– The most important thing is to make money – E24
Norse Atlantic CEO Bjørn Tore Larsen will not take in a single transit suitcase and has already produced four of the company’s 15 long-haul aircraft. And he likes to fly to Pakistan if it helps on the bottom line.
In the midst of traffic chaos at European airports, strike threats and an oil price that is still testing new heights, Norse Atlantic is betting on low-cost – and low-cost – long-distance flights between Europe and the USA.
Last week, the first routes between Oslo and New York opened, as well as to Fort Lauderdale outside Miami. Routes “across the pond” have already been launched from London and Berlin in August, as well as announced start-up from Paris.
However, the company’s network is in no way carved in stone, says Norse Atlantic CEO Bjørn Tore Larsen in an interview with E24 in Manhattan in New York.
– Flexibility is the most important thing. A network that is optimal today does not mean that it is optimal tomorrow. If you quickly lock yourself too much on what you believe or what is the gut feeling, no matter what the data says, then it can go wrong, says Larsen.
– Well, you can travel directly to four places in the United States, and if we get this done, it could be more places. I find that exciting.
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– Host few opportunities
The police chief points out that it is not too long ago that the only direct long-distance route from Oslo went to Karachi, the largest city in Pakistan, and no one went west.
– Karachi can be a great market, if we know that there are enough who want to travel. And remember, very many of them (Pakistanis, ed. Man) are hardworking and nice people who also travel a lot, says Larsen, and continues;
– It just illustrates how little Norway has been appreciated by other airlines. Therefore, it has been to get opportunities to and from Norway, everyone was going via Copenhagen or Frankfurt or something, says Larsen.
– A super destination
– So “Atlantic” does not name the geography of the grid, you look across the Atlantic?
– Yes, you’re absolutely right. But, well, I’m kidding a little too.
– We have said that our focus must be the United States, and we must fly between Europe and the United States. If we are to start spreading around the world, you will have a completely different complexity, completely different costs and much greater risk if we focus, says the Nordic manager.
The dream is to create a «proper highway» between different places in the USA and Europe, and that Norway will become a «hub»; a hub for onward connections to other destinations, according to the top executive.
– I think this can become a super destination, and that people will travel via Oslo, says Larsen.
– My competition
He is still humble that he enters a packed field of competition.
The battle to fly European and American travelers across the Atlantic is strong, with players such as SAS, Icelandair, Play and Finnair from the Nordics, British Airways and Virgin Atlantic from London, Air France / KLM from Amsterdam and Paris, and Lufthansa from Frankfurt, among others. .
Norse Atlantic has to run at lower costs – and lower prices – to compete.
The lowest price from Oslo to New York is 995 kroner or 129 dollars, while the average price for the flight to be profitable is significantly above.
– We enter a market where there are many competitions, but we enter with a concept that is different from everyone else. It appeals very much to holidaymakers, it appeals very much to those who pay from their own wallet, and it appeals very much to cost-conscious business people, says Larsen.
Rejects alliances
Unlike the established airlines, Nordic companies do not have to rely on regional routes to complete the company’s long-haul routes, the top manager explains.
Norse will only fly point to point, and receive passengers from all airlines, be it Norwegian, EasyJet, Wizz, Ryanair or from the more established players.
Although it may be a route collaboration, it will not be a so-called «code sharing», or through ticket. It will not be alliances either, but more separate tickets bought in the same place, Larsen explains.
– Direct routes only
He adds that there are already third-party providers who allow you to book a through ticket, typically with another airline and further with Norse, and who offer insurance in between in case of any delay.
– There are also external providers who take care of the luggage, such as Gatwick Connect, says Larsen.
– But our business model is only to operate direct routes, and we must simplify and simplify. That is the key to a low diet.
“Hit the bottom”
Norse has a fleet of 15 long-haul aircraft that rent is paid only for the time the aircraft are in the air, for most until 2022, as well as a few until 2023, according to Larsen.
After that, ordinary structured monthly rent comes in, but probably at very favorable levels.
Larsen has previously stated to E24 that Norse probably hit the bottom of the market when lease agreements were entered into in the wake of the corona pandemic.
He even considered selling the deals at a profit when the market improved, instead of embarking on an airline.
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– Means nothing
Earlier this spring, it was announced that Norse will sublet four long-haul flights to Air Europe for a period of 18 months.
– What is the long-term ambition for fleet size, what will be optimal?
– Optimal is to make money, counters Larsen.
– Let me put it this way, I would rather make money on fifteen planes than lose on thirty. It does not matter to me how many planes we have, as long as we make money on them, says Larsen.
– It is the only thing that will make us grow, it is that we actually make money from the growth. Then we must first make money on fifteen, he says.
Norse has recently secured departure and landing permits in Dublin and Dubai for the winter season, according to the website Simpleflying.com, which confirms that it is far from certain that the permit will be used. The information is also confirmed by Norse above E24.
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