Norwegian Founder Tries Again With New Low-Cost Transatlantic Airline - Forbes

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Bjørn Kjos pioneered low-cost transatlantic air travel with Norwegian, but the airline failed to make it profitable and is now fighting for its future. Now, less than two years after standing aside as Norwegian's CEO, he is trying again. His new venture, Norse Atlantic Airways, aims to begin operations by the end of 2021.

Together with well-known investors Bjørn Tore Larsen and Bjørn Kise, Kjos unveiled the project in a press release. According to Dagens Næringsliv, Kjos will own 15% of the new airline.

Kjos grew Norwegian from a small local airline to one of the largest low-cost airlines in Europe and a big name in long-haul aviation, especially across the Atlantic. Larsen brings experience as the founder of OSM Aviation.

Introducing Norse Atlantic Airways

Not to be confused with the Faroe Islands-based Atlantic Airways, Norse Atlantic Airways aims to fill the gap left by Norwegian's departure from long-haul services. The new airline will even use the same aeroplanes—Boeing 787 Dreamliners—that Norwegian operated on its transatlantic routes, but there are no details yet on specific route plans.

Will it succeed where Norwegian and many others have failed and create a sustainable business model based on low-cost, long-haul aviation? It's a tough ask.

Norwegian's low fares were loved by many passengers but a string of technical issues plagued the airline. In 2019, parts from the Rolls-Royce engines used in one of the Dreamliners fell onto an Italian town during flight. The airline also suffered from the global grounding of Boeing's 737 Max fleet.

However, the group behind Norse are confident they have what it takes to make it work. Bjørn Larsen, who will take the CEO role, said there will be an "historic opportunity" to build a new airline from scratch in the post-pandemic world. He said the management team has been able to secure modern aircraft with low fuel consumption on good terms.

Yet another new name in Nordic aviation

The surprise announcement of Norse means yet another airline enters the crowded aviation market in Scandinavia. Last year, startup airline Flyr announced plans to fly domestic routes in Norway and high-traffic routes from Norway to the Nordic countries and continental Europe from this summer.

Meanwhile, European low-cost carrier WizzAir entered the Norwegian domestic market last year, although it closed its new base in Trondheim after just a couple months.

The news spells more trouble for legacy airline SAS but also Norwegian, if the airline can survive its present financial crisis. Norwegian management is attempting to restructure the company under court protection in Norway and Ireland.

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March 15, 2021 at 09:56PM
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Norwegian Founder Tries Again With New Low-Cost Transatlantic Airline - Forbes
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