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Airliner, Norwegian delays growth project
Sunday, 11 December 2011
Norwegian airliner, Norwegian has persistently kept the pseudo dominant market leader SAS to sleepless nights, with growing market share on many routes in Scandinavia and Europe. In the summer of 2010, its CEO, Bjørn Kjos, told the media that he was going to escalate the war further.
Norwegian had promised that it could start with intercontinental flights challenging SAS’s other lucrative routes to destinations such as Bangkok and New York.

Norwegian was then in negotiations with aircraft manufacturers Boeing and Airbus for the planes that are best suited for such longer distances and was supposed to have started in the summer of 2011.

But now there seem to be a problem. Norwegian will not take any clients to the U.S. or Thailand for at least one year. Earliest is in the first quarter of 2013 that the lines can be opened, according Swedish business daily Dagens Industri which spoke with Bjørn Kjos

The paper attributes the delay to reasons such as delays in the delivery of Boeing's Dreamliner.
"We decided six months ago that we should fly these routes with the Dreamliner, "said Bjørn Kjos.
Leased planes were not profitable enough. In addition, Bjørn Kjos pointed that it would be too cumbersome to use various types of aircrafts.
Norwegian's new Dreamliner Plan is also delayed four months, which further slow down the launch.

The plan was to start selling tickets to the first long-haul routes in the New Year. But now it will take until spring, according to Bjørn Kjos.

Bjørn Kjos had said that the intercontinental operations would be placed in a new and separate company that would go public from the start and would possibly be listed on both the Oslo and Stockholm stock exchange. But trading plans have been placed on ice for at least a couple of years.
Norwegian's decision to not hire planes in order to get the project started with long-haul flights gives more benefits to SAS for the mean time.
The CEO is confident that even though the company will be missing out on revenue from lucrative routes, there is not need to panic as no to have come in to the market earlier.

"The market is there this year, next year and years thereafter. There is no other {players} that would come into the market."

He feels that if the company had rented the other types of planes apart from Dreamliner it will not fit in their interest “other types of aircraft, we are not interested. You can never fly with the same costs as with Dreamliner.”
By Scancomark.se Team

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