Low cost long haul disrupts North Atlantic aviation

Change is now in the air as low cost long haul operators capitalise on the capabilities of new narrowbody aircraft and increasing liberalisation to stimulate competition in markets traditionally dominated by full service carriers.

As a prime example, LCCs, led by Norwegian, have been encroaching on the tightly controlled North Atlantic route over the past five years. LCC growth here and elsewhere owes much to new, more cost efficient aircraft types - both the widebodies, such as the 787, and the narrowbodies, such as the Boeing 737 MAX and A321neo.

A panel discussion at the inaugural CAPA Low Cost Long Haul Summit in Seville on 4-5 October 2018 will consider the role of new aircraft technology in opening up new long haul markets for LCCs. It will also consider the response of legacy airlines in defending existing routes or taking the fight to the LCCs with new routes of their own.

This report provides some context for this discussion by looking at the importance of new routes to the growth in North Atlantic capacity since 2012, which was the year before Norwegian entered. New airport pairs have driven the majority of seat growth on the North Atlantic since 2012, but incumbent airlines (and airports) have added more seats than new entrants.