The Norwegian business model is made possible by the Boeing’s Dreamliner 787. the model is to have long-haul toures with discounted rates and the promise of a comfortable journey.
The Dreamliner is built using unprecedented techniques. Boeing says it is 20 percent more fuel efficient than previous models which, in an industry where fuel makes up a third of total costs, is a huge cost-saving measure for any airline over the plane’s lifetime.
Norwegian has taken delivery of four of the new aircraft this year and expects nine in 2017. By the end of the decade it will take on 11 more.
In 2012 Norwegian placed the largest single European aircraft order in history for 222 new planes including 122 Boeing 737s, and 100 A320s from rival aircraft manufacturer Airbus. The new 737 and A320 are also new super fuel efficient models.
The longer range means more direct routes. This has been a huge success for Norwegian as passengers mostly avoid extra transfer through hubs.
Norwegian’s explosive growth has positioned the airline as Europe’s third largest low-cost carrier, flying 400 routes to more than 130 destinations in Europe, North Africa, the Middle East, Thailand, the Caribbean and the US. Last year 26 million passengers opted for Norwegian’s low-cost offers and the airline expects the 11 percent growth seen last year to continue as it opens more routes in the coming years, with Canada, South America and South Africa all on the cards.
This pace of growth should see them double in size every 6 years.
Norwegian has been locked in battle with the US aviation authorities over approval to operate flights from the US. Norwegian has been waiting for more than a year for approval from the UK subsidiary, and from its Irish one an unprecedented three years.
The typically routine request is usually concluded within two months. But Norwegian has failed to win approval from the US over concern that competition from the new entrant would hit local airlines.
What the US fears is that Norwegian will offer $69 one way tickets from the East coast of the USA to Europe will crush US carriers.
Nyseth is adamant that the approval will come through after the US general election next month.
“There is no way that they can deny Norwegian the approval. If they could, they would have done it by now,” he says.
SOURCES- Telegraph UK