02/07/2014 World Business Report

BBC World News. Now for the latest financial news

with Sally Bundock in World Business Report.

Going the long haul. Norwegian is launching budget flights from Europe

to the US, but will it succeed where other low cost carriers have failed?

Use by, sell by or best before? Are supermarkets guilty of causing

unnecessary food waste on a grand scale?

Welcome to World Business Report. I'm Sally Bundock. Also in the

programme: As Indonesia gears up for elections, we hear what its Finance

Minister says about the challenges ahead.

In a few hours, a Boeing 787 Dreamliner will take off from

London's Gatwick Airport, heading across the Atlantic to Los Angeles.

The plane will be in the colours of the budget airline Norwegian. But

the flight represents more than just another new route for the

fast`growing Scandinavian carrier. It marks the return of lower`cost

long`haul travel. After success within Europe, Norwegian has done

its sums and believes it will succeed where many other carriers

have so far failed in cutting fares on much longer hops. Our European

business correspondent, Nigel Cassidy, reports.

Cheap and cheerful, no`frills flights across the Atlantic are not

new. It is more than 30 years since Britain's sir Freddie later took the

industry giants and failed in the attempt. Inventory 1982 his airways

was granted for good, if skytrain couldn't cope with skyhigh oil

prices and half empty planes in winter `` Laker. More recently,

one`time Malaysian music executive, Tony Fernandez, tried to get the

long haul low`cost flights started, though his plans were too thirsty to

make the economics work, flying routes from Asia to Europe. 2.5

years ago, he ended services to London and Paris. Now, Norwegian

hopes the Boeing 787 Dreamliner will allow it to succeed where its

predecessors failed. This week, it is flying to Los Angeles, New York

and Florida with London Gatwick. Fares won't be as low as air Asia

was aiming for. It believes that lower cost transatlantic travel,

with its trial from Oslo, could be sustainable `` Air Asia. US airline

pilot oppose the way the airline sets up subsidiaries in other

countries to recruit staff under local employment conditions.

Washington seems in no move `` mood for a train trade war. You can

expect more competitors to use the latest plans to cut fares between

continents. `` trade war. With me is Toby Nicol from the World Travel and

Tourism Council. He also worked for easyJet. They are offering a flight

from London to New York for ?150, $260. How good is it? It is a fair

deal. If you double that to make a return you get to ?300, $500. When

you add other bits and pieces, baggage, food and taxes of course,

you get relatively close to the cheapest available fares.

Particularly Virgin Atlantic, reddish airways, united American and

so on. It will depend on how many seats they have available `` British

Airways. As was outlined, others have tried this and they haven't

pulled it off. Will this business model succeed? They have every

chance for the reason that technology is now available to do

it. Starting with Freddie Laker in the 70s and everyone since then, the

planes have been too thirsty. The arrival of the Boeing 787

Dreamliner, in the industry, it is changing the economic of the

industry. If it can be 20% cheaper on fuel burn, that is a huge saving.

That is what will underpin the success or not. When you are at

easyJet, were they trying to make this happen? We never looked at it.

None of the major European airlines have looked at it. One of the things

keeping costs low in the low`cost airline is sticking to your

knitting. If you operate within Europe on flights up to 3.5 hours,

stick to that and don't change, don't get distracted by flying long

haul. That was what we always said. Norwegian frigate have cracked it.

We will watch with interest. All this week we're looking at the

food that gets wasted around the world and what can be done to stop

it. In the developed world, the biggest wasters of food is us, the

consumer at home. In Europe alone, we throw away millions of tons of

fresh produce a year, the average household in Europe wastes over

$1000 a year on food that is thrown away. Nearly 15% of this food waste

has been untouched and unopened because it has passed its sell by

date. Currently confusion over food date labelling is the root cause of

the majority of our household waste. So what can the consumer need to do

so it wastes less food? Chloe Hayward reports.

What would you like? Lunchtime in this household. Carrots? She tries

hard to not waste fruit and vegetables. Once it is past its sell

by date, it ends up in the bin. It has gone soggy and is past its sell

by date. Since having children, I am more cautious about what I see

them. I wouldn't want to get the kids seek. If you are past a sell by

date, it's so is a seed of doubt and with children you will obviously be

a little more cautious. Currently in the EU, 100 million tons of food is

thrown out every year. 15 million tons of that comes from households

that have thrown away goods past their best before date. Now, the

European Commission is trying to do something about that, cabling plans

to scrap compulsory best before dates on dried goods such as pastor

and rice and spread as well as condiments like these. They think

that without the best before date, food waste will be reduced

dramatically `` pasta. Despite the plans, supermarkets say that date

labels are important. Display until dates, use by date and best before

dates are subject to a level of confusion. We have to rotate stock,

so this is about stock rotation. Best before is to protect quality.

Use by Easter protector safety of the product. `` use by is to

protect. At this campaign, love food, hate waste, it is that

packaging should not confuse consumers but offer advice on how to

food better. Some of the work we have done is look at improved

storage advice on the pack. We store food by habit, we take our apples

out of the bag and put it in the fruit bowl, which is the worst thing

you can do. Having some information saying to keep it in the fridge in

its original packaging, it will mean you get two more weeks to use the

food. In the bid to avoid waste, Tara says planning is the name of

the game. On Monday, the children had sweet potato. She decides what

she will cook each week and adapt the menu depending on what will go

out of date. With a joint of ham nearing its best before date, it

looks like a healthy dinner for this boy tonight.

Very organised. Envy. A week from today, Indonesia goes to

the polls. A resource boom has begun to transform the country, making it

one of the next tier of developing economies expected to emerge onto

the world stage much as China and India did 20 years ago. It's got the

largest economy in southeast Asia, which grew at 5.8% in 2013, that

sounds a lot, but apparently it's not enough.Our Chief Business

Correspondent Linda Yueh is in Jakarta.

Nice to see you. Tell us more about the week ahead and the challenges

facing Indonesia. Behind me in Jakarta you can see the

business district, the mass of traffic jams, a big challenge for

the country. We spoke a moment ago about a 5.8% growth rate last year,

the slowest since 2009. You recall last year, Indonesia was considered

one of the fragile five economies at risk a potential crisis once the Fed

cuts back on cheap money. What that points to is that this is an economy

without the infrastructure or the support to all our bit to grow and

sustain a large middle class, which is the challenge for the

presidential contenders in the week ahead. Whoever wins this election,

when they go to the polls next week, they will have to do quite a lot to

transform an economy which has institutional problems, has relied

on a resource burden, investors have been waiting on the sidelines

because they see this fragility. On the other hand, Indonesia has the

fourth largest population in the world, smaller than the United

States, giving it a massive potential. To realise that, it will

take a transformation of the way that the government runs the country

and that is why there is a great deal at stake in these presidential

elections coming up next week. Back to you in London.

Thanks very much. She is with us throughout the morning from there.

That is all from World Business Report. See you soon. Thank you

Sally. We will look at the papers in a moment. Now though, Councils are

warning that financial pressures and growing demand are combining to make

social care services unsustainable. Here's our social affairs

correspondent, Alison