Originally Posted by
directmisbi
Willie Walsh disagrees :
Walsh goes on to praise the "exceptional job" done by Norwegian's chief executive Bjorn Kjos, such as the proof-of-concept work relating to long-haul low-cost operations.
"He's proven, if not to everybody but certainly to us, that the market exists and the customer will embrace the business model."
Was this at Kjos's leaving do..?......Walsh often blows sunshine up his competitor's arses (media training - never slag odd the competition)........but don't get confused. If the model was working IAG would have piled in by now.....
The harsh reality is that their transatlantic services are in no way similar to those of BA,VS,AA,DL et al all of whom have the, frequency, connectivity, and travel management contracts in place to service the high yielding, late booking business passenger who provide the profits. i
Norwegian, on the other hand, has none of these advantages which leaves them squarely in the highly competitive point to point leisure market which is highly seasonal and mostly unprofitable. In short, they have a yield problem that IMHO they simply cannot address given where they are. ........oh yes, and advertising £99 pound fares across the pond next year only makes matters worse.......