Every month it sadly feels like we’re back in the same spot we were originally in regardless
of any potential positive updates surrounding Norwegian and that once again can be said
following the latest update with the airline that has cast its future in serious trouble
and doubt for not the first time and likely not the last time either.
The Story of Norwegian stretches nearly 30 years being founded in the early 1990s and
since then they’ve been a low-cost carrier operating with aircraft like the 737 and eventually
obtaining the Boeing 787s for international services to destinations in the United States,
Asia, and South America.
However, they haven’t been without problems with their 737 MAX of course being grounded,
the battle from other carriers taking their market share, the Rolls Royce Trent 1000 engine
saga on the Boeing 787s, and much more.
Their future 2 years ago looked increasingly poor but they continued to push on with cash
injections and support from the government.
That now seems to have ceased dead in its tracks.
Earlier this year, Norwegian managed to secure a loan that was also backed by the government
of Norway which would help secure its future within the Aviation Industry.
This was worth some US 340 million.
However, now they need more as well and that's not going to be happening.
Comments coming directly from the Norway Industry Minister indicates just how people feel about
an airline like Norwegian and the risks involved with putting more cash into it.
He said It is a tough message to get.
But we are answerable for the responsible use of public funds.
Norwegian Air has a financial structure that makes it risky for us to go in with support.
It was not defensible.
In my personal opinion, this says all you need to know about the current state of Norwegian
and just how vulnerable it is within the Aviation Industry.
Does that mean it won’t be saved by some magical stretch?
No, but it certainly highlights the thoughts of the government.
Following the expansion by Wizz Air into Norway with a launch of a base it just further hits
Norwegian where it hurts.
Norwegian however, released a statement following this decision noting their disappointment,
discussing how they had already said that this funding was going to be crucial to them
communicating throughout the global pandemic.
The Norwegian CEO said The fact that our government has decided to refrain from providing Norwegian
with further financial support is very disappointing and feels like a slap in the face for everybody
at Norwegian who is fighting for the company when our competitors are receiving billions
in funding from their respective governments, The CEO and more widely airline believes that
by being called Norwegian and being present within the country for so long helping Norwegians
travel they are owed a deal of support from the government, This is something I’d be
interested on hearing your thoughts on.
What do you make of it?
Let me know down below on that comment.
I think the government personally has every right to no longer want to approve or inject
cash into Norwegian or say any government with any airline for that matter.
Especially, if in the case of Norwegian it continues to burn through that cash with no
improvement and no true end in sight to the saga which has seen Norwegian on the brink
of bankruptcy, shutting down and or ceasing operations for many years now.
The CEO finally commented saying We could clearly see the results of our hard work to
go from growth to profitability, which was initiated in 2018.
With further support to get Norwegian through this unprecedented crisis for the aviation
industry, we would come out as a more sustainable and competitive airline, with a new structure
and improved operation.
Without support, the way forward has become much more uncertain.
Once again a very interesting comment as I personally believe a lot has changed since
2018, especially for Norwegian and their position within the Aviation Industry and how they’ve
reacted to certain moments within the industry like that of the 737 MAX Crisis and now the
global pandemic as well as the Rolls Royce Trent 1000 saga.
I feel it’s therefore unrealistic to compare to 2018 when they received funding when realistically
they were in a totally different position.
Norwegian as an airline is full of hard-working and lovely people and like always I wish those
employees nothing but the best, if you enjoyed my diving into an opinion more in this video
feel free to also let me know.
I do appreciate all the continued support here on the channel.
I hope you continue to stay safe and take care and I do look forward to you all joining
me in the next video.