WASHINGTON, DC–(ENEWSPF)–June 10, 2014. Rep. Peter DeFazio (D-OR), a senior member of the House Transportation & Infrastructure Committee, today applauded successful passage of his and Rep. Lynn Westmoreland’s (R-GA) amendment to H.R. 4745, the Transportation, and Housing and Urban Development Appropriations Act.
The amendment would prohibit the U.S. Department of Transportation (DOT) from approving Norwegian Air International’s foreign air carrier permit unless it complies with protections included in the U.S.-EU Open Skies Agreement. In doing so, the amendment would help protect American jobs from unfair competition by Norwegian Air International which plans to register its aircraft in Ireland, a country with less stringent labor laws and regulation, and outsource pilots and crew to countries with a cheaper, less experienced workforce, which will undermine safety.
Norwegian Air International has applied for a permit to operate in the U.S.
“With this amendment, the House put its foot down on companies that ‘nation-shop’ to find the lowest-possible standards in order to save a few bucks,” DeFazio said. “We have fought far too long and far too hard to make air travel as safe as possible in this country. By taking action, we will uphold the safety standards we’ve all come to expect from the airlines. We also ensure that U.S. airlines are not at a competitive disadvantage against foreign-owned companies that seek out the lowest-paid workers who possess a minimal amount of training.”
Rep. DeFazio ultimately voted no on H.R. 4745 because the bill contains inadequate funding to rebuild our nation’s roads, bridges, transit or passenger rail, and it cuts funding for housing programs to assist some of our most vulnerable citizens, including the homeless. H.R. 4745 would slash the budget of TIGER grants and Amtrak, among other things.
Background on the NAI Amendment:
Norwegian Air International, which has applied for a foreign air carrier permit to operate in the U.S., is attempting to get around labor, tax and regulatory laws by registering its aircraft in Ireland. This is similar to a practice in the maritime industry in which ships are registered (or flagged) in countries with less stringent environmental and labor standards in order to cut costs. These “flag of convenience” ships are notorious for poorly trained and paid crews, and poorly maintained ships.
Behind the NAI application is a global outsourcing business model for its pilots and flight attendants that will put U.S. airlines and their employees at a competitive disadvantage. This airline, bearing the name “Norwegian,” has established itself in Ireland where labor and regulatory rules are weaker, but it will not fly to or from Ireland, and is expected to hire much of its crew on individual employment contracts under Singapore law and base them in Thailand in order to cut expenses.
This operating model directly violates Article 17 bis of the U.S.-EU Open Skies Agreement, which states that “the 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.” It would allow NAI to drastically undercut U.S. carriers who are following U.S. regulations and threaten the competitive balance of the transatlantic aviation marketplace.
This bipartisan amendment reinforces that the DOT must follow the treaty and U.S. law to protect the viability of the U.S. airline industry and its workers, as well as the safety of U.S. passengers.
Source: defazio.house.gov
