As a result of new EU-legislation airlines can no longer, as have been the practice among the low service airlines, employ their crews in shady tax shelters in order to avoid paying social security and pensions.
The new law requires all airlines to pay social security charges based on the individual crews home base. For Norwegian that might mean extra costs of around 1,5 billion NOK per year and would completely erase the positive result the airline made in 2011.
As the Airline refuses to pay into the Danish guarantee fund, a fund that would help customers should the airline fail, Danish authorities have recommended not to fly with Norwegian. Other airlines “banned” by Danish authorities are: Ryanair, Easy Jet and Air Berlin.