Norwegian axes its three US links from Edinburgh
Ian Taylor
ian.taylor@travelweekly.co.uk
Norwegian Air has confirmed it will scrap US flights from Edinburgh, blaming the Scottish government’s failure to act on a pledge to cut Air Passenger Duty (APD).
Budget long-haul carrier
Norwegian launched three routes from Edinburgh to the US last year, flying to Stewart in New York State, Providence in Rhode Island and Bradley in Connecticut. The carrier confirmed it will
also axe flights from Edinburgh to Barcelona and Tenerife. The flights will end next March and Norwegian is expected to close its base at the airport. Norwegian had previously announced the end of the Bradley service and revealed in April that the Providence flights would be grounded from next month. The cuts will leave the airline
serving just three destinations from Edinburgh – Copenhagen, Stockholm and Oslo.
“APD was the main factor as it meant fares were higher than we’d like”
EDINBURGH: Norwegian is axing routes to Barcelona and Tenerife
Norwegian said the US routes had been launched “with the prospect of a reduction in air passenger taxes that was unfortunately postponed and this has led us to fully withdraw our transatlantic services”. In a statement, it said: “We have also decided to withdraw routes from Edinburgh to Barcelona and Tenerife, allowing us to focus on maintaining better-performing flights to Scandinavia.” The Scottish National Party
(SNP) pledged to halve APD, in advance of scrapping the tax “when resources allow”, after tax- raising powers were devolved to Holyrood in 2016. But the SNP’s failure to win opposition support or secure EU approval means the plans have stalled.
A Norwegian spokesman said:
“APD was the main factor as it meant fares were higher than we’d like, which affected the profitability of these routes. None of these summer 2019 flights are on sale.” An Edinburgh airport spokesman
said: “This is desperately disappointing, entirely caused by a failure of the Scottish government to live up to its commitment.” Norwegian also announced
the end of its Gatwick-Singapore service this month, with flights ceasing from January, and confirmed plans to sell or divest orders for more than 100 aircraft. In an interview this week,
Norwegian boss Bjorn Kjos revealed the airline is seeking a replacement chief executive as he plans to step down in two years.
Qatar Airways blames boycott for $69m annual loss
Qatar Airways reported a $69 million loss for the 12 months to March, blaming the boycott of Qatar by Saudi Arabia and the UAE for the losses. Akbar Al Baker, Qatar Airways chief
executive, said: “This turbulent year has inevitably had an impact on our financial results, which reflect the negative effect the illegal blockade has had.” However, he insisted: “The impact has been minimised and has not been as negative as our neighbouring countries may have hoped.”
The boycott, imposed since June 2017, has
closed airspace over Egypt, Saudi Arabia, the UAE and Bahrain to Qatar Airways, forcing the airline to operate longer routes from its Doha hub. The carrier has also had to drop 18 routes in the region due to the blockade. The government of Saudi Arabia accuses
the Qatari regime of supporting extremist groups. Doha denies the accusations. Publication of the results followed an
agreement between the US and Qatar in February by which Washington agreed not
to pursue allegations made by US airlines that Qatar Airways received state subsidies on condition Qatar Airways publish “annual reports with financial statements audited externally in accordance with internationally- recognised accounting standards”. Al Baker reported a 7% rise in revenue and
near 10% increase in capacity year on year in what he described as Qatar’s “toughest year in two decades” and noted the carrier had launched to 24 new destinations since the start of the blockade, including to Cardiff.
27 September 2018
travelweekly.co.uk 87
Wow Air seeks to raise $250m via IPO as it continues to lose money
Iceland’s Wow Air plans to raise up to €250 million through an initial public offering but is struggling to pay the operating charges at its home airport. Wow Air chief executive and
owner Skuli Mogensen revealed his intention to raise funds by listing shares while retaining a controlling stake last week as he acknowledged the carrier, which offers cheap flights to the US via Iceland, continues to lose money. However, Icelandic newspaper
Morgunbladet reported Wow owes two billion Icelandic krona (€16 million) in unpaid charges at Keflavik airport. The airline also remains unhedged on fuel. Mogensen said: “Fuel has clearly worked against us.”
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