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EXECUTIVE VIEW-Norwegian Air to cut costs with long-haul growth

OSLO, Oct (HKSE: 3366-OL.HK - news) 8 (Reuters) - Budget airline Norwegian Air will continue to slash costs as it builds economies of scale in its long-haul operation, Chief Executive Bjoern Kjos told an investor conference on Thursday.

He made the following comments:

ON COSTS

"We aim to further reduce our costs, that is at the top of our list. Long-haul will reduce the cost.... We will have the ability to cut costs by up to 15 percent, or maybe more ... but then we need scale.

"It (Other OTC: ITGL - news) 's on long-haul we could reduce costs further. We only have eight (Boeing (NYSE: BA - news) ) Dreamliners today. We'll have a total of 19 at the end of 2018 and we could easily fly up to 40-50 Dreamliners. I could easily put 40-50 Dreamliners into the market we see today.

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"When we launch (Boeing 737) MAX8 planes in 2017 you will see them flying across the Atlantic.

"We will utilise our own feeder network, use our own network of 430-440 routes, and probably 450 at that time."

ON POTENTIAL PARTNERS TO FEED NORWEGIAN'S LONG-HAUL NETWORK

"I will much rather work with Ryanair, that has 1,500 routes, than with an airline that has 100 routes. So if I should select a partner, I would obviously go for the network and airline with large network that I can utilise as a feeder operator for our long-haul operation. That is the simple strategy for Norwegian going forward." (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)