US Department of Transportation assistant secretary for aviation and international affairs, Susan Kurland, re-expressed the US opposition to the inclusion of US airlines in the European Union Emissions Trading Scheme (New York Times, 27-Jul-2011). She said that the scheme is the “wrong way to pursue the right objective” and believes that a global approach is superior to a system imposed on from the outside. US lawmakers have introduced a bill that would make it illegal for US airlines to participate in the scheme. The US Department of Transportation said it has several options in the dispute, but has not revealed whether it will file an international complaint with either ICAO or the World Trade Organisation or resolve the problem though the EU-US open skies treaty process.
US DoT: EU ETS is the 'wrong way to pursue the right objective'
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Norwegian Air's NAI at last gets final approval of US rights in a boost to long haul growth
On 2-Dec-2016 the US Department of Transportation (DoT) served an order granting Norwegian Air International (NAI) a foreign air carrier permit, as required by the EU-US open skies agreement, to which Norway is a party. Almost three years after NAI's application it seems that the EU's 30-Nov-2016 filing for arbitration finally panicked the DoT into finalising its tentative approval given eight months ago.
Since launching long haul operations in summer 2013 Norwegian has grown its long haul network to 37 routes operated in 2016. In spite of the delay in receiving the US permit for NAI, 34 of these routes are between cities in Europe and the US. The only Asian destination is Bangkok, linked to the three Scandinavian capitals.
The DoT's final decision means Norwegian can now use its Irish-registered subsidiary NAI to fly long haul routes from Europe to destinations both east and west with the same operating airline, and with EU traffic rights in both directions. This should increase its operational flexibility and cost efficiency and allow lower fares on a greater number of routes. Norwegian already has ambitious long haul growth plans. Expect these now to accelerate further, and not only to the US.
SunExpress: "Lufthansa's biggest strategic project"
The Turkish leisure airline SunExpress and its German subsidiary SunExpress Germany have historically had a fairly low profile, certainly among European air travellers. Nevertheless, their combined total of 7.9 million passengers puts SunExpress in the top 20 European airline groups in 2016, ahead of Brussels Airlines.
Jointly owned by Turkish Airlines and Lufthansa, SunExpress and its German counterpart brought about a consolidated result that fell into loss in 2016 as passenger numbers and revenue both declined. When the observer scratches beneath the surface of the headline figures, a picture of significant strategic change at SunExpress Germany starts to emerge.
The larger Turkish SunExpress has maintained its focus on Turkey-Germany routes, whereas SunExpress Germany has abandoned this country pair. It has instead developed leisure routes from Germany to elsewhere in Europe and in North Africa, in spite of not having an obvious competitive advantage in those markets. Within these new market areas, SunExpress Germany has undergone substantial changes in its route portfolio. Lufthansa wetleases capacity from SunExpress Germany for its Eurowings low cost operation and this may help to make some sense of these outwardly random network changes.