U.S. carriers accuse Norwegian Air of trying to skirt rules

Low-cost carrier Norwegian Air is offering transatlantic fares at prices that beat other competition, but American pilots don't want the airline to spread its wings.

CBS News did a quick search and found a ticket traveling from Oakland, California, to Stockholm, Sweden, on Norwegian for $377 -- less than half of the price of the competition, reports CBS News transportation correspondent Jeff Pegues.

The Scandinavian carrier, which flies to 134 destinations in 38 countries, plans on expanding if it secures U.S. government approval, which is a big "if."

Norwegian Air CEO Bjorn Kjos has been on a public relations offensive, and he's telling people that U.S. consumers are getting "taken for a ride."

He believes U.S. carriers have inflated fares, and that his company has found a business model that ensures rock bottom prices for travelers.

But Norwegian Air, or as some call it, the "Walmart of air travel," will not be able to fully break into the U.S. market without a foreign carrier permit from the government. With every passing day, Norwegian's opponents are getting more vocal.

Kjos says he expected a fight.

"We are used to the scrutiny to try to stop us, so this is nothing new for us, so when we enter an area, everybody knows that then the prices will go down, that's good for the consumer, that's how it should be. That's competition," Kjos said.

Some lawmakers in Washington, major U.S. airlines and unions, including the Air Line Pilot's Association, said they're not opposed to competition. What they want is a level playing field, they said, and accuse Norwegian of trying to skirt the rules.

While the airline's parent company is in Norway, it wants to operate a subsidiary in the U.S. with an Irish license even though the airline doesn't fly in and out of Ireland. Sound confusing? The pilot's union said that's the point.

"It's a convoluted business scheme," Air Line Pilot's Association president Capt. Lee Moak said.

Moak and others accuse Norwegian of trying to duck tougher safety standards.

"We have to have a country provide the oversight and certification just like we do here in the U.S. for those pilots, and the second we don't have proper oversight and certification, we're going to have a problem," Moak said.

Norwegian said "safety has always been the company's number one priority." The airline accuses its critics of making a number of "false and misleading allegations."

Some believe this is about pilots protecting their turf against an airline that is hiring non-union pilots, but Moak said "absolutely not."

But that is the message conveyed in a video from the Delta Master Executive Council.

"We are in a fight for our future," chairman Capt. Mike Donatelli said in the video posted in February titled, "The Wolf is at the Door."

It is a call to action against Norwegian Air.

"We must stop it now or fight the growth of pilot shopping around the world at Third World prices," Donatelli added.

Kjos said it's "ridiculous" that people accuse Norwegian of hiring low-wage pilots.

"They're coming from KLM, from British Airways, some of them have taken early retirement," he said. "Do you think they would work for free?"