Last week, Kenmore Air filed a complaint to the US Department of Transportation claiming Dash Air Shuttle was deceiving the public and federal agencies about its business model. That complaint prompted Dash Air to suspend its August 11 opening day and refund advance ticket sales until the complaint is settled.
The following communication was submitted to the USDOT by Port Angeles Chamber of Commerce Director Marc Abshire.
The Kenmore Air Harbor, LLC (Kenmore) complaint is vague, misleading, deceptive, and self-contradictory. In addition, the complaint was filed with timing clearly intended to imperil (and effectually delay) the launch of a returned air service between the main Port Angeles (CLM) and Seattle (SEA) airports. Kenmore’s requests for a cease and desist order and a fine against Dash should be immediately denied and the complaint should be dismissed with prejudice.
Kenmore alleges unfair and deceptive business practices, but they do not identify any actions or practices made or taken by Dash Air Shuttle (Dash) that are actually unfair or deceptive. Kenmore additionally alleges they stand “to suffer economic and competitive harm from an unfit competitor,” but they do not identify how they have been or could be harmed, nor do they provide an explanation as to why competition for air services should not be encouraged. Further, if the competitor is truly unfit, as they allege, they do not explain how they could be harmed by an unfit or incapable competitor – an allegation that is self-contradictory.
Much of the written complaint relies on a perspective that air service between CLM and SEA is interstate, and even international, air service. These two airports are 75 miles from each other, and both are located in Washington State. The proposed service is neither interstate nor international. No customs or border patrol operations would be involved in this service between CLM and SEA. Although several transportation providers do offer interstate and international air service out of SEA, the proposed service does not. Dash’s air service provides a potential connection to interstate and international air service, much the same way as driving a car to SEA provides that connection, but it does not, itself, provide interstate or international air service. The Dash operations at SEA will be located in the airport parking garage, underscoring the similarity to arriving by to SEA by car. In addition, no connecting baggage service agreement with other airlines will be part of the Dash CLM-SEA air service. Trying to paint Dash as an interstate or international air service provider is intentionally misleading when it is extremely clear that the service is limited to travel between the CLM main terminal and the SEA main terminal. Although Dash customers can choose to continue travelling from SEA to other locations around the country or the world, there is no requirement or expectation that they would do so.
The complaint mentions the facts that non-residents of Washington State will be able to travel between CLM and SEA using Dash’s air service, and that tickets can be purchased by anyone in the world with connection to the Internet. Neither of these establishes Dash as an interstate or international operator of an air service. The complaint equates commerce that occurs via the Internet (the means by which products can be purchased and ordered, or services can be scheduled and rendered, or reservations and payments can be made for concerts, games, and intrastate air travel) with interstate and international air transportation services. Commerce is becoming less physical and more virtual every day. Air service is specifically and always will be physical – travel of people or cargo between one point and another, and easily defined, as between CLM and SEA. It is misleading, if not disingenuous, to try to assert that purchasing a ticket for a flight between CLM and SEA, using a device located somewhere outside of Washington State, constitutes interstate or international air service, or that only people eligible to be air service passengers between CLM and SEA are the residents of Washington State.
The complaint also alleges that Dash is, and has been deceptive. To the contrary, it is Kenmore who is being deceptive with this complaint. Dash has consistently and openly shared its plans, information, schedule of progress, and intentions throughout its establishment. In a self-contradictory way, while asserting deception, the complaint includes several of the newspaper articles that openly document Dash’s consistent and steady plans and progress, and makes a vague reference to a Port Angeles Chamber of Commerce open meeting that Kenmore did not attend – nor did anyone else representing Kenmore. The true deception is Kenmore citing something that they allege was said in a meeting that they did not attend, as if it actually occurred. Like many of the assertions in this complaint, Kenmore deceptively has no basis to make them.
The complaint asserts that Dash has violated “federal law, DOT [sic] and FAA regulations” but provides no credible examples of violations that have actually occurred. Dash has never shown or implied any intent to operate an air service without the necessary certifications, operational clearances, applicable licenses, and authorizations. In fact, it appears that Dash has worked very diligently to follow due process, communicate openly, obtain all necessary authorizations, and build a safe and reliable air service between CLM and SEA. If operations had already started without everything required being completed and satisfied, some of the points made by the complaint might be applicable. But operations have not started yet, so the complaint’s assertions regarding violations of “federal law, DOT [sic] and FAA regulations” are not applicable. If Dash and Backcountry Aviation did not allegedly have complete authorization to operate at the time the complaint was filed, the complaint’s implication that they would go forward to begin operations on a date in the future without authorization is disingenuous, if not deceptive and damaging.
It must be stated, and recognized, that Kenmore abandoned the air service between CLM and SEA in 2014 due to Kenmore’s inability or unwillingness to manage the service in a profitable fashion. Despite many opportunities, Kenmore has consistently refused to consider reinstating air service between CLM and SEA over the past 8 years. Now, at the very last hour, just before Dash has all authorizations in place, full licensure and certifications are complete, and they are nearly ready to begin operations, Kenmore has filed this complaint with DOT in an attempt to stop or damage Dash’s ability to do so. This use of governmental processes and regulatory offices to launch a corporate, tactical action – this poorly conceived and contrived complaint – against unwelcome (real or imagined) competition is wasteful, deceitful, and shameful.
On behalf of the Board of Directors and the more than 430 business and organizational members of the Port Angeles Chamber of Commerce, I emphatically implore you to immediately deny Kenmore’s requests for a fine and a cease and desist order against Dash, and to summarily dismiss the complaint with prejudice.
Sincerely,
Marc Abshire