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Old Sep 16, 2017, 5:18 am
  #7  
corporate-wage-slave
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I suspect this is BA's worst nightmare - that is to say when passengers to the USA walk from WTP to Norwegian. Assuming, that is, the BA higher priced WTP seats also remain unsold. That said, the cheapest WTP seats to SEA next year are going at £821 return (no refunds, £150 change fee), rather than £2k, which I presume must have some hefty date constraints.

I can see a bit of evidence on BA's LGW services to the USA that they keep half an eye on Norwegian's prices, but it only goes so far. For example the core principle of separate pricing for each leg on Norwegian is up against the Saturday Night rule on BA, and BA will want to maintain that rule as much as they can, since it is used to separate business and leisure markets. There is also the fact that BA extracts more money from USA based travellers - via higher fares originating in the USA - which also gets subverted by Norwegian's more open model. BA is also competing in terms of adding seats and thereby depressing prices.

Up to this point BA at LHR doesn't appear to be influenced by LGW's markets, but it is very influenced by what Delta is doing. However if BA does perceive that it is losing out then there are tools open to it which aren't open to LCC (e.g. BAEC specific offers such as 2-4-1 style promotions).

It will certainly be interesting to see where this increased competition on BA's most valuable part of its network is going to take us.
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