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Showing posts with the label Norse

Headquartering an Airline far from an Airport is not a recipe for success

In Norway we have several examples on this. Norwegian was/is hq'd at Fornebyu that haven't been an airport for over 20 years. Flyr was hq'd in the overexpensive Oslo city center. And Norse hq'd in Arendal, a town without an airport and even further from Oslo airport than Oslo itself. The train connections from hq to airport might be frequent and only take halve to an hour but its not the same as a 10 minute walk to oversee where your real operations happens. The place where your customers experience your service and most of your critical costs are spent. But also the costs most easily squeezable. Closenes let you reduce the costs before they occur rather than just financially overseeing the bills in accounts after they have happened. That makes a difference when it comes to reducing costs through strict control.  And low costs are the most important for being able to underprise your competitors. Something all the beforementioned airlines tried and tries because they see

It might be named Norse but that's not where they will be flying

Norse Atlantic Airways is the new transatalantic then true intercontinental airline where the founder of Norwegian Kjos and his partner Kise are involved.  It might be targeting Low Fares and according to its founder they have learnt the lesson that that have to be combined with Low Cost. Maybe and maybe not. They are going for ex Norwegian 787's wih the same seat configuration. That might save on leasing cost, what they are planning of fundraising do not equal to outright plane purchases, but it is 2 cabin classes again and that is not true Low Cost.  Add in the freight, which have proven crucial and resilient but is still a distraction but you migth as well since 30min turnarounds are out the window, and a new Low Cost concept needs to be invented. With usual pain for first movers, maybe a bit less for what will now be a second mover. Norway might be where this airline will be founded and somewhat hq'd but if they have learnt their lessons from the adventures with Norwegian t