The U.S. Department of Transportation has granted tentative
approval for low-cost carrier Norwegian Air Shuttle to expand operations in the
United States.
After years of review, the Department on Friday issued a
show cause order to the carrier’s Irish subsidiary Norwegian Air International,
including an "unprecedented step" of consulting U.S. Department of
Justice and State Department offices with international law expertise,
according to U.S. DOT. The approval process usually takes a matter of months.
The Department is taking commentary on the decision through
May 6, and responses to those comments through May 13. It will issue a final
order after reviewing those submissions.
Norwegian Air Shuttle already flies to the United States
from Norway and other markets covered by its Norwegian license, including
London, but approval for its subsidiary will open up more expansion
opportunities..
"A final approval … will be a win-win for consumers and
the economy on both sides of the Atlantic," Norwegian Group CEO Bjørn
Kjos said. "It will allow Norwegian to expand our U.S. operations. Our
continued presences in the U.S. will create thousands of jobs and generate tens
of millions of dollars of economic activity for the group's U.S.
destinations."
The U.S. Travel Association also praised the decision,
calling it a "pro-competition, pro-growth and pro-traveler move" that
would "spur even more additive competition, resulting in better prices and
more choices for travelers."
Opponents, including U.S. airlines and labor unions, alleged
Norwegian Air Shuttle would have an unfair marketplace advantage with working
conditions and wages for its subsidiary carrier below U.S. standards. Air Line
Pilots Association president Tim Canoll denounced the decision.
“Norwegian
Air International has picked its place of incorporation based on whether that
nation’s tax and regulatory laws are favorable,” Canoll said. “As a result, NAI
gains an enormous competitive advantage over U.S. airlines, which are required
to do business under one set of U.S. laws and regulations. This is not a fair
market."