US tourism chiefs back Norwegian Air flight plans

Obama under pressure to approve NAI flights from Ireland to US

US tourism chiefs have written to president Barack Obama demanding that his government approve Norwegian Air International's efforts to get a licence allowing it to fly from Cork and Shannon to Boston.

Irish-registered Norwegian has been seeking a foreign carrier’s permit from the US department of transport since February 2014, but opponents, including unions and rivals, claim it is using the Republic as a flag of convenience to skirt labour protections.

Marriott chief executive, Arne Sorenson; James Murren of MGM Resorts; Christopher Nassetta of Hilton; and US Travel Association president Roger Dow, have written to Mr Obama arguing that Norwegian's application should get "immediate" approval.

They point out that Norwegian should be entitled to the licence under the US-EU open skies treaty, which allows airlines licensed in either jurisdiction to fly freely between both.

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“In total Norwegian Air International has been waiting for over 900 days for the US government to take definitive action on its application, a wait time that is inexcusable given that the US-EU open skies agreement demands that the Department of Transport act with minimal procedural delay on these types of matters,” they say.

Letter

The letter, signed by 10 US travel and tourism chief executives, points out that the European Commission now wants the matter to go to arbitration. "A long, drawn-out arbitration proceeding is unlikely to serve the interests of the US well. The timely approval of Norwegian Air International's application is the right choice," it says.

Norwegian employs 80 people at its base in Dublin Airport. Its parent, Norwegian Air Shuttle, established the subsidiary in the Republic so it could benefit from EU aviation treaties allowing it access to the US and other countries.

It plans to use the Irish company to operate a low-cost long-haul service connecting Europe with north America and the Far East.

It has denied claims that it is using the Republic as base to hire cheap labour and stressed that the laws of the jurisdictions in which it employs people govern their contracts.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas