Is Norwegian assuming SAS will disappear?

This will be a critical year for Norwegian, CAPA says

In an analytical article about Norwegian, the CAPA Centre for Aviation says that the airline’s 2012 results confirm its reputation as the Nordic region’s most consistently profitable airline. But 2013 is a critical turning point for it as it establishes its first base in a major capital city outside Scandinavia, at London Gatwick, and a base in the highly competitive market of mainland Spain. It will also start long-haul routes to New York and Bangkok. Only time will tell if these gambles pay off.
“On long-haul, [Norwegian] will encounter efficient competitors from much lower wage economies and well established strongly branded operators from Europe, while on short-haul it will meet embedded lower cost competitors that will not have the distraction of start-up long-haul operations,” CAPA writes.
“Looking further ahead, it will need more bases around Europe in order to achieve the double-digit growth rates demanded by its ambitious fleet expansion over the next decade or so. It may also need to consider recapitalising its somewhat slight balance sheet.”
CAPA describes Norwegian’s fleet expansion plans as ambitious. It will have to increase its share of European short-haul markets. But due to the tough and well established low-cost competition in the UK and Spain, CAPA assumes that Norwegian is taking the view that SAS will disappear.
[photo courtesy Norwegian]


Check Also

Norwegian, loss, profit, revenue, 2017, year, quarter, costs, oil, fuel, Kjos, result

Norwegian posts €30.7mn full-year loss

The negative result was influenced by global expansion, fleet renewal and other costs.

Star Alliance, airlines, digital, technology, share, data, members, mobile, app, website, seat, book, interoperability

Star Alliance improves digital inter-usability

The alliance creates a digital services platform for customers using more than one member airline.

Norwegian, low-cost, Kjos, Boeing 787, Dreamliner, Airbus, A321neo LR, Singapore, Asia, Argentina, South America, plans, strategy, UK, London, speech, Shard, transatlantic, long-haul, USA, Detroit, Philadelphia

Norwegian plots global expansion

But it is putting the UK first. It makes the first low-cost long-haul flight to South America today.

Norwegian, SEPLA, union, Spain, Ialy, bases, pilots, CBA, agreement, deal, Icelandair

Norwegian, Icelandair make deals with pilots

Separate agreements are signed with a union in Iceland – and unions in Spain and Italy.

sas, results, traffic, passengers, January, 2018, capacity, stats

SAS load factor falls dramatically

Scandinavian carrier reports a fall in January in both passenger numbers and load factor.

Norwegian, France, Spain, Albania, Tirana, Bergen, Oslo, summer, 2018, Ibiza, Paris, Bastia, Corsica, flights, routes

Norwegian adds routes from Norway

Both year-round and seasonal routes are added to the low-cost carrier’s home network.