Monday, December 5, 2016

Norwegian Air Shuttle May Open Two U.S Bases Next Month

Name: Brittany Lopez
Title of Article:  Norwegian Air Shuttle May Open Two U.S Bases Next Month

Time published: December 5, 2016 at 8:17am ET  

Norwegian Air is giving U.S. and other foreign airlines a run for their money as they open more bases (two, to be specific) in the United States. Currently, they operate some flights between Europe and the US through bilateral arrangements (since Norway is not a part of the E.U.). However, Norwegian Air intends on offering flights for as cheap as $69 one way, which established American and European airlines cannot possibly compete with. Per the article, “lucrative trans-Atlantic flights have become a battleground between legacy US and European carriers and upstart budget airlines” (Wall).

At this point in time, Norwegian air should do a lot of marketing to capture loyal customers from other airlines (particularly those who have always flown a certain airline for their entire careers). Perhaps by garnering loyalty from certain companies, they can amass a better following in the United States. By expanding their business, their cost structure could be under criticism though – are $69 flights really feasible for the long term? And if they are, why aren’t other airlines offering the same prices?

1 comment:

  1. Oh wow,$69 flights?! I'm curious as to what they are cutting out, if, they are cutting out anything. From my experience with trans-atlantic flights, the cheaper the flights the less perks you would get. Generally, you would get less leg room, you would be charged for your any other bags besides your primary, meal options are very limited, I could go on.. But this is a great move keep the market competitive! Hopefully they are different but my expectations aren't high.