U.S. airlines may not like it, but there's a good chance Norwegian will win in arbitration.
The Norwegian Air saga has taken another unusual turn. But fear not, travelers. The airline will keep flying between the U.S. and Europe, and the airline will continue offering low fares.
The transatlantic route has long been one of the world's most profitable ones. Then Norwegian Air came it and is upsetting long-held assumptions.
The recent terrorist attacks in Paris and Europe, as well as labor strikes, are clouding the European carrier's business.
Great news for consumers, not so great news for the legacy carriers defending their most profitable routes.
For all of the U.S. legacy carriers' complaints about unfair competition from Gulf carriers, the former have made it incredibly unfair for Norwegian in the U.S.
We believe that a partnership between Norwegian and Ryanair makes sense and could take off with few complications. But we don't believe converting long-term rivals to new friends is done easily in aviation. Still, if anyone could argue until this gets done, it would be O'Leary--with credit going to Willie Walsh. That alone is a remarkable thing.
Norwegian hopes to capitalize on its growing fleet to offer Europe's largest network of direct transatlantic routes. Set backs in Cork aside, CEO Kjos wants to put all the Dreamliners and Boeing 737 MAX the airline has on order to good use.
Smart move by Ryanair to partner with others to test the feasibility of the routes. If they work, expect to see Ryanair go it along eventually.
The Dreamliner's effect on aviation will take years to fully understand, but in non-technical terms: It's a biggie.