Wow, in this post I wanted to talk about an innovative airline concept that has just been announced. Okay, so the airline will be based in Norway, but it will also operate elsewhere in Europe. And it will fly long distances, especially across the Atlantic. And it will operate with a low-cost model. And Boeing 787s will fly. Sound familiar?
A new Norwegian long-haul airline
Norse Atlantic Airways is a newly announced airline startup and looks likely to launch operations:
- The airline was founded by Bjorn Kljos, Bjørn Kise and Bjørn Tore Larsen (this is very Bjorns / Bjørn – it reminds me of the flight from Saudia where I had Captain Mohammed, the first Mohammed officer and cabin supervisor Mohammed), who owns 90% of the combined airline; they are industry veterans who have held leadership positions at Norwegian Air Shuttle and OSM Aviation
- The founders are in negotiations with landlords to lease 12 former Norwegian Boeing 787s; apparently, nine aircraft leases have already been secured, while three leases are pending
- The airline plans to use 787s to operate transatlantic routes
- In Europe, the airline would operate in cities like London, Oslo and Paris, and in the USA, the airline would operate in cities like Los Angeles, Miami and New York
- The airline would launch operations in December 2021 (December is a fantastic time to launch transatlantic leisure flights, huh?) 😉
- The airline would collaborate with airlines such as Norwegian to provide feed
- The airline has already raised $ 24 million from shareholders and eventually wants to be listed on the Oslo Stock Exchange
Norse Atlantic Airways would fly the former Norwegian 787s
OK then…
In early 2021, it was announced that Norwegian would suspend long-haul flights as the airline was in bankruptcy. Norwegian fought for years, even in the pre-pandemic, and has basically had his nine lives.
Therefore, the intentions here are quite clear – some investors (including a former Norwegian executive) with a clear balance sheet and trying to assume where Norwegian left off when it comes to long-haul. There is only one small problem – history shows that low-cost, long-haul transatlantic airlines generally do not work.
Now, to give some credit to this idea in general, or perhaps to express some hope:
- Having an airline like Norse Atlantic Airways would be great for consumers as it will keep traditional airlines in check and keep fares low
- The general timetable for launching this airline is not dire, especially if the plan is to launch in about a year; the airline can probably get a great deal on airplanes and labor and, hopefully, within a year there will be a significant recovery, with several competitors having gone bankrupt or declining during the pandemic
- The biggest problem with a low-cost transatlantic operator is what seasonal traffic is like, as Norwegian could make money in the summer, but was losing a significant amount the rest of the year; Is there a way for Norse Atlantic Airways to learn from Norwegian’s mistakes and do a better job with a seasonal route network?
This one will be interesting to watch …
Low-cost transatlantic operators are great for consumers
Result
Norse Atlantic Airways is the newest airline startup. The airline essentially plans to take over where Norwegian left off with its long-haul network – the airline will fly the former Norwegian 787s across the Atlantic using a low-cost business model.
Only time will tell if this airline really takes off. My favorite quote from Richard Branson certainly comes to mind with this – “the quickest way to become a millionaire in the aviation industry is to start a billionaire”.
What do you think of Norse Atlantic Airways?