Manufacturing Industry

Norwegian Air Shuttle set to lose government contract

Airline Industry Information, July 19, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Norwegian low-price airline Norwegian Air Shuttle (Norwegian) has reportedly lost its biggest client, the Norwegian government, as the government's agreement to prioritize Norwegian runs out at the end of August and will not be renewed.

If the government wanted to have the agreement renewed, it would reportedly have to invite tenders because of new EEA (European Economic Area) regulations.

The airline agreement was negotiated two years ago, and guaranteed a maximum price on some routes.

However due to the cheap airline tickets available today, the government's agreement with Norwegian is less valuable than before, reported the online edition of the Norwegian newspaper Norway Post.

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COPYRIGHT 2004 M2 Communications Ltd.
COPYRIGHT 2008 Gale, Cengage Learning

 

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