Norwegian surges after US approves trans-Atlantic expansion

Norwegian Air Shuttle ASA jumped the most since April 2015 after winning US regulatory approval for an expansion of low-cost flights across the Atlantic that’s opposed by American carriers, unions and politicians alike. Shares of Norwegian Air rose as much as 14% on their first day of trading since the Department of Transportation concluded Friday that the company’s Ireland-based Norwegian Air International arm is fit to serve US destinations. The decision opens the door to “more flights and more jobs on both sides of the Atlantic,” Norwegian Air spokesman Anders Lindstrom said. Critics of the plan say the Irish unit will amount to a “flag of convenience” that permits the group to unfairly slash costs by tapping Irish labor laws to outsource employment contracts beyond Europe. Norwegian’s CEO Bjorn Kjos has indicated that it will add routes such as Cork to the U.S. using its Irish air operator certificate, though opponents say the Fornebu, Norway-based company could perform the same flights under existing accords. Lowering costs is a key consideration for the carrier as it seek to survive in a trans-Atlantic market where no-frills predecessors such as Laker Airways failed. The DoT decision undermines legal protections for airline workers, according to the Association of Flight Attendants, the largest US cabin crew union, which called on President Barack Obama to use his executive powers to reverse the ruling. The Air Line Pilots Association said separately that the approval was “an affront to fair competition” that would cause US job losses.<br/>