Explain the Biggest Challenges Norwegian Air Experienced in Trying to Expand Its Airline Across the Globe

1. Explain the biggest challenges Norwegian Air experienced in trying to expand its airline across the globe.

Norwegian Air challenges have been personnel, environment, and safety. The environment challenge would have to one of the biggest challenges of global expansion due to the increasing cost of fuel. The high cost of fuel is perhaps the most obvious issue facing airlines today, with many imposing fuel surcharges on customers. (irmagazie.com)

When oil prices soars Norwegian Air feared that they would go bankrupt due to the airline jets burning too gas.

Another challenge would safety; because of US regulations Norwegian Air are to higher standards for flight regulations for employees as well as passengers than they are in other countries.

Norwegian Air is in opposition in the US where domestic airlines are urging the federal government to reject their application of Norwegian Air International because its critics say the CFO can hire nonunion pilot and crew.

Also, safety of the airliners airplane, the Dreamliner’s have questioned, which US Federal Aviation stopped due to fire on lithium batteries until were fixed last year, the jets have been down for brake and pump problems.

(Kinkcki & Williams)

        References:

        Ian S. (2005, April )The problems facing the airline industry; April 1, 2005 by Ian Sax, A Report on Investor Relations in Troubled airline Industry, where the cost of the fuel is IR’s biggest challenge Retrieved from http://irmagazine.com

        Kincki & Williams B. (2016) Management A Practical Introduction Chapter 4

2. Identify examples of ethnocentric, polycentric, or geocentric attitudes in this case.               Explain why your selected examples illustrate these attitudes.

Ethnocentric managers are managers who believe that their native country, culture language, and behavior and superior all others. Surveys show problems recruiting and high turn over rates. Kjos, Norwegian’s Chief Executive Officer demonstrates this type of manager he displays in his hiring practices. They are reports they he is drafting in Spanish for flight attendants to operate Norwegian domestic flights, most of his staff is Scandinavia’s Also his management decisions of purchasing equipment in quantity not quality shows superiority. (economist.com)

Reports say Mr. Kjoj is moving too fast and in danger of losing is cuddly Richard Brandson like image and becoming a hated figured. He pays well sparingly. All these traits illustrate attributes of an ethnocentric manager. Kjos stops at no limit by         demonstrating this globally by pushing what he believes is US brand of South West, however it is not meeting US regulations.         

Reference:

The Economist Newspaper Limited, “Here come the Vikings” , European airlines April 27,2013, retrieved from http//www.economist.com