The current global situation is unprecedented, in particular for the tourism sector, as borders have closed and people are avoiding traveling as much as possible. What's interesting is the impact this situation has had on airlines that have been on the brink of collapse before this all started. You'd think the first thing to happen…
Continue reading: Norwegian Gets Government Aid, With A Catch
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Yeah some of these airlines asking for bailouts and blaming the Coronavirus for their dire position really is reminiscent of the whole "Don't blame the holidays, you were fat in August" comments.
Maybe they can refund flights cancelled now rather than credits, some people can't rearrange one off travel trips.
You are forgetting an important, but minor part Lucky
The loan guaranty only covers 90% of any funding Norwegian gets, the last 10% will come from a bank or some other credit organization that must share in the risk.
https://www.flightglobal.com/airlines/norwegian-offered-largest-share-of-airline-state-guarantee-package/137413.article
I have to say, this article was quite a disappointment. Such unwarranted skepticism...many factors outside of Norwegian's direct control contributed to their former dire straits. And while I don't have the figures at my fingertips at the moment, but before this happened, Norwegian *was* having profitable months, and in the middle of a financial turnaround.
Their core business, and strategy, is viable. It is worth saving. Who could have possibly seen this coming...and why on Earth would Norway *not* help? It's a no-brainer.
This is an unhelpful article. Norwegian were voted best European short haul airline for many years. It is not their fault that the engine troubles with the Dreamliner and grounding of Max 8. No compensation from Boeing yet either.
Norwegian has a new CCO and CEO along with the CFO who started the company’s turnaround.
2020 was forecast to bring the company back into the black after years of expansion.
They have been terribly unlucky with RR and Boeing.
If they get through this the airline will get through anything.