DOT Approves Cargo Exemptions For GIAA; Denies Passenger Exemptions

FOR IMMEDIATE RELEASE—August 4, 2006—Washington, D.C.—

The U.S. Department of Transportation (DoT) today published a proposed ruling to grant special authority for foreign air carriers to provide expanded cargo services at Guam’s Antonio B. Won Pat International Airport.  The Government of Guam petitioned the U.S. Department of Transportation for this authority on February 9, 2006.

The DoT ruling grants in part the authority sought by the Government of Guam for a period of two years.  The proposed flexibility for services at the International Airport mirror authority for interline cargo previously granted for foreign air carriers servicing airports in Alaska and Hawaii.

“The Department of Transportation’s decision for cargo exemptions follows the existing precedents for Hawaii and Alaska but stops short of the passenger exemption requested by GIAA.  Expanded air cargo services at our airport, which the major U.S. airlines supported, should help increase business at GIAA,” Congresswoman Madeleine Z. Bordallo said.

The DoT order published today proposes the following authorities be granted for qualifying foreign air carriers:  (1) the ability to conduct expanded cargo transfer operations at Guam’s Antonio B. Won Pat International Airport; and (2) the ability to serve Guam and to coterminalize Guam with other U.S. points.  DoT is also proposing to invite eligible foreign carriers to apply for authority to serve new U.S. points on an extrabilateral basis, so long as these flights also serve Guam and provided that there is a procompetitive agreement with the applicant’s home country. 

Congresswoman Bordallo wrote to the Department of Transportation in support of the Government of Guam’s petition on February 24, 2006.  Congresswoman Bordallo requested that Guam be granted authorities consistent with those previously granted to carriers servicing Alaska and Hawaii.  These are the authorities the DoT now proposes be granted to Guam.  In her letter, Bordallo urged the DoT to consider that Guam, Hawaii and Alaska have similar geographic, economic, and market conditions.  The DoT noted in their proposed ruling that Guam’s “geographic and economic situation warrants grant of the same type of relief that we earlier granted for Alaska and Hawaii.”  DoT recognized in its review of the petition that “air service is vitally important to the Territory of Guam, and that Guam, like Alaska and Hawaii, is geographically isolated and heavily dependent on air transportation as a vital element of its economy.”

The proposed ruling would grant the authority to Guam for a two year period, subject to renewal, and, as is provided in law, would be subject to suspension or amendment by DoT for cause.  Additionally, airlines from China, Japan and the United Kingdom are excluded from the proposed authority in light of ongoing efforts by the DoT to enable increased servicing of Guam by U.S. carriers.

The Government of Guam in filing its petition with DoT had also sought an exemption that would permit foreign air carriers to conduct passenger transfers at the Antonio B. Won Pat International Airport.  The DoT did not grant this request.  Passenger cabotage, as the practice is legally known, is not permitted at any U.S. location and such cabotage authority has not been granted by any foreign country to U.S. airlines.

Copy of the proposed DoT rule.

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Contact:  Alicia Chon in Washington, D.C. at (202) 225-1188 or Joseph E. Duenas at (671) 477-4272/4.

www.house.gov/bordallo

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