Airport Alert: Airlines File for Exemptions from Service Obligations

Frontier, Hawaiian, Spirit and JetBlue have requested exemptions from their service obligations in order to suspend air service to a long list of communities around the country. The separate requests come just days after the Department of Transportation issued a Final Order on air service requirements for carriers receiving financial assistance related to the coronavirus pandemic.

 

H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act, which the President signed into law on March 27, provides a total of $58 billion in loans, loan guarantees and grants for passenger and cargo carriers. The bill authorizes DOT to require carriers receiving financial assistance to maintain scheduled air transportation to "the extent reasonable and practicable."

 

DOT on April 7 issued a Final Order indicating how the agency plans to implement the air service conditions in the CARES Act. AAAE had called on DOT to increase transparency and to allow airports to provide input when a carrier proposes to exempt locations from its service obligations. AAAE's comments may be viewed here.

 

 

 

Frontier: Frontier Airlines today requested an exemption from its service obligation so the carrier can temporarily suspend service to 35 communities from April 13 to June 10. Frontier's exemption request may be viewed here.

 

Hawaiian: Hawaiian Airlines yesterday filed a request for an exemption from its service obligation to eight communities: Boston, Las Vegas, New York, Phoenix, Portland, Sacramento, San Diego and Seattle. Hawaiian cited the state's "mandatory 14-day quarantine orders for travelers to and within Hawaii...." The carrier's exemption request may be viewed here.

 

JetBlue: JetBlue Airways on Wednesday requested an exemption from its service obligation from April 15 to June 10. The carrier is proposing to temporarily suspend service at eight airports: BWI, Hollywood Burbank, Westchester, LaGuardia, Ontario, T.F. Green, San Jose and Stewart. The carrier also indicated that it is planning "to implement additional temporary service reductions and suspensions" at twelve other airports. JetBlue's exemption request may be viewed here.

 

Spirit: Spirit Airlines on Wednesday also filed a request for exemption from its service obligation. The carrier indicated it is suspending service at 26 communities. Spirit's exemption request may be viewed here.

 

 

The following is from DOT's Continuation of Certain Air Service Order: "The Department is adopting the following process for covered carriers to request an exemption to their service obligations under the CARES Act. 

 

Application: A covered carrier seeking an exemption should file its request in Docket DOT- OST-2020-0037 and title the submission as a 'Request for Exemption from Service Obligation.' The request for exemption should set forth the particular points or flight service levels for which an exemption is requested and the reasons the applicant covered carrier believes its request is warranted under the provisions of Sections 4005 and 4114(b). Requests for exemptions should be filed at least 10 business days before the applicant covered carrier's proposed service alteration, except that the requesting covered carrier may file in less than this time period upon a showing of good cause. 

 

Service: The applicant covered carrier should serve its request for exemption on the airport directors for all points and frequencies involved, a chief executive of the affected community (such as the Mayor), and on any other civic or other party with a substantial interest in the request (the Department reserves the right to require additional service, as necessary, and to stay action of the carrier's request pending that additional service).

Responsive Pleadings: Interested parties may file answers to the request within three business days of its filing. The Department may shorten this answer period if such action is deemed warranted in the public interest. The applicant covered carrier may file a reply to any answers filed within two business days.

 

Department Action: The Assistant Secretary for Aviation and International Affairs or the Deputy Assistant Secretary for Aviation and International Affairs may adjudicate exemption requests. If necessary to respond expediently to requests, the Director, Office of Aviation Analysis, acting under authority hereby assigned by the Department, may act on all requests by applicant covered carriers based on whether the relief is warranted under the provisions of Sections 4005 and 414(b). These actions by the Director, Office of Aviation Analysis, are subject to the provisions of 14 CFR §§ 385.30 - 385.34 concerning petitions for review of staff action.

 

Conditions: The Department may impose conditions on any grant of exemption under this Order, consistent with the provisions of Sections 4005 and 4114(b) and the public interest."