Dreamliner a game changer for Norwegian

[OSLO] Norwegian Air CEO Bjoern Kjos was on his way to Thailand last month to celebrate the opening of his budget-airline base, but instead got a lesson in why many low-cost carriers have failed in the long-haul market.

As mechanics beavered away to fix his brand new US$212 million Boeing 787 Dreamliner, he watched the hours tick by, knowing he would miss the party in Bangkok. Norwegian's first two Dreamliners broke down more than a dozen times in September, forcing it to lease planes or cancel flights. A full-service long-haul rival, typically part of a big alliance, could have called for back-up from its allies.

The Nordic carrier this year became the only European budget airline to take on long haul, arguing that the Dreamliner, with a 20 per cent fuel saving, made it possible. Others, including carriers which have made a success of low-cost long-haul in Asia, doubt the business model for Europe, and are waiting to see how the experiment turns out before following suit.