European budget carrier Norwegian has announced the initial schedules for its new long-haul business venture which will launch operations in May next year. The airline, which has established itself as one of Europe’s top three low-cost airlines, will offer flights from both Oslo and Stockholm to New York and Bangkok, with further growth expected in the future as additional aircraft are delivered.
Norwegian officially incorporated its long-haul business division earlier this year and is currently flying one of its Boeing 737-800s under the division’s name to comply with licencing requirements. This will return to the mainline business in April next year when the carrier takes delivery of the first of eight Boeing 787-8 Dreamliners that it has on order.
“This is a major milestone in our company’s history and I am very pleased that it is now possible to book tickets to our flights to New York and Bangkok, said Bjørn Kjos, Chief Executive Officer, Norwegian. “We look forward to welcoming our passengers on board the brand new Boeing 787 Dreamliner, the most modern and technologically advanced long-haul aircraft in production today.”
According to Norwegian, long-haul flights will commence on the Oslo - New York route on May 30, 2013, while the first flight between Oslo and Bangkok will take place on June 1, 2013. The carrier will initially offer two rotations per week between Oslo and New York but will increase to three a week from June 25, 2013. Likewise, the Oslo - Bangkok route will be flown twice weekly, increasing to three times weekly from the same date.
Flights from Stockholm will begin from May 31, 2013, initially twice weekly on the New York route, but increasing to three times weekly from June 26, 2013. Its long-haul network from the Swedish capital will expand with the addition of flights to Bangkok on a three times weekly basis from June 20, 2013.
After the delivery of its first Dreamliner in April 2013, Norwegian confirms that a second aircraft will arrive in June, enabling it to fulfil its proposed schedules to Bangkok and New York. A third aircraft will arrive in November and is likely to be used for frequency growth, subject to demand, but the carrier has not ruled out adding additional routes from Scandinavia or even some of its other European bases. Norwegian will take delivery of an additional four aircraft in 2014 and one in 2015.
The carrier will maintain its tradition of painting its tails with famous people and has confirmed its first 787 will feature Hollywood star, triple Olympic champion, philanthropist, art collector, and museum founder Sonia Henie. “Since we are still pioneering, we still decorate our planes with pioneers,” said Kjos.
These initial routes will place Norwegian in direct competition with Thai Airways International from Oslo and both Delta Air Lines and Thai Airways International on the routes from Stockholm. Star Alliance partners SAS Scandinavian Airlines and United Airlines also serve the New York market from Oslo and Stockholm but via Newark Liberty International Airport.
In 2011 an estimated 162,000 O&D passengers flew between Oslo and New York, an estimated 42,000 between Gardermoen and JFK International airports despite there currently being no direct links between Gardermoen and JFK International airports in 2011. This traffic is mainly flying with Icelandair via Keflavik, American Airlines and British Airways via London Heathrow or via Amsterdam Schiphol with KLM. Approximately 120,000 O&D passengers travelled on the Oslo – Newark route last year. In terms of the Asian market, Thai first started flights between Oslo and Bangkok in June 2009 and now offers an up to a daily service, supporting an annual market of around 133,000 O&D passengers, up 14.2 per cent in 2011.
There have been longstanding links from Stockholm to both Bangkok and New York, both historical markets of flag carrier SAS Scandinavian Airlines. However, SAS has retreated from many long-haul markets in the past years - including its Bangkok route from the Swedish capital - and Norwegian’s launch next year will represent the return of a local operator to this destinations.
The Stockholm – Bangkok link is currently served by Thai Airways International on a daily basis using a Boeing 747-400. It made its debut on the route in October 1986, initially with a weekly Douglas DC-10 rotation. In 2011 an estimated 252,000 O&D passengers travelled on the route, with the Thai flag carrier holding a 51 per cent. With a leakage of around 123,000 annual O&D passengers via other hubs, Norwegian is confident it will be able to generate a significant amount of traffic as well as stimulating further demand with its low-fare offering.
The Stockholm – New York JFK route was previously the most competitive long-haul transatlantic link from Scandinavia with famous airline brands as Pan American, Trans World Airlines and Tower Air competing with SAS for traffic in the late 1980s, when there were regularly over 30 rotations per week. How things have changed! Today, Delta Air Lines is the sole operator on the New York JFK, albeit operating on a seasonal basis, while SAS and United Airlines now provide up to daily services to Newark. In 2011, an estimated 93,000 O&D passengers flew between Stockholm and New York JFK, while approximately 160,000 flew between Stockholm and Newark.
“Freedom of choice is an important part of Norwegian's business philosophy – also on the intercontinental routes. As we know that travellers have a greater need for ‘that little extra’ on longer flights, we will give those who want the option to order a product which includes larger seats, more leg room, a three-course meal with drinks and checked baggage,” added Kjos.
This week's announcement represents the first stage of Norwegian’s long-haul expansion and as additional aircraft are delivered the carrier plans to expand its network further. This month it launched a New Route Evaluation with Routesonline’s Route Exchange platform to explore future growth options in both the short- and long-haul markets. For more details click here.
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