Norwegian Air In Talks To Be Nationalized

Tranatlantic low cost carrier Norwegian was exceptionally weak before the pandemic, but their financial maneuverings had positioned them so that a strong summer would give them runway to make it through the lean winter. Covid precluded that strong summer. On March 6 I identified Norwegian’s failure as a coronavirus risk.

They got a $341 million government bailout. They declared four subsidiaries bankrupt. Now they’re looking for another bailout from the Norwegian government.

Copyright william87 / 123RF Stock Photo

And they’re reportedly in talks with the government of Norway over nationalization, since the earlier bailout the carrier received hasn’t been enough to keep them afloat while a government spokesperson confirms that the carrier is deemed to be “very important” although they’d anticipate government-as-shareholder would be a temporary arrangement.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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  1. This a prime example of huge hypocrisy, Norway style. Norway doesn’t want to be a part of the EU, yet wants its benefits. Norwegian Air Shuttle wants to expand its reach, yet not at the labor standards that it’s own country has decided that should apply to itself – so the airline set up a convenience-flagged sub in Ireland.

    Then, IAG makes a generous offer to take over DY at well-above market value; DY refuses multiple offers… Fast forward to today, DY is in deep crap, and asks the Norwegian gov’t to rescue an operation that will never ever be market grade viable.

    Imagine the state of South Carolina, whose population is comparable to that of Norway, trying to prop up an airline just because it has its base there. And what happened to Norway’s participation in SAS, the original de facto joint flag carrier of Scandinavia? Didn’t want to compromise with your good neighbors Denmark and Sweden, did you Norway?

    Europe already had way too many airlines pre-covid, not to mention at present. Yet – because of all these tiny kingdoms wanting to do whatever they want to do, regardless of the collective good and the interconnectedness of their region – little will change, and the market will indefinitely remain unsustainable for consumers as well as investors.

    Norwegian Air Shuttle: Please die already.

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