Norwegian Air: One-Way Fares Between U.S. and Europe for $65
On Thursday, Norwegian Air Shuttle said it plans to offer 10 new transatlantic flights between the U.S. and Europe with one-way ticket prices of $65, which will put huge pressure on its U.S. as well as European rivals.
The Europe based airline is growing its flight network to include the U.S. beginning mid-June after it received a long-awaited approval from the U.S. this past December for Norwegian Air International an Irish subsidiary to operate transatlantic routes.
Established carriers in the U.S. have had to consider restricted less expensive fares as well as redesigned cabins that have more seats in order to win the budget conscious traveler as a way to compete with Norwegian as well as Iceland’s Wow Air.
The $65 fares offered by Norwegian are for one-way tickets to Irish and UK destinations from smaller U.S. airports located in the states of New York, Rhode Island and Connecticut.
The destinations included Northern Ireland, Shannon, Dublin and Cork, Ireland as well as Edinburgh, Scotland.
The growing competition on routes across the Atlantic has prompted the established airlines in Europe to become more involved.
IAG the owner of Iberia and British Airways plans to start inexpensive flights across the Atlantic from Barcelona later this year to different destinations in the U.S.
CEO Willie Walsh earlier this month said IAG was pushed by the model of the Norwegian carrier to look into new ways of operating.
At the same time, Air France, which is part of the Air France-KLM Franco-Dutch group, is also planning to add a new unit that specializes in low costs that will be called Boost.
Lufthansa is undergoing an expansion of its budget in the long-haul area through its business Eurowings.
The expansion strategy of Norwegian Air helped to double its revenue the past 5 years. Revenue last year increased 16% to over $3.12 billion and the airline placed orders at Boeing as well as Airbus for a total of 260 new aircraft that will be received over a period of several years.
The airline said just a limited number of tickets would be sold for $65 with the next tier of pricing beginning at $99.
In comparison, a New York to Dublin one-way ticket for mid-June on other air carriers ranges in prices from a low of $655 to a high of $2750 on online websites.
Low-cost airlines common practice is to offer fares at super low prices for a small number of restricted tickets.
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