February 7, 2014 2:30PM

Globalizing the Airline Business

From the NY Times:

Flying doesn’t come cheaply these days, particularly on long‐​haul flights across the Atlantic. But Norwegian Air Shuttle, which specializes in low‐​cost flights within Europe, plans to bring its pared‐​down model to the United States and Asia.

Its strategy, however, comes with a few twists: Norwegian is moving its long‐​haul operations from Norway to Ireland, basing some of its pilots and crew in Bangkok, hiring flight attendants in the United States, and flying the most advanced jetliner in service — the Boeing 787 Dreamliner. In the process, it has infuriated established carriers and pilots.

… Norwegian started flying between Oslo and Kennedy Airport in New York in May and has round‐​trip fares starting at $509. The second‐​lowest price found recently was $895 on United Airlines flying out of Newark Liberty International Airport. Norwegian plans to add more than a dozen new routes this year, including direct service from London to New York and Copenhagen to Fort Lauderdale, Fla., once regulators approve its new registration in Dublin.

Not surprisingly, there is resistance:

But Norwegian’s novel model has raised stiff opposition from American labor groups, airlines and pilots who see it as a backhanded attempt to outsource cheaper labor and undercut competition. Norwegian, these critics argue, is unfairly taking advantage of an open‐​skies agreement between the United States and Europe even though Norway is not a member of the European Union.

I’m always shocked by the price of flights to Europe, so best of luck to Norwegian as it tries to navigate this regulatory process and bring lower fares to consumers.