Norwegian Flights Win U.S. Government Approval despite Opposition

Norwegian Flights Win U.S. Government Approval despite Opposition

Norwegian Air International has received approval from the U.S. government for its flights from Europe to the United States. Norwegian was opposed by U.S. air carriers but the low-cost airline has won approval from the government. Norwegian Air International is Ireland headquartered subsidiary of Norway-based air carrier.

As Norwegian Air International is based in Ireland, the company enjoys easier tax and labor laws in Ireland compared to Norway. This will enable the airline to offer better fares for airline passengers.

Norwegian Air Shuttle is one of the largest low-cost carriers in Europe and the company already operates flights between Europe and United States.

The order by Department of Transportation said, “Regardless of our appreciation of the public policy arguments raised by opponents, we have been advised that the law and our bilateral obligations leave us no avenue to reject this application.”

Edward Wytkind, president of the Transportation Trades Department, informed that they will oppose the order. They will appeal to the government to review the decision in interest of aviation sector. Wytkind added, “Competition is fine as long as the competition is fair and everyone plays by the same rules.”

U.S. airlines and unions have said the subsidiary, Norwegian Air International, would undermine U.S. wages and working standards.

A report published by Reuters informed, “The order finalized a tentative ruling the department made in April and came days after the European Commission formally filed for arbitration over Norwegian's request, which had languished for three years. One-way flights on Norwegian across the Atlantic grew 44 percent to 2,916 this year, after increasing 34 percent in 2015.”

The long-awaited decision may have been slowed by protectionist rhetoric by candidates during the U.S. presidential campaign, said Brandon Belford, the Transportation Department's former deputy assistant secretary for aviation and international affairs.



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