Europe's best low-cost carrier is in danger of going out of business. Norwegian's days are numbered
The Coronavirus pandemic continues to do damage by affecting even the best and this time it is clipping the wings of Norwegian [...]
Norwegian Air Shuttle
The Coronavirus pandemic continues to do damage by affecting even the best and this time it is clipping the wings of Norwegian Air, causing it to really take a nosedive.
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An unexpected reversal, just days after the 27th World Travel Awards honored the Scandinavian company as thea low-cost leader in Europe by 2020, giving her one of the most prestigious awards in the travel industry for the sixth consecutive year.
An award that, as stated by Jacob Schram, CEO of Norwegian, proves to be a confirmation of the resilience and dedication of all airline employees, who faced the crisis as true warriors, not forgetting the importance of always putting customers at the center of the business.
And in times where proper attention should be given not only to people, but also to the environment, Norwegian has shown a willingness to continue to be also a leader in sustainable aviation, making a commitment to the planet.
That is why in 2020 it implemented a new environmental sustainability strategy that has several goals: reducing harmful emissions by 45% by 2030, eliminating non-recyclable plastics, and recycling, by 2023, all single-use plastics.
An action plan that builds on previous initiatives, including the goal of becoming the first airline to commit to the United Nations Framework Convention on Climate Change (UNFCCC), with the aim of becoming a zero-emission air carrier By 2050.
Norwegian's strategy for flying over the Covid-19 crisis
Despite great efforts, accolades, and commendable initiatives, however, the airline's situation is plummeting, and the Coronavirus has been the coup de grace.
The situation became particularly critical after the Norwegian government imposed travel restrictions and decided not to provide to Norwegian Air additional financial aid, which is essential for the company to be able to respond to the crisis, considering that it will completely exhaust its financial resources at the beginning of 2021.
Consequently, the choice was to keep operating costs to a minimum.
Strategy that unfortunately led to the layoff of 1,600 employees and the final stalling of 15 of the 21 aircraft employed in recent months.
Indeed, as Jacob Schram announced, "before Covid-19 Norwegian employed more than 10,000 people, but in the coming months only 600 employees will be employed. Our goal is to maintain six aircraft on domestic routes in Norway, and I expect that Norwegian will also receive support from the Ministry of Transport, as previously announced."
"Unfortunately," he added, "the significant reduction in routes will also affect customers who have already booked a flight with Norwegian, but we will do everything we can to offer those affected an alternative travel option. I sincerely apologize for the inconvenience caused by this situation."
So currently there will be no routes to and from the UK and the US, while they will remain operational:
- Oslo - Alta
- Oslo - Bergen
- Oslo - Bodø
- Oslo - Evenes
- Oslo - Haugesund
- Oslo - Kirkenes
- Oslo - Molde
- Oslo - Stavanger
- Oslo - Tromsø
- Oslo - Trondheim
- Oslo - Ålesund
- Tromsø - Longyearbyen
Norwegian fights bankruptcy and files for protection
The government's denial of a new request for financial support from Norwegian seems not yet to have fully landed the Scandinavian company, which, faced with the risk of bankruptcy, has filed formal petitions in Ireland for protection in the event of bankruptcy.
A strategic decision, implemented in hopes of buying time for economic restructuring under the banner of reducing debt, cutting costs and raising new capital.
Jacob Schram explains this move as an attempt to secure a future for the Norwegian, with the hope that this will become a financially stronger and more competitive airline for the benefit of customers, employees and investors.
The trial for the protection claim will take place in Ireland itself because that is where two of the companies that operate the planes in the Norwegian, or theArctic Aviation Assets and the Norwegian Air International.
Norwegian Air Ribbon Cutting Ceremony- June 29, 2013
According to Irish arrangements, examination of the submitted financial documents will be entrusted to a court-appointed examiner and will offer the company 100 days of protection from creditors.
During this period, according to statements made, Norwegian will keep its network operational despite the reduction in routes.
At this point all we can do is wait and see if the Norwegian Air will manage to escape liquidation, to return to the skies of Europe and beyond.
