Budget airline startup Norse Atlantic, which flies to North America from bases in London, Berlin and its home town of Oslo has told the Norwegian government that a sharp increase in Norway’s per-passenger air travel tax may force it to cut flights from Oslo.
According to the airline, the 45% proposed increase in the tax on flights to cities outside Europe would make its offerings less competitive, and it would be forced to focus its efforts on its other bases. The present tax is 80 kronor, about $8, for flights within Europe and 220 kronor, or $22 for flights out of Europe. In Norway’s proposed new budget, the external flight fee would rise to 320 kronor.
The airline says the market is extremely competitive and price-sensitive, and that the tax would reduce the price difference between Norse and legacy carriers, or lead passengers to seek other starting points for their journeys. The routes to the U.S. from Berlin and London, the carrier said, are already performing better than the Oslo routes.
