Sunday, October 19, 2014

Norwegian Air International

Norwegian Air International is the third largest low budget carrier in Europe. “The Norwegian Group consists of the parent company Norwegian Air Shuttle ASA and its directly or indirectly fully-owned subsidiaries in Norway, Sweden, Denmark, Finland, Ireland and Singapore.” Norwegian has a fleet composed of many 737-800‘s, 737-300‘s and 787‘s. Norwegian pilots operate under Singapore and Norwegian flies between US and Scandinavia. Currently, Norwegian is attempting to operate a foreign airline domestically in America however, their request was denied.

In September, the Department of Transportation (DOT) denied Norwegian’s permit to operate in America under an Ireland permit. The DOT denied the permit because “It would need more time to consider an application from the airline for long-term permission to fly into the US”. I agree that the permit should be denied however, There should be no need to consider anything on the DOT’s side. Clearly Norwegian is unsafe and would deal a heavy blow to U.S. carriers, who could not compete, due to operating under stricter laws. But what makes them so unsafe and do are air carriers support this?

The U.S. air carriers are opposed to Norwegian because, they operate under Ireland therefore, do not have to comply with American standards. This would allow Norwegian to be able to undercut all U.S. carriers and endanger safety at every turn. Norwegian is also owned by six different counties. This creates a problem of who is really liable for the planes? If an accident were to happen (heaven forbid on America soil) then Norway, Sweden, Denmark, Finland, Ireland and Singapore would all be pointing fingers at each other. Operating under so many countries also create the question of what laws would apply to the carrier? If any foreign company were allowed to operate domestically, then the U.S. risks losing American air line companies and create a loophole on our regulations.



References:

http://www.usatoday.com/story/travel/flights/2014/09/02/dot-norwegian-air-alpa-foxx/14810499/

http://www.norwegian.com/us/about-norwegian/our-company/

http://www.irishtimes.com/business/sectors/transport-and-tourism/us-ruling-hits-norwegian-air-shuttle-s-long-haul-plans-1.1916935

1 comment:

  1. What specifically about the NAI business model makes them unsafe? To serve the US, they have to comply with FAA operating standards. Is it the low pilot wages?

    ReplyDelete