AerCap Holdings N.V. has announced it has signed lease agreements with Norse Atlantic Airways for the lease of six used Boeing 787-9 Dreamliners and three used Boeing 787-8 Dreamliners. All nine aircraft are powered by Rolls Royce Trent 1000 engines and are scheduled to begin delivery during 2021.
Norse Atlantic Airways, based in Norway, plan to launch long-haul low-cost services, connecting major cities in Europe and the USA.
Established in February 2021 and expected to be listed on the Euronext Growth Exchange in Oslo on April 12, 2021, Norse Atlantic expects to be taking-off with its first flight in December 2021.
GlobalData released this analysis:
Just two months after Norwegian ceased its long-haul operations in January 2021, a new entrant into the market, Norse Atlantic Airways, plans to replace and improve upon Norwegian’s attempts to crack the low-cost transatlantic business model. Launching with a strategy from which an established airline has pulled back, especially in the COVID-19 recovery period, is a risky move and Norse Atlantic Airways must learn from the mistake that Norwegian made if it is to survive, says GlobalData, a leading data and analytics company.
Rheanna Norris, Travel and Tourism Analyst at GlobalData, comments: “Consumer confidence is at an all-time low and travelers will stay brand loyal due to heightened needs for trust and reliability. There is also little appetite for long-haul holidays currently, as, according to GlobalData, just 36% of people are willing to travel out of the continent they reside in. While travel bans from Europe to the US are still in place, the new airline may gain little traction in the short-term.”
Norwegian’s main reason for its failure in terms of its long-haul low-cost operations is that the low-cost model is not suited to long-haul – these routes cannot turn enough profit to support low, attractive fares. Full-service carriers are now entering into this market by offering low-cost options. This will attract a type of traveler that may not have considered flying this way before and could have the potential to become loyal customers due to an increased standard of service and enticing loyalty programs. This increased competition will also make things harder for the new entrant.
Norris adds: “Norse Atlantic Airways must change its business model if it is to survive. The only way full-service carriers can succeed in this low-cost market is due to the provision of high yielding business and first-class cabins, making flights more profitable. To give itself the best possible chance of success, Norse Atlantic needs to take this into consideration and learn from the mistake that Norwegian made – namely not having such cabins.”
Norse Atlantic Airways (Oslo) is a new proposed trans-Atlantic carrier based in Norway.
The new airline hopes to fill the long-haul void left by Norwegian Air Shuttle which has withdrawn from trans-Atlantic operations.
The company includes Bjoern Kjos (above), the founder and previous CEO of Norwegian, who will have a 15% share in Norse Atlantic, with the majority controlled by Bjoern Tore Larsen, co-founder of the staffing company OSM Aviation.
The proposed carrier plans to serve cities such as New York, Los Angeles, Miami, London, Paris and Oslo with ex-Norwegian Boeing 787 Dreamliners by the end of 2021.
Atlantic Airways</a> from <a href=”https://vimeo.com/flynorse”>Norse
Atlantic Airways</a> on <a href=”https://vimeo.com”>Vimeo</a>