Chapter 1561： Low-cost Airlines Ocean Plan 2

Norwegian Airlines has just emptied its debts because of Yang Cheng’s capital injection, but it is clear that Bjorn is not satisfied with a stable state of debt-free and light weight. What must be done, such as becoming the world’s largest budget airline?

Yang Cheng’s entry successfully freed Norwegian Air from the debt crisis and also had more funds for expansion. Bjorn’s ambitious long-range route plan was also included in the agenda.

Calling Schuberg to Norway for an interview in person is also to win the approval of the major shareholders!

According to Bjorn’s plan, Norwegian Air can provide transit services for passengers going to other parts of Europe through London Gatwick Airport. Passengers flying from Singapore to London can transfer to Northern Europe through Norwegian Air routes. For the same reason as Spain, Norwegian Air can also attract passengers from Northern Europe, Southern Europe and even North America via London to Singapore.

For Singapore Airlines and British Airways, once Norwegian Air confirms its expansion, new competitors in this market will undoubtedly bring some new pressure on their revenue on this route, especially for direct passenger sources. .

Will they give up? Anyway, I can’t bear to switch to Yang Cheng, and will use particularly crude countermeasures, such as following closely, opening flights between Singapore and London Gatwick Airport to snipe Norwegian Air?

Or, Singapore Airlines can consider letting its long-distance low-cost subsidiary open a route to London to compete with Norwegian Airways?

Yang Cheng thought about the greater the possibility, took a sip of coffee, and asked, "Once Singapore's low-cost subsidiary is used in the competition with Norwegian Airways, what chance do you think Norwegian Airways has?"

This time, Schuberg did not give an answer immediately. He thought for 5 minutes and said, "If we did not intervene, the odds of winning would be less than 10%, but if Delta Air Lines, Korean Air and Dongfang Airlines, which have equity shares, join the battle, The odds of winning are approaching 50%."

Yang Cheng is not a professional in the aviation market, so he is willing to believe Schuberg's words and close his brows. "The chance of winning is not half?"

Schuberg shook his head, "This is still an optimistic estimate~"

"What's the basis?"

"Scoot, a low-cost carrier under Singapore Airlines, has planned to open four flights a week between Singapore and Athens, Greece next year. It is expected to use the Boeing 787-800.

With the first European navigation point, the second one will not be far away. Their goal is obviously low-cost airlines that intend to enter the Asia-Europe route, not just for Norwegian Airlines, although because Bjorn is in Many statements in public have made Norwegian Air a target of public criticism. "

Yang Cheng realized that Norwegian Air’s predicament was more than that. “British Airways will not just wait and see Norwegian Airways rob its customers.”

Schuberg nodded, "Yes, they have already invested capacity to compete for the source of passengers on the transatlantic routes that Norwegian Air is trying to attract transit passengers, such as the routes between London and New York's Kennedy Airport, Oakland Airport and Florida Airport.

For Norwegian Airways, the opening of the Singapore-London route marks the first time that it has expanded its long-distance low-cost operations to the Asian market.

But for other airlines, this is robbery. They will not sit back and watch Norwegian Air’s unrestrained expansion, and will inevitably strike at its original site, forcing Norwegian to break its own arm or adjust its focus of operation. When it comes to the business layout of intercontinental long-distance routes, they must either retract their tentacles and develop steadily on short-haul European routes, allowing them to cross the Atlantic at best. "

Yang Cheng sighed. Low-cost airlines may face pressure from many sources when they step out of the short-haul aviation market they are familiar with. This is just a microcosm of the global business community. No matter what field, small companies or even giant companies want to get out of their comfort zone. It is bound to usher in a head-on attack from traditional opponents. If you want to live an enemy, you must die!

But small companies, including Norwegian Airways, will not only suffer from traditional forces in new areas, but they will also encounter challenges from their enemies. When you are coveting other people’s wives, have you ever thought about your own wife already lying? Other men*?

Yang Orange looked at Schuberger, "You just said that Norwegian Air has a nearly half chance of winning with our support, and that means you can help Norwegian Airways out of its current predicament?"

Schuberg hesitated, "There are indeed some ways, but I'm not sure whether it's good or not."

"Talk about it~"

"For low-cost airlines, quick response to passenger requests is the key to success.

WestJet Canada decided to add Maple Leaf to the company's logo last quarter because they realized that it is necessary to increase the company's relationship with Canada in the international market.

In just three months, the new logo’s relevance to Canada has increased by 5 times compared to the previous logo.

Of course, changing the logo is only a small matter of the changes made by low-cost airlines when they enter the long-distance low-cost market, but it may play a pivotal role in lifting the planet.

Low-cost airlines must work hard to adapt to the new market environment when they start operating long-distance routes.

In the short-haul market, many low-cost airlines can make a profit only through low fares, which are usually the main products of low-cost airlines.

However, once the voyage exceeds 4 hours, the situation may change. Passengers need meals, more luggage, provide comfortable services, and even require transit connections.

These are the key points that can attract a large amount of passenger traffic by improving service standards, such as providing a series of value-added services including personal care packages that passengers spend money to buy. These measures will also help airlines increase their value-added service revenue.

However, low-cost airlines that are accustomed to the short-haul market often unconsciously ignore the needs of passengers and try to provide passengers with a better service experience. At the same time, increasing revenue from value-added services is a good balancing method to meet the correct needs of passengers. more and more important.

Norwegian Airlines needs to further improve in this regard, but Bjorn’s eyes are focused on the benefits of the route, and very little attention has been paid to the improvement of details. "

Yang Cheng nodded thoughtfully, "Any more?"

"From my many years of experience, the probability that passengers who travel intercontinentally for the first time will usually choose long-distance low-cost airlines is not low. Norwegian Air can focus on some of these groups, such as targeting backpackers and visiting relatives and friends at their own expense. Remote travelers.

Norwegian Air provides them with cheap tickets and attracts passengers to travel in Norway for free.

In addition, you can also use popular network tools such as Snapchat, Tinder, and Uber to attract travelers who love new technologies, and post videos of flight attendants singing and dancing on MS short videos to bravely introduce crew members to travelers.

Similar small marketing methods, as long as someone thinks about it, they can actually realize passenger traffic. It depends on whether Norwegian Airways is willing to spend energy on marketing in this market. "

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