Low-cost long-haul ‘revolution’ is coming: Norwegian
The airline industry is at the beginning of a low-cost long-haul ‘revolution’ and this market will continue to expand with the arrival of new-technology jets, according to Tore Ostby, chief financial officer of Norwegian Air Shuttle.
In an interview with Airfinance Journal, Ostby said: “This is just the beginning of the low-cost long-haul revolution and there are three keys areas that will see the market continue to grow. Firstly, low-cost airlines like Norwegian will continue to lead the market with new routes and ambitious expansion – for Norwegian in particular, long-haul is the driving force behind our expansion and we expect to grow by 35% in 2018.”
He adds that legacy airlines will continue to adapt their business models to compete with low-cost carriers, either by changing their passenger offerings or by launching their own low-cost long-haul subsidiaries. Both Air France-KLM and IAG launched such subsidiaries, Joon and Level, earlier this year.
“Greater competition from other airlines is something we welcome, not only as the best way to offer passengers more choice and lower fares, but also as it helps to grow the market as passenger demand increases,” Ostby adds.
He believes that new aircraft technology will further fuel the growth of the low-cost long-haul market – after the Boeing 787 first made it viable. Ostby believes other new aircraft like the 737 Max and the Airbus A321LR will also “have the same game-changing impact”, making many new routes possible.
For Norwegian, the transatlantic market will continue to be a target for low-cost long-haul growth, according to Ostby.
Tore Ostby will be speaking on day one of the 20th Anniversary Global Airfinance Event Dublin. To find out more about the event, click HERE.
