Not long after Norwegian bowed out of the low-cost long-haul market, a new competitor has emerged to fill the gap – and features the same founder member. Yesterday Norse Atlantic Airways reveals low-cost long-haul plans for flights, utilising 787 aircraft, between Europe and the US, using 787s. The new airline is headed by investor entrepreneur Bjørn Tore Larsen, as well as key investors Bjørn Kjos and Bjørn Kise. The three have secured shares in the new company worth $24 million.
“We now have a once-in-a-lifetime opportunity to build a brand-new airline from scratch. As the world reopens, the public needs an innovative, low-cost intercontinental airline with modern, more environmentally friendly- and fuel-efficient aircraft. We have industry knowledge and have secured modern Dreamliners at very good terms. Norse Atlantic Airways will offer people the opportunity to travel between continents at affordable fares,” said Bjørn Tore Larsen, the company's founder and CEO.
Norse Atlantic Airways plans to initially fly serve destinations such as New York, Los Angeles, Miami, London, Paris, and Oslo. The plan is to expand the route network to include destinations in Asia as more Dreamliners enter the fleet. But it says, “growth will be based exclusively on demand and profitability”.
“International tourism has been hit hard by the pandemic, and the market for intercontinental flights is currently almost gone. But a new era is coming as the global vaccine program is completed. People will once again go on vacation, visit friends and family, and travel for business. Norse Atlantic Airways will be there to offer attractive and affordable flights to the leisure traveller and the cost-conscious business traveller said Larsen.
CEO and founder Bjørn Tore Larsen is also co-founder of OSM Aviation and has brought on fellow co-founder and CEO of OSM Espen Høiby as Chief Operating Officer for the new airline. Chief Financial Officer is James Lightbourn.
Bjørn Tore Larsen owns 53% of the shares through his company BT Larsen & Co Ltd in addition to 10 percent owned by BT Larsen and affiliates. Bjørn Kjos holds 15% and Bjørn Kise 12% of the shares. The company will be listed on Euronext Growth on the Oslo Stock Exchange in April. The statement from the company indicates that the investor community has already “expressed great interest in the new airline”. Pareto, Arctic and Sparebank are financial advisers.
Norse Atlantic Airways states that it will “focus its efforts on being low-fare and low-cost, with a lean management team and administration and global partnerships”. Its new Dreamliner aircraft are leased at what it describes as “favourable rates” and which have a high cabin utilization that the airline says, “will help keep costs down and ensure its customers attractive offerings at low fares”.