Long-haul airline threatens to cut investment in Norwegian routes over taxes
Norse Atlantic has said it will consider scaling down its investment in long-haul flights to and from Norway due to an increase in the air passenger tax, the company warned Thursday.
The recently launched long-haul airline said in a stock market announcement that the company was ‘deeply concerned' about a 45 percent increase in air passenger tax that was agreed upon in the state budget for 2023.
The increased tax means that passengers will pay 320 kroner per flight from Norway to outside Europe from the New Year.
Norse was established in 2021 to operate long-haul flights between Europe and the USA, and its first flight took to the skies was in June this year.
It said that the increased tax would make it harder to offer long-haul flights from Norway in what it described as a competitive and price sensitive market.
“Norse Atlantic Airways operates direct intercontinental point-to-point routes in a highly competitive and price-sensitive market. This planned increase means that we may be forced to reassess our investment in direct routes from Norway to the detriment of Norwegian businesses and passengers,” it said in a statement.
Currently, the air passenger tax for flights within Europe is 80 kroner, while the rate for outside Europe is 220 kroner. In its earnings call, Norse said it flights from Berlin and London to the U.S. were performing better than its routes from Oslo.
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The recently launched long-haul airline said in a stock market announcement that the company was ‘deeply concerned' about a 45 percent increase in air passenger tax that was agreed upon in the state budget for 2023.
The increased tax means that passengers will pay 320 kroner per flight from Norway to outside Europe from the New Year.
Norse was established in 2021 to operate long-haul flights between Europe and the USA, and its first flight took to the skies was in June this year.
It said that the increased tax would make it harder to offer long-haul flights from Norway in what it described as a competitive and price sensitive market.
“Norse Atlantic Airways operates direct intercontinental point-to-point routes in a highly competitive and price-sensitive market. This planned increase means that we may be forced to reassess our investment in direct routes from Norway to the detriment of Norwegian businesses and passengers,” it said in a statement.
Currently, the air passenger tax for flights within Europe is 80 kroner, while the rate for outside Europe is 220 kroner. In its earnings call, Norse said it flights from Berlin and London to the U.S. were performing better than its routes from Oslo.
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