The company's new European operating company will start employing pilots in Finland at the start of next year, after which pilots will start to be employed in England and then Spain.
"Norwegian is going from being a Scandinavian to an international company and the organizational structure must be modernized and adapted to this," founder and chief executive Bjørn Kjos said in a statement.
The company's board on Tuesday approved the new corporate structure, in which the Norway-based Norwegian Air Shuttle ASA would be the parent company ruling over two subsidiaries, one for Norway, and one for the European Union.
The company's Scandinavian employees will be transferred to the Norwegian operating company, retaining their previous wages and working conditions.
The news came the day after the Norwegian Pilot's Union threatened a strike after pay negotiations faltered.