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Norwegian implements further steps to become Europe’s first low-cost network airline

Analysis

Buoyed by a 27% increase in net profits and a 25% hike in revenue for 3Q2012, Norwegian Air Shuttle is starting to slowly lift the veil on its strategy behind the massive firm order for 222 narrowbody aircraft as it confirmed plans to open a base of operations in London Gatwick and in Alicante in spring 2013. The Oslo-based LCC has also launched a base at Las Palmas Airport as part of its new winter 2012-13 timetable. In Mar-2012 Norwegian opened a first base in Spain at Malaga Airport.

The broadening of the airline's base network from Scandinavia to central and south Europe is coinciding with Norwegian's preparations to commence long-haul flights with Boeing 787s. The first Dreamliner is now scheduled to join the LCC's fleet in Apr-2013 and preparations are in full swing to set up a crew base for its long-haul operations in Bangkok, while also establishing a separate subsidiary Norwegian Long Haul AS. The airline set up the separate company to protect its existing operations if its long-haul operations were to go wrong. Meanwhile, Norwegian's application for US service was made public by the US Department of Transport on 16-Oct-2012.

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