EU steps up dispute with US over trans-Atlantic flights

The EU took the unprecedented step Thursday of accusing Washington of breaching the so-called Open Skies pact aimed at liberalizing trans-Atlantic air travel—opening a high-profile trade rift just before the Trump administration takes office. The challenge centers on a relatively obscure application by European budget carrier Norwegian Air Shuttle, which is seeking to expand low-cost flights to the US and has faced extensive delays. It represents the biggest international dispute yet over the hot-button trade issue of foreign-airline market access. Some US airlines leaned on the Obama administration to slow the growth of foreign rivals accessing the US, in particular the rapidly expanding Persian Gulf carriers such as Emirates Airline and Qatar Airways. The American airlines accuse them of benefiting from government subsidies, a charge they deny. At the same time, the lucrative trans-Atlantic route has become a battleground between legacy US and European carriers and upstart budget airlines, like Norwegian Air, which are increasingly offering cheap long-haul flights. The Norwegian Air dispute stems from the carrier’s plans to use an Ireland-based affiliate to operate long-haul flights from Europe to Asia and the Americas, including to the US. It is seeking a “foreign air-carrier permit,” essentially a seal of approval from American regulators for the Irish arrangement.<br/>