Norwegian confirms Ireland as EU subsidiary's location

This story is sourced from

Norwegian has confirmed that it will locate its new EU subsidiary in Ireland.

The operating company, intended to secure access to traffic rights, is to be up and running by year-end.

Plans for the subsidiary, and another located in Norway, were disclosed to the Oslo stock exchange on 15 October.

Norwegian's chief executive Bjørn Kjos says that one factor in the choice of location was Ireland being a signatory to the Cape Town Convention, which establishes an international regime for cross-border aircraft leasing.

It was also a requirement that the subsidiary be sited outside any of the countries with an interest in Airbus, so as not to jeopardise access to export-credit financing. Today, Norwegian operates only Boeing 737s and 787s, though it has Airbus A320neo narrowbodies on order.

Kjos adds that another spur to selecting Ireland was the high level of aviation expertise in the country, which is home to numerous leasing outfits.

However, he says Ireland's low corporation tax rate does not boost its attractiveness to Norwegian, arguing that Norway's regime is similarly advantageous.