Afraid that Norwegian will withdraw

(E24) – Threatening to deflagrate is not particularly sympathetic, but everyone understands that this type of competitive bias is not viable, says NHO top.

– This will mean a significant competitive disadvantage, says Norwegian’s policy advisor, Kristoffer Gustavsen.

He stands inside Gardermoen to explain why the airline is now directing harsh criticism at the government.

Simply explained: Norwegian airlines such as Norwegian now fall outside an EU scheme that provides support for more expensive fossil-free fuel. Norwegian can get this support if the government introduces the two latest versions of the EU’s renewables directive.

According to the company, there is talk of several hundred million kroner.

As early as 2025, airlines have committed to mixing two percent biofuel into the tanks of their planes. This could cost Norwegian as much as NOK 400 million starting next year.

In 2030, according to Norwegian, this could mean over NOK 1.3 billion.

Can lead to expensive plane tickets

Norwegian believes the government must now speed up the introduction of the new EU rules on renewable energy. Gustavsen says there are no alternatives.

– Why shouldn’t the airline industry pay more for the large climate footprint that you are responsible for?

– The airlines and the airline industry must pay for their emissions. This is about competing on the same terms as other airlines in Europe, says Gustavsen.

Biofuel is currently estimated to cost three to five times as much as fossil fuel. With the EU’s rules, Norwegian can have up to one hundred percent of the additional costs of the sustainable fuel covered.

– It is very important that the politicians sort this out, he says.

If this does not happen, the plane tickets will become more expensive and the route offer weakened, according to Gustavsen.

In the worst case scenario, Norwegian companies must move out of the country, believes NHO Luftfart, an interest and employer organization for airlines.

– Not to live with

NHO Luftfart has sent a letter to the Ministry of Climate and Environment in which they express that they are “very concerned” that Norwegian airlines do not get access to the restructuring fund and at the same time have to pay for quotas within the EU’s quota system.

“Overall, this will have dramatic consequences for Norwegian aviation”, it says.

– This is not something Norwegian airlines can live with over time, says Erik Lahnstein, head of NHO Luftfart, to E24.

He believes it is urgent to introduce the directive as the airlines have already started selling tickets for next year.

– Threatening to deflagrate is not particularly sympathetic, but everyone understands that this type of competitive bias is not viable, says the NHO top.

Fears the companies will flag out

Also in Gardermoen are Conservative politicians Nikolai Astrup and Erlend Larsen.

The party fears major consequences for Norwegian business if the government does not introduce the new EU rules.

– Over time, there is every reason to fear that both Widerøe and Norwegian will quit if the government does not address this issue, says Astrup.

He believes it goes without saying that Norwegian companies cannot have extra costs in the billions range – something that competitors in the EU do not want.

– Aviation is in a very vulnerable position. Now we have just finished with the pandemic. The war in Ukraine has driven up fuel prices and the prices of spare parts. In addition, they also have to go through the green shift, where they are struggling with a backlog, says Larsen.

He now fears for thousands of jobs. Norwegian currently has over 5,000 employees.

– I expect the government to take that seriously.