News

Aug 22, 2023

​​Asia Pacific Airlines Challenges Nauru Airlines' USDOT Application

Asia Pacific Airlines opposes the US Department of Transportation granting Nauru

Asia Pacific Airlines opposes the US Department of Transportation granting Nauru Airlines' application.

Guam-based Asia Pacific Airlines has challenged the Nauru Airlines application with the US Department of Transportation (DOT) to seek a foreign air carrier permit to run flights to the United States. Nauru Airlines is seeking approval to operate, schedule, and charter flights with people, mail, or property to US territories in the northern Pacific Ocean.

In May, Nauru Airlines filed its application with the DOT seeking to operate flights between Nauru and the United States territory of Guam and later Honolulu. The carrier plans to operate two weekly round-trip cargo flights and one weekly passenger flight between Guam and Nauru. The application comes after Asia Pacific Airlines was grounded by the Federal Aviation Administration (FAA) in February. The FAA issued an Emergency Order of Suspension to the Guam-based carrier because of a pilot training issue.

Asia Pacific operates a fleet of Boeing 757-200s from its hub at A.B. Won Pat International Airport (GUM) and offers essential cargo service to the Federated States of Micronesia, American Samoa, Palau, and the Marshall Islands. Before the ban, Asia Pacific operated over 60 flights each month to Micronesia, American Samoa, Palau, and the Marshall Islands. Meanwhile, based at Nauru International Airport (INU), Nauru Airlines operates a fleet of three 737-300, two 737-300 freighters, and one 737-800 freighter.

This left multiple Pacific island nations without essential freight flights and had a major impact on the region. Marshall Islands President David Kabua declared a state of emergency for the island nation as Asia Pacific Airlines was the sole cargo provider for the country. The Marshall Islands, whose economy relies on these cargo flights to deliver mail, medicines, and other essential services, resulted in a shortage of medical supplies.

As mail and medicine piled up in Guam and Honolulu, talks between United Airlines and Nauru Airlines began, and over the past few weeks, Nauru Airlines has operated multiple flights to assist with clearing up the backlog of mail and cargo due to the Asia Pacific grounding. In Nauru Airlines' filing with the DOT, they stated that each flight required approval and, instead, a permit would remove the need for such approvals to operate to the United States.

The FAA has since rescinded the grounding of Asia Pacific, and since May 5th, the carrier has resumed operations. Now, Asia Pacific is attempting to defend its lucrative cargo routes across the Pacific islands and believes it can meet the cargo demands of the islands successfully. Asia Pacific has since objected to Nauru Airlines' application and accuses the carrier of breaking DOT and US Postal Service (USPS) laws. Furthermore, the Guam-based carrier believes that Nauru Airlines is trying to receive authority fifth freedom markets that US airlines can serve.

Asia Pacific claims that Nauru Airlines operated flights without the proper authorization. Although Nauru Airlines received a permit from the US DOT in 2017, it failed to start service, and the permit expired. So, while Asia Pacific was grounded, Nauru Airlines operated flights that relied on authorization it received in 2022 under a Part 375 certificate. However, the Part 375 certificate does not allow carriers to transport USPS mail, even in the event of an emergency.

The USPS contract for the western Pacific region is given to United Airlines, which subcontracts it to Asia Pacific Airlines, which is a registered US carrier. According to Asia Pacific, under the Fly America Act, all US federally funded cargo, such as military and mail cargo, must use a US carrier unless limited circumstances exist.

Joshua Kupietzky has a passion for aviation and deep expertise in the aviation industry. He's been enamored with the facts and figures of the airline industry, and the details of the make and model of commercial aircraft for as long as he can remember. Based in Chicago, US.