KLM Royal Dutch Airlines (KL, Amsterdam Schiphol) and partner Air France (AF, Paris CDG) have joined Lufthansa (LH, Frankfurt International) and unions from France, the Netherlands, and Germany, in petitioning the European Commission (EC) to withdraw its support for Norwegian Air International (Dublin International).

In an open letter to the President of the European Commission, Jean-Claude Juncker, and First Vice-President, Frans Timmermans, the group claims EC support for the Norwegian (Oslo Gardermoen) subsidiary is contrary to the bloc's policy of retaining employment in Europe. They claim that the use of the Irish registry will allow Norwegian Air International to avoid more restrictive Norwegian labour laws by allowing it to recruit cheaper Thai crews sourced via a Singaporean employment agency. The resulting cost benefits would give it an unfair competitive advantage.

"If we allow Norwegian Air International to start employing Thai crew on the EU-US routes, others will soon follow and jobs will be lost inside the European Union and created elsewhere," the group argued. "In the maritime sector we have already seen this same scenario play out, resulting in the loss of tens of thousands of jobs. It would be foolish to let the same happen to aviation."

Norwegian CEO Bjorn Kos, however, has refused to back down despite near overwhelming resistance.

“We are doing exactly what the Obama administration wants: create American jobs, bring tourists to the United States and offer Americans cheap flights. The transatlantic market has far too long been dominated by alliances that have been allowed to rule the market with high prices and limited choice,” he said.

In September, the US Department of Transportation (DoT) dismissed the carrier's application for exemption authority on the grounds that it was not in the "public's interest," while deferring a final decision on whether not to grant a foreign air carrier's permit.

Continued delays in issuing Norwegian Air International a foreign carrier's permit have now escalated to diplomatic levels with the EC labelling the deference a breach of an Open Skies agreement signed between the two in 2007.

Earlier this week, Norwegian expressed optimism that the recently revised Consolidated and Further Continuing Appropriations Act would pave the way for the DoT to award it its foreign air carrier permit should it be passed into law.