Norwegian Air Shuttle will start flying 4 new routes between the US and Europe, the carrier said Thursday, rapidly expanding its low-cost transatlantic flights and increasing pressure on established carriers. Starting next summer, Norwegian will operate flights to Amsterdam, Madrid and Milan from New York's John F. Kennedy International and Los Angeles International airports. These add up to 25 new US routes for Norwegian this year alone, and 11 more are already planned for 2018. Norwegian's rapid growth in the US market since being granted flying rights by the outgoing Obama administration in 2016 has rankled legacy carriers. They complain that it undermines wages and degrades working standards, but Norwegian has dismissed those claims. <br/>
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Tourism group Thomas Cook is considering a takeover of insolvent holiday carrier Niki, a spokesman said Thursday, after Niki was left looking for a new investor following Lufthansa's decision to drop a bid. "We plan to increase our capacity in the German market in light of the increased demand," he said. "We are considering our options, including a takeover of Niki, or buying parts of the airline." Thomas Cook and its German airline Condor had been among the initial parties to bid for Niki, part of collapsed Air Berlin, but lost out to Lufthansa. Niki filed for insolvency Wednesday after Lufthansa dropped its bid, citing competition concerns. <br/>
Airberlin subsidiary NIKI—which filed for insolvency Dec 13 and abruptly ceased operations—has left up to 40,000 passengers stranded throughout its European network after a rescue deal by Lufthansa collapsed, 4 months after Airberlin filed for bankruptcy. Lufthansa had planned to integrate NIKI into its own Eurowings. A source from air navigation services provider Austro Control confirmed that NIKI management transferred the carrier’s AOC to Austro Control on the evening of Dec 13. “This move would allow NIKI’s AOC to be re-established very quickly if necessary,” the source said. Austrian minister of transport Jörg Leichtfried said the govt is talking with Austrian Airlines and other carriers to bring passengers home. “We estimate the grounding has affected 5,000 passengers from Austria,” he said. <br/>
Ryanair is making contingency plans for disruption to flights after pilot unions in 3 countries announced strikes for the coming days and 2 others threatened industrial action. The strikes, which would be the first in Ryanair's 32-year history, are being organised by pilots demanding an overhaul of the company's system of contracts and collective bargaining. Pilots and ground crew in Italy are due to take action first with a 4-hour strike Friday, to be followed by a 24-hour stoppage by pilots in Ireland and Portugal Dec 20. Pilots in Germany and Spain have said they are considering industrial action. Ryanair promised to "face down" the threatened strike. Management has warned pilots who take part in strike action may lose out on promotions and could cause the company to shift planes and jobs to lower-cost bases. <br/>
Southwest Airlines would use savings from a potential cut to the US corporate tax rate to buy new planes and fund share buybacks, CE Gary Kelly said Thursday. Republicans in the US Congress reached a deal this week on a final version of their debt-financed legislation to cut taxes for businesses and wealthy Americans, with House and Senate votes expected early next week. "We're trying to grow and at the same time keep our costs low and manage the risks of growth, and this is very welcomed," Kelly said. "We'll have more money to invest in airplanes, add jobs, share with our current employees and also take good care of our shareholders as well," he added. Kelly said that savings would also help Southwest keep it's fares low. <br/>