US stalling on extra flights from EU

EU officials have conceded that efforts to convince US authorities to allow Norwegian Air Shuttle's Irish subsidiary to operate transatlantic services are deadlocked.

Norwegian Air International, the Scandinavian carrier’s Dublin-based subsidiary, has been seeking permission to fly from European cities to the US since 2014.

As it is registered in the Republic, it should be allowed to fly from anywhere in the EU to the US under the open skies agreement.

However, the US authorities have yet to make a decision on its application to be allowed fly there, a delay officials from the European Commission’s transport directorate yesterday called “a clear breach” of the open skies deal. That agreement obliges the US to make a decision on Norwegian Air International’s application within 60 days. Brussels sources indicated the matter may go to arbitration, a process that could take several years.

Flag of convenience

US opposition is partly rooted in aviation industry trade union fears it is using the Republic as a flag of convenience to employ cheap labour. However, its chief executive,

Bjorn Kjos

, has dismissed these claims. He has said the Republic’s labour laws determine the terms and conditions under which its Irish firm hires staff.

Meanwhile EU transport commissioner Violeta Bulc said she was hoping to convince pension funds to invest some of their undeployed cash in transport projects.

Ms Bulc said EU members need to spend €500 billion to meet their core transport needs.