Ireland as a flag of convenience

[Gilles Hudicourt]

I hope this question has not yet been raised. If it has, please point me to the reply.

How is it possible for Ireland, a member of the European Union (EU) to have granted an Irish Operating Certificate (OC) to Norwegian Air International, a company owned by a non European Union member, which company has openly admitted that this OC was specifically sought out for the purpose of gaining access to the market available to airlines that are members of the EU? This airline has admitted it has no intention of either basing or even operating aircraft in Ireland and is using the Irish registry as a mere flag of convenience.
If Norwegian, as an airlines of a non EU member can be granted an Irish OC for this purpose, what will prevent other non EU airlines from doing the same in order to gain a foothold in the EU aviation market ? Imagine Irish registered Ethiad and Emirates 777s and 380s based inLondon, Paris, Frankfurt and Amsterdam.
In Canada and the USA, OC holders must have over 50% of shareholders owned by locals in order to qualify for an OC. Do EU members not have similar laws ?
Don't other EU member countries have a say in what Ireland does in this regard for this Irish OC does open the back door to all EU countries ?

I noticed there was ample reaction in the USA with regards to Norwegian using the Irish registry as a Flag of Convenience but I didn't read of similar opposition from other European countries. Where Ireland gives Norwegian an Irish OC which Norwegian uses to exploit London - North America routes, it allows Norwegian as a non EU member to compete on the London market with other airlines already established in that market. What right does Ireland have to hand a market such as London's market to a non EU airline ? Why are other European countries so silent on the matter when they are the ones who should be up in arms before the Americans ?


I know there are other issues with Norwegian that need to be discussed but please limit this thread to the Flag of Convenience issue. Thank you.

[Skipname]

In 1994 Norway sign an agreement to join the European Economic Area. This means that companies and economic operators in the EU as well in the EEA countries have equal access to the internal market.

[Gilles Hudicourt]

If being a member of the European Economic Area allowed a Norwegian airline to have unrestricted access to the EU market, as airlines of EU members do, why did they need the Irish OC in the first place ?

The Irish OC obviously opened a door the European Economic Area membership did not.

[RTO]

Cause of Irelands sloppy tax system, ability to run with out any pesky CAA looking into your operation as well as the bonus of crewing with minimum wage Thai crew, employed in SIN and based in BKK. All these shenanigans are not permitted in their home country (where they are actually operating)

[172_driver]

From IAA's website in bold - The IAA receives no Government funding.

It's a business. You do what's needed to ensure good profit.

[Pete O'Tewbe]

This (http://discover.economist.com/?a=21635001&p=FT&cid1=disp|1102344|50126&cid2=UKFebWhitelistLowcostairlinesareabouttorevolutioniselon ghaulroutesCTOutbrain|[TRACKING]) may help shed some light on the question.

[ExXB]

From: International aviation: United States - Transport (http://ec.europa.eu/transport/modes/air/international_aviation/country_index/united_states_en.htm)

Accession of Norway and Iceland

Norway and Iceland accession to the Air Transport Agreement as amended by the Protocol is provisionally applied as from 21 June 2011.

Article 18 (5) of the EU-US Air Transport Agreement confirms both Parties' goal of "maximising the benefits for consumers, airlines, labour and communities on both sides of the Atlantic by extending this Agreement to include third countries". Ensuring that the bilateral character of the EU-US Air Transport Agreement is maintained, the parties signed on 21 June 2011 two agreements:

Air Transport Agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part is provisionally applied from 21 June 2011.

Ancillary Agreement between the European Union and its Member States, of the first part, Iceland, of the second part, and the Kingdom of Norway, of the third part, on the application of the Air Transport Agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part is provisionally applied from 21 June 2011.

These Agreements ensure a consistent regulatory framework for flights between the US and the single aviation market in the EU – including Iceland and Norway.

Switzerland has not (yet) acceded to the treaty although they may. Can't see much in it for Swiss companies so there is little pressure to do so. Swiss' owner may have different views, but they seem content to have LX cover the market.

The 'flag of convenience' for Norwegian is limited to US-EU/IS routes, and any other market where the EU will have negotiated similar provisions. IMHO the European Commission hates with a passion the ownership and control provisions in existing air services agreements - and sees nothing wrong with Norwegian airlines acting in this way.