Category Archives: Norwegian Air International

Talks between Norwegian Air Norway (NAN) and the Norwegian Pilot Union (NPU) break down

Norwegian Air Norway (Norwegian Air Shuttle) (Oslo) is a subsidiary of Norwegian Air Shuttle.

Norwegian Air Shuttle recently transferred its first aircraft (Norwegian registered LN-DYY, msn 39012) to the Irish registry according to Skyliner Aviation. The Boeing 737-8JP was reregistered on the Irish registry as EI-FHA on February 17. Ireland is part of European Union. Under Ireland, Norwegian registered aircraft will be able to operate on more European routes due to the prevailing bilateral restrictions from Norway to the EU.

In February 2014, Norwegian Air Shuttle’s Irish subsidiary, Norwegian Air International, received its Air Operators Certificate (AOC). The AOC issued in Ireland gives the company future traffic rights to and from the European Union. Norwegian Air International is seeking rights to operate the Boeing 787s to the United States and theoretically replace Norwegian Long Haul.

The Norwegian Long Haul Boeing 787-8 Dreamliners (currently operating on long range routes) are also registered in Ireland. Norwegian Long Haul however has a separate Norwegian AOC with the IATA code of DU.

All aircraft operate under the “Norwegian” brand.

According to News in English (from Norway) the pilots are striking because airline management wants to “cut their pensions, pay and insurance benefits”. According to the report, the pilots are “fighting for a permanent collective bargaining agreement with Norwegian Air’s parent company, Norwegian Air Shuttle.” The union also fears the company will try to replace them with cheaper crews from crewing agencies or possibly declare bankruptcy.

Read the full full report: CLICK HERE

Meanwhile Norwegian Air Norway (Oslo) issued this statement:

Norwegian regrets that it was not possible to reach an agreement in mediation between the subsidiary Norwegian Air Norway (NAN) and the Norwegian Pilot Union (NPU). Norwegian’s goal remains to implement this weekend flights so far as is possible when a limited number of pilots have been on strike in the first round.

Norwegian had before the mediation proposed several completely necessary cost savings to ensure a sustainable business and future jobs. Unfortunately, the NPU / Parathyroid did not comply with these requirements but instead presented a claim that goes in the wrong direction relative to the agreements reached at the previous hearing in 2013. NPU demand the right to control the Norwegiankoncernen, collective agreements with a company they are employed in, and that the Norwegian collective agreement shall also apply outside Norway. Norwegian could not accept the requirement for koncernansenitet for NAN pilots, ie ansenitet in a company they are employed in. In practice, it would have given Scandinavian pilots the opportunity to oust colleagues at the other bases in Europe.

We really regret the uncertainty being created among our passengers. Our goal has always been to avoid a strike and get a solution and peace in the company. Now we will do what we can to take care of the passengers in the best possible way, says Norwegian’s CEO Bjørn Kjos.

The conflict comes for Norwegian Scandinavian subsidiary Norwegian Air Norway (NAN). This means that long routes between Scandinavia / UK and USA / Asia runs as usual. The bases in England, Finland and Spain are also not directly concerned.

Copyright Photo: Antony J. Best/AirlinersGallery.com. Registered in Norway, Boeing 737-86N LN-NOQ (msn 32658) departs from London (Gatwick).

Norwegian aircraft slide show: AG Airline Slide Show

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Norwegian carries a record number of passengers in 2014

Norwegian Air Shuttle (Norwegian.com) (Oslo) set a new passenger  record in 2014 with nearly 24 million passengers. The carrier transported three million more passengers in 2014 than the previous year. Since its inception in 2002, 130 million passengers have traveled with Norwegian.

According to the airline, “2014 was characterized by high capacity growth but also a high load factor. The load factor in 2014 was 81 percent against 78 percent in 2013. In 2014, the airline renewed the fleet considerably, launched many new routes – both intercontinental and in Europe and established new bases in the United States and Spain.”

Copyright Photo: SPA/AirlinersGallery.com. Boeing 737-8JP LN-DYG (msn 39165) with Swedish opera singer, Jenny Lind, arrives in London at Gatwick Airport.

Norwegian aircraft slide show:

Air France-KLM and Lufthansa take a stand against Norwegian Air International

NAI Scheme (ALPA)

Air France-KLM (Paris and Amsterdam) and Lufthansa (Frankfurt) and other interested parties have petitioned the European Commission on denying the application of Norwegian Air International (Dublin). ALPA (above) has also taken a strong stand against NAI.

The parties issued this open letter to the EC:

To: President of the European Commission Jean-Claude Juncker and First Vice-President Frans Timmermans

Cc: Commissioners Violeta Bulc and Marianne Thyssen

9.3 million jobs in danger!

We request a firm stance of the new European Commission against abuses of European social standards in the field of aviation!

A new airline has been established called “Norwegian Air International” that wants to offer scheduled services from the UK to the US. They have received an Irish license for this and they intend to employ crewmembers from Thailand that are hired through a Singaporean agency.

Competition in aviation is intense and it keeps us sharp. However, through business models like this we risk entering a downward spiral to the social bottom, risking thousands of qualified European jobs. European aviation currently provides 9.3 million jobs and adds 512 billion Euros to European GDP.

Your new Commission has chosen the strengthening of Europe’s competitiveness as its no. 1 priority and wants to give a stronger boost to jobs, growth and investment.

How can the Commission strengthen aviation’s competitiveness if it allows such abuses of European standards?

If we allow Norwegian Air International to start employing Thai crew on the EU-US routes, others will soon follow and jobs will be lost inside the European Union and created elsewhere. In the maritime sector we have already seen this same scenario play out, resulting in the loss of tens of thousands of jobs. It would be foolish to let the same happen to aviation. Therefore we need your support.

We count on you!

The US has temporarily denied Norwegian Air International’s request for a foreign carrier permit. The European Commission should now take a strong stance and prevent Norwegian Air International from abusing European social standards and legislation through employing Thai crew. We need to preserve European jobs instead of outsourcing them to other continents.

If the European Commission is serious about its jobs and growth commitment, we deserve your support. 9.3 million aviation colleagues count on you.

 

Signed on November 21, 2014 by

Norwegian Petiition Signatures

Norwegian calls on the DOT again to approve its NAI application

Norwegian Air Shuttle (Oslo) has again called on the U.S. Department of Transportation (DOT) to approve its pending Irish application to operate its Boeing 787s as Norwegian Air International (NAI) (Dublin). The 787s are currently operated by Norwegian subsidiary Norwegian Long Haul although the aircraft are registered in Ireland. The airline issued this statement claiming the DOT has “received strong opposition from those interests seeking to undermine competition, limit consumer choice and maintain the status quo”. Here is the full statement:

Norwegian Air Shuttle CEO Bjørn Kjos, who will address a standing-room only audience on November 20 at the International Aviation Club, will reinforce the benefits Norwegian Air International (NAI) service will bring to competition in the transatlantic market, the traveling public, and the global aviation industry. Kjos will again call on the U.S. Department of Transportation (DOT) to once and for all approve Norwegian’s application for a foreign air carrier permit that will provide American consumers lower fares and greater choice in air travel.

“Norwegian’s vision is ‘Everyone Should Afford to Fly,’ and it is a principle we intend to bring to individuals and families seeking to travel between the United States and Europe,” said Mr. Kjos. “NAI will provide the traveling public with an innovative, low-cost option that offers award-winning service to new and underserved destinations on brand-new Boeing Dreamliner aircraft. DOT approval of NAI’s application is the final barrier preventing American consumers from the choice they so desperately want and deserve.”

Norwegian Air International, which completed its DOT foreign air carrier permit application in February 2014, has received strong opposition from those interests seeking to undermine competition, limit consumer choice and maintain the status quo. Close to 90 percent of transatlantic air traffic is controlled by the three airline mega-alliances that are permitted to operate with immunity from U.S. antitrust laws. As a consequence, airfares have risen significantly without commensurate improvements in service, and “capacity discipline” by the alliances has severely limited growth in the number of available passenger seats while pushing U.S. airline profits to record levels.

“I believe the values of innovation, competition and the rule of law – so highly prized here in the United States – will serve to overcome the opposition NAI has received from entrenched interests,” said Kjos. “I am confident that adherence to international agreements and the law will be the factors upon which DOT ultimately relies to decide this matter. I am equally confident NAI’s application will be approved by DOT, albeit far overdue.”

Norwegian Air International will open a market of new travelers previously unable to afford the high fares currently offered by the legacy carriers, while serving more destinations worldwide. NAI will directly contribute to President Obama’s goal of generating 100 million foreign visitors to the United States by 2021. Norwegian already employs 300 American cabin crewmembers in Fort Lauderdale and New York, and currently is recruiting American pilots at its New York pilot base. Of the 300 cabin crew, for which Norwegian received more than 7,00 applications, the vast majority worked previously for U.S. airlines and chose to join Norwegian for the pay, benefits and team-spirited environment.

NAI meets all statutory and regulatory requirements to serve the United States and is entitled to DOT approval “with minimum procedural delay” under the U.S.—E.U. Air Transport Agreement. Nevertheless, a full nine months after applying to DOT, NAI continues to await a decision that will allow it to begin low-fare transatlantic service to and from the United States.

“The time is well-past due for the Department of Transportation to fulfill its legal responsibility and approve NAI’s application,” said Kjos.

Copyright Photo: Steve Bailey/AirlinersGallery.com. Norwegian Long Haul’s Boeing 787-8 Dreamliner EI-LNG (msn 35314) with Edvard Munch, Norwegian artist, on the tail, arrives in Los Angeles.

Norwegian aircraft slide show: AG Slide Show

Video: By sjcbenw. Description: Cockpit view of Norwegian Boeing 787-8 Dreamliner landing Runway 01R at Stockholm Arlanda (ARN).

From JustPlanes:

 

Norwegian’s third quarter net profit drops by 14%, will phase out the last Boeing 737-300 next year

Norwegian Air Shuttle (Norwegian.com and Norwegian Long Haul) (Oslo) reported a net profit of NOK 373.8 million ($57.0 million) for the third quarter, down 14% from a net profit of NOK 435.9 million ($65.8 million) for the same quarter in 2013.

The airline issued this full report:

Norwegian reports strong growth in all European markets with a capacity increase of 36 percent and a load factor of 85 percent in its third quarter results. The pre-tax result (EBT) was 505 MNOK, compared to 604 MNOK the same quarter previous year. The costs associated with wet-leasing replacement aircraft and a weak Norwegian Krone (NOK) significantly affected the figures.

Even with strong passenger growth, the load factor was high and increased by three percentage points to 85 percent in the third quarter. Norwegian carried 7.1 million passengers this quarter and the company’s operations at London Gatwick had the strongest passenger growth.

The pre-tax result (EBT) was 505 MNOK, compared to 604 MNOK the same quarter previous year. The combination of a weak Norwegian Krone (NOK), the delayed approval from the U.S. Department of Transportation and costs associated with flight delays, affected the results this quarter. Wet-leasing replacement aircraft and extra fuel, as well as accommodation, food and drink for delayed passengers also created extra costs. The costs associated with the long overdue application before the U.S. Department of Transportation for a foreign air carrier permit for Norwegian’s Irish subsidiary, Norwegian Air International were also considerable. The application is in full accordance with the Open Skies Agreement between the EU and the U.S.

“We’re very satisfied that throughout our world-wide route network, an increasing number of new passengers choose Norwegian. Norwegian has recently received several international awards and was even named ‘Europe’s best low-cost airline’ the second year running. However, we have also experienced some turbulence this quarter. Our results are affected by additional costs related to the pending U.S. permit for our subsidiary in Dublin, consequently reducing our ability to optimize our fleet of aircraft. Even though technical difficulties with our Boeing 787 Dreamliners have also caused additional costs, our long-haul operation now consists of more aircraft and improved reliability. Looking into 2015, we will see a year of consolidation and lower growth. Next year, our fleet of short-haul aircraft will consist exclusively of Boeing 737-800s as older Boeing 737-300s will be phased out,” said CEO Bjørn Kjos.

Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Norwegian will retire its last Boeing 737-300 in 2015. Devoid of a tail photo, Boeing 737-31S LN-KHC (m,sn 29295) arrives in Stockholm (Arlanda).

Norwegian Aircraft Slide Show: AG Slide Show

The EU puts additional pressure on the DOT to approve the application of Norwegian Air International

Norwegian Air Shuttle (Norwegian.com) (Oslo) currently operates its Boeing 787s to the United States under its Norwegian Long Haul division (Oslo). The company would like to move the operation to Ireland as Norwegian Air International where the aircraft are registered. The European Union (EU) through its European Commission has request an “urgent” meeting with the U.S. Department of Transportation (DOT) about the pending application. Several union groups have opposed the application. The EC issued this statement:

In an unprecedented move, the European Commission requested an urgent meeting between the European Union and the United States to discuss Norwegian Air International’s pending application for a foreign air carrier permit before the U.S. Department of Transportation. The extraordinary meeting, which is being requested by the Commission on behalf of the European Union as a party to the U.S-EU Open Skies Agreement, sends a clear message that the European Union is closely watching Norwegian Air International’s application, to fly to the U.S from several cities in Europe which has been pending for over eight months.

Norwegian Air International welcomes the European Union’s action to protect the rights of European airlines under the U.S.-EU Open Skies Agreement, which obligates parties to grant operating authority “with minimum procedural delay.” Asgeir Nyseth, CEO of Norwegian Air International, said, “We are confident that the Department of Transportation will do the right thing and grant our application without further delay.”

Norwegian Air International’s application has taken nearly four times as long as applications of other European carriers applying for the same authority. “We look forward to bringing new competitive and affordable fares on new Boeing 787 Dreamliner aircraft to the U.S.-Europe market,” said Nyseth. With over 300 U.S. based crew, and plans for a pilot base in New York, Norwegian’s new service will bolster the U.S. economy through increased tourism, jobs, and support of the nation’s largest exporter, Boeing.

Copyright Photo: Robbie Shaw/AirlinersGallery.com. Norwegian Long Haul’s Boeing 787-8 Dreamliner EI-LND (msn 35310) with Norwegian Marthoner Grete Waitz on the tail holds shot of the runway at London’s Gatwick Airport. The flight was headed to Fort Lauderdale-Hollywood International Airport.

Norwegian: AG Slide Show

Southwest’s pilots applaud the DOT decision concerning the application of Norwegian Air International

Southwest Airlines‘ (Dallas) pilots, represented by SWAPA, have issued this statement:

The Southwest Airlines Pilots’ Association (SWAPA) commends the United States Department of Transportation (DOT) for denying Norwegian Air International (NAI) a temporary foreign air carrier operating authorization. NAI is a subsidiary of Norwegian Air which is located in Norway. NAI has sought to operate service to the U.S. as an Irish airline where it has no operating flights or history of operations.

“The denial of a temporary operating authorization is applauded by the pilots of Southwest Airlines,” said SWAPA Governmental Affairs Chair Captain Paul Jackson. “We agree with Secretary Foxx’s assertion that the application of Norwegian Air International is not in the public interest.”

This denial is only for the temporary application and is not a denial of the full application approval for a foreign carrier exemption with the DOT by NAI. The pilots of Southwest Airlines have opposed the application of NAI from early in the process due to the company’s “flag of convenience” strategy that locates the airline away from their home country of Norway. The NAI application for a foreign carrier operating authorization has been on file with the DOT since early this year. It is opposed by airline employees and management across the U.S. and the EU.

“We encourage Norwegian to join the marketplace under the labor laws and rules of their home country and not seek a scheme to avoid them,” Captain Jackson continued. “We strongly believe that our product and the work of our industry can stand up to any competitor if they play by the rules in place and do not seek to lower costs at any price.”

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 737-7H4 N953WN (msn 36668) taxies to the runway at Seattle-Tacoma International Airport.

Southwest Airlines Aircraft Slide Show: CLICK HERE