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Old 22nd February 2019 | 10:48
  #1173 (permalink)  
directmisbi
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Joined: Dec 2010
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From: Limbo
Originally Posted by RexBanner
I think they’ve realised now their model just doesn’t work. They’re now going to be flying to SFO and MIA instead of OAK and FLL respectively. Costs are going to rise and so the ticket prices are going to have to as well. There is no low cost long haul only low fares long haul and Norwegian have proved it doesn’t make money. The big problem they have with increasing yield is they’ll be a small player doing the exact same thing as the big boys but without the hard business product and without the frequencies and the economies of scale. It’s going to be really, really hard for them from here. It’s a vanity project from Kjos gone bad. There is a reason why O’Leary never expanded Ryanair into the Long Haul market (and easyJet show no interest either) what we are seeing with Norwegian today is the reason why.
Norwegian eyes to capture marketshares from British Airways on UK-US traffic. British Airways holds 39% markedshare on UK-US representing 15% of the UK airline worldwide production. Norwegian has established itself as the number one airline between Europe and New York and is among other consolidating its Florida bases to Miami. Next step should be to increase frequencies on routes to the US from 2-3-4-5 weekly into daily or more than one daily ops. Norwegian will continue to disrupt transatlantic traffic and chase the full service carriers.
https://www.oag.com/blog/the-norwegian-effect
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