Norwegian Air About To Run Out Of Money (Again)

Sadly not likely to survive. I had a great flight from LGW-SEA a couple years back. Paid for $45 extra for bulkhead and had way more room than on BA premium economy all for about $275 OW.

Their downfall is long overdue, just like Air Berlin

Long haul, discount airlines don't work. Air Asia X and Norwegian Air just prove the point. Southwest and Ryan Air would have done it years ago if it made sense but it doesn't. Does any one remember Freddy Laker? Let's stop the madness and throwing out good money. Long haul needs a network and major support with classes of service to be successful. Short haul can do the cheap, point to point but not beyond that. When will people learn.

It truly pains me saying this, but at this point, it’s just a waiting game to see who can survive the longest. There will be massive job losses but the industry is so completely over saturated with discount airlines and airlines in general. So many companies providing the exact same service - not service standards but transportation from point A to B. Expect way more of this.

The one good thing comes out of this is elimination of over-tourism in popular destinations. Now obviously there is no over-tourism anywhere. But when covid goes away, there will be more sanity in places like Venice, Iceland, Santorini, Machu Picchu, etc.... until rise of low cost carrier again!

Please look up the Norwegian Sovereign Wealth Fund. It is a government fund for the Norwegian people derived from oil revenues. Norway is the Saudi Arabia of Europe. The wealth fund is close to one trillion dollars in value. Norway is swimming in cash. The Norwegian government can well afford to bail out Norwegian Air for years to come. Whether it chooses to do so is another question.

Their $600 premium economy seat was good enough from LGW to SEA during the day when I wouldn't sleep anyway. Less than the points redemption cash surcharge on BA for a business class seat and didn't have to worry about availability.

Sorry to see their likely demise.

@Paul, There's nothing particularly Norwegian about Norwegian Air other than the name. The government and people of Norway aren't bailing them out. They have SAS.

I'm honestly astonished they are still operating now given their position prior to Covid. I think many airlines are hoping for bookings to pick up in Q2 2021 but if not, we will see some serious transformation in the industry. Who survives will be down to which governments are prepared to put up x amount of billions to keep carriers solvent. The airline landscape is going to change immensely over the next 12 months.

Personally, I don't see Norwegian making it passed April/May 2021.

Most airlines are talking about a 4-5 year recovery. I'm seriously wondering if we'll be into the early 2030s before everything is back to 2019 levels. I certainly hope I'm wrong though.

@Paul L @Jimmy

Second what Jimmy said about Norwegian Air Shuttle not being very Norwegian, most of their operations are in other parts of Europe. Only about 20 of their 737 were based in Norway before all of this started, there was very limited 787 operations out of OSL. Biggest 787 base was likely LGW.

While a lot of Norwegian tax payers would probably like to keep Norwegian Air Shuttle as second choice for domestic flights, I sincerely doubt they are willing to pay for a loss making discount airline based in LGW. For what I have heard only about 2000 of 12000 jobs in Norwegian Air Shuttle was actually in Norway.

And the Nor Gov does not have SAS Jimmy, that is a Swedish airline with their main base long haul base in Denmark.

Even if they have a large domestic operation in Norway. Denmark and Sweden will probably pay to keep them going even without Norway.

Most NorGov will likely do is to financially guaranty a certain number of domestic flights as needed infrastructure due to Norway's rather rugged geography and bad winter weather make road traffic a less good choice.

The only airline that is truly Norwegian and difficult to replace is Widerøe due to their short field capable turbo props..

Time for BA to buy it at a rock bottom price and start another low cost airline on the cheap. Then BA itself can just fly from LHR leaving Norwegian at LGW

This is a bummer. Their direct flight from MCO (my home airport) to Paris was my go-to to get to Europe (and they often had good deals on the premium economy seats). Hope they can pull through, but that seems unlikely.

Norwegian is nowhere near an ultra low cost carrier. I has a 2 class ticket system and a 2 class cabin on many of its planes. It do not either practice free seating and its cost per pasenger was over 100 Euro last year plus it lost 2 euro for every passenger it carried.
It is more a low price trying to be a low cost but with a litle bit of service, like Easyjet. So costwise far from the likes of Wizz, Ryanair or Southwest. Not that it couldn't become a ultra low cost, and the first real such within long haul, but that would proably require a new management with real experience from that type of environment.

People who think Norwegian will collapse don’t understand the Scandinavian market. Norwegian will be unable to collapse because they’re the only competition to SAS, apart from Widerøe & Braathens which are both very small regional airlines in Norway & Sweden. The Norwegian government will prop up the airline because without Norwegian there is a serious impediment to travel choices for travelers in Norway, Sweden & Denmark. After a few years when the airline industry recovers, Norwegian will start to look at long haul again but they’ll never be out of business.

Norwegian will survive. They will get the money they need from their shareholders (the leasing companies) , and more help from the Norwegian Government.
They are an important part of the infrastructure in Norway. And they are a huge employer in Norway.
I would be more worried if SAS survive. They still haven't been able to secure a deal with the Danish and Swedish governments. Both part-owners in SAS. They didn't have the votes for the rescue package, presented on the 30th of June. (Norwegian Gov. sold their stock in SAS some years ago, and are not part in the rescue package.)