Norwegian Air Shuttle ASA the only budget flights between London and Singapore will end in January will scrap the flight route by January 2019, only a little more than a year since it started operation.
The only budget flight’s customer booking line noted that the last flight from Singapore to London will be on 11 January whilst its website shows no more flights for the route beyond it.
A London to Singapore flight in November using the airline will cost $286.54 (US$208) which is lower compared to the cheapest flight for the same route with British Airways which costs $460.26 (US334.10).
The impending pullout of the flight brings to the table the concern of long-haul, low-cost aviation as fuel prices surge. At about $110.21 (US$80) a barrel, Brent crude oil has almost tripled from a 2016 low.
Norwegian was betting denser seating and the lower operating costs of the Boeing Co. 787 Dreamliner would help it steal passengers from costlier rivals such as British Airways and Singapore Airlines Ltd.
After expanding its fleet and failing to adequately hedge against rising fuel prices, Norwegian has been stepping up efforts to rein in a stretched balance sheet. Chief Executive Officer Bjorn Kjos is now in the process of scaling back expenditure and cutting costs.
Sources: Bloomberg, sbr.com.sg