Article from BTNews 8 AUGUST 2016
Norwegian battle hots up
The row over the refusal by the US to grant a foreign air carrier permit to Norwegian Air International, the Irish-based arm of low-cost carrier Norwegian Air Shuttle, escalated last week as the EU stepped into the debate.
EU transport commissioner Violeta Bulc is said to be ready to invoke the arbitration clause in the Open Skies treaty with the US after a two-year battle caused by opposition to Norwegian’s plans from other airlines and unions.
They have accused Norwegian of using the Irish registry as a flag of convenience to circumvent labour laws in its native Norway. The airline denies this, saying it fulfils all requisite criteria under the terms of the treaty and is therefore entitled to its licence.
Norwegian Air Shuttle set up its NAI subsidiary in the Republic of Ireland to take advantage of the air transport agreement that allows EU airlines access to the US.
It wants to launch a long-haul airline offering low-cost flights between Europe and the US, including services linking Cork and Shannon with Boston and New York.
According to the Irish Times, Bulc has now warned Washington the row could damage transatlantic trade relations.
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