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Norwegian Air: Revolutionizing Long Haul Travel

Norwegian Air: Revolutionizing Long Haul Travel
Case Code: BSTR543
Case Length: 17 Pages
Period: 2014-2017
Pub Date: 2018
Teaching Note: Available
Price: Rs.500
Organization: Norwegian Air Shuttle ASA
Industry: Aviation
Countries: Norway, Global
Themes: Competitive Strategy, Cost Leadership, International Business
Norwegian Air: Revolutionizing Long Haul Travel
Abstract Case Intro 1 Case Intro 2 Excerpts

Introduction

In June 2017, budget airline Norwegian Air Shuttle ASA (NAS) launched what it claimed to be ‘the cheapest transatlantic flights ever’. The carrier offered new routes between the US and Europe, where the one-way tickets were priced at just US$ 65. NAS was already offering the lowest transatlantic fares, as it used the fuel-efficient Boeing 787 ‘Dreamliners’ . For its new services, NAS began using the narrow-bodied Boeing 737 MAXs, instead of the wide-bodied ‘Dreamliners’. The smaller size of the 737s lowered NAS’ operating and fuel costs, enabling it to further reduce its transatlantic air fares. Thomas Ramdahl, Chief Commercial officer of NAS, said, “Four years ago, Norwegian’s low-cost long-haul flights revolutionized transatlantic travel… We are fully committed to our promise to bring American travelers more affordable fares and to create even more American jobs.”...

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