US authorities have delayed a decision on granting a foreign carrier permit to allow Norwegian Air International to run low fare flights from Europe.
The US Department of Transportation announced that it requires additional time to reach a decision on the carrier’s application.
Norwegian Air Shuttle will continue to operate transatlantic flights, including services from Gatwick, under its existing authority from DoT.
Norwegian said the announcement to dismiss the exemption application “on procedural grounds,” simply gives the DoT additional time to consider the permit application. “It is not a denial,” the airline said.
The US DoT said: “The Department continues to review the extensive record and deliberate on the application for longer-term operating authority.”
The Norwegian subsidiary was established in Ireland to secure flying rights under the aviation pact between the US and the European Union.
But critics claim Europe’s third largest low cost carrier is trying to sidestep European labour laws by registering aircraft in Ireland, even though it is not flying from the country, and hiring staff at local bases in Europe, Asia and the US.
Norwegian Air International chief executive Asgeir Nyseth said: “While we think it is unfortunate that DoT feels the need to further delay issuance of our permit, which has been pending now for over six months, Norwegian Air International stands behind its business – from its pilots and cabin crew to its affordable fare model to its desire to bring competition to the transatlantic market – and looks forward to receiving approval to operate without further delay.”
The EU-US open skies agreement requires that permits be issued with “minimum procedural delay,” the carrier added, urging the DoT to expedite its review and issue NAI’s foreign carrier permit fly to the US.
Delta Air Lines, American Airlines and United all called for the application to be rejected, claiming the regulatory framework would circumvent labour protection laws and give the carrier an unfair advantage.
Norwegian started US flights from Gatwick in July using new Boeing 787 Dreamliners.