Alex on… can Norwegian really fly transatlantic low-cost?
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at 13:00 by AnthonyDunn.
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AMcWhirterParticipantThere 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
1 Nov 2013
at 16:35
SimonS1ParticipantIndeed Alex I wonder how many takers there will be a that price.
On the other hand the cheapest return to LAX that I could see on BA.com was £940 so for a family of 4 going on vacation it would still save best part of a grand. That must be where they are pitching surely, as their limited frequencies won’t help the biz traveller much.
1 Nov 2013
at 17:22
NameRemoved-18/12/14ParticipantHi 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.
1 Nov 2013
at 18:03
AMcWhirterParticipantEvening
SimonS1 – I guess Norwegian will appeal more to vacationers. But the price gap should narrow next year when the likes of BA hold seat sales nearer departure time.
alexpo1 – Good point. Norwegian scores by selling one-way fares unlike its rivals.
1 Nov 2013
at 22:47
FormerlyDoSParticipantAlex
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.
1 Nov 2013
at 23:42
ImissConcordeParticipantFormerlyDoS
When will you realize that comments such as “BA’s useful idiot” say more about you than the person you are trying to denigrate and devalue your posts?
P.S. BA to Malta 1st week in July £143.47. Maybe not £105 but half what you quote.2 Nov 2013
at 09:09
MartynSinclairParticipantI 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…
2 Nov 2013
at 09:22
ImissConcordeParticipantEven the one way ticket is fraught with issues as non US travelers must be in possession of a return/onward ticket.
2 Nov 2013
at 10:17
FormerlyDoSParticipantImissConcorde – 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.
2 Nov 2013
at 11:37
FormerlyDoSParticipantImissConcorde – 02/11/2013 10:17 GMT
Two singles will do the job nicely, same or different airline doesn’t matter.
2 Nov 2013
at 11:50
ImissConcordeParticipantFoermerlyDOS
“a useful idiot”
I never have liked bullies!!
There was no indication of your direction of travel. I’m in the UK.
2 Nov 2013
at 13:11
FormerlyDoSParticipantImissConcorde – 02/11/2013 13:11 GMT
“Useful idiot” is a term used by historians to describe someone who promotes the ideology of a regime they are not part of.
It was allegedly coined by Lenin, but no one seems to be able to cite the quote.
I mentioned the direction of the Malta-LGW flight only as it may skew the pricing.
2 Nov 2013
at 13:51
pdtravellerParticipantI 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)
2 Nov 2013
at 14:22
FormerlyDoSParticipantpdtraveller
I’m not convinced DY will have the economies of scale to make this work, we will see.
The legacy carriers have pretty low costs bases on longer routes and I’m sure there is a good reason Ryanair has stuck to short haul routes.
2 Nov 2013
at 18:42 -
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