Norwegian’s CEO Jacob Schram warned the carrier is facing “a very uncertain future”, as the government of Norway indicated that it will not provide further financial support to the low-cost carrier.
Earlier this year the airline said it had gained access to NOK 3 billion (£256 million) in state guaranteed loans, but following the reporting of first half losses of NOK 5.3 billion (£452 million) in August, Schram warned that more support would be needed.
Norwegian warns state bailout “not enough to get through this prolonged crisis”
In a statement Schram said:
“First of all, I would like to thank of our customers, colleagues, the Norwegian Parliament, shareholders, leasing companies, creditors, bondholders, the travel industry and all others who have been supporting Norwegian in these challenging times.
“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.
“We are called Norwegian, We are Norwegian. We are a part of Norway and Norway is a part of us. This is the way it has been for almost 20 years. The support that we have received from our customers throughout all these years has meant a lot to us, in particular now during the Covid-19 crisis.
“We offer routes from Kristiansand in the south to Svalbard in the north, routes that cannot be replaced overnight. It will take time and it will have consequences for the competitive situation in Norway, like we have seen before. We also notice that airlines across the world that are also dependent on support to survive, are receiving billions from their respective authorities.
“Based on the number of tourists we fly to Norway, we contribute to sustaining 24,000 people in our country and boost the local economy by approximately 18 billion NOK per year. That alone clearly demonstrates that even moderate financial support, would constitute a profitable investment for Norway. How anyone could come to a different conclusion is impossible to understand.
“The local travel industry and businesses have again and again emphasized the importance of Norwegian’s route network. I recently visited all of our four bases in Norway and also met with local politicians and businesses.
“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. However, we will do whatever we can get through this crisis, to the benefit of our hard-working colleagues, our ‘Red Nose Warriors’, and our customers.”
