The Norwegian Effect

There can’t be much that rattles British Airways these days, other than the irritation of competitors nipping at its heels on the transatlantic market. Whilst 15% of BA’s worldwide capacity operates over the Atlantic, it contributes a much bigger share to profits.

Secure in its 39% share of London - US traffic, it’s interesting to watch the dance that takes place between the established market player and the newcomer as the latter seeks to establish some sort of presence and the established market player defends its turf.

When Norwegian started a winter service between Gatwick and Las Vegas in 2016, it undoubtedly saw Virgin, Atlantic, the only other operator on the route, as its competitor.

However, Norwegian’s move was enough to entice BA, which already operated Heathrow-Las Vegas, to add a direct year-round service from Gatwick in April 2018. For now, all three carriers seem to be making it work in terms of capacity and frequency but a look at yield might tell a different story.

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