Fly Jamaica loses appeal against direct flight ban

The United States Department of Transportation (DOT) is standing firm on its decision not to permit direct Fly Jamaica flights between Guyana and New York, denying the airline for a second time.

In July, Fly Jamaica and Caribbean Airlines (CAL) applied for an exemption under 49 U. S. C 40109 for extra-bilateral authority to conduct seventh-freedom turnaround service between Guyana and New York but their applications were rejected by the U. S. Department of Transportation on September 30.

Fly Jamaica subsequently filed a petition for Review of Staff Action arguing that there was a high demand for direct flights, as it alluded to the reason behind the Open-Skies agreement signed between the U. S. and Guyana. However, the initial decision was upheld.

“We have decided to grant Fly Jamaica’s petition for review, and on review, to affirm the action of the staff. After reviewing the record… we fully endorse the director’s statement of the applicable standards and his decisional analysis and public interest determination,” the Assistant Secretary for Aviation and International Affairs, Susan L Kurland stated in a DOT document dated November 22.

It was explained that the extra-bilateral seventh-freedom turnaround service is only granted when the circumstances show compelling public interest considerations, which Fly Jamaica and Caribbean Airlines (CAL) were unable to provide in their applications from the initial stage.

No compelling need – U. S. DOT

“We do not find now that Fly Jamaica in its petition has demonstrated a compelling need for additional Georgetown-New York services… notwithstanding the lack of services provided by U. S. carriers, Fly Jamaica has not provided any new evidence that demonstrates unmet demand in the market,” the U. S. transport regulatory body explained.

Alluding to the U. S.-Guyana Open-Skies Agreement, Kurland said Fly Jamaica’s argument was weak. The Airlines for America (A4A) had also stated that Fly Jamaica was unable to provide any new information.

Similarly, Delta Airlines pointed out that the Georgetown-New York market is served with four nonstop flights per week in each direction, positing that Fly Jamaica’s request is based purely on reaping commercial benefits.

In the initial statement when Fly Jamaica and CAL applications were denied on September 30, the Director of the Office of International Aviation, Paul Gretch said the Air Line Pilots Association (ALPA) and A4A had objected to the applications put forward by the two regional air carriers.

“ALPA asserts that the request of Fly Jamaica and CAL are extra-bilateral, and that the department should deny the applications. ALPA further asserts that CAL’s operations are being subsidised by the government of Trinidad and Tobago.

“In this regard, ALPA cites a press article in which Trinidad and Tobago’s finance minister is reported to have acknowledged a $ 40 million fuel subsidy paid to CAL in 2012. ALPA asserts that a foreign subsidy of the alleged type would impede the ability of the U. S. carriers to compete,” the director explained.

A4A had cited similar reasons behind its objection, emphasising that fuel subsidies can be damaging to U. S. carriers’ ability to compete.

It was on these grounds that the DOT decided to signal its objection. However, the TT government had announced early in September that the CAL subsidy was to be removed, effective October 1.