US greenlights Norwegian Air flights in blow to US industry

The US DoT said Friday it granted flying rights to Norwegian Air Shuttle ASA's Irish unit, setting the stage for a new battle among airlines for leisure travelers across the Atlantic. The order finalised a tentative ruling the department made in April and came days after the EC formally filed for arbitration over Norwegian's request, which had languished for three years. US airlines and unions have said the subsidiary, Norwegian Air International, would undermine US wages and working standards, claims Norwegian has dismissed. The accusations have come as a fare war has escalated over the Atlantic, forcing large and established airlines to consider selling cheaper fares with more restrictions and redesigning cabins to win budget-conscious travelers back from Norwegian. "Regardless of our appreciation of the public policy arguments raised by opponents, we have been advised that the law and our bilateral obligations leave us no avenue to reject this application," the US order said. While Norwegian is already flying to New York and other US cities, its ability to expand globally has been limited to the air rights that Norway has negotiated. Not so for its Irish unit. Ireland is a member of the EU unlike Norway, which means an Irish airline can tap into aviation rights that the European Union has secured. Friday's news gave Norwegian the chance "to open up a lot more routes from the US to Europe" and onward to other destinations, Norwegian spokesman Anders Lindstrom said. The company now can start U.S.-Ireland service as previously planned, he said. There was an outcry Friday by critics. "It is a betrayal to hundreds of thousands of aviation workers," said Sara Nelson, international president of the Association of Flight Attendants-CWA. <br/>