The Norwegian airline Norse Atlantic Airways is threatening the Norwegian government with stopping all flights to the country if the 45 percent increase in the local air traffic tax is implemented.

Norse Atlantic Airways' business model is simple, but difficult at the same time: It offers low-cost long-haul flights. Since you don't have any real premium classes, you have to generate the necessary income through additional services such as seat reservations, catering, checked baggage and so on. What works so well on short-haul routes that even network carriers in economy class have switched to the modular system is much more difficult on long-haul routes. This is also due to the fact that passengers are not willing to pay every amount to take their suitcase with them or to reserve their preferred seat.

Norse Atlantic Airways knows very well that low-cost long-haul routes are very difficult. After all, one of the company's founders is the former head of Norwegian Air Shuttle, and their long-distance flights almost brought the group to financial ruin. The latter company is no longer active in this segment, but only flies with Boeing 737s on short and medium-haul routes, primarily within Europe.

It is therefore not surprising that Norse Atlantic Airways has issued an official stock exchange announcement threatening to discontinue long-haul flights to/from Norway. Awkwardly, it is also the home country of the airline, which has a UK offshoot with its own certificates.

Specifically, one writes that one is "deeply concerned" about the planned 45 percent increase in Norwegian air passenger tax, especially against the background of the "extremely competitive and price-sensitive market". Furthermore: "This planned increase means that we may be forced to reconsider our investments in direct flights to/from Norway to the detriment of Norwegian companies and passengers". In other words: They threaten to stop all Norway flights. At the same time, the expansion from London-Gatwick with the subsidiary Norse UK was announced in the last few weeks.

Currently, passenger tax in Norway is between 80 and 214 Norwegian kroner. In the coming year, this should range between 82 and 320 Norwegian kroner. Passengers who take long-haul flights should have to pay the maximum rate. Converted into euros, it is about 30 euros per passenger. Since Norse works exclusively on the long haul, they see themselves as particularly badly affected. For comparison: In Austria - with one exception - 12 euros. On point-to-point short-haul flights with a distance of less than 350 kilometers, 30 euros have to be shelled out. Transfer passengers are excluded.