Lasse Sandaker-Nielsen, Communications Manager, Norwegian; CEO Bjørn Kjos, and Airport Business’ Amy Hanna, discuss Norwegian’s goal to become the world’s first truly global airline. “While traditional airlines grow outside their home markets by entering into joint ventures, cooperation or alliances – and let their locally based alliance partners fly thevir customers – we fly our customers ourselves to their destination,” Kjos said.
Norwegian’s enterprising CEO has ambitious plans for the Scandinavian airline’s future. In February, Europe’s third largest low-cost carrier became the only budget airline on the continent to fly transatlantic routes when it began New York JFK and Los Angeles services from its Copenhagen and Stockholm Arlanda bases, and from this summer it will take on one of the most competitive markets in the world as it launches low-cost flights between the UK and the US. These landmark achievements, though, are just the tip of Kjos’ iceberg; milestones on the journey towards his ultimate goal – to grow Norwegian into the world’s first truly global airline, without geographical, or demographical, division.
Kjos’ strategy is clear as a Nordic glacier. By taking delivery of brand new aircraft and offering innovative service, competitive fares and industry-leading products to its customers, Norwegian will remove the exclusivity from worldwide travel. “Our philosophy is that everyone should be able to afford to fly,” Kjos said. “While traditional airlines grow outside their home markets by entering into joint ventures, cooperation or alliances – and let their locally based alliance partners fly their customers – we fly our customers ourselves to their destination.”
The outlines of Norwegian’s global presence are already becoming visible. It now has well-established crew bases in Thailand and the US, and its long-haul routes have been very well received so far, with excellent load factors. It currently offers long-haul flights between Bangkok and Scandinavia, as well as between Scandinavia and US destinations like New York, Fort Lauderdale, Los Angeles, San Francisco and Orlando, and success is, understandably, predicted for its soon-to-begin London Gatwick routes to New York, Los Angeles, and Fort Lauderdale. Reportedly starting from £149 (€180) for a one-way journey, tickets will be a fraction of the current market price. “There’s great demand for high-quality flights at a low fare between the UK and the US, particularly to and from London Gatwick, where no other airline currently offers these routes. By launching long-haul routes between the UK and the US, we also get a stronger foothold in markets outside Scandinavia, which is a part of our strategy to expand internationally.”
Four new Dreamliners
It might not be too presumptuous to surmise that a region-specific, eponymous airline brand may face challenges in promoting itself in international markets, but figures suggest that this is no obstacle for Norwegian. 2013 was the seventh consecutive year in which it has reported a profit – of 437 million krone (€52.5 million) – and passenger numbers too are impressive. Last year more than 20 million flew with the airline to one of the almost 130 destinations that Norwegian counts among its network, while traffic in February demonstrated a year-on-year increase of +22%. “We believe that our low prices, vast route network and brand new aircraft speaks for itself and that this is what makes customers choose to fly with Norwegian,” commented Kjos. “At the same time, it’s important to have a good relationship with the airports we fly to and from. Having a close relationship with the airports means that we can offer passengers an even better product; we’re committed to being forward thinking and creative with our services, and this is evident at many of the airports we work with. We do our utmost to be innovative and introduce timesaving measures. This is something that our passengers highly appreciate.”
In order to run a competitive long-haul operation, Norwegian depends on brand new, cost-efficient aircraft. It is awaiting the delivery of 14 brand new Boeing 737-800s this year, and will also receive four new 787 Dreamliners during the first half of 2014. The new additions are the latest to what has become a modern and formidable fleet, built upon a foundation of 222 new aircraft that Norwegian purchased in 2012 in the largest aircraft acquisition in European history. As 2014 continues, Norwegian will persist with its plans to expand and open up new bases around the world to maintain an effective flight operation by basing crew locally at the start or end of the route segment. The first half of 2014 will see the opening of several bases in the US and in Spain – “and this,” Kjos said, “is just the beginning.”
