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-   -   Long Haul ULCC Potential here? (https://www.airlinepilotforums.com/spirit/112624-long-haul-ulcc-potential-here.html)

WHACKMASTER 04-03-2018 04:58 AM


Originally Posted by sailingfun (Post 2563859)
I gather you have not been following Norwegian. They are losing their ass on the long haul. Many are starting to question how long they can sustain their losses.

Hopefully not much longer.

sailingfun 04-03-2018 05:16 AM


Originally Posted by ropestart (Post 2563867)
True, but they are growing very quickly so that can be expected. 787’s are being added like wildfire with the seats going empty. Doesn’t mean they won’t be for long, just adding more compasity. Granted, I do give you they are losing loot. The ULCC model will work long haul if managed correctly, just need the right management.

It’s been tried many times. The problem with ULCC long haul is you can’t generate the cost savings over traditional airlines. Customs and catering dictate turn times. Aircraft are expensive. There is only one place to get a significant cost advantage. Take it from labor.

Andy 04-03-2018 07:18 AM


Originally Posted by WHACKMASTER (Post 2563873)
Hopefully not much longer.

Norwegian makes money in the summer. They lose money the rest of the year. They shouldn't have problems getting through this summer, as they just completed a private placement. I'm not optimistic about their existence 14 months from today.

Andy 04-03-2018 07:25 AM


Originally Posted by sailingfun (Post 2563882)
It’s been tried many times. The problem with ULCC long haul is you can’t generate the cost savings over traditional airlines. Customs and catering dictate turn times. Aircraft are expensive. There is only one place to get a significant cost advantage. Take it from labor.

Bingo. And legacy transatlantic tickets are already cheap.

This pretty much sealed the company's fate: https://www.businesstraveller.com/business-travel/2017/03/31/sir-freddie-laker-feature-norwegians-b737-max-tail-fins/

Qotsaautopilot 04-03-2018 08:59 AM


Originally Posted by Andy (Post 2563970)
Norwegian makes money in the summer. They lose money the rest of the year. They shouldn't have problems getting through this summer, as they just completed a private placement. I'm not optimistic about their existence 14 months from today.

I hope they tank and that none of their pilots find work elsewhere. Flag of convenience must die

Egg320 04-03-2018 10:42 AM


Originally Posted by Qotsaautopilot (Post 2564053)
I hope they tank and that none of their pilots find work elsewhere. Flag of convenience must die

Not a very nice thing to say about your fellow pilots who are just supporting their families and causing absolutely no problems for you, your wage package or career at all.

it is not a flag of convenience carrier either. They are using an European Union AOC and American carriers due to open skies agreement can open bases in Europe if they so choose and fly point to point in Europe which EU carriers cannot do in the US.

Open skies allows EU carriers and US carriers to fly between any two points in Europe and the US and the agreement is actually more in the US carriers favour.

So this argument that they are a flag of convenience and causing job losses in the US and wage reduction is an absolute rubbish argument.

Its called competition and to wish your fellow pilots a failed career which results in their families suffering is pretty pathetic!

svergin 04-03-2018 10:54 AM


Originally Posted by ropestart (Post 2563856)
I could absolutely see this happening. Norwegian was seriously underestimated as well as Azul. Spirit literally can do anything they want....If money can be made,they will do it.

You do realize that by becoming a ULCC long haul airline you are taking pilot jobs from airlines that would be hiring you. If you want to stay there your entire career, go for it.

sailingfun 04-03-2018 10:55 AM

I guess if the tax laws were the same across the EU I would agree with you. They are however not hence the reason people have issues with their business model.

svergin 04-03-2018 10:59 AM


Originally Posted by Egg320 (Post 2564156)
Not a very nice thing to say about your fellow pilots who are just supporting their families and causing absolutely no problems for you, your wage package or career at all.

Absolutely untrue. Any pilot flying to put other pilots out of business by flying well below market rates, like NAI Captains flying for $10 per month, are 100% hurting all of us. Not much different than scabs really. Its the first thing we hear during contract negotiations when we talk about pay and work rules.

Egg320 04-03-2018 11:15 AM


Originally Posted by svergin (Post 2564166)
Absolutely untrue. Any pilot flying to put other pilots out of business by flying well below market rates, like NAI Captains flying for $10 per month, are 100% hurting all of us. Not much different than scabs really. Its the first thing we hear during contract negotiations when we talk about pay and work rules.

Scabs my ass!! A scab is when you go on strike and they step into your shoes and do your job.

NAS is a LCC where as UA/AA are major legacies with completely different business models.

Legacies make money of their premium product and cargo so your argument does not hold water. As NAS has no business or first class they are not affecting your rates at a legacy.

UA for example are only competing with NAS with regards to economy seating and that boils down to just basic competition. US majors need to stop whinging all the time and improve their product.


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