Norwegian Air's UK unit denied new interim flying permit

US regulators Thursday dismissed an initial application from European discount airline Norwegian Air Shuttle A/S to establish a new long-haul operation in the UK. The US DoT will continue to review the controversial carrier's plan and is still to complete its approval for a license for the airline to establish a base in Ireland for long-haul flights. Norwegian Air needs approval from US authorities for overseas bases that operate flights to the US. The UK and Irish bases have come under criticism from some airlines and labor groups. Critics have said the airline is trying to circumvent some labor and tax rules with the overseas bases to lower its costs, charges Norwegian denies. Norwegian Air said it still expected US regulators to ultimately grant its application for the UK operation. "Given Norwegian UK's clear and legitimate right to a Foreign Carrier Permit, we therefore remain confident we will receive final approval," it said. Norwegian Air is the first of the new breed of low-cost airlines to launch flights to Asia and across the Atlantic from Europe. The DoT's decision won't affect Norwegian's current trans-Atlantic services to the US, which it flies using a license granted by Norwegian regulators. US approval would allow it to use the same aircraft for flights to other countries such as Brazil and South Africa, as well as the US.<br/>