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Old Mar 14, 2024, 1:19 pm
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Last edit by: WineCountryUA
From Wikipedia
Cabotage
Cabotage (/ˈkæbətɪdʒ, -tɑːʒ/) is the transport of goods or passengers between two places in the same country. It originally applied to shipping along coastal routes, port to port, but now applies to aviation, railways, and road transport as well.

Cabotage rights are the right of a company from one country to trade in another country. In aviation, it is the right to operate within the domestic borders of another country. Most countries do not permit aviation cabotage, and there are strict sanctions against it, for reasons of economic protectionism, national security, or public safety. One notable exception is the European Union, whose member states all grant cabotage rights to each other.
Jones Act / Merchant Marine Act of 1920
Cabotage is the transport of goods or passengers between two points in the same country, alongside coastal waters, by a vessel or an aircraft registered in another country. Originally a shipping term, cabotage now also covers aviation, railways, and road transport. Cabotage is "trade or navigation in coastal waters, or the exclusive right of a country to operate the air traffic within its territory". In the context of "cabotage rights", cabotage refers to the right of a company from one country to trade in another country. In aviation terms, for example, it is the right to operate within the domestic borders of another country. Most countries enact cabotage laws for reasons of economic protectionism or national security; 80% of the UN's member states with coastlines have cabotage law

The cabotage provisions relating to the Jones Act restrict the carriage of goods or passengers between United States ports to U.S.-built and flagged vessels. It has been codified as portions of 46 U.S.C. Generally, the Jones Act prohibits any foreign-built, foreign-owned or foreign-flagged vessel from engaging in coastwise trade within the United States.
In simple terms, it is forbidden to transport passenger or good between two USA locations exclusively on non-USA flagged vessels / aircraft.At least one segment in or out of the USA must be on a USA flagged carrier.
Such as traveling EWR-YYZ-ORD all on AC. This is true for paid flights, award flights, separate tickets. If there is a "stop" in the non-USA city, it may be OK.but there has been no explicit DOT guidance on that.

A related case would be East Coast-West Coast-International location by a foreign flagged carrier. These flights exist but no one boarding at the first airport is allowed to disembark at the second. It is possible to add passengers but but no one can leave at the second USA airport.

An actual enforcement case was GUM-ICN-USA by OZ , this led to DOT fines Asiana for violating cabotage laws with
OZ-DOT Consent Order 17 Oct 2002 OST 2002-12273

Related Reference: Freedoms of the air
Related threads Need to clear NRT security when USA-NRT-GUM? Cabotage if 1 segment is UA operated?

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USA to Canada to USA Cabotage situations / booking / issues

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Old Jun 9, 2021, 8:11 pm
  #1  
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Cabotage on award tickets

I was browsing through award options for an upcoming itinerary, and noticed that UA.com will sell me an I class award for ZIH-IAH-YYZ-LAX, with an overnight layover in IAH and the last two legs on AC. Has anyone seen a similar award itinerary before, and doesn't this violate cabotage rules? What action, if any, would be taken: (1) after ticketing but before OLCI (assuming it tickets successfully), (2) at the UA check-in counter in ZIH, and (3) at the AC check-in counter or gate in IAH?
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Old Jun 9, 2021, 8:31 pm
  #2  
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Don't think this cabotage -- you are going from Mexico to LA (very indirect routing). You would not be able to book -IAH-YYZ-LAX as a single ticket as that would be cabotage.


Another example -- Alaskan glacier cruises start in Vancouver, CA and then stop at various USA ports (Juneau, Sitka, ..) on their way to Steward / Anchorage. The cruise lines does not have to be USA registered and are not commit cabotage in connecting to various USA ports due to the start from Vancouver. They could not do that starting from Seattle.

Last edited by WineCountryUA; Jun 9, 2021 at 8:50 pm Reason: Alaskan glacier cruises
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Old Jun 9, 2021, 8:56 pm
  #3  
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Originally Posted by WineCountryUA
Don't think this cabotage -- you are going from Mexico to LA (very indirect routing). You would not be able to book -IAH-YYZ-LAX as a single ticket as that would be cabotage.
This is a tough one, but I'm not 100% sure I agree. The law doesn't say anything about how much time you're allowed to spend in any one port.

If you'd accept overnight in IAH, what about a stopover there? What if the stopover is a month long?

In general, the exceptions to the cabotage rule that allow for a foreign carrier to take passengers (or cargo) between two US points as part of a single international journey only apply if the same carrier is handling the flight all the way through. (This was the basis for the Qantas decision a few years ago). In this case, I believe the DOT would consider this a prohibited journey upon departure from IAH.

My guess is that OP would be denied boarding by AC at IAH. If UA noticed the issue beforehand, they'd probably just replace IAH-YYZ-LAX with IAH-LAX and be done with it.

Originally Posted by WineCountryUA
Another example -- Alaskan glacier cruises start in Vancouver, CA and then stop at various USA ports (Juneau, Sitka, ..) on their way to Steward / Anchorage. The cruise lines does not have to be USA registered and are not commit cabotage in connecting to various USA ports due to the start from Vancouver. They could not do that starting from Seattle.
Single journey, single carrier. If they changed cruise ship companies at Sitka, I think they'd have a problem. (Also, if anyone boards at, e.g., Juneau and gets off inside the US, they have a separate problem, but that's not really germane to the question here).
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Old Jun 9, 2021, 9:03 pm
  #4  
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Originally Posted by jsloan
This is a tough one, but I'm not 100% sure I agree. The law doesn't say anything about how much time you're allowed to spend in any one port.

If you'd accept overnight in IAH, what about a stopover there? What if the stopover is a month long? .....
The overnight is a wrinkle that could confuse things but I go back to the cruise example, definitely 12 hours stops are allowed.

Not sure the rules on connection vs stop for flights from Mexico (could be net available flight rule if 4 hours is the rule for Mexico).
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Old Jun 9, 2021, 9:15 pm
  #5  
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If the airline sells it to you and it's determined to be cabotage, the airline is fined, not the passenger.
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Old Jun 9, 2021, 9:46 pm
  #6  
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Originally Posted by WineCountryUA
The overnight is a wrinkle that could confuse things but I go back to the cruise example, definitely 12 hours stops are allowed.

Not sure the rules on connection vs stop for flights from Mexico (could be net available flight rule if 4 hours is the rule for Mexico).
The DOT doesn't care about fare construction (although, it's not considered a stopover). The DOT only cares who's operating the flights and where they go. The fact that you change carriers at IAH makes it a new journey.
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Old Jun 9, 2021, 10:25 pm
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Originally Posted by jsloan
.... The fact that you change carriers at IAH makes it a new journey.
Having done some googling this does appear to be the critical point. I'm well outside by expertise but I would have though UA would not issue a faulty ticket.
If BPs were issued at check-in, what would cause AC then to deny boarding? It would seem the issuing of BPs would be the point to catch this issue.
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Old Jun 9, 2021, 10:29 pm
  #8  
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Originally Posted by WineCountryUA
Having done some googling this does appear to be the critical point. I'm well outside by expertise but I would have though UA would not issue a faulty ticket.
If BPs were issued at check-in, what would cause AC then to deny boarding? It would seem the issuing of BPs would be the point to catch this issue.
Agreed -- but IME, UA won't issue boarding passes for the next day's travel if there's an overnight transfer. (They do for a red-eye flight, but not if you're arriving one evening and departing the next morning). So I suspect OP would have to check in with AC at IAH to get boarding passes, at which point I'd expect they'd be refused.

It's also entirely possible that AC wouldn't notice and would let the flight proceed. And, as mahasamatman pointed out, the passenger wouldn't be in any trouble anyway; it's AC and/or UA who would. (UA for selling the ticket and AC for operating it).

Unfortunately, given the routing involved, I suspect we'll never know, because I really doubt OP is going to book it.
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Old Jun 9, 2021, 10:36 pm
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Originally Posted by WineCountryUA
Don't think this cabotage -- you are going from Mexico to LA (very indirect routing). You would not be able to book -IAH-YYZ-LAX as a single ticket as that would be cabotage.


Another example -- Alaskan glacier cruises start in Vancouver, CA and then stop at various USA ports (Juneau, Sitka, ..) on their way to Steward / Anchorage. The cruise lines does not have to be USA registered and are not commit cabotage in connecting to various USA ports due to the start from Vancouver. They could not do that starting from Seattle.
Well, strictly speaking cabotage is the exclusion of foreign carriers from conducting domestic transportation. So UA could fly passengers IAH-YYZ-LAX (UA not being a foreign carrier) but AC could not. Similarly Korean carriers are not allowed to transport passengers originating in the US 50 to GUM transiting through ICN. However US carriers are allowed and as an example UA does route passengers from the US 50 through NRT to GUM. What happens if one leg is a US domestic carrier and one leg a foreign carrier? Not 100% sure but like you I bet UA knows and would not issue a ticket if not allowed.

I once got questioned arriving in YUL after transiting in ORD from Asia. A new immigration officer thought my ticket should "not be permissible" and I was "violating Canadian law" and called someone over to look at my itinerary. This person said I did not start and end in Canada that day so this was not cabotage and the violation, if any, would be on the part of the airline and not the passenger. I had never heard of cabotage before then!
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Last edited by uanj; Jun 9, 2021 at 10:42 pm
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Old Jun 10, 2021, 1:01 am
  #10  
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Originally Posted by uanj
Korean carriers are not allowed to transport passengers originating in the US 50 to GUM transiting through ICN. However US carriers are allowed and as an example UA does route passengers from the US 50 through NRT to GUM. What happens if one leg is a US domestic carrier and one leg a foreign carrier? Not 100% sure but like you I bet UA knows and would not issue a ticket if not allowed.
Having lived on Saipan (SPN) and followed the Asiana imbroglio closely, I can assure you that if one leg of a GUM/SPN trip to the mainland U.S. via ICN/NRT, etc. was on a U.S. carrier, that would completely cure any cabotage issue.

There is a comprehensive FlyerTalk thread in this UA subforum on cabotage.
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Old Jun 10, 2021, 4:35 am
  #11  
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I booked before BOS-YYZ-EWR-BOM. That is totally allowed as well. What you just can't do is e.g. IAH-YYZ-LAX ...
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Old Jun 10, 2021, 8:25 am
  #12  
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Originally Posted by SPN Lifer
Having lived on Saipan (SPN) and followed the Asiana imbroglio closely, I can assure you that if one leg of a GUM/SPN trip to the mainland U.S. via ICN/NRT, etc. was on a U.S. carrier, that would completely cure any cabotage issue.
Agreed. What surprised me was that OP stated that IAH-YYZ and YYZ-LAX were both operated by AC.

Originally Posted by cfischer
I booked before BOS-YYZ-EWR-BOM. That is totally allowed as well. What you just can't do is e.g. IAH-YYZ-LAX ...
Were BOS-YYZ and YYZ-EWR both operated by AC?
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Old Jun 10, 2021, 8:36 am
  #13  
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Asking for curiosity's sake: what are the chances this (-IAH-YYZ-LAX) actually would have been noticed by anyone? Are agents trained to look for that and correct it? Do regulators do audits of tickets?

Although my awareness is limited, it seems like most cases of fines are for systematic violations rather than odd one-offs.
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Old Jun 10, 2021, 8:46 am
  #14  
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Originally Posted by fumje
Asking for curiosity's sake: what are the chances this (-IAH-YYZ-LAX) actually would have been noticed by anyone? Are agents trained to look for that and correct it? Do regulators do audits of tickets?
I've never heard of regulators doing an audit without someone complaining first.

The computer should pick it up at check-in (actually, UA's computer should have picked it up before offering it for sale). I don't know whether or not agents are trained to check for it. It wouldn't entirely surprise me -- at a minimum, it should look weird to an AC rep that someone's checking in for a flight transiting Canada and going back to the US.

Originally Posted by fumje
Although my awareness is limited, it seems like most cases of fines are for systematic violations rather than odd one-offs.
Agreed, but the law doesn't require a pattern of violations -- it's just, a single instance won't be a priority from an enforcement perspective.
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Old Jun 10, 2021, 8:49 am
  #15  
 
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Originally Posted by dkc192
I was browsing through award options for an upcoming itinerary, and noticed that UA.com will sell me an I class award for ZIH-IAH-YYZ-LAX, with an overnight layover in IAH and the last two legs on AC. Has anyone seen a similar award itinerary before, and doesn't this violate cabotage rules? What action, if any, would be taken: (1) after ticketing but before OLCI (assuming it tickets successfully), (2) at the UA check-in counter in ZIH, and (3) at the AC check-in counter or gate in IAH?
I've seen plenty of award itineraries that are along these lines. The ones I've seen are (Europe) - EWR - YYZ - CLE in my case. No doubt it's a goofy routing but they're there. The 2nd and 3rd flights are typically on AC.
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