Norwegian Long Haul is Doing Very Well

Norwegian Long Haul has been one of the pioneers of low cost, long haul travel. Established in 2012 with only a single A340-300, Norwegian Long Haul has grown to serve 9 destinations with a fleet of 8 787-8 dreamliners. While many airlines have tried, and failed, to operate low cost long haul flights, Norwegian looks like it has finally cracked the code.  

Norwegian Air Shuttle, a European low cost carrier, began Norwegian long haul as a way to significantly grow the airline as the European domestic market stagnated. Norwegian began offering trans-atlantic flights from its Oslo and Stockholm bases to New York City in 2013. With the initial success of those routes, Norwegian began expanding its long haul offerings with service to cities in the U.S. including Oakland, Ft. Lauderdale, and Orlando, from its bases in Scandinavia.  

Norwegian also opened up its first long haul base outside of Scandinavia with the establishment of long haul operations from London Gatwick to cities in the U.S. (LA, Ft. Lauderdale, Orlando, and New York) and San Juan, Costa Rica in 2014.  

Norwegian's successful, rapid expansion into the long haul trans-atlantic market has encountered lots of resistance from legacy carriers in the U.S. and Europe who have long dominated the trans-atlantic market.  

To keep costs low in its long haul division, Norwegian employs tactics such as basing its long haul operations in Ireland while also hiring crew and establishing bases in the countries in which they serve.  

For example, Norwegian opened a crew base in Thailand when it began service to Bangkok a couple years ago. Norwegian has done the same thing in the U.S., having hired hundreds of employees at its bases in America. 

The legacy carriers and unions are accusing Norwegian of cheating labor laws, with the certification of Norwegian Long Haul in Ireland, and the open skies agreement, which allows carriers to operate more freely between the European Union and the U.S.  

While there is much controversy surrounding Norwegian Long Haul, the carrier has been able to attract passengers with extremely low fares. For example, Norwegian is offering 

$590 fares from London Gatwick to Ft. Lauderdale, almost $1000 dollars cheaper than what other airlines are  charging. Norwegian has been filling up planes with an incredible load factor of above 90%. With growth in the European domestic market remaining stable, Norwegian sees its long haul division as being the driver of future growth for the company.  

Norwegian operates a two class layout with an all 787 fleet, complete with modern amenities such as power outlets, seatback touch screen IFEs, and USB ports. Norwegian does a good job of providing a solid inflight product for such a low price. To keep up its rapid expansion, Norwegian recently placed a $5 billion order for 19 787-9 aircraft with options for 10 more. 

Norwegian Long Haul has been a major disruptor in the trans-atlantic by offering unprecedented, extremely low fares and extensive service from the U.S. to multiple destinations in Europe. 

Norwegian Long Haul's success in attracting passengers, as evidenced by its 90% plus load factor, coupled with Norwegian's formula of low costs has enabled the airline to succeed where others couldn't.