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3 - Aug - 2016

The EU Steps in to Arbitrate the Dispute between Norwegian Air and the US Transportation Authority

Recently, Norwegian Air and US Transportation authority have come to figurative blows. Norwegian was awarded provisional approval to fly in the US airspace and continue their reasonable cost flights back and forth across the pond.  The approval was awarded over two years ago but the US transportation authority has not issued final approval yet.

Due to the nature of the offense, the EU has stepped in and will be bringing the dispute to arbitration. After the provisional approval, all parties had three weeks to file an objection. 

The delay has been due to increased pressure from unions and some US airlines as they feel the low costs will undermine wages and working standards. As Norwegian has to follow the EU standards, this is just anther tactic to resist change and prevent the airline access to the US market. With prices as low as the carrier tends to have, the US airlines are concerned about the low costs increasing their competition in the US market, thus forcing airlines to reduce their own fares in order to compete with Norwegian.

If this goes to arbitration, hopefully Norwegian will come out on the approved side of things.  US passengers that have experience of low cost carriers such as Ryanair and Easyjet have wondered why, it still remains so expensive to fly similar distances in the US, even with reduced amenities like no meals on long haul flights, and no baggage allowances, unless you pay for them. It will be interesting to see what happens to the market if Norwegian wins.

By Airport Pickups London