Bjorn Kjos

While what he’s doing in Europe is impressive – Norwegian is now the second largest airline in Scandinavia, the third largest low-cost airline in Europe, the 10th largest airline in Europe and the 10th largest low-cost carrier in the world – I found his take on Asia very interesting and shows the shift in the world today as attention focuses on our part of the world.

What keeps Kjos, who is also co-founder and majority owner of the airline, engaged is not the legacy carriers of Europe or his European low cost rivals but the emergence of Asian airlines such as Air Asia and Scoot, or Jetstar and Cebu Pacific.

Here’s what he says in this extract from the article.

“The Asian airlines operate with costs that are half that of Emirates and a third of Lufthansa’s,” he says.

Currently, there are competition restrictions in place that prevent them from competing head-on with incumbent carriers in Europe and North America, and “airlines that aren’t competitive will lobby to prevent them from coming”, Mr Kjos says.

But that, he insists, would be futile.

Currently, nine out of 10 passengers on flights between Europe and Asia are European, but in a decade or two, that picture will have been reversed, Mr Kjos predicts.

“The wave will come from Asia, where the new competitors are, not the other way around as it is today,” he says, predicting that this will soon result in a global Open Skies agreement that will in effect remove any measures that currently keep the Asian rivals out.

“The influx from Asia offers enormous potential in terms of mass tourism and thousands of jobs. The flow will be so large, you simply cannot afford to stop it, so politicians won’t say no to global Open Skies merely to save a few airline jobs.”

To make sure Norwegian stays in the game, Mr Kjos has decided to compete in the low-cost long-haul market, initially with direct flights from Scandinavia to New York and Bangkok, then over time through a yet-to-be-established Asian subsidiary.

“We’re saying it’s way too expensive to fly long-haul today, and we’re doing something about it,” he says.

“Asian low-cost carriers will dominate the fast-growing low-cost long-haul sector, so if you’re going to compete in the future, you have to do like the Asians. You have to be there,” he continues, pointing to the importance of cost-cutting.

Mr Kjos’ vision – accompanied by statements such as “in Asia, people in aviation have a tenth of the salary in Scandinavia” – has created tension with both pilots, cabin crews and even the government at home, where he has been accused of social dumping, but he insists he has no choice.

“There has to be a reshaping of Western airlines, otherwise we will be outcompeted by the Asians,” he says, dismissing his critics.

“They can’t see what’s coming. They don’t want to see it.”