Norway Denies Aid To Norwegian Air: Game Over?
Norwegian Air has been on the brink of liquidation since before the pandemic started, though suffice to say the current situation has only exacerbated issues.
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There was a time when Norwegian was pretty lucrative and if I'm not wrong IAG did bid for Norwegian, but Norwegian had turned it down, I bet they regret it now.
The Norwegian taxpayer helping to keep Norwegian flying from Paris to the US clearly makes no sense. However I would have thought that Norwegian provides good competition in Norway's domestic market which does benefit its citizens. Why not make Norwegian a domestic airline and when it's profitable, then think about expanding again.
Exactly. Norwegian should have allowed itself to be acquired by IAG. Too late. Buh bye.
Regarding competition in Norway, Norwegian has lost that argument a few weeks ago when WizzAir started flying domestic as well. WizzAir plans to expand over 2021 too. So there is competition in their home market even without them. Talk about wrong timing.
Let it go bankrup, the 95% owners, mostly international leasingcompanies and financing companies will lose some billion NOK on top of the 15 already lost. Restructure down to 12 planes for domestic service. No routes paid by the state and compete with others in equal terms domestic. The only way out. When their own shareholders refuse to finance it, the game is over. It should have ended 2018 with enormous debts and year after year with huge losses
In their defense, they had a lot of bad luck between the 787 engine issues and then the MAX. They did over-expand, and too quickly. It's a shame - they were a really fun airline and even for being a LCC, it was a pleasant experience. Being in the NY area, I loved flying them out of Stewart.
Even though I sympathize with their employees, Norwegian’s downfall is long overdue
Why should taxpayers subsidize cheap flights? Since deregulation the airline industry constantly
shoots itself in the foot. There's the business model to fill seats at any fare and hope that one can fill the plane to brim, generate enough in fee income and non flying revenue and cut enough costs. It doesn't take much for that model to be turned on it's head.
Until this industry can learn to practice rationalization and stop shoving people into an a/c like they are cattle this cycle will repeat itself. Giving bailouts only allows the cycle to repeat.
That’s sad. I really loved their crew and plane when I flew to UK. Covid has affected everyone. 🙁
Was amazing to see so many Norwegian 787s at LAX. Then they started their operation in Argentina
It’s sad however will only benefit the legacy carriers
As a former Norwegian employee who was based in the US, I don't know much about taxes, financing or expanding.
With all the 'enemies' Norwegian had in the aviation industry, all the accusations of flag of convenience etc,
I do know few things for sure. Norwrgian introduced an amazing product for an unbeatable price.
As Norwegian core values are
to offer affordable fares for all and to allow customers to travel the smart way by offering value and choice throughout their journey.
Young, energetic and professional crew, professionally trained for safety and hospitality made Norwegian carry more pax then any other airline flying from Europe to the US.
Norwegian is needed, low cost carrier from Europe to the US is a must.
Last thing , all Norwegian employees that were based outside Norway, were proud representing Norway regardless of the home base. We all became an ambassadors of this beautiful country.
Norwegian is a well deserved and needed player in the market.
It's a shame. Used to live in Austin and having the flights AUS-LGW was fantastic.
And the sad part is that their Norwegian domestic operation was probably profitable, and quite possibly the other Nordic short haul ops as well.
It was the long haul ops that broke them, and because the corporate structure is so convoluted and the domestic ops probably having been leveraged to the max saving the functioning parts might not be possible.
Norway not having anything like Chapter 11 laws won't help either.
So I guess it's so long Norwegian and thanks for the memories.
https://www.ft.com/content/39d0c94d-c811-4b58-8393-dead7c396f7b
Norwegian grounding 15 of 21 planes flying and furlough 1600 staff.
5 planes and 600 staff left.
Basic business. Not every company will survive, and as they were a "pig" and did not take what they could get. Well, that's the risk you take.
Norwegian is a lousy airline and I will be glad to see the Airline liquidated.
- having Airline Passengers at each of Norwegian's Scandinavian Hubs, stand or sit on the floor outside their immediate boarding area until a few minutes before getting on the plane, is completely unacceptable.
- Having to wait a few hours on the ground after a Trans- Atlantic flight because this Airline is too incompetent or lacks the financial resources to get a landing gate assignment, is completely unacceptable.
- Acting as a "Pop Up" Airline, flying into cities for a few months, then permanently stopping, is completely unacceptable.
- Having a Check In staff that is rude and poorly trained, and seems to take pleasure denying late passengers boarding with out providing any additional assistance, is completely unacceptable
Norwegian is a poorly managed airline the World would be better off without.
As a Norwegian tax payer, I am happy our government is not throwing good money after bad. Mr Kjos suffered from hubris, and this will be the airline’s downfall. I attended a presentation by him not long after they inked the deals for 200 shorthaul aircraft and their longhaul launch was a right real mess.
Norwegian serves an important function in the domestic market, and investors might pick up that division at the right price. Unlike most other European countries, our geography and demography requires air transport. There are plenty of domestic flights longer than 90 minutes, or where ground transportation takes 7 hours or more whereas flying is 45 mins. On top of that, mountain passes are often closed during winter.
Personally, I would rather put my money on the new Braathen venture. Clean slate, cheap aircraft and plenty of competent professionals available. Hopefully they will resurrect the Braathens name and not go for one of those stupid LCC names. And no - many people, organisations and companies will not choose Wizzair due to social dumping. Bringing in east and south European crews being paid poverty wages has even led the prime minister to say she will avoid that airline.
As frequent fliers to Europe. We loved Norwegian. Always left on time, clean, great staff and affordable! It’s sooo sad to see them go!
I love(d) Norwegian, and took great pleasure in passionately telling friends and colleagues just how great they are. I flew them as recently as February from London to Miami, and have always had fantastic flying experiences.
With a fair wind and none of the problems they've encountered in recent years, they could have become genuinely sustainable - but it wasn't to be, and I'm having to accept that my favourite airline is probably in terminal decline.
It will be interesting to see where the 787s go - part of me hopes to see easyJet or even WizzAir have a shot at mainstream low-cost long-haul operation from Europe, but let's not get ahead of ourselves!
