Originally Posted by
AirportPlanner1
Alternatively Norwegian are making their own higher yielding premium offer more attractive by adding frequency potentially poaching more price-sensitive business pax from rivals
That's the problem, DI are not making money.Price sensitive business class tends to stay with their alliance parntners and upgrade to PE or business using points, not something DI can offer. The non frequent very price conscious long haul business traveller is not someone airlines usually chase.
Add all the capacity in the world you like, they are still building market share and losing money. The classic examples of this are People Express who went bust flying 747s at rock bottom fares as American hoovered up the business class travellers, or Pan Am who couldn't keep up with the premium offering from BA and ended up competing for the bucket Y fares BA didn't need. Norwegian have done amazingly well at growing the market by flying people at a loss, so good for Gatwick Airport and the consumer. I myself are flying with them in Sep to experience this for myself, I would love them to succeed, but the current strategy is a balloon ready to go pop IMHO.
3 x daily LGW-JFK is going to be taken up by price sensitve travellers, and the company cannot make money on that, especially not in winter. So another huge loss next year? Their EBITDA is concerning to say the least.