US Government Rejects Lower Airfares for US Travelers

In June, I blogged about how US airlines were lobbying the government to deny low-cost Norwegian Air authorization to operate in the United States. Norwegian Air was seeking to bring its business, along with hundreds of jobs to the United States. Yesterday, the Obama Administration rejected Norwegian Air’s request to begin operating in the US, and thus rejecting likely lower fares for American travelers. From Yahoo!:

In a case that has labor and trade policy implications, the Obama administration on Tuesday rejected a request that would have immediately permitted a low-cost air carrier to begin flights between the U.S. and Europe while the government is still reviewing its application for new service.

The Transportation Department turned down a request by Norwegian Air International that would have allowed the carrier to offer new service between London’s Gatwick Airport and New York, Orlando, Florida, and other U.S. cities. Officials for the airline said they hoped to charge as little as $150 each way. Such exemptions are usually granted European carriers under a U.S.-European Union aviation agreement.