Air Traffic on the Rise Between Norway and Asia

The low-cost airline Norwegian is planning to launch more long-haul flights – this time to Asia.

In spite of the pressure facing the yield (revenue per seat sold) CEO Bjørn Kjos says the company will continue to cut costs, while adding more destinations.

”Long-haul flights are a great market,” Kjos says. ”Our strategy is simple: Cost, cost and cost.” His goal is to decrease their costs to 50 percent of their competitors. In order to get there, he has leased two Dreamliners, and is expecting to sign contracts for four to six more fleets next year.

”There is no money to be made with old planes,” he says. They use more fuel, and with fuel prices on the rise this is where he is hoping to save. He has also opened up a new company base in Bangkok – a wise financial move as opposed to being in Scandinavia.

East is also where Kjos hopes to find his biggest client base. When the middle class in Asian countries starts planning trips and holidays to Europe, he wants to be ready to offer reasonable flights. ”Once they’ve secured a house and a car they’re going to start wondering where their cousin went!” Kjos says.

(DN)

Julie Ryland

Monday, 23 May 2011 05:25