Norwegian intercontinental flights back on agenda, SAS to counter with new plane order?

Few years ago Norwegian Air Shuttle ASA (OSE: NAS) said it was going to challenge incumbents such as SAS (OMX: SAS) and Finnair (OMXH: FIA1S) on cross-continental flights. As far back as in 2009 the company had applied to start routes to Bangkok and New York. Already then the company envisioned using new more fuel efficient aircraft to be able to compete on price. Since then there had been delays with new aircraft and other uncertainties that have delayed these plans.

Now it seems the implementation phase is about to begin. A fw months ago the company placed a massive order for new planes. Finnish newspaper Talouselämä interviewed CEO and major owner Bjørn Kjos. He told the paper that the company will start long-distance flights with a Stockholm-Bangkok route and will then add Oslo-New York to its offering. He boasts that these will be priced so competitively, that customers will prefer to transfer. No matter what, these are unlikely to start this year. It has previously been speculated, that Norwegian might spin-off the international flights into a separate public company.

SAS, which has been in the news over a pilot appearing to work drunk, plans to strike back on European routes. According to an article in aftenbladet.no, SAS plans to renew its fleet while its refocuses on profitable routes. The company would have up to 60 new planes over medium to long term with the bulk of its fleet consisting of the newest Boeing 737s and Airbus A320neos.