Chapter 1561 Low-Cost Airline Ocean Plan 2

Because of Yang Cheng's capital injection, Norwegian Air has just cleared its debts, but it is clear that Bjorn is not satisfied with the stable state of being debt-free, and has to win something, such as becoming the world's largest low-cost airline?

Yang Cheng's entry successfully freed Norwegian Air from its debt crisis, and it also had more funds for expansion, while Bjorn's ambitious long-distance route plan was also included in the agenda.

Calling Schuberg to Norway for a personal interview is also to win the consent of the major shareholders!

According to Bjorn's plan, Norwegian Air can provide transfer services for passengers going to other parts of Europe by using London Gatwick Airport as a transfer point. Passengers flying from Singapore to London can transfer to Northern Europe through Norwegian Air's route. In the same way as Spain, Norwegian Air can also attract passengers from Northern Europe, Southern Europe and even North America to fly to Singapore via London.

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

Will they let it go? Anyway, Yang Cheng would definitely not be able to bear it, and would use particularly brutal countermeasures, such as opening a flight from Singapore to London Gatwick Airport right after, in order to attack Norwegian Air?

Or, could Singapore Airlines consider letting its long-haul low-cost subsidiary compete with Norwegian on a London route?

The more Yang Cheng thought about it, the more likely it was. She took a sip of her coffee and asked, "Once the low-cost subsidiary in Singapore is used to compete with Norwegian Air, what chance do you think Norwegian Air has of winning?"

This time, Schuberg did not give an answer right away. After thinking for 5 minutes, he said, "Without our intervention, the chances of winning are less than 10%. The odds of winning are close to 50 percent.”

Yang Cheng is not a professional in the aviation market, so he is willing to believe what Schuberg said, and he frowned, "The chances of winning are not even half?"

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

"Based on it?"

"Singapore Airlines' low-cost airline, Scoot, has planned to launch four flights a week next year - flights between Singapore and Athens, Greece, which are expected to use Boeing 787-800 models.

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

Yang Cheng realized that Norwegian Air’s predicament was not limited to this, “British Airways will not sit still and watch Norwegian Air snatch its own customers.”

Schuberg nodded, "Yes, they've put capacity on transatlantic routes that Norwegian is trying to attract transit traffic, such as London to New York JFK, Oakland and Florida.

For Norwegian, the launch of the Singapore-London route marks the first expansion of long-haul, low-cost operations into the Asian market.

But for other airlines, this is robbery. They will not sit back and watch Norwegian Air expand without resistance. As far as the business layout of intercontinental long-distance routes is concerned, they must either retract their tentacles and develop steadily on European short-range routes, at most allowing them to cross the Atlantic Ocean. "

Yang Cheng sighed. Low-cost airlines may face pressure from various aspects when they step out of the short-haul aviation market they are familiar with. It is bound to usher in a head-on blow from traditional opponents, and if you want to survive the enemy, you have to die!

However, small companies, including Norwegian Air, not only have to be hit by traditional forces in new fields, but also face challenges from their inherent self-discipline.

When you are coveting other people's wives, have you ever thought that your own wife is already sleeping with other men?

Yang Cheng looked at Schuberg, "You just said that with our support, Norwegian Air still has a nearly half chance of winning, which means you have a way to help Norwegian Air get out of its current predicament?"

Schuberg hesitated, "There are indeed some methods, but I'm not sure whether they will work well."

"Tell me~"

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

WestJet Canada decided to add a maple leaf to their corporate logo last quarter because they realized that it is necessary to improve the company's relevance to Canada in the international market.

Just three months later, the new logo is five times more relevant to Canada than the previous logo.

Of course, changing the logo is only a small change made by low-cost airlines when they enter the long-haul low-cost market, but it may serve as a fulcrum for tilting the earth.

Low-cost airlines starting to operate long-haul routes must struggle to adapt to the new market environment.

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

However, once the flight exceeds 4 hours, the situation may change, passengers need meals, more luggage, provide comfort service, and even request a layover connection.

These are the key points that can attract a lot of passenger traffic by improving service standards, such as offering a series of value-added services, including personal care kits that passengers pay for, which will also help airlines increase value-added service revenue.

However, low-cost airlines who are accustomed to the short-haul market often ignore the needs of passengers unconsciously. While trying to provide passengers with a better service experience, it is a good balance to increase revenue from value-added services. Meeting the correct needs of passengers becomes more and more important.

Norwegian Air needs to further improve in this area, but Bjorn's eyes are all focused on the route benefits, and he pays little attention to the improvement of details. "

Yang Cheng nodded thoughtfully, "Is there any more?"

"Based on my many years of experience, the probability that passengers traveling intercontinentally for the first time will usually choose long-range low-cost airlines is not low. Norwegian Air can focus on some of these groups, such as targeting backpackers and self-funded visits to relatives and friends. remote traveler.

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

In addition, Snapchat, Tinder, Uber and other popular online tools can be used to attract passengers who love new technologies, and on MS short videos, videos of flight attendants singing and dancing can be released to boldly introduce crew members to passengers, etc.

Similar small marketing methods, as long as someone thinks about them, may actually be turned into passenger traffic, it depends on whether Norwegian Air is willing to spend energy on marketing in this market. "

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