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Monday, 17 July 2017 12:13

How foreign airlines are shaking up the trans-Atlantic market for the better

Written by  Tom Rogan

In June, Norwegian Air began flying from the United States to Europe. Its tickets are about half the cost of U.S. airlines flying the same routes.

Norwegian Air now joins Iceland-based WOW air (which flies connections through Reykjavik) in the transatlantic affordability market.

Yet breaching this market is no easy road because of the major added costs. Airliners, mechanics, cabin crew, and fuel that go into flying across the Atlantic ocean, are causing Norwegian Air some growing pains. Norwegian Air's falling stock and the recent departure of its CFO attest to this reality.

Still, the arrival of Norwegian and WOW to America are manifestly positive developments. By innovating at every level of the transatlantic flight paradigm, the airlines are shaking up U.S. based carriers. They are forcing big names like Delta, United, American, and British Airways to reform or risk losing their dominant market share.

However those airlines chose to respond, trans-Atlantic airline ticket prices are heading one direction: down. And as Conde Nast notes, quality of service (accounting for seat prices) is going the opposite direction: up.

Of course, the big airlines aren't happy about this. And behind the scenes, they've been waging an effort to prevent foreign competitors from breaking their cozy oligopoly.

Read more at The Washington Examiner

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