Norwegian Air holds off on 787 order until it gets US approval

Norwegian Air said it will postpone ordering more Boeing 787 Dreamliner jets until it gets the final decision from the US Department of Transportation on its contentious plan to register the company in Ireland.

DOT approval is key to its plans to order up to another 20 787s, in addition to 17 already agreed and due to be delivered by 2018, CEO Bjoern Kjos said.

"If the Department of Transportation comes through with approval we’ll immediately continue the negotiations we’ve had with Boeing," Kjos said.

The carrier’s plans for transatlantic flights using planes registered as Norwegian Air International in Ireland has been strongly opposed by rival US carriers and flight crew unions who say it is trying to circumvent stricter labour laws in its home country.

However, the airline has now unveiled a plan to set up a UK subsidiary and has applied for a UK operating licence, which industry experts think may be sufficient to appease its critics.

Kjos said he is confident the airline will get the go-ahead ‘sooner or later’.

"The US airlines hate Norwegian because we are flying with low fares. They are trying to protect their turf by any means," Kos added.

Norwegian already operates several flights to the US and today celebrates one year of flying from London Gatwick to the US.

"The reason for establishing a UK company is for access to bilateral traffic rights, enabling us to offer new destinations. However, if we do obtain permission for the UK air operating company it would allow us to be more flexible in our operation," a Norwegian spokesman said.