Airline cabotage is the carriage of air traffic that originates and terminates within the boundaries of a given country by an air carrier of another country. Rights to such traffic are usually entirely denied or severely restricted. Under 49 U.S.C. section 40109(g), we may authorize a foreign air carrier to carry commercial traffic between U.S. points (i.e., cabotage traffic) under limited circumstances. Specifically, we must find that the authority is required in the public interest; that because of an emergency created by unusual circumstances not arising in the normal course of business the traffic cannot be accommodated by U.S. carriers holding certificates under 49 U.S.C. section 41102; that all possible efforts have been made to place the traffic on U.S. carriers; and that the transportation is necessary to avoid undue hardship to the traffic involved (an additional required finding, concerning emergency transportation during labor disputes, is not relevant here).
For further information on interpretation of this requirement, contact the Office of International Law, Office of General Counsel, 202-366-2972, international.law@dot.gov, 400 7th Street SW, Washington, DC 20590.