Norwelandpore Airlines

So this week’s Topic is Norwegian Air International (NAI). From the name alone, you’d think that this company is Norwegian, or even based in Norway.  Guess again, the company is actually certified through Ireland and is staffed from Singapore, Thailand, and the Philippines. They are an international carrier but have yet to be allowed to operate runs to and in the US.

The reasoning behind the ban is twofold. On one side, US carriers are worried about giving up access to the highly lucrative trans Atlantic routes, of which they have a ¾ majority. Allowing other air carriers access to theses would cost business since international airlines cost less for the passengers. Why this may sound greedy, it is not without some moral lining. The other side is safety and regulation. Many reasons why the International airlines are cheaper is the lack of compliance with regulation. US air traffic is the most highly regulated and constantly observed of all others. Even when company like NAI, or Emirates publicly state they stand behind their business, there is no way to enforce regulations and safety if something does go wrong.   Who would we go to oversee their operations, Norway, Ireland, China?

While these are both valid points, and will probably keep NAI out of the running for US runs in the future, their counter points also bring us some good arguments. Keeping the Trans Atlantic runs primarily US dominates, there is very little outside competition allowing higher than normal pricing. Competition from the foreign carriers would force US carriers to either be more cost effective or lower their rates. I agree that Foreign carriers should be allowed to make Trans Atlantic runs, especially if their pay scale and business model can male pilot pay competitive. However, intercontinental flights should remain a US carrier only.



References:
http://www.politico.com/story/2014/09/department-of-transportation-denies-norwegian-air-international-permit-110536.html