By Robert Wall
LONDON-- Norwegian Air Shuttle ASA, which is proving to be a
test case for U.S. openness to foreign airline competitors, is
growing anxious its growth plans are being crimped by persistent
delays in its application for enhanced market access, according to
the carrier's chief executive.
Norwegian Air's struggle to win U.S. Department of Transport
approval for additional traffic rights it says should be automatic
come as U.S. airlines and unions step up efforts to keep foreign
rivals at bay. Delta Air Lines and other carriers that oppose
Norwegian Air's application also are lobbying the U.S. government
to slow the encroachment into their home market from Middle East
growth carriers, such as Dubai-based Emirates Airline, the world's
largest by international traffic, neighboring Etihad Airways and
Qatar Airways.
Efforts by budget airline Norwegian Air to gain preferred
traffic rights in the U.S. have reached an ominous milestone this
week: 500 days waiting.
"This is very frustrating because we can't do any long-term
planning," airline Chief Executive Bjørn Kjos said in an interview.
The airline is in the process of building its route plan for next
year, which is complicated by the uncertainty over the situation in
the U.S., he said.
Norwegian Air has put on hold talks with Boeing Co. to buy more
787-9 Dreamliner long-range jets because uncertainty about the
airline's development impacts its fleet requirements, he said.
Norwegian Air, through its Ireland-based Norwegian Air
International unit, has sought enhanced traffic rights under a
bilateral agreement between the European Union and the U.S. called
the Open Skies treaty that was aimed at liberalizing aviation
trade. U.S. airline unions have opposed the application, arguing
the Norwegian carrier was using Ireland as a "flag of convenience"
with less oversight. Ireland has defended its regulatory
standards.
The European Union has backed Norwegian Air's application and
has repeatedly called on the U.S. to adhere to principles of the
trade accord signed eight years ago.
The European Commission, the bloc's executive arm, said it
"considers that the U.S. authorities are in breach of the EU-U.S.
Air transport agreement." The U.S. should have "swiftly" granted
traffic rights, the commission said.
Having raised concerns last year, the commission plans to bring
the issue up again when both parties meet in June in Helsinki.
Mr. Kjos said opponents are simply trying to keep out a
competitor offering lower fares to passengers.
Norwegian Air began trans-Atlantic services almost two years ago
using a fleet of Boeing 787s. It now operates eight such planes. It
is seeking to operate the fleet under a European Union license to
more easily shuttle planes between Asia, where it has a base in
Bangkok, and the U.S., where it serves five cities including New
York and Los Angeles.
Mr. Kjos said the airline also is seeking a British air
operator's certificate to tap preferential traffic rights to
markets such as India. The airline operates intra-European and
trans-Atlantic flights from London Gatwick airport.
The application for the U.K. license has been filed with
Britain's aviation regulator and could be decided this summer, he
said. Norwegian Air will also seek U.S. approval under the new
license.
Norwegian Air may also seek a Spanish air operator's certificate
to tap special traffic agreements the country has with others, Mr.
Kjos said.
Doug Cameron contributed to this article.
Write to Robert Wall at robert.wall@wsj.com
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