Contestable Markets: Norwegian Airlines takes on the Transatlantic Carriers
This is a quite superb article for students wanting a great example of an increasingly contestable market - namely transatlantic travel. Can the fast-growing Norwegian Airlines achieve commercial sustainability in a battle against established rivals? They have just announced a hefty loss for 2017.
Having flown from Gatwick to Boston last year I can confirm that Norwegian's use of the Boeing 787 Dreamliner aircraft provides an economy experience that is a cut above what we have come to expect from flying EasyJet or RyanAir to the Med! Norwegian uses the standard tactics of flying into airports where landing and take-off slots are cheaper and obviously seeks to make as much ancillary revenue as they can from fees for checked-in baggage, seat reservations and on-board food and drink. Michael O'Leary, CEO of RyanAir has claimed that Norwegian will go bust - a case of hope over fear?
A new breed of low-cost carriers such as Norwegian, Wow, and Primera are taking on the old guard such as British Airways and Air France-KLM in the skies above the Atlantic https://t.co/BHH6b2Z2Rj
— BBC Business (@BBCBusiness) February 14, 2018
Norwegian Air's results
— Simon Calder (@SimonCalder) February 15, 2018
One analyst says: "A fast expansion costs money. This is fine if done by a company with a solid balance sheet and enough cash reserves. Norwegian has neither"https://t.co/CCcet1WQY0
Thanks to all 8.1 million passengers who travelled with us fourth quarter. We are truly grateful! Where will you travel next? #Flynorwegian pic.twitter.com/hQuZCp3bFG
— Norwegian (@Fly_Norwegian) February 15, 2018
Subscribe to email updates from the tutor2u Economics
Join 1000s of fellow Economics teachers and students all getting the tutor2u Economics team's latest resources and support delivered fresh in their inbox every morning.
You can also follow @tutor2uEconomics on Twitter, subscribe to our YouTube channel, or join our popular Facebook Groups.
Job board
Teacher of Economics and Business Studies
d’Overbroeck’s, Oxford
- Economics
- In the News
- Contestable Markets
- Transport economics
- Norwegian Airlines
- Business growth
- Business objectives
- Business finance
Geoff Riley
Geoff Riley FRSA has been teaching Economics for thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
Related Collections
You might also like
From the Blog
More In the News
-
A Level Economics Flying Start Student Workshops
Designed to support Year 12 students in the first year of taking A Level Economics, our Flying Start Student Workshops focus on the core Year 1 teaching content and aim to build...
-
A Level Economics Grade Booster Workshops
Our A Level Economics Grade Booster workshops are designed to provide essential revision support to all A Level Economics students as they complete their preparation for the three terminal papers...
Popular Content
-
Edexcel A Level Economics Diagram Practice BookEdexcel A Level Economics Diagram Practice Book
- SKU: 02-4130-30188-01
-
Printed Edition
-
Student personal license
- £7.95
Added to your Shopping Cart!
Edexcel A Level Economics Diagram Practice Book
- SKU: 02-4130-30188-01
-
Printed Edition
- £7.95
-
AQA A Level Economics Diagram Practice BookAQA A Level Economics Diagram Practice Book
- SKU: 02-4130-30187-01
-
Printed Edition
-
Student personal license
- £7.95
Added to your Shopping Cart!
AQA A Level Economics Diagram Practice Book
- SKU: 02-4130-30187-01
-
Printed Edition
- £7.95
Teaching Vacancies
-
Teacher of Economics & Business 5 days left to apply
The Kings School, Chester, Cheshire
-
Business and Economics Teacher
Yavneh College, Borehamwood, Hertfordshire
-
Teacher of Business and Economics 4 days left to apply
Kew House School, Brentford, London
-
Teacher of Economics and Business 5 days left to apply
Mill Hill School, London NW7
- Browse all jobs ›
Advertise your vacancies with tutor2u
Much cheaper & more effective than TES or the Guardian. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences.