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Companies that have low costs and innovate during a downturn are always the ones to come out the strongest out of the downturn. By the time the big players "ret
by mtgx 9y ago
Companies that have low costs and innovate during a downturn are always the ones to come out the strongest out of the downturn. By the time the big players "return to normal" in an upmarket, those innovators are already in a much better long term position to take them on.
- corford 9y agoThis is definitely true although in Norwegian's case they also benefited from some lucky timing: the GFC happened to occur just as Boeing were developing new aircraft that would finally be capable of offering low enough ops costs for the LCC model to work on longer sector times. I doubt too that Norwegian foresaw how long oil prices would remain low when they made the order. Norwegian are where they are today thanks to: execution, vision, luck and balls. Just like all the other hyper successful businesses of the world (Amazon, Ryanair, Southwest, Netflix etc. etc.).