Alex on… can Norwegian really fly transatlantic low-cost?

There was great excitement two weeks ago when Norwegian unveiled plans to fly transatlantic from London at bargain prices.

As Business Traveller reported on October 17, the low-cost carrier announced introductory one-way fares of £149 to New York, £179 to Fort Lauderdale and £199 to Los Angeles.

http://www.businesstraveller.com/news/norwegian-to-fly-london-gatwick-to-the-united-s

These fares were valid for summer 2014. At the time, these prices were substantially less than what you would pay with British Airways, Virgin Atlantic or United.

But offering low fares in this fashion is simply a marketing ploy to garner free publicity. It was a similar scenario when Air AsiaX launched its London-Kuala Lumpur route on the back of £198 return fares.

So fast forward to today and anyone logging onto Norwegian’s website for these attractive fares will be in for a shock.

For July next year, Norwegian’s cheapest one-way price to New York now ranges between £299 and £389, to Fort Lauderdale it’s £329 to £399 while Los Angeles will cost you £269 to £399.

It means a return ticket next July costs around £600 to New York or Fort Lauderdale with Los Angeles at £700. (Eastbound fares are cheaper than westbound fares during July, hence the price discrepancy).

But these prices do not include onboard catering or baggage check. For that you’ll have to pay another £30 one-way or £60 return. And although you will be flying a modern B787 the seating is tight at 3-3-3.

It means that the prediction made by IAG’s chief executive Willie Walsh (that Norwegian’s prices would not be significantly different to those of major carriers) has already come true.

http://www.businesstraveller.com/news/walsh-dismisses-norwegians-low-fare-us-plans

LCCs tend to raise their prices as the months go by whereas conventional carriers tend to charge more to begin with, then cut prices using seat sales nearer the date of travel. So by next spring who knows whether Norwegian will hold any price advantage.

One must also wonder whether low-cost really does work long-haul, a subject which is discussed at length in the October 2013 issue of Business Traveller.

Alex McWhirter

Hi Alex

Say for example I want to fly to NY next July to visit family…I would be very tempted by Norwegian’s o/w fares and return using Avios. The lowest o/w fare on BA is £1057.

Alex

It’s not just the locos who have lead in fares…..

BA’s useful idiot recently trumpeted BA as having prices to beat easyJet and Ryanair on the Malta run.

I went to book a flight next summer and the best price (with a bag) was £270, not the £105 touted at launch.

I think the right question is why should this model work, where so many others have failed.

The one way ticket possibilities would suit me but making a booking a year out for a family of 4, hmmmmmm, not for me…

ImissConcorde – 02/11/2013 09:09 GMT

So how would you describe the person who posted the below, promoting burning Avios at 0.6666p per mile as ‘not a bad deal?’ (0.6666p per mile is a very bad deal.)

http://www.businesstraveller.com/discussion/topic/BA-Launches-Part-Pay-with-Avios

Looks to me like someone promoting the BA line, without working there, a useful idiot as the saying goes.

On the topic of Malta pricing (a) I booked Malta to London, not the other way and (b) you have picked a date, the price I quoted was for the day I actually booked, I didn’t search around for the best offer.

FoermerlyDOS

“a useful idiot”

I never have liked bullies!!

There was no indication of your direction of travel. I’m in the UK.

I have just compared flights on the 3rd and 24th August and even with seat reservation food and baggage fees in both directions, Norwegian was still £700 less than BA on the same dates.( based on 2 adults and 2 kids). It may not be £199 but £700 in any families budget is a substantial saving.

Nice to see that on Norwegian the fuel surcharge is half the level of all other taxes. Perhaps that is how they can make it cheaper.

[+] Taxes account for £482.00
Airport surcharge £482.00
Fuel surcharge account for £200.00.

The premium fare at £5000 is also less than PE on BA and £2200 less than club world ( though to be fair was surprised at the fare on BA in club £999 each way for August that is not to bad a deal)