Virgin Atlantic’s chief executive Craig Kreeger expects a fall in transatlantic fares once Norwegian Air expands its services from Europe to North America.
Virgin competes aggressively with Norwegian already but Kreeger is aware that the Arline has big growth plans and predicts the airline to have a major impact on the transatlantic market. “We need to - and we do - take them very seriously,” he told the Irish Times.
Norwegian Air is still waiting for the final clearance from the US authorities for its foreign carrier’s permit, which would allow it to finally launch its much-delayed Cork to Boston service.
Although Virgin Atlantic returned to profit in 2014, and is operating more efficiently thanks to the presence of shareholder Delta Air Lines, but it is still behind British Airways in the transatlantic market, which could route more services through Dublin thanks to IAG’s purchase of Aer Lingus last year.
Kreeger also confirmed that the airline is nearing a final decision on its 747 fleet replacement, which is a toss up between to be the 777-300ER and the 787-10 as well as the A350.