The company is based in Ireland to avoid the labor laws in
Norway and they will not fly to or from Ireland. The pilots will be “rented” from
Singapore and based in Thailand. Also, the pilots will have individual
employment contracts that do not allow collective bargaining and contain wages
and working conditions that are far below the pilots who fly for NAI’s parent
company. Their destinations are Thailand, Europe, New York, and Fort
Lauderdale. And in 2014, NAI had plans to expand its flights to Europe and New
York, San Francisco, Fort Lauderdale, Los Angeles, and Orlando.
The US Carriers oppose NAI, because NAI can lower their
fares, because they have shopped around for lower working standards. So it
gives NAI an unfair advantage over any US carrier that is competing for the
International business. NAI just doesn’t pose a threat to the US carriers, but
all airlines in the global market. But for the routes into the US, the US
carriers would not be getting the international business, because NAI would
have their fares so low that US carriers cannot compete.
The DOT denied NAI request, because NAI isn’t fair competition
in the international market. I do agree with the decision, because if they are
allowed to operate into the US, then it will for the most part kill the domestic
carriers. If you allow this type of carrier to enter the US, then there will be
100 that will pop-up overnight following the same business model and these
companies will be doing international and domestic flight in the US. Then it
will be one set of rules for carriers like NAI and another for companies like
Delta or American, which isn’t fair and will put Delta and American out of
business. Another problem I have with the business model of NAI is: all NAI is
doing is trying to skirt the laws, but a big problem for governments is if
something goes wrong who is held responsible. Is Ireland responsible, because
that is where NAI has their certificate of operations from? Or is it Singapore,
because that is where the pilots are being “rented” from?
The ramifications of NAI if they are granted to operate in
the US is: they are going to put our domestic carriers out of business, because
other companies will start adopting the same business model as NAI. There will
be only flights to airports that are going to make the company money and it
will just be inconvenient to the people here in the US. All NAI will do is kill
the US airline economy, which will only hurt our overall economy, which we do
not need.
Links
http://www.alpa.org/Portals/Alpa/PressRoom/PressReleases/2014/2-5-14_14.11.htm
http://www.alpa.org/Portals/Alpa/deptpages/govtaffairs/issues/nai/NAISchemeInfoGr.htm