STOCKHOLM-- Norwegian Air Shuttle said on Wednesday that its
Irish subsidiary has been granted a European license from the
Ireland's Aviation Authorities to start airline operations that
have been the subject of controversy in North America and
Europe.
Norwegian Air, Europe's third biggest budget carrier by revenue
after Ryanair and EasyJet has laid out aggressive plans and secured
Boeing Co. 787 Dreamliners to fuel a global expansion in coming
years.
An important step was winning approval to set up an Irish
subsidiary called Norwegian Air International to get an Irish
operator's certificate, which allows an airline to use aircraft for
commercial purposes and a U.S. foreign-carrier permit.
Norwegian said the U.S. Transportation Department is processing
its application for a permit.
The airline also said it established its long-haul company in
Ireland because of European-Union traffic regulations and to gain
access to better financing conditions for its rapidly growing
fleet.
The carrier has more than 260 aircraft on order. It stressed
that Ireland wasn't chosen because the country has "specific rules
and regulations that will allow the use of American and Asian crew,
like some politicians and unions have claimed."
The airline's trans-Atlantic expansion plans have met resistance
from other carriers and labor unions, as well as some lawmakers in
the U.S.
Critics say Norwegian's business model, which involves the
registration of its aircraft in Ireland and hiring of staff at
local bases in Europe, Asia and the U.S., is an attempt to
circumvent Norwegian labor laws and set a precedent for airlines to
use shipping-style "flags of convenience" to cut costs.
Write to Christina Zander at christina.zander@wsj.com
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