Norwegian Air International, the Ireland-based subsidiary of Norwegian Air Shuttle ASA, received approval from the DOT on Friday, Dec. 5, to operate U.S. flights under its European moniker and the company subsequently announced plans for new flights and pilot bases next year in New York and Boston.
According to USA Today, Norwegian had already been flying routes to the U.S., but the low-cost airline had asked permission to begin flights under its subsidiary so that it could take advantage of European regulation and labor laws, essentially allowing the airline to lower its costs and be even more competitive in pricing.
The three largest U.S. airlines—American, Delta and United—and several labor unions opposed the application, claiming that the Norwegian subsidiary could undermine international labor and safety standards in an attempt to further cut costs. The DOT ruled that it did not find any reason to reject the deal after reviewing contracts.
U.S. Travel President and CEO Roger Dow announced the association's support of the decision:
"The American travel community is ecstatic at the decision by the Obama administration to allow new service to U.S. cities by Norwegian Air International," Dow said. "If ever there were a trade policy that brings jobs to U.S. soil, this is it: NAI is flying and will buy more America-made planes, their passengers will spend money in American businesses, and American travelers will have more and cheaper options when they fly.
"This announcement is an unmistakable endorsement of competition, connectivity and Open Skies agreements, and a welcome repudiation of protectionist, anti-competitive policymaking."
More information on the DOT’s ruling and Norwegian’s new routes are available via USA Today.
