Norwegian’s main reason for its failure in terms of its long-haul low-cost operations is that the low-cost model is not suited to long-haul – these routes cannot turn enough profit to support low, attractive fares. Full-service carriers are now entering into this market by offering low-cost options. This will attract a type of traveller that may not have considered flying this way before and could have the potential to become loyal customers due to an increased standard of service and enticing loyalty programs. This increased competition will also make things harder for the new entrant.
Norris adds: “Norse Atlantic Airways must change its business model if it is to survive. The only way full-service carriers can succeed in this low-cost market is due to the provision of high yielding business and first-class cabins, making flights more profitable. To give itself the best possible chance of success, Norse Atlantic needs to take this into consideration and learn from the mistake that Norwegian made – namely not having such cabins.”
There is no "external investment" the 24 Million was the initial share capital, and with kjos's hubris the potential investment could be small. As for priority for ex NAS pilots? why? it's a different company, only selection criteria will be type rated, pay your own interview and training costs and be prepared to sign a zero hour contract with a dodgy third party crew supplier.
They may have agreement in principle for 9 B 787 leases but they will need a load more cash before the wheels turn.
Norse Atlantic says the net proceeds will be used for lease deposits of $4 million on up to 12 aircraft, funding of start-up costs including pre-delivery operational expenditure of $24 million, gross working capital of $80 million, transaction costs of $9 million, and general corporate purposes including licenses and marketing costs of $33 million.
Sound familiar !