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Customers can get a big bill for Norwegian’s downfall, if the company isn’t spared. Hundreds of thousands of Norwegians are at risk of losing their ATMs.
This week, Norwegian got some bad financial news. The company laid off 1,600 employees and posted record losses. It started with the government on Monday saying no to the increased support the company had requested.
Financial figures for the third quarter were released on Tuesday, unexpectedly offering no more bad news:
“Amended travel advice and additional restrictions as a result of a second wave in many countries have contributed to a drop in consumer confidence,” Chief Executive Jacob Schram said Tuesday morning in connection with the release of new figures. quarterly.
A 91 percent drop in revenue, an operating loss of NOK 281 billion in the quarter and a total deficit of NOK 6.41 billion are among the key figures. Investor and manager Jan Petter Sissener, himself a former shareholder, now believes Norwegian will go bankrupt.
– I’m afraid this is the death sentence for Norwegian, Sissener told Nettavisen on Monday.
– Fly with you? Especially!
Schram mentioned consumer confidence, and that it is fragile, there are several signs that indicate this. In recent weeks, the airline responded to Wizz Air’s dumped prices and tried to lure Norwegians onto the wings with flight prices of 199 kroner. But it doesn’t excite everyone:
“Fly with you before we get a refund for our trip to Munich on April 2, booked in the Fall 2019 special. Forget it! “writes one of the many frustrated customers who angrily respond to Norwegian’s Christmas offer for NOK. 199.
Many of the customers have waited a long time to get their money back and are therefore not very impressed with the offer.
“Shock. There are many of us who are waiting. Therefore, buying tickets from him will be like a lottery. Anyone wins the cheap trip, otherwise the money will end up as a long-term loan to a small liquid company,” another client writes Norwegian on Facebook.
Also read: Norwegian got the message they feared: how long they have left until the box is empty.
Warned against “ATMs”
In addition to the fact that many, due to thousands of canceled flights, are waiting for a refund, there are also many customers who left unused tickets that were exchanged for a bonus point, or “cash points” as Norwegian calls it, a Cash balance with Norwegian that is tied into the purchase of an airline ticket within a specified time limit.
While the airline has encouraged customers to switch to “ATMs” instead of demanding a refund, the Consumer Council has repeatedly warned against this offer.
One of the reasons is that if the company goes bankrupt, this arrangement means that money is lost to the customer. If, on the other hand, you have demanded a refund, the battle is not completely lost:
– If you have demanded a refund and have paid by credit card, you can go to the card issuing company and request the money. You can’t do that if you’ve received “cash points,” then the race is over, says Pia Høst, director of consumer dialogue at the Consumers Council.
Høst believes that several customers have accepted “ATMs” without having a clear idea of the consequences:
– We believe that in some cases they have been taken behind the light. There are many who feel disappointed.
– Seize the opportunity quickly!
Fall has clear appeal for customers who are now facing new airline cancellations.
– It is about demanding a refund as soon as possible. You are entitled to a refund within seven days of purchase.
– But many who have demanded a refund for a long time have not yet received a refund of their ticket money?
– Then you can go to the credit card company, if you bought the ticket through the credit card company. Wait 14 days, and if you still haven’t received money from the airline and you can’t get anywhere by contacting you, you have the right to use the card’s insurance.
If you have a Bank Norwegian card, which automatically awards “cash points” of one percent of the purchase amount, this purchase advantage means minimal now, Høst believes. Hundreds of thousands of Norwegians have the Norwegian card.
– We recommend that you use a card with the right to claim – it is the most important insurance at the moment and must be used, as unfortunately there is a great risk of cancellations and bankruptcies – it applies to travel, but also to much more.
– Is there no possibility to go to the company to request that the “ATMs” be converted into cash refunds, now that the financial situation in Norwegian is so precarious?
– No, unfortunately it runs when you have accepted it as a replacement. So you’ve committed to buying airline tickets. This shows that the scheme may not be very consumer friendly, and especially in a situation like this.
The online newspaper has asked Norwegian about the reach of customers as ATMs forever, and in what amounts it amounts, as well as what the company advises its customers. The airline will not answer questions about the financial consequences for customers in detail, but will answer this:
– We maintain several routes in Norway and CashPoints can be used as a means of payment when purchasing tickets on all these routes. At the same time, we work day and night to overcome this crisis. CashPoints are valid until the end of the year in which you made the purchase plus two years. Points earned this year, for example, will be valid until December 31, 2022, says Christer Baardsen, Norwegian’s senior communications consultant.
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