What’s The news With Norwegian
As Europe shuts down its borders and many EU countries shut down their own yet another airline takes drastic measures to face the Covid-19 crisis. We’re talking about Norwegian. The scandinavian airline had already been facing financial hardships over the past year. And now the Covid-19 situation is forcing Norwegian to take significant action.
The scandinavian carrier has announced it’s cutting most of its flights. In other words the airline is shutting down all of its flight except domestic and scandinavian flights. This leaves us to think, what will be of this carrier? And above all, will they make it through this crisis?
Schedule Variation
As we already mentioned all international flights, have been cancelled. However flights connecting the scandinavian area’s main cities will continue to operate on a reduced schedule. So here’s the modified and reduce Norwegian schedule starting March 25th:
Flights Out of Norway
- Oslo -Bergen/Stavanger/Trondheim: 4 daily departures
- Oslo – Ã…lesund/Bodø/Evenes/Tromsø: 2 daily departures
- Oslo -Alta/Kirkenes: 1 daily departure
- Oslo – Haugesund/Kristiansand/Molde: 1 daily departure
- Oslo – Svalbard: 3 weekly depatures
- Oslo -Stockholm/Copenhagen: 2 daily departures
- Oslo – Helsinki: 4 weekly departures
- Stavanger – Bergen: 1 daily departure
- Bergen – Trondheim: 1 daily departure
Flights Out of Sweden
- Stockholm – Kiruna: 4 weekly departures
- Stockholm РLule̴/Ume̴: 2 weekly departures
- Stockholm – Helsinki: 2 daily departures
- Stockholm – Copenhagen: 2 daily departures
- Stockholm – Oslo: 2 daily departures
Flights Out of Finland
- Helsinki – Kittilä: 6 weekly departures
- Helsinki – Oulu: 1 daily departure
- Helsinki – Rovaniemi: 1 daily departure
- Helsinki – Oslo: 4 weekly departures
Flights Out of Denmark
- Copenhagen – Oslo: 2 daily departures
Why Are They at Risk?
The business model of this airline and its structure is the main reason we find ourselves asking this question. The nordic airline since day one has focused on long haul low cost flights. There are two factors that airline of this nature need to survive and thrive.
- Low Fuel Costs
- High Travel Demand
As far as the fuel cost goes we’re in check. The cost of oil as dropped in the past weeks. However passenger travel demand has also plummeted over the past weeks due to the Covid-19 coronavirus outbreak. Uncertainty has largely spread in the airline industry, putting at risk the survival of most of the world’s airlines.
The fact that Norwegian had an already complicated financial situation, and the unclear outlook of the post-Covid-19 puts them in the spotlight. For instance, nobody knows how and when leasure travel will start growing again. As that segment was the airline’s main target. Also will they be able to get through another winter without the income of the 2020 summer season.
As you might know European airlines mostly survive through the winter thanks to the summer income. It’s looking more and more likely that this summer season’s income will be very close to 0.
Consequences on Staff
Unfortunately these measures have an effect on the airline’s workforce. In other words, Norwegian is temporarily laying off 90% of their workforce, which translates to over 7,300 staff members. Only time will tell if Norwegian will make it through this tough time for airlines.
