Norse Atlantic warns may stop serving Norway over tax hikes

Norse Atlantic Airways has warned it may have to stop direct flights to Norway following a 45% air passenger tax hike being imposed in the Scandinavian country in 2023. In an announcement on the Oslo stock exchange, the startup specialising in direct intercontinental point-to-point routes between Europe and the United States said it was "deeply concerned" by the Norwegian government's planned hike of the "high rate band of [the] air passenger tax" against the backdrop of "a highly competitive and price-sensitive market". "This planned increase means that we may be forced to reassess our investment in direct routes to/from Norway to the detriment of Norwegian businesses and passengers," it cautioned. The low rate for air passenger tax was NOK80 krone (US$8) in 2022, while the high rate was NOK214 (US$21). In the proposal for the state budget for 2023, the low rate was increased to NOK82 (US$8.2) and the high rate to NOK220 (US$22). After a budget agreement with the Socialist Left Party, the low rate was kept at NOK82 per passenger, while the high rate was increased to NOK320 (US$32) per passenger for journeys outside of Europe, according to Norwegian news reports.<br/>