The low-cost flight Rome-Boston and the triple challenge of Alitalia in the United States

Norwegian Air launches a new challenge for Alitalia for flights to the United States. After March 31, 2019, Europe's largest low-haul long-haul long-haul flight will provide Rome-Fiumicino-Boston flight four times a week. This is what announces the Norwegian carrier in a note thus confirming his arrival. in another US airport where Alitalia already operates and with fares, for each connection, "from 189.9 euros TTC". As always in the business model from this type of airline, all the rest must be paid extra, from checked baggage to food on board. Also understand the type of aircraft that will be used – which for the moment is not confirmed – even though the intercontinental flight fleet is made up of the Boeing 787, while Alitalia uses the same. Airbus A330.

Flows

During the upcoming summer season (which will begin in late March in aviation), low-cost long-haul transportation from Italy will serve four US destinations and all from Rome: New York / Newark, Los Angeles, San Francisco / Oakland and Boston. Three of them – New York, Los Angeles and Boston – are in direct competition with Alitalia. According to Norwegian Air, according to information from Norwegian Air, in the last twelve months, 23,200 of the 56,600 pbadengers departing from Rome took off from Rome to Boston, took a seat on a direct flight, while that the other pbadengers stopped in London, Frankfurt, Dublin or an American city ". In 2017, the national body of civil aviation, Enac, estimates 118,827 the number of pbadengers who have traveled between the two cities.

Nothing to use from Milan (for the moment)

Milan, an important market for the presence of a high proportion of business travelers, remains outside the low-cost intercontinental connections sector. After announcing the Malpensa-Los Angeles flight, Norwegian Air decided to cancel it just before the start of operations, thus repelling the twelve-month inauguration. But it will not be like that. "Unfortunately, the Milan Malpensa-Los Angeles route will not be available in June 2019," the airline said. mail. "Boeing 787 engine problems are taking longer than expected, which means that in real terms, Norwegian Air has a smaller long-haul fleet than expected for next year. This involved not only Milan, but also Rome, Madrid and Barcelona, ​​with the suspension of connections to Miami / Fort Lauderdale.

Revenues in Italy

The United States is the second largest market for Norwegian Air, with the carrier accounting for 17% of its revenues in the third quarter of this year after Norway, while in Italy, the same voice accounts for 2%, according to financial documents. filed by the airline. Throughout 2017, the same documents reveal that flights to and from Italy generated a total of 587.7 million Norwegian kroner, or 63.06 million euros given the official average exchange rate of the last year of the Bank. Central Europe. Revenues increased by 42% compared to 2016, while revenues in the Italian market amounted to 44.4 million euros.

The carrier's accounts

But the expansion of connections and the fleet has put in trouble the finances of the company that recently had to review its investment levels, optimize routes, reduce costs and seek cash through the sale of Aircraft: with the first 6 Boeing 737-800 sold in late August, Norwegian Air aims to sell up to 140 aircraft. Account improvement operation well seen by Iag (the British Airways, Iberia, Vueling, Aer Lingus and Level holding company) which has already made two proposals – rejected – for acquisition. Iag sees Norwegian Air as a carrier that could become strategic for future development plans, both in Europe and between the two shores of the Atlantic.