Two months after Norwegian suspended long-haul flights and laid off 2.100 employees, a new airline has revealed plans to enter the market for low-cost airlines in Norway. Norse Atlantic Airways aims to start service by the end of 2021, connecting destinations such as New York, Los Angeles and Miami in the US with European cities such as London, Paris and Oslo.
If the business model seems too familiar, this is because the main investor in this project is industry veteran Bjørn Kjos, the Norwegian co-founder, who oversaw the company's rapid expansion into the transatlantic market. He resigned as CEO of the airline in July 2019, as part of a restructuring.
Kjos teamed up with Bjørn Kise, who was president of the carrier for six years - until 2002, and Bjørn Tore Larsen, co-founder of OSM Aviation. "We now have a historic opportunity to build a new airline", said Larsen, who is also CEO of Norse Atlantic Airways. "When the world reopens, there will be a need for an innovative low-cost airline in the intercontinental market."
There are talks with the landlords to rent 12 Boeing 787 aircraft.
The founders of the new company stated that they are in talks with the landlords to rent 12 Boeing 787 aircraft that belonged to Norwegian. "We have knowledge in the industry and we have already rented 9 787 Dreamliner aircraft, modern aircraft that are in very good condition. Norse Atlantic Airways will offer passengers the opportunity to travel between continents at a reduced price. ”
According to a report by the Norwegian publication Dagens Naeringsliv, Norse Atlantic Airways has already raised $ 24 million from investors and aims to list its shares on the Euronext Growth in Oslo in April. Larsen owns 63% of the new airline, while Kjos and Kise own 15% and 12%, respectively.
Although the details of the Norse Atlantic Airways network have not yet been confirmed, the airline will no doubt try to fill the gaps left by Norwegian in terms of services between Europe and the US, once the travel restrictions imposed globally allow it. Norwegian announced its long-distance exit in January, saying the continuing uncertainty in demand caused by the pandemic means its operations are no longer viable.