The Norwegian business model is made possible by the Boeing’s Dreamliner 787. The model is for long-haul journeys with discounted rates and the promise of a comfortable journey.
The Dreamliner is built using unprecedented techniques. Boeing says it is 20 percent more fuel efficient than previous models which, in an industry where fuel makes up a third of total costs, is a huge cost-saving measure for any airline over the plane’s lifetime.
Norwegian’s explosive growth has positioned the airline as Europe’s third largest low-cost carrier.
Why do bureaucrats get to control this? Who elected them?
Norwegian has been locked in battle with the US aviation authorities over approval to operate flights from the US. Norwegian has been waiting for more than a year for approval from the UK subsidiary, and from its Irish one an unprecedented three years.
The typically routine request is usually concluded within two months. But Norwegian has failed to win approval from the US over concern that competition from the new entrant would hit local airlines. What the US fears is that Norwegian will offer $69 one way tickets from the East coast of the USA to Europe will crush US carriers.
Boeing were right. Smaller, long-range, efficient aircraft that avoid hubs and go from endpoint to endpoint are preferable to behemoths and hubs.