Originally Posted by
CPH-Flyer
Which is also why Norwegian did not need the Irish subsidiary to fly between LGW and the US. They could do that based on the Norwegian AOC and airline. And thus they also started the LGW flights before they had received the Foreign Air Operator Certificate from the US for the Irish subsidiary. What they needed the Irish company for was to lower the costs by using more flexible hiring practises than they could apply in Norway. Which caused the flag of convenience complaints.
Of course, but that’s not much different to the fact that thousands of companies from all over the USA plant their ‘flag of convenience’ in Delaware for incorporation purposes because of the favourable structure there.
Ultimately it boils down to whether the particular practice is compliant or not, and here the court found that it was.