Airline Analysis- Norwegian

Fresh from annoucing this week its best quarterly results this week, with an operating profit of 85million dollars Norwegian has firmly established itself as the key low cost operator in the Scandanavian market.

In a week where the carrier also firmed an order for six more B737-800, whilst phasing out the older less economic MD-80 aircraft in its fleet the carrier is set to have over 58 Boeing 737 by the end of 2011.

At is home base at the main Oslo Gardermoen Airport, Norwegian has grown its based prsence there to include 671 weekly European departures, in comparison to the largest operator SAS which now operates 966 weekly flights. However, Norwegian practically operates a monopoly at Olso Rygge where out of a total of 56 weekly departures, 55 are operated by Norwegian. Rygge is located 60km from Oslo and is a perfect match for the low cost carriers requirements. Ryanair operates the only other flight out of Rygge, however FR has a significant presence in the second Oslo Airport, Torp, operating 112 weekly flights, Norwegian does not operate from this airport, leaving the two major low cost operators free to not operate the same route pairs. The fact that Norwegian has been able to sucessfully operate the main international airport and a low cost airport is testimony to a carrier that has been able to attract new business passengers and transform away from the classic low cost model whilst also being able to similtaneously operate classic low cost routes.

In the last 15 months, Norwegian has also expanded its operations in both Sweden and Copenhagen. In Stockholm Norwegian has decided not to serve the secondary Skavsta Airport where Ryanair is the dominant player and has sucessfully operated from Arlanda. Norwegian is now the largest low cost carrier in terms of intra Europe flying with over 190 weekly flights now offered still someway short of SAS which has 826 weekly departures.

When Danish low cost carrier Sterling folded early in 2009, Norwegian was quick to react to the void left and soon established a based presence there. Since its entry into the market, Norwegian has established itself as the third largest carrier in Copenhagen with 184 weekly flights out of the Danish capital, only SAS and Cimber Sterling offering more intra European flights.

Norwegian also has smaller bases in Bergen, Stavanger,Trondheim and Warsaw.

The carrier is currently accepting bids through Route Exchange and welcomes proposals from airports wishing to bid for Norwegian service.