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santi319 wrote:[photoid][/photoid]Shuttle wrote:And a link direct from Norwegian:
https://media.uk.norwegian.com/pressrel ... rk-3064682
A pity for their LH crews and staff.
Shuttle
None of the crews actually worked for Norwegian and they were temp workers with bad benefits compared to their peers...
PlymSpotter wrote:Sad to see that we still have the odd dinosaur gleefully trolling the demise of a competitor. Perhaps it comforts some to know that several thousand people have no jobs to return to.
The reality is that Norwegian had just about pulled everything together and were looking at a strong and likely profitable 2020. They thought outside the box and challenged expectations - making some mistakes along the way is inevitable. Personally I admire their vision - it's just a matter of time before someone else ties again in the post covid future.
GSP psgr wrote:DartHerald wrote:37 almost new 787s (not including any awaiting delivery!) looking for new homes! That's not going to help already depressed widebody sales for a while to come, I would imagine. I wonder if BA will seize the opportunity, if the theory that they wanted to buy the airline for its 787'as was correct - or if that horse has already bolted.
On the other side of the Atlantic, maybe JetBlue or Southwest if the prices get low enough? Moreso Southwest, as JetBlue seems committed to long range 321s as their transatlantic aircraft of choice. Unlikely, but I could definitely see a BWI transatlantic operation making money, along with some selected other routes-mostly their hubs to LGW. If Southwest ever wanted to get into the 787 game cheaply, this might be it.
klm617 wrote:Certainly places like ATL, CLT, CLE, DTW, MSP, STL, MKE, and the like could support 3 weekly 787 flights with no issue and they could have commanded a higher ticket price and less airport fees. Of course they are not going to fly to Montana.
PlymSpotter wrote:Sad to see that we still have the odd dinosaur gleefully trolling the demise of a competitor. Perhaps it comforts some to know that several thousand people have no jobs to return to.
The reality is that Norwegian had just about pulled everything together and were looking at a strong and likely profitable 2020. They thought outside the box and challenged expectations - making some mistakes along the way is inevitable. Personally I admire their vision - it's just a matter of time before someone else ties again in the post covid future.
Varsity1 wrote:Is there any possibility to change the engines from RR to GE? I know Boeing made sure the architecture matched. Has anyone ever done it?
MIflyer12 wrote:GSP psgr wrote:DartHerald wrote:37 almost new 787s (not including any awaiting delivery!) looking for new homes! That's not going to help already depressed widebody sales for a while to come, I would imagine. I wonder if BA will seize the opportunity, if the theory that they wanted to buy the airline for its 787'as was correct - or if that horse has already bolted.
On the other side of the Atlantic, maybe JetBlue or Southwest if the prices get low enough? Moreso Southwest, as JetBlue seems committed to long range 321s as their transatlantic aircraft of choice. Unlikely, but I could definitely see a BWI transatlantic operation making money, along with some selected other routes-mostly their hubs to LGW. If Southwest ever wanted to get into the 787 game cheaply, this might be it.
Southwest couldn't even make MEX work - with big ops at LAX, PHX, HOU, and MDW. They have zero foreign point of sale MOJO. They're not turning BWI into a TATL hub to run 29 787-9s.
skipness1E wrote:PlymSpotter wrote:Sad to see that we still have the odd dinosaur gleefully trolling the demise of a competitor. Perhaps it comforts some to know that several thousand people have no jobs to return to.
The reality is that Norwegian had just about pulled everything together and were looking at a strong and likely profitable 2020. They thought outside the box and challenged expectations - making some mistakes along the way is inevitable. Personally I admire their vision - it's just a matter of time before someone else ties again in the post covid future.
I think this is pretty rosey. They were loss making and massively in debt. "Thinking outside the box" is just a cliche. They pursued a loss making business model that was unsustainable and really did take flags of convenience and outsourcing to the next level. Yes they had shiney new toys they never had the money to pay for and could fly Americans to Europe for a fraction of the cost of competitors but oddly enought, ex UK long haul was only markedly cheaper on routes where they never came close to filling the aircraft. Sorry for the employees but the industry will be glad to be shot of them frankly.
wnflyguy wrote:I wonder if it would be more cost effective for Hawaiian to Ditch the New bird 787 orders and pick up some used ones from Norwegian.
Flyguy
Varsity1 wrote:Is there any possibility to change the engines from RR to GE? I know Boeing made sure the architecture matched. Has anyone ever done it?
RexBanner wrote:guillermohs wrote:windian425 wrote:As for the topic, sad news for transatlantic aviation. Reduced fares are very much needed in this market.Does this help IAG with Level? Or is Level toast anyway..
Needed for those with less money but not at all realistic as a business proposition. Which is why it failed.
william wrote:Well, flying to Europe was going to be expensive anyways with the majors taking seats out of the market. Now with Norwegian gone, the old days of the Trans Atlantic being a major profit center will return for the airlines, but way more expensive for the consumer. Glad I went last summer.
skipness1E wrote:They pursued a loss making business model that was unsustainable and really did take flags of convenience and outsourcing to the next level.
airsmiles wrote:It’s not about revelling in the demise of a competitor. The fact is that they pursued a flawed business model long after it was obvious it was doomed, thereby damaging more sustainable airlines in the industry. They only changed direction when they became desperate to survive.
Galwayman wrote:santi319 wrote:[photoid][/photoid]Shuttle wrote:And a link direct from Norwegian:
https://media.uk.norwegian.com/pressrel ... rk-3064682
A pity for their LH crews and staff.
Shuttle
None of the crews actually worked for Norwegian and they were temp workers with bad benefits compared to their peers...
Any Norwegian cabin crew with EU contracts had vastly better statutory rights than any US airline cabin crew has ever had in history
PatrickZ80 wrote:Agreed.
Another wildcard might be Scoot, the Singapore Airlines low-cost subsidiary. They already got a fleet of 787s that are more or less similar to those of Norwegian, so no need to refurbish anything. They're familiar with the aircraft type and crews can be picked up anywhere (including the former Norwegian crews). It would offer great expansion possibilities for Scoot to markets such as Japan and Australia, and maybe their return to Europe.
chonetsao wrote:PatrickZ80 wrote:Agreed.
Another wildcard might be Scoot, the Singapore Airlines low-cost subsidiary. They already got a fleet of 787s that are more or less similar to those of Norwegian, so no need to refurbish anything. They're familiar with the aircraft type and crews can be picked up anywhere (including the former Norwegian crews). It would offer great expansion possibilities for Scoot to markets such as Japan and Australia, and maybe their return to Europe.
In paper or theory, I agree with you. But, there is always a but.
If anything have taught us during last decade, through the LHLCC airlines with the likes of Oasis, JetStar, AirAsiaX...and now Level and Norwegian, that the room for a LHLCC is very limited. The expansion is impossible without hitting a low ceiling. LHLCC could thrive when the market is right with
1, Steady passengers volume and load factors
2, Steady cost control (that including fuel and airport charges); and
3, Steady finance cost and reasonable income to cover cost
They are all business 101s. The biggest problem for LHLCC was, at least in last decades, was the passenger numbers and load factors. On paper, LHLCC did enjoy a high load factors on many routes it operated. But firstly, they were still loosing money, it meant either the ancillary revenue did not match the expectations, or the total fares were too low to make a profit. And secondly, none of the attempt routes could sustain a year long more than daily operation, with the exception of Oasis's LON-HKG routes.
So all the standing alone LHLCC are failing, with the exception of few French carriers that operates France-Overseas Departments 'domestic' long haul routes, and the LHLCC under the legacy carrier groups. And those French carriers survive based on large volume of passenger numbers and very steady demand.
So now back to Scoot. The problem with Scoot (or JetStar in the same sense) is that its long haul operation can only survive on the mercy of the parent company. It means firstly it requires the legacy parent company to continue investing and believing in their potential; secondly, it requires the legacy parent company gives them access to market/routes that their parent company is not operating or competing.
Based on above reason, I don't think Scoot would be able to afford the plane. Any expansion by Scoot from Singapore would require SQ to give up certain market shares. It is just not feasible currently. Venturing into Australia or Japan, the comparatively higher yield areas outside ASEAN would be ideal, but it can not be achieved without big investment and take on initial loss on opening seasons.
Legacy parent companies are happy to set up a LHLCC to compete with new comers, to offload routes that requires lower costs to operate, to transfer loss making units/routes. That is why there is a low ceiling for the LHLCC's expansion.
But strange things happen in aviation market. I would not be surprised should Scoot took few frames. I just doubt the potentials.
PatrickZ80 wrote:william wrote:Well, flying to Europe was going to be expensive anyways with the majors taking seats out of the market. Now with Norwegian gone, the old days of the Trans Atlantic being a major profit center will return for the airlines, but way more expensive for the consumer. Glad I went last summer.
That's only temporary, until the next LCC moves in. In fact, FrenchBee is still around offering fares similar to those of Norwegian. Of course FrenchBee is a much smaller airline, which in this case can be a benefit for them. No surplus of capacity and thus competing against themselves and all of their operations concentrated in one place (Paris Orly).
If Americans go to visit Europe they visit the whole continent, so it doesn't matter where in Europe their flight goes. Paris is as good as any other city and from there they can start their tour through Europe. This is where Norwegian failed, they offered a variety of destinations in Europe. If the destination is irrelevant, all of those flights compete against each other.
Capricorn wrote:I think one fact that often gets omitted when analysing why LHLCCs fail is that legacies use destroyer pricing to gain market share and keep the competition at bay. Legacies were caught napping when the short haul LCCs were established and their success was underestimated. But they don't want that to happen a second time.
Anecdotally the last two years I was able to fly for leisure purposes the following TATL:
2019 ZRH-SFO by LX $370 (roundtrip fare), no baggage but meal and IFE
2019 ZRH-JFK by LX $290 (roundtrip fare), no baggage but meal and IFE
2019-2020 BSL-LHR-MIA by BA $530 (roundtrip fare, X-mas time), no baggage but meal and IFE
2020 ZRH-LHR-LAX by BA $290 (roundtrip fare), no baggage but meal and IFE
2020-2021 BSL-CDG-MIA by AF $420 (roundtrip fare, X-mas time), no baggage but meal and IFE (cancel because of C19 but booking in January so before the global crisis emerged)
I did not use any miles or discount codes nor do I have relatives working at airlines. So for these fares it makes no sense to use DY as this would simply be a worse deal. If booking at the right time (luckily my job allows me to take vacation well in advance) legacies can be very cheap. Maybe once the competition, DY, is gone fares are unfortunately going up again, but legacies seem to have the ability to compete with LHLCCs price wise for Y class seats. So any future LHLCC should be warned that the TATL market can be very though!
Galwayman wrote:santi319 wrote:[photoid][/photoid]Shuttle wrote:And a link direct from Norwegian:
https://media.uk.norwegian.com/pressrel ... rk-3064682
A pity for their LH crews and staff.
Shuttle
None of the crews actually worked for Norwegian and they were temp workers with bad benefits compared to their peers...
Any Norwegian cabin crew with EU contracts had vastly better statutory rights than any US airline cabin crew has ever had in history
AirPacific747 wrote:skipness1E wrote:PlymSpotter wrote:Sad to see that we still have the odd dinosaur gleefully trolling the demise of a competitor. Perhaps it comforts some to know that several thousand people have no jobs to return to.
The reality is that Norwegian had just about pulled everything together and were looking at a strong and likely profitable 2020. They thought outside the box and challenged expectations - making some mistakes along the way is inevitable. Personally I admire their vision - it's just a matter of time before someone else ties again in the post covid future.
I think this is pretty rosey. They were loss making and massively in debt. "Thinking outside the box" is just a cliche. They pursued a loss making business model that was unsustainable and really did take flags of convenience and outsourcing to the next level. Yes they had shiney new toys they never had the money to pay for and could fly Americans to Europe for a fraction of the cost of competitors but oddly enought, ex UK long haul was only markedly cheaper on routes where they never came close to filling the aircraft. Sorry for the employees but the industry will be glad to be shot of them frankly.
It’s not rosy, what plymspotter wrote is accurate. We were struck by many external factors which was out of our control, such as massive problems with RR engines and Russians denying us overflight permits over Siberia, a 737MAX stuck in Iran for months due to international sanctions, 737MAX grounding which affected 18 of our aircraft I believe, and a ballooning inflation in Argentina just when the ops there was running smoothly.
Despite all of this, 2020 was looking to be our most profitable year ever before COVID hit.
Norwegian proved that low cost LH can be profitable, and this is the reason why they waited so long to pull the plug after the groundings back in April last year. If it hadn’t been profitable for Norwegian, our new CEO would just have shut LH down asap.
UPNYGuy wrote:Those with more insight, does this give B6 possible avenues to enter LGW? I’m not sure of the slot rules there.
We all know B6 was trying to go in either LGW or LHR, I am curious if the lack of a Norwegian hub will now benefit them in this quest.
majano wrote:Saying something like "Norwegian proved that low cost LH can be profitable" is not borne out by the numbers.
majano wrote:However, what you describe above just sounds to me like excuses that some executives make for failures. Blame all of the company's misfortunes on external factors and point to promising times just ahead. Norwegian being profitable in 2020 is questionable but seems to have been accepted. Blaming everyone from Boeing to Rolls Royce and even Russia and Iranian sanctions?
aviator2000 wrote:onwFan wrote:guillermohs wrote:
Level will disappear once Air Europa is owned by IAG. I foresee the group will use UX's reasonable brand recognition (and Dreamliners) for a niche which was intended in the first place for Level but failed to fulfill.
As for the topic, sad news for transatlantic aviation. Reduced fares are very much needed in this market.
Agree. In fact if I am not mistaken, Level was itself IAG’s response to Norwegian Long Haul. Given that the BA/IAG airlines’ routes had the most overlap with Norwegian Long Haul, I am sure BA is heaving a huge sigh of relief. Currently, the only part of Level that is left is at BCN and I am sure folding it into UX looks like a natural step. Don’t see the point of a 4-fleet sub-brand given the times...
On the bright side, I hope this means BA will be encouraged to resume/re-launch secondary US destinations like AUS, SAN, SJC, BNA, MSY, PDX, etc.
I'd expect quite the opposite. British Airways and IAG as a whole started many new routes in order to put Norwegain Air out of business, as they perceived it as a threat. With Norwegian long haul now gone, BA will retreat even further, as they only have to operate those routes which make them an important amount of money.
AC4500 wrote:aviator2000 wrote:onwFan wrote:Agree. In fact if I am not mistaken, Level was itself IAG’s response to Norwegian Long Haul. Given that the BA/IAG airlines’ routes had the most overlap with Norwegian Long Haul, I am sure BA is heaving a huge sigh of relief. Currently, the only part of Level that is left is at BCN and I am sure folding it into UX looks like a natural step. Don’t see the point of a 4-fleet sub-brand given the times...
On the bright side, I hope this means BA will be encouraged to resume/re-launch secondary US destinations like AUS, SAN, SJC, BNA, MSY, PDX, etc.
I'd expect quite the opposite. British Airways and IAG as a whole started many new routes in order to put Norwegain Air out of business, as they perceived it as a threat. With Norwegian long haul now gone, BA will retreat even further, as they only have to operate those routes which make them an important amount of money.
How can you correlate BA launching flights to secondary US destinations as a response to Norwegian?
ricq wrote:AC4500 wrote:aviator2000 wrote:I'd expect quite the opposite. British Airways and IAG as a whole started many new routes in order to put Norwegain Air out of business, as they perceived it as a threat. With Norwegian long haul now gone, BA will retreat even further, as they only have to operate those routes which make them an important amount of money.
How can you correlate BA launching flights to secondary US destinations as a response to Norwegian?
For one, they started LGW to OAK (BA). There was no other reason for them to start that route except to put pressure on Norwegian. As soon as Norwegian moved to SFO, they dropped OAK. Within a week! They also had Level flying Spain to OAK. No other reason than to try and put Norwegian out of business. That route also stopped as soon as Norwegian dropped it. There are probably many more examples of this in other parts of the country.
Shuttle wrote:The thought has come to me that this might not be as positive for IAG (BA) as I initially thought, given that this will likely release a lot of slots at LGW that Wizz Air will be keen to snap up. BA have stated that could hold their own against DI on LH ( BA LGW densified 777 giving similar unit costs as Norwegian had), but have often struggled with short-haul profitability and Wizz Air vie Ryanair on SH costs. Might make it difficult to BA to re-establish the SH Gatwick flying if Wizz get a decent foothold in LGW.
PatrickZ80 wrote:Shuttle wrote:The thought has come to me that this might not be as positive for IAG (BA) as I initially thought, given that this will likely release a lot of slots at LGW that Wizz Air will be keen to snap up. BA have stated that could hold their own against DI on LH ( BA LGW densified 777 giving similar unit costs as Norwegian had), but have often struggled with short-haul profitability and Wizz Air vie Ryanair on SH costs. Might make it difficult to BA to re-establish the SH Gatwick flying if Wizz get a decent foothold in LGW.
That's nothing new, legacy airlines have always struggled on short haul where LCCs pick up most of the market. British Airways short haul at Gatwick has never been able to compete against EasyJet, which is the largest airline at Gatwick already. And Wizzair even undercuts EasyJet, which is on the expensive side for an LCC.
It's kind of obvious that Wizzair is after the assets of Norwegian such as those Gatwick slots, they're actively trying to kill Norwegian. Those ultra low fares in Norway have never been about profit, they're about putting the final nail to Norwegian's coffin. Wizzair wants to pick up the assets of Norwegian for as cheap as possible.
Wasn't Norwegian also granted some Heathrow slots? That would be the day, Wizzair at Heathrow. It could just happen...
PatrickZ80 wrote:Shuttle wrote:That's nothing new, legacy airlines have always struggled on short haul where LCCs pick up most of the market. British Airways short haul at Gatwick has never been able to compete against EasyJet, which is the largest airline at Gatwick already. And Wizzair even undercuts EasyJet, which is on the expensive side for an LCC.
onwFan wrote:ricq wrote:AC4500 wrote:How can you correlate BA launching flights to secondary US destinations as a response to Norwegian?
For one, they started LGW to OAK (BA). There was no other reason for them to start that route except to put pressure on Norwegian. As soon as Norwegian moved to SFO, they dropped OAK. Within a week! They also had Level flying Spain to OAK. No other reason than to try and put Norwegian out of business. That route also stopped as soon as Norwegian dropped it. There are probably many more examples of this in other parts of the country.
LGW-IAK/FLL are hardly the kind of routes I was talking about. They were obviously launched only to compete with Norwegian. On the other hand LHR to SAN, AUS, MSY, BNA, PIT, etc. were strategic launches with business customers in mind, and lucrative pre-covid. I was referring more to the fact that BA can focus on such routes rather than having to compete with Norwegian...
vfw614 wrote:rutankrd wrote:vfw614 wrote:What's the breakdown between 787-8 and -9s? I suppose it will be quite a different story when it comes to finding new homes for -8s and -9s - is anyone still taking on -8s these days? They seem to be sharing the fate that almost all smallest siblings of an airliner family meet as soon as larger aircraft within the family become available.
8s remain in production United American and BA received some quite recently
Sure. But when was the last time someone actually ordered one?
Although given the current state of the market, "outdated" aircraft concepts sort of see a renaissance - Lufthansa, for example, is operating almost all their A340s as these are the smallest longhaul planes in the inventory while parking 747-8, A380s, A330s. A year ago, those A340s were already flying coke cans.
santi319 wrote:Galwayman wrote:santi319 wrote:[photoid][/photoid]
None of the crews actually worked for Norwegian and they were temp workers with bad benefits compared to their peers...
Any Norwegian cabin crew with EU contracts had vastly better statutory rights than any US airline cabin crew has ever had in history
Well no, disagree, in the US you have the opportunity to actually bid for ALL THE FLIGHTS your airline does not just the domestic/intra european ones. And with the same pay and benefits for all. That in itself is superior already. Try again.
bluefltspecial wrote:santi319 wrote:Galwayman wrote:
Any Norwegian cabin crew with EU contracts had vastly better statutory rights than any US airline cabin crew has ever had in history
Well no, disagree, in the US you have the opportunity to actually bid for ALL THE FLIGHTS your airline does not just the domestic/intra european ones. And with the same pay and benefits for all. That in itself is superior already. Try again.
Try again? I don't think you're understanding what Galwayman was writing.
In the EU your vacation, medical support/sick leave, maternity etc, is a million times better, and is guaranteed - it's not something you have to negotiate in a contract with your union against your dodgy US company carrier. In most EU countries you get 4 weeks of paid vacation if not more, guaranteed when you start. Most provide for paid maternity for up to a year. I can go on but you won't find those things at any US carrier. Most people in the US are unfamiliar with this and just have no concept of what it entails.
If you want to talk about not being able to work all the flights at your airline, let's consider all the US majors that contract out their flying to regionals for less pay, that you can't fly unless you work for that regional. Along with this, you have airlines like American that have (or had) flight attendant bases in South America that worked flights to Miami for lower wages, that you would not be able to work because these were staffed with South American based crews. Just like United and Delta's former intra Asia flying you usually couldn't bid for because it was staffed with lower-paid nationals in foreign countries- I do believe they may have had a purser chaser trip pairing but regardless, you wouldn't see much of that flying.
Also, putting people on "standby" operations for years of their life isn't great. With most European airlines - Norwegian included, this wasn't the case, you have a line of flying right after training. US and EU long haul based crews flew incredible rotations like JFK-CDG-OAK-ARN-LAX-FCO-JFK for their first trips right after training. Also, some airlines in Europe have bidding systems, Norwegian actually purchased Lufthansa's bidding system for their crew operations. If you want to work short haul you transfer to the short haul operation, if you want to work long haul you transfer there. You can't do that with most US carriers, even in the US because your regional operators operate the flights for lower wages.
Hope that helps clear it up.
bluefltspecial wrote:In the EU your vacation, medical support/sick leave, maternity etc, is a million times better, and is guaranteed - it's not something you have to negotiate in a contract with your union against your dodgy US company carrier. In most EU countries you get 4 weeks of paid vacation if not more, guaranteed when you start. Most provide for paid maternity for up to a year. I can go on but you won't find those things at any US carrier. Most people in the US are unfamiliar with this and just have no concept of what it entails.
bluefltspecial wrote:Hope that helps clear it up.