Contestable Markets: Norwegian Airlines takes on… | tutor2u Economics
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Contestable Markets: Norwegian Airlines takes on the Transatlantic Carriers

This is a quite superb article for students wanting a great example of an increasingly contestable market - namely transatlantic travel. Can the fast-growing Norwegian Airlines achieve commercial sustainability in a battle against established rivals? They have just announced a hefty loss for 2017.

Having flown from Gatwick to Boston last year I can confirm that Norwegian's use of the Boeing 787 Dreamliner aircraft provides an economy experience that is a cut above what we have come to expect from flying EasyJet or RyanAir to the Med! Norwegian uses the standard tactics of flying into airports where landing and take-off slots are cheaper and obviously seeks to make as much ancillary revenue as they can from fees for checked-in baggage, seat reservations and on-board food and drink. Michael O'Leary, CEO of RyanAir has claimed that Norwegian will go bust - a case of hope over fear?

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