How This Airline is Going to Fly You Across the Atlantic for $69
And why it’s investing $5 billion to make it happen.
Norwegian Air is working on expanding its long-haul service, Reuters reports.
The airline already has operates flights to California, Florida, New York, and Boston, but plans to widen its service in the U.S. by reaching out to airports with cheap fares and minimal international flights, including New York’s Westchester County Airport. It has also began flying to the Middle East and southeast Asia, and has broadened its European market.
Norwegian Air has placed an order of 19 Boeing 787-9 Dreamliners (list price $5 billion), which will be delivered between 2017 and 2020, with an option of ordering an extra 10 for a total of 29. It’s the largest individual order that a European airline has placed for Dreamliners. The new additions will be owned by Arctic Aviation Assets Ltd, a Norwegian Air subsidiary that owns many of the airline’s planes.
The carrier plans to fly passengers over the Atlantic for a $69 fee, but did not disclose how many flights would be offered at that low price. CEO and ex-fighter pilot Bjoern Kjos said that average round trip fares will probably be around $300.
Norwegian Air is also waiting on ordees of 100 737 MAXs and 100 Airbus A320neos. Analyst Lemmechen Gjul believes that the growth to its fleet will be beneficial to the air carrier and recommends buying stock: “They are doing something completely new for a low-cost airline in the long-haul market. They have an advantage on their competitors for the next five years.” Norwegian Air is currently Europe’s third-largest budget carrier behind Ryanair and EasyJet.