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Share Price: 451.10
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Change: -4.00 (-0.88%)
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Open: 449.00
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Norwegian Air more optimistic about U.S. growth after White House comments

Wed, 08th Feb 2017 12:10

* Shares up 3 pct after White House comments

* Still awaiting U.S. approval for British subsidiary

By Joachim Dagenborg and Julia Fioretti

OSLO/BRUSSELS, Feb 8 (Reuters) - Norwegian Air Shuttle said it was more optimistic about its future in theU.S. after remarks from the Trump administration on Tuesday thatsignalled support for the budget carrier's transatlantic growthplans.

Europe's third-largest budget airline by passenger numbersafter Ryanair and EasyJet, received U.S approvalin December for its Irish subsidiary to fly transatlantic routesdespite opposition by U.S. unions worried it could underminewages and working standards.

Pointing to job creation and to Norwegian's use of Boeing aircraft, White House spokesman Sean Spicer on Tuesdaysaid the U.S. has "huge economic interest" in the company'sbusiness.

The comments sent Norwegian shares up 3.1 percent when themarket opened in Oslo Wednesday morning and the stock was up 3.3percent at 1106 GMT. It was the third-strongest performer in theOslo benchmark index.

"We are a big Boeing customer so I think we do exactly whatTrump would like everybody to do," Norwegian Air CEO Bjoern Kjostold Reuters on the sidelines of a conference in Brussels.

"Trump wants American jobs, we provide American jobs," hesaid.

The airline has ordered $18.5 billion worth of planes fromBoeing so far, including 29 Dreamliners last October, thelargest single order ever for Boeing from a European airline.

Norwegian has also indicated that its U.S. approval wouldallow them to order additional planes as it expects to establishnew routes to several U.S. cities.

"We see this as a very positive signal and interpret this tomean that the Trump administration has acknowledged thesignificant value creation Norwegian Air has contributed in theU.S. market," a company spokeswoman said on Wednesday.

"With our growth ambitions in the U.S., we aim to createthousands of new jobs over there and it's important for us toget that message forward. This makes us more optimistic," shesaid.

Norwegian has also applied to U.S. authorities for itsBritish subsidiary to offer transatlantic flights. Thisapplication is still with the U.S. Department of Transportation.

The spokeswoman said there has been no change in status forthat application and the company awaits a decision. (Editing by Elaine Hardcastle)

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