Quantcast
Get breaking news alerts via email

Click here to manage your alerts
U.S. rejects Norwegian Air bid for flights
Airlines » Low-cost carrier was seeking to begin flights early between U.S., Europe.
First Published Sep 02 2014 05:06 pm • Last Updated Sep 02 2014 05:06 pm

Washington • In a case that has labor and trade policy implications, the Obama administration on Tuesday rejected a request that would have immediately permitted a low-cost air carrier to begin flights between the U.S. and Europe while the government is still reviewing its application for new service.

The Transportation Department turned down a request by Norwegian Air International that would have allowed the carrier to offer new service between London’s Gatwick Airport and New York, Orlando, Florida, and other U.S. cities. Officials for the airline said they hoped to charge as little as $150 each way. Such exemptions are usually granted European carriers under a U.S.-European Union aviation agreement.

Join the Discussion
Post a Comment

Norwegian Air International is a subsidiary of Norwegian Air Shuttle, a low-cost carrier founded in 1993 and headquartered in Fornebu, Norway. The parent company has 417 routes to 126 destinations. Most of those routes are in Europe, North Africa and the Middle East, but it also flies some long-haul flights to the U.S. and Southeast Asia.

Its subsidiary, Norwegian Air International, plans to register its planes in Ireland, an EU member, to take advantage of the U.S.-EU treaty that extends many privileges granted domestic carriers to each other’s airlines. That also would make Ireland responsible for the airline’s safety oversight even though the carrier hasn’t announced any plans to fly into or out of Ireland. The airline also plans to hire flight crews through a Singapore hiring agency and base them in Thailand.

U.S. airlines and pilot unions in the U.S. and Europe vigorously campaigned against the exemption, saying Norwegian Air International would set a dangerous precedent by driving down wages and undermining the ability of U.S. airlines to compete in the global market. Ed Wytkind, head of the AFL-CIO’s Transportation Trades Department, recently accused Norwegian Air of trying to "usher in a Walmart-style race to the bottom for cheap labor."

Critics also questioned the ability of Irish authorities to safely oversee planes and pilots that are only available at distant locations. Dozens of members of Congress signed letters to the Transportation Department opposing the exemption.

Norwegian officials, however, have said the large airline mergers and establishment of global airline alliances in recent years have undermined competition and created great pent-up consumer demand for the cheaper air travel.

Calling the case "novel and complex," Transportation Secretary Anthony Foxx said in a statement that the department doesn’t believe the exemption "is appropriate or in the public interest."

But airline industry analyst Robert W. Mann Jr. said the opposition to Norwegian’s proposal is "the business equivalent of Chicken Little and the sky is falling."

"This is no clear evidence of what people are concerned about actually having happened," he said.


story continues below
story continues below



Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment


About Reader Comments


Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Videos
Jobs
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.