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Aerospace Resource Guide: Norway

 

Norway Statistics

Summary
Market Entry

Current Market Trends

Current Demand

Main Competitors

Best Prospects
Subsector Focus: Helicopters

Barriers

Trade Events/Associations

CS Contact

Capital: Oslo
Population:
5.1 million
GDP USD
: USD 515.8 billion
Currency:
NOK
Language
: Norwegian

Summary

In 2013, Oslo Airport Gardermoen was the largest airport in the Nordic region measured by the amount of traffic. The airport is owned by Avinor, a state-owned commercial enterprise that operates 46 airports in Norway, including 12 in cooperation with the Norwegian Armed Forces. Avinor operations also include air traffic control towers, control centers and technical infrastructure for aircraft navigation. Avinor was established as a fully State owned Limited Liability Company in 2003, and the ownership is administrated by the Norwegian Ministry of Transport and Communications.

Statistics provided by the Confederation of Norwegian Enterprises (NHO), department of civil aerospace, shows that around 70% of people traveling by air in Norway do not have any other travel arrangement opportunities. 34% of the tourists traveling to Norway come by air. The Norwegian aerospace industry employs close to 61,000 people and the value system paying over $ 1.56 billion in taxes. In 2011, there were 33 million airline travels in Norway, and over 200,000 international flights connect Norway to 130 airports in 35 countries around the globe.

Market Entry


Norway, like most countries, is a member of the ICAO (International Civil Aviation Organization), and therefore the country also adjusts to the regulations of technical standards provided by the ICAO. Norway is not an EU member, but the country commits to the EU regulations through the EEA (European Economic Area), which also connects and commits Norway to act in line with the EASA standards (European Aviation Safety Agency). In addition, the EU regulations are harmonized with national regulations of the aerospace industry, but a large part of the civil aerospace industry is regulated internationally.

Current Market Trends


In 2012, Oslo Airport was the largest airport in the Nordic region when measured by traffic. Due to increased volume of travelers through Oslo, the process of expanding the airport’s capacity to handle 28 million passengers per year started in 2011, and the expansion is expected to be completed in 2017.

Current Demand


Norwegian Air Shuttle announced in January 2012 the largest order ever made by a European airline company, ordering in total 222 planes from Boeing and Airbus. The planes will be delivered starting in 2016.

Scandinavian Airlines System has had a challenging time over the last few years trying to compete with the low-price carriers operating in the Scandinavian market. However, it would seem that the company has stabilized.

Competitors


Norwegian Air Shuttle (www.norwegian.no), Scandinavian Airlines (www.sas.no), Widerøe (www.wideroe.no), and Ryanair (http://www.ryanair.com/no).

Best Prospects


In February 2014, Norwegian Air Shuttle announced they had ordered an additional four new Boeing 787-9 Dreamliners. That makes 14 wide-body aircrafts in total, three of which are already in service. Norwegian currently operates 89 jet aircraft, of which 76 are 737-800s, 10 are 737-300s and three are 787-8 Dreamliners. The company has opted to modernize the fleet with state-of-the-art Boeing 737-800 aircraft. A total of 73 such aircraft will be delivered from 2008 to 2014.

Scandinavian Airlines recently released information that they are looking to upgrade and renew its ageing fleet. In the summer of 2013 SAS announced they had made a deal with Airbus, ordering 12 new planes with a value of 3.3 billion dollars.

Subsector Focus: Helicopters


There is a high demand for offshore helicopter service; the offshore industry transports personnel to the offshore oil rigs and more than 30,000 flights are made each year. Some of the largest operators here are Bristow, CHC Helicopter Service AS, and Norsk Helicopter AS. Sikorsky has a significant share of the market for helicopters offshore, having 32 S-92s currently operating offshore Norway. In September 2013, Sikorsky Aircraft Corporation in cooperation with the U.S. Company FlightSafety International opened a Helicopter Simulator Learning Center at Stavanger Airport, Sola. The establishment is equipped with an S-92 Level D Full Flight Simulator, and it is considered to be one of the most advanced simulators available to the civil industry today.

The Norwegian Military ordered 14 NH-90 helicopters back in 2001; the delivery was planned in two steps, first delivery of 6 helicopters in 2011, and the rest within 2016.So far NHIndustries has only delivered three helicopters.

In December 2013 the Norwegian Government selected AgustaWestland’s AW101 as the NAWSARH. The contract included 16 new SAR helicopters with an option for further 6, and ensures that the Sea King will be phased out across the country by the end of 2020.

Barriers


Few major barriers exist. However, one such is a regulation regarding usage of foreign crew when established with a HQ in Norway. Norwegian Air Shuttle is the fastest growing airline company in Norway, and is rapidly expanding its intercontinental flight offerings. The company wants to keep its HQ in Norway, but use foreign cabin crew in order to be price competitive on the international market along with other low cost airlines. The Norwegian Government recently did not approve the use of foreign crews, and the company has therefore decided to move parts of the company abroad.

In general, it is important to mention that the environmental focus of the nation reflects in the initiatives made by the airports, and three of the largest airports in Norway have signed the Airport Carbon Accreditation with the Airport Council International, and will work towards becoming carbon neutral. The industry in total accounts for 2.1% of today’s national greenhouse gas emissions in Norway.

Norway has strict regulations on travel miles programs, but in 2013 the airline companies were allowed to start crediting travelers with mileage when traveling domestically.

Trade Events/Associations


There are no major local shows in Norway, but the Norwegian industry players usually attend the Paris Air show and the Farnborough Air show in the U.K.

NAIC – Norwegian Aerospace Industry Cluster
http://www.fsi.no/fsi_english/naic-norwe/


U.S. Commercial Service Contact Information:


Dr. Doug Hartley
Commercial Specialist
Doug.Hartley@trade.gov
+61-2-6195-5005


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