Norwegian has established its long-haul company in Dublin for several reasons. The main reason is access to future traffic rights to and from the EU.
Irish authorities issued an air operator’s certificate (AOC) and operating license to Norwegian’s subsidiary Norwegian Air International Limited, which is based in Dublin. With this permit, the administration of Norwegian’s long-haul operation will be relocated to Norwegian Air International Limited (NAI). The company has built its managerial and all mandatory regulatory functions in Dublin. Its aircraft operation will now be governed by the Irish authorities. The Irish regulatory authorities are considered to be among the best in the world. Read more here.
Why Ireland?
Norwegian has established its long-haul company in Dublin for several reasons. The main reason is access to future traffic rights to and from the EU. Norwegian has more than 260 aircraft on order and the route network will expand rapidly in the years to come. Another important reason for choosing Ireland, and not another country within the EU (though several other European countries – including the UK and Sweden – were considered), is because Ireland has decided to fully adapt the Cape Town Convention, which provides Norwegian with better financing conditions. Furthermore, NAI’s establishment in Ireland does not affect export guarantees in connection with our financing. As well as offering one of the highest ranked civil aviation authorities in the world, Ireland is also a considerable cluster for the aviation industry; major leasing companies that Norwegian cooperates with have offices in Dublin.
It is important to stress that Ireland was not chosen because the country has specific rules and regulations that allow the use of American or Asian crew, like some politicians and unions have claimed. The fact is that Norwegian could have based its long-haul company in any other European country and still used American and Asian crew, the way several other European airlines have been operating for years. The only exception is Norway and partly Denmark, who so far have opted to keep outdated special rules within this area.
Transfer of aircraft to the new AOC
The transfer of the first Dreamliner aircraft to the new EU AOC was completed. This took place in conjunction with a scheduled maintenance on the aircraft. The remaining aircraft will be transferred gradually. In regards to Norwegian’s long-haul routes to and from the U.S., the U.S. Department of Transportation is now processing Norwegian’s application for a permit. This is regulated by the Open Skies Agreement between the U.S. and the EU, which means that an operator from either party, which fulfils the requirements, should be entitled to operate under this agreement. Today’s announcement means that Norwegian meets all the requirements.
Recently, both competitors and unions have made a number of false allegations against Norwegian and Ireland on this matter. The EU’s transport authorities, the Irish authorities and Norwegian have repeatedly refuted this. Norwegian expects that the U.S. government will process the application in accordance with the principles of the Open Skies Agreement and that Norwegian is given the same rights as were given when we operated on an EEC AOC, once the AOC is transferred from Norway to the EU.
Norwegian has also signed an agreement to acquire four new Boeing 787-9 Dreamliners. This means that the company has ordered 14 wide-body aircraft in total; three of which are already in service. The 787-9 is larger than the 787-8 that Norwegian currently operates on its long-haul routes.
Norwegian continues to expand its international operations by entering into an agreement with International Lease Finance Corporation (ILFC) to lease four Boeing 787-9 Dreamliners. The new Dreamliners are expected to enter service in 2017 and 2018.
Norwegian currently has three 787-8 Dreamliners in its fleet, with an additional five on order. The company also has two 787-9 Dreamliners on order for delivery in the first quarter of 2016. In total, Norwegian has ordered a fleet of 14 long-haul aircraft, where of four will enter service in 2014; one in 2014; two in 2016; two in 2017 and two in 2018.
“In order to run a competitive long-haul operation, we are dependent on brand new, cost-efficient aircraft. I/m very satisfied to have secured an additional four 787-9 Dreamliners. This is a great airplane with high passenger comfort, long range and low fuel burn,” said Norwegian’s CEO Bjorn Kjos.
The 787-9 Dreamliner accommodates more passengers, is even more fuel efficient and more environmentally friendly than the 787-8. Boeing has performed several successful test flights with this aircraft type, which is scheduled to enter commercial service this year.
Norwegian and ILFC already have an extended partnership as the latter owns several of the aircraft in Norwegian’s fleet, both Boeing 737-800s and 787-8 Dreamliners.
Photo caption (from left to right): Dermot McCarthy, Flight Operations Inspector, Kevin Humphreys, Director of Safety Regulations and Asgeir Nyseth, CEO of Norwegian Long Haul.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
