Norwegian Air seeks entry into U.S., airlines seek to block way

Competition between airlines on U.S.-Europe routes is gaining pace. Norwegian Air has recently applied to the U.S. Department of Transportation (DOT) seeking a permanent license for operating low-fare flights between various destinations in the United States and Europe. The move of the airline is however facing stiff opposition from other carriers.

Media reports quoted Christoph Franz, CEO of Lufthansa, as saying that Norwegian Air’s entry into the U.S. must be effectively blocked. Lufthansa and Scandinavian Airlines have even written a letter to U.S. aviation regulator DOT jointly urging refusal of a permanent license to the airline.

This is not the first time that Norwegian Air is facing opposition from its competitors. The airline has earlier faced turbulent times while it was gaining entry in Norway and launched four domestic routes with the help of six aircrafts in 2002. The growing competition in transatlantic market is therefore not new for the airline.

The fierce opposition particularly came from Scandinavian Airlines as it monopolized domestic routes. The airline then employed every method to block Norwegian Air’s entry into Norway, and even went to the extent of gaining support from powerful industry unions to stop the new airline’s entry.

Over the years Norwegian Air succeeded in stabilizing itself and has now become the 10th largest low-cost carrier in the world. The airline maintains an impressive fleet and placed more orders for at least 260 Boeing aircrafts. The competition in the Norwegian market has kept the fares lower for a decade and more now. The airline has expanded its reach and is presently operating in domestic as well as international routes in the United States, Asia and Europe.