I think the point that Skipness1E is making is that Norwegians attempt at long haul will fail, because no one has ever made it work from LGW especially JFK, it can only work if the can sell the seats cheap enough and in order to do that they have to reduce cost by not using Norwegian labour rates, well most of that is true, but Norwegian labour rates are amongst the highest in the world especially when you add government social taxes on top.
Their long haul operation is wholly owned by Norwegian and it appears to have set up business in Ireland, although it does not fly to or from there, however Norwegian do. The reasons for this appear to be a) to obtain a European AOC b) take advantage of the attractive corporate tax rates c) take advantage of the large pool of experience in aircraft finance in the ROP d) setting up an aircraft leasing company.
Non of this seems odd to me or wrong, unusual maybe, if they have satisfied the Irish authorities sufficiently for them to granted an AOC and they have, then what their future business plans are, are a matter for them!!
Personally I don't see much difference between flying to JFK than flying anywhere else, sure it's a bit further than Malaga, but the trend is for longer flights. It's just another flight?
Of course all the vested interest group will whinge an moan, but prices on trans Atlantic flights have gone up, load factor is up and that's down to reduced compertion due mainly to the like of Star alliance & one world, they are using their near monopoly position to maximise yield in order to cover their historic inefficiencies, they will try every means foul or fair to kill Norwegians plans dead, just as ** did with Laker and Virgin and SAS tried with Norwegian, these are the anti free market forces that keep air fare high and make it more expensive to fly than it need be.
Of course Skipness is correct when he says that this will lead to lower salaries over time, but that will happen anyway and trying to be king Kanut results only in wet feet and loss of face for the it will never work brigade.
I suspect it may well work and the rest of the industry may well think that too, given they way they are trying to kill it dead, the biggest threat to Norwegian is their own growth rate given the number of aircraft coming 200+ ?
But so far they seem to have had a positive effect on pricing, employ over a 1000 pilots have given the mass market free wifi and judging by the awards they have won a good on board service that is above the standard budget airline offering, if they tread on a few peoples toes so what?
One thing is for sure, very soon, within 12 months we will know if it is working and either Skipness1E echo will have benn proved to have far more business accumen than all the people in Oslo or he will look a prat! whether he comes from Scotland, Sheffield or Southend is irrelevant
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