Norwegian Airlines, despite the name, is based in Ireland, but does not fly in Ireland. They also use pilots and crew from places like Singapore and Thailand which they can pay much less and helps them to reduce the cost of flights. NAI (Norwegian Airlines International) currently flies to New York, Florida, and California but are pushing for more flights into the US.
US carriers are opposed to allowing NAI to operate within the US because they do not agree with the way it is ran and because they would not be able to compete with the low prices that NAI offers. The DOT has recently denied NAI's attempt for a temporary flight permit while it reviews their request to fly within the states. The labor laws have been called into question along with their Ireland operation that is not even in Ireland just so they can take advantage of loopholes in the law.
I definitely agree with the decision to not let NAI operate within the US. Not only is it not ethical what they are doing, but it is not legal for most airline operations. Why should we make an exception for them? It could greatly affect the pilot jobs and pay for pilots here and with starting pay already so low it could be devastating to pilot jobs here in the US. If they eventually make it here I believe it will increase the pilot shortage. One of the big reasons there is a pilot shortage today is because the cost of school compared to the ridiculously low salary when you graduate. With low cost carriers taking over we will see pilots from overseas taking over the jobs of American pilots because they can work for cheaper. I believe the airlines will take a big hit and it will change the whole structure of the airlines and open the door for other airlines to come in and do the same.
http://thehill.com/policy/transportation/216434-feds-dismiss-norwegian-air-bid-for-expedited-us-flight-approval
http://www.goiam.org/index.php/imail/latest/13267-unions-urge-dot-to-deny-norwegian-air-scam-
These low cost carriers you mentioned are a serious issue over in Europe. Places like Ryanair, Wizz Air, Easyjet, are really coming under fire employing their pilots as contractors and not actually on the payroll. Here is a great article that talks more about this. http://skift.com/2013/10/23/european-pilots-with-lufthansa-dreams-must-face-ryanair-realities/
ReplyDeleteYou say that we'll see pilots from overseas taking over Amercian jobs because they can work for cheaper? Why? Cost of training? Cost of living?
ReplyDeleteIt’s kind of funny if you go to Norwegian Air’s media page, they deny going to Ireland because of the relaxed labor laws. They say it’s better for route structure and because one of their creditors is based in Ireland. But nobody really believes that.
ReplyDeleteI like how you brought up the point of cost of education vs. pay. It would be an understatement to say flight training is cheep. If there is no return from education what would that do to the number and quality of pilots?
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