IAG chief executive Willie Walsh has dismissed Norwegian’s new low-fare transatlantic service between London Gatwick and the US as “not significant”.
Norwegian last month announced plans to fly between LGW and New York JFK, Los Angeles and Fort Lauderdale from June next year, with a one-way fare to JFK starting at £149, not including hold baggage or food (see news, October 17).
But Walsh, who presides over British Airways, this week warned the airline will face “huge challenges” to keep costs that low.
He told Buying Business Travel: “Norwegian will have very small presence in the UK transatlantic market – three flights a week to New York against the 30 flights a day operated from Heathrow. This scale of things doesn’t represent significant addition of capacity.
“I think the challenge for Norwegian will be to demonstrate that they can offer truly low fares against fares in the market. I think that’s going to be a huge challenge.
“In particular, considering the costs of fuel, aircraft ownership, airport charges, APD – all of these add up to significant costs. It’s very different to what the low-cost carriers have been able to achieve in the intra-European market.”
And Walsh said he expects the fares offered by the Scandinavian airline “will not be significantly different”. And he has already been proved right, as anyone trying to buy a Norwegian ticket online today for July next year, is greeted by a cheapest one-way price to New York of between £299 and £389, to Fort Lauderdale from £329 to £399, while Los Angeles will cost you £269 to £399.
Walsh added: “In fact, in many cases I think they’ll be higher than fares already available in the market.”
Norwegian’s new flights are LGW to Los Angeles twice a week from July 2; LGW to New York three times a week from July 3; and London to Fort Lauderdale twice a week from July 4.
The introductory one-way fares start at £199 to LAX, £149 to JFK and £179 to Fort Lauderdale.
