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Old 20th Oct 2017, 10:23
  #24 (permalink)  
QOTS
 
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Originally Posted by Boeing 7E7
Such doom and gloom! There are many airlines that expanded, gained market share and survived to tell the tale. Ryanair and easyJet to name just two. I remember the same things were said when these two airlines embarked on their aggressive expansion plans 15 years ago. But the strategy worked. In that time we had 9/11, SARS and a Financial Crisis which all took their toll on the economies of the world. Granted, nothing is guaranteed. And they survived. Your tales of doom and gloom are rehashed arguments that were directed at what have now become the giants of the industry!
I really admire your enthusiasm 7e7 but comparing Norwegian to RYR and EZY is an invalid comparison. For one thing, both have expanded their business focusing on core competences and the business model is largely unchanged. The Norwegian biz model changes by the hour, the latest manifestation of which is this Argentinian fiasco.

Consult business studies 101 to learn that such radical change of business model is a high risk, usually forced strategy, because the pooch has been screwed elsewhere. I really wish Norwegian success, in all its weirdo manifestations, but to paraphrase the FT..."the fact that MOL hasn't launched his attempt at low cost long haul yet is proof enough that it can't as yet be profitably done." Nuf said, but consider this. RYR et all will often charge for a 40 minute ride in an owned B738/A319 what Norwegian charge for a ten hour ride in a brand new B787. Hard to imagine that boding well for NOS. The bubble will soon burst, Wells Fargo bank is about to go bang and Warren Buffet is cashed up and waiting. Buy on the cannon, sell on the trumpet. Good luck though.
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