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LAXintl
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DOT Approves Norwegian Air UK permits

Sun Jul 16, 2017 12:44 am

After lingering nearly 19 months, the US DOT on Friday quietly issued Norwegian Air UK Limited its tentative foreign air carrier permit.

DOT says it found Norwegian Air UK is fit, willing and able properly to perform the foreign air transportation and carrier is in compliance and controlled in a manner consistent with the provisions of the U.S.-EU Open-Skies Agreement.

DOT found arguments made by Norwegian UK’s opponents were essentially the same as those made previously against Norwegian Air International (NAI) and the “The Department has already thoroughly considered, and rejected these arguments. We tentatively see no persuasive basis on the record of the present proceeding to reach a different conclusion here."

The tentative order becomes permanent in 21-days barring new objections.

OST-2015-0261

=

It's interesting to note that only a week ago the EC transport director warned that the EC would once more turn to arbitration if the Norwegian UK application was not approved soon, while the UK government also went on the record a few weeks ago questioning the ongoing delay.
From the desert to the sea, to all of Southern California
 
TerminalD
Posts: 184
Joined: Wed Apr 26, 2017 7:32 pm

Re: DOT Approves Norwegian Air UK permits

Sun Jul 16, 2017 1:55 am

The same thread was posted last night and deleted. Not sure why it was deleted completely.

It used to be here: viewtopic.php?f=3&t=1368363
 
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mercure1
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Re: DOT Approves Norwegian Air UK permits

Sun Jul 16, 2017 2:01 am

The needles US politics around Norwegian is so confusing.

In this case Norwegian UK is as much a UK airline as is BA, Virgin Atlantic, Jet2com, Monarch, etc.

As came out during the Norwegian Irish application, so long as European authorities certify the carrier and deem it valid including its ownership, the US must accept this. The same manner the Europeans accept the regulatory authority and oversight abilities they have of US carriers.
 
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LAXintl
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Re: DOT Approves Norwegian Air UK permits

Sun Jul 16, 2017 6:48 am

It's purely needless foot dragging.

DOT well knows there is no legal ground to reject the application but in the face of the insistent lobbying the file keeps getting moved to the bottom of the pile.
Only when the EU and UK finally threaten action does the decision mysteriously appear.
From the desert to the sea, to all of Southern California
 
commavia
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Re: DOT Approves Norwegian Air UK permits

Mon Jul 17, 2017 3:55 pm

LAXintl wrote:
DOT well knows there is no legal ground to reject the application but in the face of the insistent lobbying the file keeps getting moved to the bottom of the pile.


:checkmark:

There was never any plausible legal basis on which the U.S. was going to deny this application. I fully understand why the unions are worried about the threat that Norwegian poses to them - and, indeed, I think they're quite right to be worried. And of course the unions were obviously fully within their rights to exert political pressure to that end. But ultimately, nothing Norwegian was doing was inconsistent with EU law, nor with the plain text reading of the Open Skies agreement.
 
cyberual
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Re: DOT Approves Norwegian Air UK permits

Mon Jul 17, 2017 6:49 pm

now that the Norwegian UK has been approved, will we see more expansion in the US?
 
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reidar76
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Re: DOT Approves Norwegian Air UK permits

Mon Jul 17, 2017 9:03 pm

cyberual wrote:
now that the Norwegian UK has been approved, will we see more expansion in the US?


There will definitely be more US expansion, but I can't see that this approval is an opener for more US expansion.

The main reason to have an UK AOC is to take advantage of UK specific bilateral agreements. UK airlines, as Norwegian Air UK, benefit from good agreements with countries belonging to the British Commonwealth, for example Canada, Singapore, India/Pakistan, Australia, South Africa etc.

Norwegian can fly with any of their AOCs to the US, so I think this US approval of Norwegian Air UK has something to do with aircraft utilization and good departure/arrival hours in different time zones. For example flying from Singapore to London, and then use the same plane and crew pool to continue to the US.
 
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bluefltspecial
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Re: DOT Approves Norwegian Air UK permits

Mon Jul 17, 2017 9:31 pm

cyberual wrote:
now that the Norwegian UK has been approved, will we see more expansion in the US?


The UK bi-laterals are much more useful than that of the EU/Norway agreements for operating to as many countries as they plan on, hence this will mean that they can offer far more in terms of destinations now with this. You can expect NAS to be folded into NUK or have the employees and aircraft transferred over which will allow much more flexibility. Previously NAS crew based in UK/US would be able to work across the Atlantic between the US/EU/UK but then unable to work a flight on NUK to SIN/EZE. Transfering the crew/aircraft to NUK will allow improved utilization of both lowering costs.

That being said, to answer your question, the US/EU/UK market is quite large, while there is room for expansion to more US destinations, you'll probably only see a handful more to the US in the near future. It's likely Norwegian has continued the US growth waiting for this approval. Now that it's been accepted they can start expanding to other places where they can use Gatwick as a destination but also as a connection point. I would venture a guess as to places like India, South Africa, and Asia as their next announcements.

Norwegian has been doing a lot of focus work with US airports as an interim solution waiting for the NUK application, which can also mean finishing those projects off and announcing them. The other option they may do is more "connecting the dots" between 787 cities allowing for better operational flow and utilization of aircraft like was announced with CDG-OAK/BOS.

You'll see a large focus on 737Max ops in the US, as well as some interesting additions to routes that before weren't possible. 737Max will really be a game changer.
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