Originally Posted by
Joachim
Undercutting is something big companies do to small companies in order to maintain monopoly. It requires sufficient capital to outlive the rival. Do you really think that the startup Norwegian, with all its financial burdens, is trying to win a war of attrition against the legacies combined? Of course not. What Norwegian is offering is an opportunity for the middle classes of the world to be able to fly internationally much like the LCC's did domestically decades ago. Norwegian is creating jobs and offering TATL flights to people who could not afford them before. This is as noble a cause as any and is something that greatly benefits middle America who is otherwise considered to be less well traveled than their European peers.
Legacies are now creating high density configurated cabins on TATL flights in response to DY. Who is undercutting who?
I would have no issue with your post if Norwegian offered the flights at a fare where they could make a reasonable sustained profit. Clearly that’s not the chase. Had fuel not dropped like a stone the last 60 days we would be reading about the shutdown of the long haul division.
Which legacies are creating long haul high density cabins?