US politicians block Norwegian Air Shuttle bid / News / The Foreigner

US politicians block Norwegian Air Shuttle bid. House of Representatives politicians passed the amendment to safeguard the American airline industry, Monday. The vote is one step on the way to preventing the Department of Transportation from approving the low-cost airline’s application for a foreign air carrier permit through Ireland-registered Norwegian Air International (NAI). NAI is a wholly-owned subsidiary of Norwegian Air Shuttle, a company registered in Norway.

norwegianairshuttle, boeing, dreamliner, 787, long-haul, flights



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US politicians block Norwegian Air Shuttle bid

Published on Wednesday, 11th June, 2014 at 10:15 under the news category, by Michael Sandelson and Sarah Bostock   .
Last Updated on 11th June 2014 at 12:36.

House of Representatives politicians passed the amendment to safeguard the American airline industry, Monday.

A Norwegian Dreamliner
The carrier's US bid could be in for a missed approach following this week's developments.A Norwegian Dreamliner
Photo: Norwegian


The vote is one step on the way to preventing the Department of Transportation from approving the low-cost airline’s application for a foreign air carrier permit through Ireland-registered Norwegian Air International (NAI).

NAI is a wholly-owned subsidiary of Norwegian Air Shuttle, a company registered in Norway.

Unions and Norwegian Air Shuttle have been engaged in a high-level transatlantic air travel battle ever since the carrier commenced long-haul operations between Scandinavia and New York using new Boeing 787 Dreamliners.

The conflict, which has also involved Irish authorities, the Norwegian government, and Norway’s CAA, is essentially about unfair competition, wages, and working conditions.

Norwegian Air International holds an Ireland-issued Air Operators Certificate (AOC). This would give them access to the EU-US Open Skies Agreement.

The airline would also gain the possibility of circumventing higher Norwegian wage levels, labour laws, and hiring Thailand-based pilots. Their individual employment contracts would consequently be governed by Singaporean law. Norway union Parat has also expressed their strong concern about this.

Representatives from employee umbrella organisation the Transportation Trades Department (TTD (AFL-CIO)) argue that Norwegian Air International’s operations would contravene the US-EU Air Transport Agreement, which prohibits any efforts to undermine labour standards.

They greeted news of this week’s vote on the amendment by Congresspersons Lynn Westmoreland and Peter DeFazio positively.  

“The vote in favor of the Westmoreland-DeFazio amendment overwhelmingly rejects the type of operating scheme proposed by Norwegian Air International, whose application to expand transatlantic service into the US sits before the US Department of Transportation,” the TTD, AFL-CIO’s statement reads. The DOT has final say on the matter, however.

The Air Line Pilots Association’s (ALPA) Capt. Lee Moak states that the House of Representatives passing the amendment means they have “taken a strong stand for fair competition for US airlines.”

“We urge the US Senate to support the US House position and send a clear signal that Congress is committed to ensuring US airlines and their employees do business on a level playing field,” he adds.

In an email to The Foreigner, Norwegian press spokesperson Lasse Sandaker-Nielsen comments that “it's ironic that elected officials in a country where capitalism and the free market are celebrated are not making a decision based on the facts that show how we are bringing in competition, lowering prices and creating jobs.

“The Obama administration has been pretty outspoken about the fact that it wants more tourism coming to the US, and this is what we are doing,” concludes Mr Sandaker-Nielsen.



Published on Wednesday, 11th June, 2014 at 10:15 under the news category, by Michael Sandelson and Sarah Bostock   .
Last updated on 11th June 2014 at 12:36.

This post has the following tags: norwegianairshuttle, boeing, dreamliner, 787, long-haul, flights.





  
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