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Order No. 2018-A-36

March 5, 2018
 

APPLICATION by Norwegian Air International Limited (applicant) for an exemption from the application of section 59 of the Canada Transportation Act, S.C., 1996, c. 10, as amended (CTA).

 
Case number: 
18-00766
 

BACKGROUND

The applicant has applied to the Canadian Transportation Agency (Agency) for an exemption to permit it to sell, cause to be sold or publicly offer for sale in Canada a scheduled international service between member states of the European Community and Canada, in the absence of a licence.

Section 59 of the CTA states that no person shall sell, cause to be sold or publicly offer for sale in Canada an air service unless, if required under Part II of the CTA, a person holds a licence issued under that Part in respect of that service and that licence is not suspended.

The applicant has applied for a scheduled international licence to operate a service between member states of the European Community and Canada. However, as the application is not yet complete, an exemption from the application of section 59 of the CTA has been requested.

The applicant indicates that it intends to commence commercial activities in Canada on July 23, 2018, and that it is in the process of obtaining a Canadian aviation document (CAD) from Transport Canada, which is required to complete the licence application.

The applicant states that the exemption from the application of section 59 is sought to permit the launch of this new low-cost long haul service from Europe to North America.

 

ANALYSIS

The Agency deals with applications for exemptions from the application of section 59 of the CTA on a case by case basis. The Agency recognizes that section 59 is a consumer protection measure. It is intended to prevent situations in which consumers in Canada pay for a service to an entity that does not hold an Agency licence and are left out of pocket or experience any manner of inconvenience or hardship that may result if that entity does not commence operations on schedule.

Accordingly, the Agency, prior to granting an exemption from the application of section 59 of the CTA, must be satisfied that the applicant is taking all the necessary steps to meet all licence issuance requirements and that the applicant has demonstrated a high probability of obtaining the required licence prior to the proposed start of operations.

A foreign applicant for a scheduled international licence must establish that it:

  1. has been designated by the government of its state or an agent of that government to operate an air service under the terms of an agreement or arrangement between that government and the Government of Canada;
  2. holds, in respect of the air service, a document issued by its government or agent that, in respect of the service to be provided under the document, is equivalent to a scheduled international licence;
  3. has the prescribed liability insurance coverage in respect of the service to be provided under the licence; and,
  4. holds a CAD.

The applicant has been designated by the Commission for Aviation Regulation of Ireland to operate an air service under the terms of the Agreement on Air Transport between Canada and the European Community and its Member States, signed on December 18, 2009.

The applicant has filed a document issued by the government of its state that is equivalent to a scheduled international licence and has the prescribed liability insurance coverage in respect of the proposed service.

The Agency notes that Transport Canada advises that it expects that the applicant will be issued a CAD in time for the proposed start-up date.

Accordingly, the Agency is satisfied that there is a high probability that the licence will issue prior to the intended start-up date on July 23, 2018.

In the present circumstances, considering the intent of section 59 of the CTA and the fact that the applicant is taking all the necessary steps to meet all licensing issuance requirements, the Agency finds that compliance by the applicant with section 59 of the CTA is unnecessary.

Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, exempts the applicant from the application of section 59 of the CTA, effective from the date of this Order, permitting it to sell, cause to be sold or publicly offer for sale in Canada, a scheduled international service between member states of the European Community and Canada, without holding the required licence, subject to the following conditions:

  1. All advertising in any media, whether written, electronic or telecommunications, shall include a statement that the air service is subject to government approval, unless and until the section 59 exemption expires following the issuance of a licence. All prospective passengers shall be made aware, before a reservation is made or a ticket issued, that the air service is subject to government approval;
  2. The applicant shall file its tariffs with the Agency before marketing its services and then once filed, it shall apply its published tariffs in effect, to sales of transportation for each scheduled point;
  3. This exemption does not relieve the applicant from the requirement to hold a licence in respect of the service to be provided and, accordingly, no flights shall be operated until the appropriate licence authority has been granted; and,
  4. Should the licence not be issued or not issue by the time an air service sold to a passenger is to be used, the applicant shall arrange to provide alternative air transportation by an appropriately licensed air carrier, at no additional cost for all passengers who have made reservations with the applicant. If such arrangements are not possible or acceptable to the passenger, the applicant shall arrange to provide a full refund of all monies paid by the passenger.

This Order takes effect on March 2, 2018, the date on which it was verbally communicated to the applicant.

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  • 1 month later...
 

Determination No. A-2018-73

April 11, 2018
 

APPLICATION by Norwegian Air International Limited (applicant) pursuant to subsection 73(2) of the Canada Transportation Act, S.C., 1996, c. 10, as amended (CTA).

 
Case number: 
18-00805
 

The applicant has applied to the Canadian Transportation Agency (Agency) for a licence to operate a non scheduled international service to transport traffic on a charter basis between Ireland and Canada.

The Agency is satisfied that the applicant meets all the applicable requirements of subsection 73(2) of the CTA.

Accordingly, the Agency issues the licence.

Pursuant to subsection 74(1) of the CTA, the licence is subject to the conditions prescribed by the Air Transportation Regulations, SOR/88-58, as amended, and the following conditions:

  1. The Licensee is authorized to transport traffic on a charter basis between Ireland and Canada.
  2. The Licensee is prohibited from carrying local traffic between points in Canada.
 

N

Determination No. A-2018-72

April 11, 2018
 

APPLICATION by Norwegian Air International Limited (applicant) pursuant to subsection 69(1) of the Canada Transportation Act, S.C., 1996, c. 10, as amended (CTA).

 
Case number: 
18-00802
 

The applicant has applied to the Canadian Transportation Agency (Agency) for a licence to operate scheduled international services in accordance with the Agreement on Air Transport between Canada and the European Community and its Member States, signed on December 18, 2009 (Agreement).

The Agency is satisfied that the applicant meets all the applicable requirements of subsection 69(1) of the CTA. The Agency also finds that the pertinent terms and conditions of the Agreement have been complied with.

Accordingly, the Agency issues the licence.

Pursuant to subsection 71(1) of the CTA, the licence is subject to the conditions prescribed by the Air Transportation Regulations, SOR/88-58, as amended, and the following conditions:

  1. Subject to the availability of rights as set out in Annex 2 of the Agreement, the Licensee is authorized to operate scheduled international services on the route set out in the Agreement.
  2. The scheduled international services are to be conducted in accordance with the Agreement and any applicable arrangements agreed to between the European Community and its Member States and Canada.

 

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I worked for a small seasonal operator that made us personal contractors. The Ops Manager credulously urging me to think of the write offs. Uh, ok my cell phone and um...what. 5km of gas a day? Wow you’re right I’m rich now. Oh wait what’s that auto expenses to and from work aren’t eligible? Ok just the cell phone then. Great.

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8 hours ago, j.k. said:

It's really a sham.

Flag of convenience.

Norway isn't even in the EU.

Many of their crew are based in Asia and work under nonexistent labour laws.

Completely leveraged and bleeding money business dumping lift.

But if they employ airline staff who I guess are happy to work for them, then what the heck?

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I'm not sure what you mean by that Malcolm.

IMO it is wrong when a business gets itself setup in jurisdictions other than its own solely with the purpose to skirt rules, avoid taxes, take advantage of loopholes, etc.

It's not good for the industry as a whole, and while it seems to offer an immediate benefit to consumers, and some spin off, it's typically short lived, and short sighted.

The EU may be a common market, but I believe we should allow French airlines to fly here from France, British airlines from Britain, German airlines from Germany, and Norwegian Airlines from Norway.

Shouldn't have to compete against cherry pickers.

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10 minutes ago, j.k. said:

I'm not sure what you mean by that Malcolm.

IMO it is wrong when a business gets itself setup in jurisdictions other than its own solely with the purpose to skirt rules, avoid taxes, take advantage of loopholes, etc.

It's not good for the industry as a whole, and while it seems to offer an immediate benefit to consumers, and some spin off, it's typically short lived, and short sighted.

The EU may be a common market, but I believe we should allow French airlines to fly here from France, British airlines from Britain, German airlines from Germany, and Norwegian Airlines from Norway.

Shouldn't have to compete against cherry pickers.

Surely there is only one answer based on your opinion, no one should or indeed need to work for them!  A little like those who have good pay and jobs and then bargain away the same for new hires. 

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I don't agree with selling out the future. Or grandfathered rates. Or B scales.

But I really want talking about who chooses to work for them... rather the rubber stamp governments and agencies that allow them to run across inappropriate jurisdictions to the detriment of the larger industry, including labour.

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To be the devils advocate.

Why shouldn't an Irish based carrier be allowed to call itself Norwegian, Shamrock, or anything else it wants?

And if they seek to employ what must be the industry's unemployables at sub standard rates and people are foolish enough to go with the cheapest, why would, or should your government care?

 

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It's not an Irish company though:

Norwegian launched its long-haul operation in May 2013. The long-haul flights are operated by fully owned subsidiaries: Norway-based Norwegian Long Haul, Ireland-based Norwegian Air International, United Kingdom-based Norwegian Air UK, and Argentina-based Norwegian Air Argentina. Each airline with the exception of Norwegian Long Haul holds a unique air operator's certificate (AOC) but shares branding and commercial functions with the rest of the Group.

Flags of Convenience is a scourge in shipping: encourages exploitation, decimates labour, avoids regulation, bypasses just taxation, unfairly tilts the playing field.

I don't want that in my country or my profession. It may be good for some corporations, but it isn't good for people.

 

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Regardless of what one wants, it is a free market and competition benefits consumers and governments support that. The days of one on one relationships between countries are over as regional markets emerge with many consolidations in the industry. The EU, much like the U.S is a common market, and soon a North-American market may emerge across the 49th parallel.

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On 4/13/2018 at 5:32 PM, Malcolm said:

But if they employ airline staff who I guess are happy to work for them, then what the heck?

Maybe they like to eat? Pretty smug POV from a retired, fully pensioned person who never had to contend with the likes of Norwegian.

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13 hours ago, Maverick said:

Maybe they like to eat? Pretty smug POV from a retired, fully pensioned person who never had to contend with the likes of Norwegian.

Smug?  Are you relating to your current live style?  I started work at the princely (gross) sum of 200.00 per month. Never made over 50,000.00 a year.  Still enjoying my non indexed pension.  Smug no but I sure learned how to save so that I could enjoy retirement.  Never could or  indeed want to keep up with the Jones.  

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Most have a personal perspective with a good deal of emotions expecting all to support their union or their cause, but consumers like a good deal, governments like happy consumers who vote for them and give them money, and people accept jobs that pay their bills and are good for them. They don't necessarily care for some one else's union or cause. Now if it were a national system with everyone in it based on education and experience in the industry, it may be different. Untill then, it's just business!

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  • 2 weeks later...

Others find there is value in Norwegian

Norwegian Air Signals That Other Airlines May Be Interested in Company

April 28, 2018 John Flett News

Norwegian Air Shuttle (NAS) CEO Bjorn Kjos has divulged that the airline has been approached by other parties interested in buying a stake in the Norwegian-based carrier after it was reported on April 12 that the International Airlines Group (IAG) had taken a minority stake.

In an interview with Reuters after the announcement of NAS’ first quarter of 2018 results, Kjos said, “What I can say is that these are very serious players and that the board is handling it. When I say serious players, the most obvious thing to think of is airlines.”

Cryptically he added, “But there could also be others, as we’ve had multiple players showing interest. They are very serious players.”

In a further statement by the company on Thursday, it was announced that: “The Norwegian Board of Directors has established a steering committee and engaged financial and judicial advisors to review the situation, handle relevant enquiries and to safeguard the interests of all shareholders.”

The discussion comes after the surprise announcement that IAG, the parent company of several European airlines including British Airways and Vueling, had taken a 4.61 percent share in the Nordic carrier allowing them to begin discussions on a potential buyout.

Kjos, who is also the co-founder of NAS and personally holds a 27 percent stake, rejected IAG’s buyout talks and any idea of selling on the day following the initial announcement. However, speaking on Bloomberg TV on Thursday, Kjos said that the latest offers were from airline groups, contradicting the Reuters report, and stating that “there is a saying that if the price is right everything is for sale.”

As a result of the interest in NAS, shares have risen from 179.30 on April 11 to hit a high of 310.00 on Thursday, an incredible 58 percent increase in the value of the company. This increase was cited by Kjos as a possible reason that the board of NAS would not be recommending a sale of any shares.

When pushed by Bloomberg reporter Francine Lacqua on whether there had been any further discussions with IAG, Kjos again deferred to the board for comment and would only say that he held IAG Chief Executive Willie Walsh in high regard as “one of the best guys in the industry.”

Kjos’ appearances come on the day that NAS announced its results for the January to March period (Q1/18). NAS reported a loss of 46.2 million Norwegian krone (NOK) for Q1/18, a significant drop when compared to the loss for the same period in 2017 (NOK 1.49 billion). However, the Q1/18 figure was heavily favored by the reclassification of the company’s investment in Norwegian Finans Holding, which if excluded from the figures, would have seen a reported Q1 loss of NOK 2.18 billion, 36 percent greater than Q1/17.

Positive results from NAS’s shareholder announcement were a 12 percent passenger increase for the quarter (7.5 million) and an increased load factor of 84.5 percent. Given the low-cost long-haul model operated by NAS, the load factor is lower than that of traditional low-cost operators and may be of some concern for the viability of the model going forward.

Also of concern to the company is the continuing issues with some models of Rolls Royce engines on the 787 aircraft which have seen several airlines canceling flights and entering into various leasing agreements to maintain schedules. In response to the engine issues, NAS advised that: “This will affect our operations going forward, but it is too early to predict the scale of the issue.”

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Norwegian to launch Canadian flights in October

  • 21 June, 2018
  • SOURCE: Flight Dashboard
  • BY: Jon Hemmerdinger
  • Boston

Norwegian will enter the Canadian market later this year with flights to the French Caribbean, and in March 2019 will add a new daily service between Hamilton and Irish capital Dublin.

The Scandinavian low-cost carrier will also this year begin flights between the Caribbean and French Guiana and boost service on three US-Caribbean routes.

Norwegian describes the growth as expansion of a strategy to connect secondary North American cities with Europe and to better utilise aircraft during winter.

The Canadian expansion kicks off on 29 October when Norwegian will begin three-times-weekly flights between Montreal and Guadeloupe's Pointe-a-Pitre.

On 1 November, the airline will start twice-weekly flights from Montreal to Fort-de-France on Martinique.

The airline will operate both routes until the end of March 2018, and will do so with Boeing 737-800s.

Air Transat and Air Canada Rouge will also fly the Montreal-Martinique and Montreal-Guadeloupe routes this winter, FlightGlobal schedules data shows.

But Norwegian sees opportunity partly deriving from the strong French influence in Montreal and Quebec, states Norwegian chief commercial officer Thomas Ramdahl.

The new Canadian-Caribbean flights will coincide with Norwegian's launch of service to Cayenne, the capital of French Guiana in South America.

Norwegian will begin three-times-weekly Martinique-Cayenne flights on 31 October, followed by twice-weekly Guadeloupe-Cayenne flights on 1 November.

"We have the aircraft down there and the crew, so why not utilise it and try a new market?" Ramdahl states.

Norwegian will compete against Air France between Martinique and Cayenne, FlightGlobal schedules data shows.

Norwegian's transatlantic service to Canada begins 31 March 2019 with daily 737 Max 8 flights between Dublin and Hamilton, which is southwest of Toronto.

That move reflects Norwegian's strategy of launching transatlantic flights to smaller, lower-cost North American cities, Ramdahl indicates.

"With bigger airports, it's not as easy to have the close interactive co-operation," he notes.

Norwegian also chose Hamilton because the city has a large catchment area of potential passengers. This includes both Toronto and the Niagara Falls region, the carrier says.

Though Air Transat and Air Canada both serve Dublin from nearby Toronto, Norwegian will offer lower fares and connections at Dublin to other European cities, Ramdahl asserts.

Norwegian will also add flights on existing US-French Caribbean routes this winter.

From late October it will operate at four-times-weekly frequency on routes to Guadeloupe and Martinique from Fort Lauderdale and six times a week from JFK" >New York JFK to Martinique.

Last year, the carrier operated both Fort Lauderdale routes thrice weekly and the JFK-Martinique route four times a week.

In late October, the airline will return to the JFK-Guadeloupe market with six-times-weekly fights – the same number as last year.

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Norwegian Air CEO Says Bid Approaches Go Beyond IAG and Lufthansa

By 

Richard Weiss

June 19, 2018, 4:28 AM MDT

·         

‘Several others’ also interest in takeover, according to CEO

  •  

    Kjos ‘will not stop’ deal if price is right, backed by board

     

    Norwegian Air Shuttle ASA Chief Executive Officer Bjorn Kjos said his company has attracted takeover interest from multiple potential bidders and remains open to a deal on the right terms.

    While British Airways owner IAG SA has had two offers rejected and Deutsche Lufthansa AG is looking at submitting a proposal, Kjos said in an interview Tuesday that “several others” are also interested. The stock rose as much as 5.8 percent.

    The parties are all “very well run airlines with good people,” according to the CEO, who said that Norwegian Air would be a better fit for a European carrier rather than an American or Asian one. A decision on whether to sell would be based on price and factors including the impact on employment, Kjos said, adding that he wouldn’t oppose a transaction if it was backed by the board.

    Norwegian shares rose 12 percent Monday after Lufthansa CEO Carsten Spohr said his company was in takeover discussions and might submit a bid depending on the strategic value a purchase would deliver. IAG disclosed its interest in April, saying it had bought a 4.6 percent stake and would like a full offer, though CEO Willie Walsh said May 18 that the Nordic carrier wasn’t a must-have target.

    Kjos, a pioneer in extending low-cost flying to the trans-Atlantic market, has dialed down his opposition to selling Norwegian as he grapples with a stretched balance sheet and has said he’s no longer opposed to doing a deal on the right terms.

    ‘Too Early’

    “If the owners want to sell I will not stop it,” he said in Brussels. “I will listen carefully to the other shareholders. I just think it’s too early because we have not started harvesting yet.”

    Kjos said that if the board was to recommend a sale he’d have to consider the impact on employees in particular. Norwegian’s current capital-raising efforts will be sufficient to meet its needs for the time being, the CEO added.

    Shares of Norwegian Air were trading 4.5 percent higher at 280.40 kroner as of 1:20 p.m. in Oslo, valuing the airline at 12.7 billion kroner ($1.54 billion).

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  • 4 weeks later...

Interesting POV but not likely to win many friends from other airlines.

Quote

Opinion: Norwegian is a Win for Both Travellers and Airlines

July 16, 2018 Daniel Morley Opinions

Norwegian-B789-LAS-William-Derrickson-1- A Norwegian 787-9 in Las Vegas (Photo: AirlineGeeks | William Derrickson)
 

Norwegian Air Shuttle has proved controversial since their introduction to the international market in 2013. In the United States especially, the airline has been met with criticism from legacy carriers and unions. Groups in the U.S. accuse the airline of circumventing labor laws by basing their subsidiaries in other countries from their home in Norway. This dispute has led to court challenges by the U.S. airlines and unions.

Norwegian was founded as a regional carrier in Norway in 1993, before switching to a low-cost model in 2002. Since then, the airline steadily grew to be one of the largest low-cost carriers in Europe, competing with the giants of Ryanair and EasyJet. The trouble began when international operations began in 2013. Delays with the Boeing 787 program forced the airline to wet-lease Airbus A340 aircraft.

Struggles continued with the airline experiencing significant delays to flights during operations in 2013. At one point flights between Oslo and New York were delayed by about 24 hours. These delays infuriated travellers, and the airline’s slow response didn’t help their repertoire with customers.

However, since their teething problems, the airline has improved in their performance and has grown significantly in their flying to the United States.

Today the airline operates to 15 destinations in the United States and has opened up flights to cities that would not have seen transatlantic flights without Norwegian. The airline is one of the first low-cost transatlantic carriers and has brought travel to many people that previously couldn’t afford it. It has also increased competition between the airlines that share the skies with Norwegian. The presence of Norwegian has become a benefit to both travellers and the airlines.

For travellers, they get to experience lower fares from all airlines. The presence of Norwegian has caused many airlines to introduce basic economy fares on transatlantic flights. These fares often have severe restrictions with them, as well as charges for extras, such as baggage. This has caused fares to drop for travellers, while still allowing them choices in travel.

For example, the South Florida to London market has seen this effect. The market currently has four airlines flying; Norwegian, British Airways, American Airlines, and Virgin Atlantic. For an offseason round-trip flight, Norwegian charges around $480 between Fort Lauderdale and London Gatwick. The other airlines currently charge around $750 for the same time between Miami and London Heathrow. These fares typically run around $1,000 for a round trip ticket in the past.

The introduction of Norwegian has forced the other carriers to lower their fares in order to better compete and attract travellers. This not only enables travel for those who may have previously not been able to afford it, but also makes travel on full service carriers more affordable. This is better for travellers as they now have more choices for their long haul travel. It also allows those travelling to experience the benefits of the full service carrier for a lower cost.

The competition also benefits the airlines. The lower fares mean that more people are travelling leading to a better load factor for their flights. It also gives the airlines the incentive to strive to make their product and experience better. They do this in order to better attract the traveller when cost is similar.

Norwegian operates many of its routes with new Boeing 787 Dreamliner. The experience for passengers on these aircraft may be better than on older aircraft operated by other airlines. This is an incentive for the airlines to speed up cabin upgrades and to improve their product in a quicker timeline than before. The competition between the airlines benefits them with more travellers flying and a better drive to improve their product.

Norwegian has been bound with controversy and challenges since they began international operations. However, the introduction of Norwegian to long haul markets has seen benefits for both the travelers and the airlines. Travellers are experiencing low fares on transatlantic flights, while also being able to afford fares on full service carriers. Airlines are experiencing more competition on some of their best routes, which causes them to improve their service, as well as experience an influx of new passengers that are able to afford to fly.

Daniel Morley
 

Daniel Morley

 
Daniel has always had aviation in his life; from moving to the United States when he was two, to family vacations across the U.S., and back to his native England. He currently resides in South Florida and attends Nova Southeastern University, studying Human Factors in Aviation. Daniel has his Commercial Certificate for both land and sea, and hopes to one day join the major airlines.

 

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  • 3 weeks later...
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Norwegian Airlines looking to almost double its pilots at Dublin base

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03/08/2018 - 10:10:18Back to Business Home

Norwegian Airlines is to recruit another 40 pilots at their Dublin base.

It comes as part of an expansion to transatlantic routes announced for the summer of 2019.

The new jobs will almost double the number of pilots the airline has in Dublin.

The airline is looking for Captains and First Officers to serve its base in Dublin which operates flights to Oslo, Stockholm, Copenhagen and Helsinki direct.

Helga Bollmann Leknes, Chief Human Resources Officer at Norwegian said: "Norwegian offers pilots a rewarding career with a diverse route network which spans both long haul and short haul destinations flying the latest Boeing 737 MAX aircraft.

"We look forward to welcoming qualified pilots who want to work for an airline that recognises the vital contribution that they make to our business during this continued phase of expansion in Ireland.

 

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