did not provide a basis for rejecting an applicant that was otherwise qualified to receive a permit. The agency did not opine on the merits of opposing arguments or concerns. Congressional Research Service https://crsreports.congress.gov IN11158 CRS INSIGHT Prepared for Members and Committees of Congress