(Almost weekly) tongue in cheek take on business, tech and brand. #robertsrants
Wizz Air Taking Over Norwegian Airspace basically on the same day that some old airline descendants decide to go rogue and start a — you guessed it, new airline.
A middle of pandemic, travel industry in a death grip, airline. Actually – Two of them. Really?
If you are a traveller caring about getting to your aunt’s house in Trondheim for $20, or you are one of the four business people left that actually fly somewhere national for a meeting – this might play out to your advantage.
It does seem like a well orchestrated attack on the legacy players in the space as well though.
Is this normal market movement or are we witnessing a Zombie take-over that only the state can regulate going forward? And should it?
WizzBiz — cheap, easy, unethical?
It is simple really. Find a market that normally has one of the largest national airport (and usage) networks in the world. Wait until covid has the legacy players (read: SAS and NORWEGIAN) put airplanes on the ground, and staff on leave, and announce that you will now service this market at lower rates. Granted, the crew you will put in your airplanes is cheap (they don´t have jobs) and is not allowed to be unionized (or probably have any rights), and you are essentially putting another nail in the coffin of national airline carriers. One of the national symbols of pride and belonging. You are not really a country if you don´t have your own airline.
Let´s see if $20 per seat gets people to join Wizz. We already know the Norwegian prime minister will not…
Braathens Boys. Let´s start an airline. Again.
The conversation inside that dark blue suit male only board room must have gone a little like this:
“Airlines are really struggling these days”
“Yes, would be nice to start another one, would it not”?
“Well, we did it before!”
“Here´s a crazy thought: We register an airline, take over some leasing contracts of a half-dead airline at a fracture of the price and — and here´s the kicker, we get the state to give us part of their rescue package. We are a struggling airline after all aren´t we (slight grin)?”
“That´s it, let´s go! Announce it! Get on the phone with DN!”
Of course that´s probably not entirely how it went, but these activities beg the question if we are witnessing a full fledged market exploitation or just normal competitive business practices.
Looks like the customers will be the winners this time around.
If there are any, that is.