Norwegian, others have vision; US airlines don’t

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Introduction

Dec. 5, 2016, © Leeham Co. Last weeks’ approval by the US Department of Transportation of a license for Norwegian Air Shuttle to operate long-haul, low-cost service to and from the US drew immediate fire from labor unions over anticipated US job losses.

Iceland's Loftleider Airlines, one of the first trans-Atlantic low-cost carriers. Photo via Google images.

Iceland’s Loftleider Airlines, one of the first trans-Atlantic low-cost carriers. Photo via Google images.

But their view is too narrow.

It means more jobs for Boeing and its supply chain, which are also heavily unionized. It means benefits to US exports.

But overlooked is the next evolution in long haul travel that starts next year.

Summary
  • Legacy airlines always object to new competition. It doesn’t matter when or from where.
  • Open skies and free market is a great concept—until someone actually takes advantage of it.
  • The 737 MAX and A321neo present new threats to US airlines.
  • Lack of vision and foresight are the US airlines’ own worst enemy.

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