Norway's flagship airline company Norwegian Air has taken the definition of the term 'low-cost' to another level.
The airline, which also proved to be one of Boeing's primary customers at the Paris Air Show earlier this year, has doled out 4 flights a week starting at $174 from Chicago's O'Hare International Airport to London's Gatwick commencing on March 25th, 2018.
The exciting news doesn't stop here.
Norwegian Air has also added Austin to its rapidly burgeoning roster of American-European flight services, which currently entails 15 U.S. and 13 European locations including cities in Denmark, France, Ireland, Spain and Sweden in addition to the UK. At this rate, Norwegian Air seems to be giving tough competition to local American low-cost airlines, which are undoubtedly threatened by this new development.
"Within just a year, we have added seven U.S. gateways, creating much greater access for even more Americans to save a tremendous amount of money, and still get to experience one of the world's best airlines," Bjørn Kjos, Norwegian's Chief Executive Officer, said in a press release.
Popular American airlines such as United Airlines, Delta Airlines and American Airlines present travelers with flight options that cost more than double of what Norwegian is offering, that too for economy class. These companies already faced competition in the category of travelers who want value for money from Spirit Airlines and Frontier Airlines without having the airline scene be rendered even more challenging by the likes of European companies offering cheaper trans-Atlantic routes.
How, one might ask, can Norwegian Air and other low-cost airlines like Iceland's WOW Air still be profitable?
The answer is simple. As demonstrated at the Paris Air Show, a fleet of new aircraft that are far more efficient which implies that there is a lesser amount of fuel being spent per passenger, lowering overall ticket prices. Moreover, with the "pay-to-play fare setup", Norwegian Airlines is able to entice and rope in more consumers giving them the advantage of economies of scale in an increasingly competitive market.
This enticement is made even more attractive by the fact that the dollar is currently strong against the pound and the euro."The weak euro and pound mean that fewer people will be flying from the United Kingdom and Europe to the United States, so those empty seats must be filled by consumers flying from the U.S. to Europe and back," said Airfare Watchdog President George Hobica. This also implies that the deal is a double edged sword: flights on the way back will thus be more expensive.
Finally, part of the reason why Norwegian Air is able to offer such cheap flights is because the flights serve as a flat fare on to which an assortment of add-ons can be charged. For instance, "pre-ordering meals and choosing a seat for a long international flight each cost $45, and checking a single bag from New York to London costs $45 online or $65 at the airport. Snacks and drinks, travel blankets and headphones carry fees as well, though those extras can be bundled to save." While Norwegian Air argues this allows consumers to choose which luxuries they want to pay for, it must be kept in mind that other airlines offer higher rates for an all inclusive experience.