<p><div class="KonaFilter image-container display-table float_right click-to-enlarge"><div><div class="image"><a title_source="Norwegian" title_caption="Norwegian Boeing 787-9 Dreamliner." class="zoomin" href="https://static-ssl.businessinsider.com/image/5736285952bcd044008c2e7b-960/nsb_7879_03.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/5736285952bcd044008c2e7b-890-668/nsb_7879_03.jpg" alt="Norwegian Boeing 787 9" data-mce-source="Norwegian" /></a><p class="source"><span>Norwegian</span></p><p class="caption">Norwegian Boeing 787-9 Dreamliner.</p></div><p></p></div></div>Norwegian Air International's expansion into the US has ruffled feathers. It's a potentially-industry changing move that US airlines and unions have vigorously opposed.<br /><br />The US airlines are objecting on the grounds that NAI could exploit foreign labor laws, but in truth they should be worried about the kind of international network the carrier is attempting to create.</p><p>Last month, the <a href="http://www.businessinsider.com/norwegian-air-international-america-boeing-2016-4" target="_blank">US Department of Transportation tentatively approved</a> the Irish (yes Irish) airline's application to fly into the US.</p><p>You may be wondering why an airline called "Norwegian" would be based in Ireland. That's the root of the issue.</p><p>NAI is one of several subsidiaries operating under the Norwegian banner. <span>Unlike the rest of the company - including Norwegian Air Shuttle - NAI is based in Dublin instead of in Norway.</span></p><p><span>This, critics say, allows NAI to take advantage of Ireland's employment laws, which are significantly less stringent than Norway's. </span><span>As a result, they say, NAI could hire lower-cost pilots and cabin crew from Asia to fly trans-Atlantic routes. (The company's current service to the US is operated by NAS with European crew.)</span></p><p>AFL-CIO <keyword id="34991" type="ORGANIZATION" weightage="60" keywordseo="transportation">Transportation</keyword> president <a href="http://ttd.org/news-and-media/press-releases/bipartisan-legislation-aims-to-ground-nai/" target="_blank">Edward Wytkind</a> referred to the DOT's decision as one to "<span>greenlight this low-road air carrier whose operating plan will destroy fair competition and extinguish middle-class airline jobs here and in Europe."</span></p><p><span>But, NAI says that none of its Asia-based crew will operate flights into and out of the US. Further, the pay differential between the airline's Asia and Europe-based pilots is roughly 1%, Norwegian Air spokesperson Anders Lindstrom told Business Insider.</span></p><p>And all this complaining about NAI is happening despite the fact that it is tiny, with a fleet of just <span>10 Boeing 787 Dreamliners. The major US airlines and their European alliance partners have more than 1,000 wide-body long-haul jets at their disposal and are responsible for more than 80% of the traffic across the Atlantic. </span></p><h2><strong>Here's why Norwegian is scary</strong></h2><p>Here's the real problem for US airlines: Norwegian is going to expand rapidly and in a way that eats at the foundation of the hub-based system major US airlines depend on for survival. <br /><br /><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/573628cd91058425008c2c4e-1454-1090/_m5_4383-edit.jpg" alt="Norwegian Air flight attendant cabin crew" data-mce-source="Norwegian" /><p class="source"><span>Norwegian</span></p><p class="caption">Norwegian Air flight attendant.</p></div><p></p></div></div>How? By offering direct flights to smaller cities in the US, from underserved cities in Northern Europe.<br /><br />In practice, this means passengers in Hartford or Providence no longer have to fly to Boston or New York for an international trip. Instead, for a far lower cost than a US carrier, they might fly NAI to Oslo, Stockholm or Hamburg. Later this year, Norwegian is launching service to Paris from New York, Los Angeles, and Ft. Lauderdale.</p><p>This kind of setup would not only undercut the airlines' international business. It would also threaten their domestic operation.</p><h2>But there's more</h2><p>With its base in European Union-member Ireland, NAI will also be able to use its hubs in Europe as transit points for passengers traveling into and out of Asia and Europe to the US. As a result, NAI will be able to tap into the lucrative US to South Asia market over which US, European, and Middle Eastern airlines have fought for the past decade. The presence of Norwegian and its low-cost model could provide competitive pressure on legacy carriers for value-minded travelers the same way Emirates, Etihad, and Qatar have for premium cabin clients.</p><p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/571a79f452bcd01a008be623-3028-2271/a320neo_nax.jpg" alt="Norwegian Air Airbus A320neo" data-mce-source="Boeing" /><p class="source"><span>Boeing</span></p><p class="caption">Norwegian Airbus A320neo.</p></div><p></p></div></div>In fact, NAI could be the airline to disrupt the trans-Atlantic long haul business the same way other LCCs have completely transformed the European airline industry. In Norwegian's home market, it has forced local rival SAS to completely revamp the way the 70-year old airline does business.</p><p>"We have made significant transformative changes to stay competitive and to survive," <a href="http://www.businessinsider.com/scandinavian-airline-sas-ceo-2016-3" target="_blank">SAS CEO Richard Gustafson told Business Insider</a> in March. "We have cut overhead costs, adjusted pensions, and union contracts."</p><p>NAI's weapon in all this will be narrow-body jets like the Boeing 737Max8 and Airbus A320neo. The company has orders for as many as 350 of these aircraft in place.</p><p>While trans-Atlantic service has traditionally been operated using large wide-body jumbo jets, the narrow-body jets are cheaper to buy, and cheaper to operate. The first of the 737Max aircraft are expected to enter service in 2017 while Norwegian is expected to see its first A320neos later this year.</p><p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5736272391058436008c2d78-900-675/dreamliner interior 5 hr.jpg" alt="Norwegian Boeing Dreamliner Interior" data-mce-source="Norwegian" /><p class="source"><span>Norwegian</span></p><p class="caption">Norwegian Boeing 787 Dreamliner interior.</p></div><p></p></div></div>Norwegian won't be able to reach the US legacy carriers' bread and butter customer - the high-end business traveler. Major US airlines depend these high-value client who fly often and pay full-business or first class prices to generate the revenue they need to stay afloat.</p><p>Norwegian's low-cost premium cabin on its Dreamliners may attract some of these customers, but it is unlikely to sway high-end corporate client.</p><p>But based on how Norwegian has shaken up the airline industry in its homeland, US carriers should be wary of the disruptive power of this airline. </p><p>One final detail. According to Norwegian's CEO, the target price for admission one of his airline's flight across the Atlantic is $69.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/worst-costumer-satisfaction-airlines-spirit-delta-jetblue-2016-4">This is America's most hated airline</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="xxd3A0MzE6l-qJTQfDxrwtBhD4iniZeu" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'xxd3A0MzE6l-qJTQfDxrwtBhD4iniZeu',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

This is the real reason US airlines should be terrified of a European upstart you've never heard of

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/578682a688e4a71a008b7ca9-2000/737-800.jpg" alt="Boeing 737 800 Norwegian Air" data-mce-source="Norwegian Air" /><p class="source"><span>Norwegian Air</span></p><p class="caption">Norwegian Air Boeing 737-800.</p></div><p></p></div></div>Norwegian Air has been named best low-cost airline in Europe for the fourth consecutive year by leading consumer aviation website <a href="http://www.worldairlineawards.com/main/2016_airlineawards_results_announced.html" target="_blank">Skytrax</a>.</p><p>In addition, the airline also took home the prize for best long-haul low cost airline in the world.</p><p>Norwegian was presented with the awards at a ceremony on Tuesday during at the 2016 Farnborough Air Show.</p><p><span><span>"<span>We believe that not only should air travel be affordable to all, but also that low-cost can still mean high-quality," Norwegian CEO <span>Bjørn Kjos said in a statement.</span></span></span></span></p><p><span><span><span><span>"These awards give us huge momentum as we continue our ambitious expansion plans in Europe, the US and beyond."</span></span></span></span></p><p><span><span><span><span>And Norwegian is certainly making their presence felt. </span></span></span></span></p><p>The company's Norwegian Air International subsidiary's expansion into the US has ruffled feathers. It's a potentially industry-changing move that US airlines and unions have vigorously opposed.<br /><br />The US airlines are objecting on the grounds that NAI could exploit foreign labor laws, but in truth they should be worried about the kind of international network the carrier is attempting to create.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/578684414321f1c72f8b7674-2000/ddn1norwegian.jpg" alt="Norwegian Air CEO Bjorn Kjos" data-mce-source="Norwegian" /><p class="source"><span>Norwegian</span></p><p class="caption">Norwegian Air CEO Bjørn Kjos in the cockpit of a Boeing 787.</p></div><p></p></div></div>In April, the <a href="http://www.businessinsider.com/norwegian-air-international-america-boeing-2016-4" target="_blank">US Department of Transportation tentatively approved</a> the Irish - yes, Irish - airline's application to fly into the US.</p><p>You may be wondering why an airline called "Norwegian" would be based in Ireland. That's the root of the issue.</p><p>NAI is one of several subsidiaries operating under the Norwegian banner. Unlike the rest of the company, including Norwegian Air Shuttle, NAI is based in Dublin instead of in Norway.</p><p><span>This, critics say, allows NAI to take advantage of Ireland's employment laws, which are significantly less stringent than Norway's. As a result, they say, NAI could hire lower-cost pilots and cabin crew members from Asia to fly trans-Atlantic routes. (The company claims its current service to the US is operated by NAS with Europe-based crews.)</span></p><p>AFL-CIO <keyword id="34991" type="ORGANIZATION" weightage="60" keywordseo="transportation">Transportation</keyword> president <a href="http://ttd.org/news-and-media/press-releases/bipartisan-legislation-aims-to-ground-nai/" target="_blank">Edward Wytkind</a> referred to the DOT's decision as one to "<span>green-light this low-road air carrier whose operating plan will destroy fair competition and extinguish middle-class airline jobs here and in Europe."</span></p><p><span>But NAI says none of its Asia-based crews will operate flights into and out of the US. Further, the pay differential between the airline's Asia- and Europe-based pilots is roughly 1%, Norwegian Air spokesman Anders Lindstrom told Business Insider.</span></p><p>And all this complaining about NAI is happening even though it is tiny, with a fleet of just <span>10 Boeing 787 Dreamliners. The major US airlines and their European alliance partners have more than 1,000 wide-body long-haul jets at their disposal and are responsible for more than 80% of the traffic across the Atlantic. </span></p><h2><strong>Here's why Norwegian is scary</strong></h2><p>Here's the real problem for US airlines: Norwegian is going to expand rapidly and in a way that eats at the foundation of the hub-based system major US airlines depend on for survival. <br /><br /><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/573628cd91058425008c2c4e-1454-1090/_m5_4383-edit.jpg" alt="Norwegian Air flight attendant cabin crew" data-mce-source="Norwegian" /><p class="source"><span>Norwegian</span></p><p class="caption">A Norwegian Air flight attendant.</p></div><p></p></div></div>How? By offering direct flights to smaller cities in the US from underserved cities in Northern Europe.</p><p>In practice, this means passengers in Hartford, Connecticut, or Providence, Rhode Island, no longer have to fly to Boston or New York for an international trip. Instead, for a far lower cost than a US carrier, they might fly NAI to Oslo, Norway; Stockholm; or Hamburg, Germany. Later this year, Norwegian is launching service to Paris from New York, Los Angeles, and Fort Lauderdale.</p><p>This kind of setup not only undercuts US airlines' international business; it could also threaten their domestic operation.</p><h2>But there's more</h2><p>With its base in European Union-member Ireland, NAI will also be able to use its hubs in Europe as transit points for passengers traveling into and out of Asia and Europe to the US. As a result, NAI will be able to tap into the lucrative US-to-South Asia market over which US, European, and Middle Eastern airlines have fought for the past decade.</p><p>The presence of Norwegian and its low-cost model could provide competitive pressure on legacy carriers for value-minded travelers the same way Emirates, Etihad, and Qatar have for premium-cabin clients.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/571a79f452bcd01a008be623-2400/a320neo_nax.jpg" alt="Norwegian Air Airbus A320neo" data-mce-source="Boeing" /><p class="source"><span>Boeing</span></p><p class="caption">Norwegian Airbus A320neo.</p></div><p></p></div></div>In fact, NAI could be the airline to disrupt the trans-Atlantic long-haul business the same way other low-cost carriers have transformed the European airline industry. In Norwegian's home market, it has forced its local rival SAS to revamp the way the 70-year-old airline does business.</p><p>"We have made significant transformative changes to stay competitive and to survive," <a href="http://www.businessinsider.com/scandinavian-airline-sas-ceo-2016-3" target="_blank">SAS CEO Rickard Gustafson told Business Insider</a> in March. "We have cut overhead costs, adjusted pensions and union contracts."</p><p>NAI's weapon in all this will be narrow-body jets like the Boeing 737 Max 8 and the Airbus A320neo. The company has orders for as many as 350 of these aircraft in place.</p><p>While trans-Atlantic service has traditionally been operated using large wide-body jumbo jets, the narrow-body jets are cheaper to buy and cheaper to operate. The first of the 737 Max aircraft are expected to enter service in 2017, while Norwegian is expected to see its first A320neos later this year.</p><p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5736272391058436008c2d78-900-675/dreamliner interior 5 hr.jpg" alt="Norwegian Boeing Dreamliner Interior" data-mce-source="Norwegian" /><p class="source"><span>Norwegian</span></p><p class="caption">A Norwegian Boeing 787 Dreamliner interior.</p></div><p></p></div></div>Norwegian won't be able to reach the US legacy carriers' bread-and-butter customer: the high-end business traveler. Major US airlines depend these high-value clients, who fly often and pay full-business or first-class prices, to generate the revenue they need to stay afloat.</p><p>Norwegian's low-cost premium cabin on its Dreamliners may attract some of these customers, but it is unlikely to sway high-end corporate clients.</p><p>But based on how Norwegian has shaken up the airline industry in its homeland, US carriers should be wary of the disruptive power of this airline.</p><p>One final detail: According to Norwegian's CEO, the target price of admission for one of his airline's flight across the Atlantic is $69.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/when-you-should-book-your-flights-2016-5">When to book flights to get the best deal</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="JndmhoMzE6ZfpT7lFDRUJIiHqRq0bcce" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'JndmhoMzE6ZfpT7lFDRUJIiHqRq0bcce',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Europe's best low cost airline is invading America and US rivals should be afraid

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57c53c7fdd0895243e8b4a83-2400/rts40t2.jpg" alt="Poland fans" data-mce-source="Reuters/Kacper Pempel" data-mce-caption="Poland fan cheers during Euro 2016 qualification soccer match against Republic of Ireland in Warsaw" /><p class="source"><span>Reuters/Kacper Pempel</span></p><p class="caption">Poland fan cheers during Euro 2016 qualification soccer match against Republic of Ireland in Warsaw</p></div><p></p></div></div>Poland is the latest European nation attempting to sell itself as an attractive destination for businesses looking to shift operations away from the United Kingdom in the wake of the country's decision to leave the European Union, <a href="http://www.ft.com/cms/s/0/207ffab6-6ddb-11e6-9ac1-1055824ca907.html#axzz4In3w0Ihp">according to a report from the Financial Times.</a></p><p>The FT reports that, Poland's deputy prime minister Mateusz Morawiecki - a former banker with Santander, and one time chairman of Poland's third largest bank Bank Zachodni WBK - has scheduled meetings with senior bankers from RBS, Barclays, UBS, Credit Suisse, Citibank, and BNP Paribas during a trip to the <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword> at the end of the week.</p><p>He is also reportedly meeting executives from investment funds, including Blackrock, Pimco, and Schroders.</p><p>Morawiecki will travel to the UK on Thursday with the aim of pitching Poland's capital, Warsaw, as an attractive place for banks worried about the future of the City of London in the aftermath of Brexit, to move staff.</p><p>"Many of them have approached us. There is clearly increased interest in leaving London," Morawiecki said to the FT.</p><p>He also reportedly said that Poland has already begun talks with numerous financial institutions about moving middle-office and back-office staff out of London to Warsaw.</p><p>Warsaw joins a growing list of European cities trying to woo financial institutions that currently have their European bases in the UK, as uncertainty over the City's role following Brexit intensifies. Frankfurt, Germany's financial capital has already sent a clear message that it wants to take business from the City.</p><p>"We want to send the message loud and clear: 'Welcome to Frankfurt. How can we help you?'"<a href="http://uk.businessinsider.com/frankfurt-wants-to-steal-london-place-as-europe-financial-centre-2016-7">Hubertus Vaeth, the managing director of Frankfurt Main Finance said in July</a>, adding that "The welcome banner is hung and Frankfurt's doors are wide open."</p><p>Paris is also positioning itself to take business away from London, with French prime minister Manuel Valls sending foreign bankers a similar message, declaring "Welcome to France!" in a speech shortly after the Brexit vote. Given the eagerness of the financial hubs of the eurozone's two biggest economies to take London's place at the centre of European finance, it is likely to prove difficult for Poland to attract the biggest banks.</p><p>Since the Brexit vote, numerous big businesses - including several banks - have come out and said that the decision may force them into changes in their European businesses, with <a href="http://uk.businessinsider.com/goldman-sachs-q10-filing-says-it-may-have-to-restructure-uk-business-post-brexit-2016-8">Goldman Sachs notably saying</a> in <a href="https://www.sec.gov/Archives/edgar/data/886982/000119312516670394/d220861d10q.htm#toc">a regulatory filing released in early August</a> that the Brexit decision could "adversely affect" certain aspects of its operations in the UK and the European Union, and as a result it may have to reconsider how some of these businesses are structured.</p><p>Perhaps the most worrying sign for the UK's banking sector <a href="http://uk.businessinsider.com/confidential-deutsche-bank-briefing-where-banks-post-brexit-2016-7">was a leaked Deutsche Bank document obtained by Business Insider's Ben Moshinsky,</a> which argued that London is likely to lose its financial services passport, and that investment banks that shift operations abroad quickly will benefit from a "first-mover advantage."</p><p>Barclays and Bank of America Merrill Lynch could shift their markets businesses to Dublin, while Goldman Sachs has subsidiaries in Paris and Frankfurt, Germany, that it could use to keep its access to the 27-member single market once the UK officially leaves the European Union, according to the note. JPMorgan could shift resources to Luxembourg, where it has a subsidiary.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/sir-philip-green-clashes-sky-news-camera-bhs-collapse-pension-deficit-2016-8">Sir Philip Green lashes out at Sky News over BHS collapse questions</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="VlYm9lNTE6U6OPKfAXg-opZS9ylb3O7t" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'VlYm9lNTE6U6OPKfAXg-opZS9ylb3O7t',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Poland wants to steal the City of London's place as Europe's financial centre

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5630dfa6bd86ef775d8ba48a-2667-2000/norwegian air.jpg" alt="norwegian air" data-mce-source="Norwegian" /><p class="source"><span>Norwegian</span></p><p class="caption">Norwegian Air Boeing 787.</p></div><p></p></div></div>The US Department of <keyword id="34991" type="ORGANIZATION" weightage="60" keywordseo="transportation">Transportation</keyword> made a potentially industry changing decision when it tentatively approved Norwegian Air International's application this month to fly into the US.</p><p>It's a move that has been vehemently opposed by US airlines and unions for several years.</p><p>They've <a href="http://www3.alpa.org/LinkClick.aspx?fileticket=j8XUekoKyUM=&amp;tabid=8231&amp;mid=24026">argued </a>that allowing NAI, one of the several entities operating under the Norwegian Air umbrella, into the US market could jeopardize the health of the US airline industry and its workers.</p><p>The issues lies with where Norwegian has chosen to headquarter its NAI subsidiary. Unlike the rest of the company - including NAS - NAI is based in Dublin, Ireland instead of Norway.</p><p>This, critics say, allows Norwegian Air to take advantage of Ireland's employment laws which are significantly less stringent than that of Norway. As a result, NAI will be able to hire lower cost pilots and cabin crew from Asia to fly trans-Atlantic routes. <br /><br />The alarm among US carriers is overblown. <br /><br />With just 100-aircraft, Norwegian Air loses money and accounts for a tiny fraction of travel between Europe and the US. And its no-frills, ultra low-cost model works best with smaller aircraft, rather than Boeing 787 Dreamliners and other large aircraft needed to fly across the Atlantic. <br /><br />It's why Norwegian can compete so well flying Boeing 737s in Europe, but can't make a profit on its trans-Atlantic flights. Other attempts at low-cost travel across the Atlantic have ended badly. Remember Laker Airways Skytrain or People Express? There's a reason you don't.</p><h2>'Not a fair market'</h2><p>So why is there so much acrimony over the DOT's decision? In part, its just the notion that an airline can choose a home-base only to take advantage of labor laws that allow it to undercut its competitors. <br /><br />Delta, United and American can't just pick up and move in response. </p><p><span>"Norwegian Air International has picked its place of incorporation based on whether that nation's tax and regulatory laws are favorable," airline pilots union president Capt. Tim Canoll said in a statement.</span></p><p><span>"As a result, NAI gains an enormous competitive advantage over U.S. airlines, which are required to do business under one set of U.S. laws and regulations. This is not a fair market."</span></p><p><span><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/556742d7ecad04d83b0e11f6-2304-1536/16945663197_25b298062f_o.jpg" alt="Norwegian Air Shuttle Boeing 787" data-mce-source="Flickr/Eric Salard" data-link="https://www.flickr.com/photos/airlines470/16945663197/in/photolist-jGwPhV-rPqXhR-skxyrA-jGwybT-rygs2k-jGy2Ds-jGwrde-jzDYrB-fqWYeJ-oc5DQV-sTMBU6-sTN3np-q7VeHv-pTKKJj-qcHRTb-mn5nRq-h2pe13-pq98Rf" /><p class="source"><span><a href="https://www.flickr.com/photos/airlines470/16945663197/in/photolist-jGwPhV-rPqXhR-skxyrA-jGwybT-rygs2k-jGy2Ds-jGwrde-jzDYrB-fqWYeJ-oc5DQV-sTMBU6-sTN3np-q7VeHv-pTKKJj-qcHRTb-mn5nRq-h2pe13-pq98Rf">Flickr/Eric Salard</a></span></p></div><p></p></div></div></span></p><p>But a cheaper crew only impact's a transatlantic flight's profit margin by 2% or 3%, says <span>Airways News senior business analyst Vinay Bhaskara.</span></p><p>Instead, fuel, more experienced pilots, and extra fees are what make the big jets expensive. <br /><br />Bhaskara thinks the threat Norwegian Air could pose to US airlines comes not from how much it pays its crew, but from choosing to fly into smaller cities with smaller planes.</p><p>Instead of flying big Boeing 787 Dreamliners from London to New York, flying narrow-body planes from Manchester, England to Pittsburgh or Providence could be the game changer.<br /><br /> The airline currently has 200 Airbus A320neo and Boeing 737MAX narrow-body airliners on order. With a maximum range of 4,600 miles for the Airbus and the 4,000 miles for the Boeing, both aircraft could be deployed on routes from Western Europe to the East Coast. </p><p>This strategy cuts out the added overhead associated with large wide-bodies as well as costlier landing fees at larger global hubs. <br /><br /><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="Boeing" title_caption="Norwegian Air Boeing 737 interior." class="zoomin" href="https://static-ssl.businessinsider.com/image/571a790591058422008be65d-960/k65079.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/571a790591058422008be65d-1781-1336/k65079.jpg" alt="Boeing 737 Norwegian Interior" data-mce-source="Boeing" /></a><p class="source"><span>Boeing</span></p><p class="caption">Norwegian Air Boeing 737 interior.</p></div><p></p></div></div></p><p>With this strategy, Norwegian can undercut the feeder routes that help fill the US trio and their alliance partners' jumbo jets. </p><p>With the ability to fly from Providence non-stop to the UK for cheap, there's no need to drive or fly to Boston or New York for a flight to Europe.</p><p>Still, even here, Norwegian may ultimately be limited in its success and its ability to disrupt America's legacy carriers by the budget airline model.</p><p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="Norwegian" title_caption="Norwegian Air Boeing 787 Dreamliner interior." class="zoomin" href="https://static-ssl.businessinsider.com/image/571a7ac652bcd029008be703-960/dreamliner interior 5 hr.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/571a7ac652bcd029008be703-1024-675/dreamliner interior 5 hr.jpg" alt="Norwegian Boeing Dreamliner Interior" data-mce-source="Norwegian" /></a><p class="source"><span>Norwegian</span></p><p class="caption">Norwegian Air Boeing 787 Dreamliner interior.</p></div><p></p></div></div>People tend to fly low-cost airlines because they either don't often fly or don't have the means to fly a higher-end airline. </p><p>"You aren't going to go with a low-cost budget experience when you can afford or have access to a nicer seat, nicer food, and better in-flight entertainment," Forrester Research Vice President Harley Manning told Business Insider.</p><p>That effect is amplified when it comes to long-haul international flight where the frills matter. </p><p>This also limits Norwegian's effect on US legacy carriers.</p><p>"The bread and butter target customer for US legacy airlines is the business traveler who flies frequently," Manning said. "Losing a customer who is hunting for the cheapest ticket on the rare chance they fly isn't hurting American, Delta, or United all that much."</p>      <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/terrorists-groups-isis-make-money-billion-dollars-oil-2016-4">How ISIS makes over $1 billion a year</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="R0N2JleTqvRC6uEEi5Ey6TouNvj_gHDb" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'R0N2JleTqvRC6uEEi5Ey6TouNvj_gHDb',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

US airlines are freaking out about a company you've never heard of

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/585a2872dd0895857f8b478b-1733/undefined" alt="PIER 1" data-mce-source="Getty" /><p class="source"><span>Getty</span></p></div><p></p></div></div>One of the biggest concerns for the City of London is that some of the world's largest financial services will relocate staff and units to other parts of the European Union once Britain invokes a Brexit.</p><p>However, <span>John Veihmeyer, the global chairman of KPMG, one of the world's biggest accounting firms, told Business Insider that banks and financial institutions are sitting tight for now and are instead just devising contingency plans for the worst.</span></p><p>"I wouldn't say we are seeing a lot of companies that are aggressively and actively moving in that direction [relocating staff, units, or setting up subsidiaries] but companies that are sensitive to sector investment flows [due to the Single Market access and passporting], like financial services, are working on contingency plans," said <span>Veihmeyer.</span></p><p>"These include looking at various potential scenarios coming out the Brexit negotiations [after two years] and including the scenario of what they should do if they need to relocated certain operations abroad. My sense is that it is rather precipitous, but companies are wanting to wait [until taking any action]."</p><p>A "hard Brexit" is the <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword> leaving the European Union without unfettered access to the single market, in exchange for full control over immigration. This is what Britain is steering itself towards because the UK government has put immigration at the forefront of its focus. <span><br /></span></p><blockquote class="pullquote float_right">I wouldn't say we are seeing a lot of companies that are aggressively and actively moving in that direction [relocating staff, units, or setting up subsidiaries]</blockquote><p>For financial services, this is the worst possible outcome as it would mean the loss of passporting rights.</p><h2>The biggest challenge for financial services</h2><p><a href="http://uk.businessinsider.com/britain-and-the-city-of-london-could-lose-eu-passport-rights-2016-9">The loss of passporting rights following Brexit is one of the biggest fears in the City of London.</a><span> If the passport is taken away, then London could cease to be the most important financial centre in Europe, costing the UK thousands of jobs and billions in revenues. </span></p><p><span>Around 5,500 firms registered in the UK rely on the European Union's passporting rights for the financial services sector, and they turn over about £9 billion ($11.2 billion) in revenue.</span> </p><p>That being said, Article 50 has not been triggered yet and therefore the official two-year negotiation period has not started. Therefore, how Brexit is going to look for Britain is speculation at the moment.</p><p>"The biggest concern is what happens in two years time. This is a challenge we all have - predicting what key dimensions of the Brexit talks will be and what the negotiations are going to produce," said <span>Veihmeyer.</span></p><p>"One of the major concerns from clients is mainly around talent - the ease of travel for your employees and potentially how this will constrain activities."</p><p>The contingency plans involve companies putting a blueprint in place for various eventualities - worst being, a "hard Brexit" as this is likely to mean a crackdown on immigration and make it more onerous for companies that employ EU citizens.</p><h2>Recovering from the initial "knee-jerk" reaction to the Brexit vote </h2><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/585a2872dd0895857f8b478c-1301/john veihmeyer kpmg.jpg" alt="John Veihmeyer, KPMG" data-mce-source="KPMG" data-mce-caption="John Veihmeyer, Global Chairman of KPMG." /><p class="source"><span>KPMG</span></p><p class="caption">John Veihmeyer, Global Chairman of KPMG.</p></div><p></p></div></div>A number of institutions have warned that jobs are going to move out of the country, with Japanese banks, <a href="http://uk.businessinsider.com/lloyds-of-london-part-of-business-will-leave-london-2016-12">as well as Lloyd's of London both already saying they will almost certainly be moving some operations.</a></p><p>On top of that, <a href="http://www.businessinsider.com/ons-pension-funds-insurance-companies-trusts-investment-disinvestment-brexit-2016-12">UK investment collapsed by £15 billion</a> between July and September, according to the ONS. That was only the fifth time there has been a quarterly decline in UK investment since 1987.</p><p><span>But Veihmeyer says that the worst is kind of over - well at least we get a solid affirmation of what Brexit is going to look like.</span></p><p>"I think in terms with what we've experienced, the impact on the economy Brexit has had initially saw a real pullback [in investment] which lasted 45 days or so, through to mid to late August. It was pretty significant, with deals being put on hold, for example," said <span>Veihmeyer.</span></p><p>"However, by the latter part of August, this subsided and now we feel like we are back to normal, like we're not feeling any significant negative impact in the economy and investors have now dealt with the initial reaction to the investment drawback."</p><p>This does seem true. </p><p><span>By September, virtually every major institution had rowed back on economic forecasts, </span><a href="http://uk.businessinsider.com/brexit-aftermath-united-kingdom-manufacturing-pmi-august-2016-9">following a slew of better than expected economic data coming out of the country.</a> Even <span>Barclays - which in the immediate aftermath of the referendum was the most bearish of all major banks on the UK economy - <span><a href="http://uk.businessinsider.com/barclays-revises-post-brexit-growth-forecasts-upwards-2016-12">bumped up their forecasts once again, saying they expect the British economy to grow every quarter next year</a>, and for growth to run at 1% over the full year.</span></span></p><p><span><span>And it is for this reason that <span>Veihmeyer says that KPMG's advice to clients is to not have a "knee-jerk" reaction and wait until something more concrete comes out from Brexit talks.</span></span></span><span><span><span><span><br /></span></span></span></span></p><blockquote class="pullquote float_right">Yes there are uncertainties but lets not make assumptions that may or may not play out</blockquote><p>"I think from an advice standpoint, there's an initial tendency on the part of companies to have a kneejerk reaction. But I say that, 'yes there are uncertainties but lets not make assumptions that may or may not play out.' On one level you need to stay calm but then there is a real responsibility of companies to anticipate the kinds of issues that it could experience [from something as big as Brexit] and not to be caught off guard by trade issues and certainly financial passporting," he told BI.</p><h2>So what are the contingency plans?</h2><p>Current EU law allows European banks to operate branches in the UK that do not need to be separately capitalised from the parent company abroad. Similarly, non-EU banks, such as those from the US or Asia, can use their London subsidiary to sell services to clients across the EU. This has allowed London's financial centre to act as a hub for global firms looking to do business in the EU.</p><p>The use of this bank "passport," which allows banks in London to access the EU single market of 28 nations (including the UK), could be one of the rights the UK loses in the British exit from the EU. Other financial centres in the EU, such as Dublin, Frankfurt or Paris, could take over London's hub role if the UK loses its passport.</p><p>And they have made it no secret that they want to poach business from the UK.<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/572144bddd0895af668b4709-1067/shutterstock_211175011.jpg" alt="Amsterdam" data-mce-source="kavalenkava volha/Shutterstock" data-link="http://www.shutterstock.com/gallery-697543p1.html" /><p class="source"><span><a href="http://www.shutterstock.com/gallery-697543p1.html">kavalenkava volha/Shutterstock</a></span></p><p class="caption">Amsterdam is also being considered as a potential relocation site for companies' relocation plans.</p></div><p></p></div></div></p><p>Earlier this month,<a href="http://uk.businessinsider.com/brexit-impact-madrids-stock-market-and-regulator-amend-requirements-to-lure-companies-from-london-article-50-2016-12"> Spain unleashed a range of new measures to make it easy for businesses to relocate from London to Madrid</a> in a bid to take business away from Britain post-Brexit.</p><p>Spain's financial regulator, t<span>he </span><a href="https://www.cnmv.es/index_en.htm">Comisión Nacional del Mercado de Valores</a><span> (CNMV), said new </span>measures include allowing companies to submit all their documents in English, fast-track authorisation for financial companies looking to relocate, as well as promising that the country will not impose any regulatory requirements beyond those set out by the European Union.</p><p>Meanwhile, representatives from Paris and Frankfurt are actively looking to take business from London.</p><p>At the moment, this is just fertile groundwork and Veihmeyer says that part of the contingency plans is to look where is possible to relocate to, should a final Brexit deal warrant a relocation of services and people.</p><p>He says, the places are "diverse, like the places you say, Frankfurt and Paris. Folks are also considering places like Amsterdam."</p><p>But it is not easy to up sticks and move abroad and Veihmeyer told us that something as simple as finding office space could hold back people moving to some of Europe's major capitals.</p><p>"The major gating issues that crop up for contingency planning is around infrastructure, for example, very basic facilities such as office space," he told BI.</p><p>KPMG advises some of the biggest financial services firm in the world, like Citi and Deutsche Bank, but it is also - in its own right - a major employer and player in the City of London. However, just as he advised his clients, Veihmeyer told us that the accountancy has no plans to relocate services or jobs in light of the Brexit vote.</p><p>"We can't envisage an outcome where we don't have a major presence or employer in London," said Veihmeyer.</p><p>"London is a very important market for us.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/inventors-killed-inventions-titanic-marie-curie-hang-glide-2016-11">7 inventors who were killed by their own inventions</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="VsMGYwMDE6fvg6irQt8i2KueCbxtIwrO" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'VsMGYwMDE6fvg6irQt8i2KueCbxtIwrO',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

You Searched For "hub travel dublin" and got 5 results

This is the real reason US airlines should be terrified of a European upstart you've never heard of

Benjamin Zhang

Europe's best low cost airline is invading America and US rivals should be afraid

Benjamin Zhang

Poland wants to steal the City of London's place as Europe's financial centre

Will Martin

US airlines are freaking out about a company you've never heard of

Benjamin Zhang

The boss of one of the largest accounting firms in the world tells us about London's Brexit contingency plans

Lianna Brinded