Norwegian may go bankrupt: Bodø airport passengers fear very expensive airline tickets – NRK

Today it became clear that the government is not complying with Norwegian’s request for several billion kronor in support. Instead, they present new blanket measures for aviation to overcome the crown crisis.

Norwegian CEO Jacob Schram does not rule out the possibility of bankruptcy.

The passengers that NRK meets at Bodø airport believe that Norwegian is important to competition in the market.

Hege Gyllensten primarily flies with SAS, but has also traveled extensively with Norwegian.

– It has been very good to have them, for example, with the direct routes to the US. It is clear that the prices for SAS are determined to have competition, so we have the autocracy again, I think there will be fewer options and maybe travel more expensive.

Jakob Sundet travels little in his spare time, so he doesn’t think much about price when he goes flying.

– But I travel a lot to go to work. So it can be more difficult with fewer outlets, for both employees and employers.

NHO: – More expensive tickets and fewer departures

Daniel Bjarmann Simonsen at NHO Nordland says a bankruptcy in Norwegian could mean that it will cost a lot more to fly than today.

– I fear very expensive airline tickets. And fewer exits.

– We may end up where we were in the early 2000s, when the competition between SAS and Braathens disappeared. We are talking about 5000 Bodø-Oslo crowns. And that was in 2002 crowns.

Aviation is in a deep and protracted crisis due to the corona pandemic.

So far this year, the state has donated an additional NOK 13 billion to aviation in Norway. And they will spend even more.

Bjarmann-Simonsen fears that it will be difficult for many companies and jobs if Norwegian is not successful.

– It can be difficult to run a business, create jobs and value in and from Northern Norway. We are completely dependent on a good and affordable flight offer that connects us with the rest of the country and the world.

The market hat on the ball.

Nordland County Council Leader Tomas Norvoll fears what could happen if Norwegian disappears.

– Your route offer is an important part of our infrastructure. One danger is that there will be higher unemployment, more expensive flights, and a more brutal aviation job market in Norway.

Norvoll believes that the state should do everything possible for Norwegian, SAS and Widerøe.

Bjarmann-Simonsen agrees.

– Authorities have asked companies and individuals to stay home and away from airline seats. So they should also do their best to make up for this.

I think the price may go up

Frode Steen, professor of economics at the Norwegian School of Management (NHH), is an expert in aviation.

Agrees that it is important for Norwegian to survive.

– With Norway’s route network and the challenges we have in terms of weather and wind, Norwegian has built a good operation.

Steen believes that in the time it will take for a new player to establish themselves in the market, we will get a worse offer.

Apparently the price will also go up.

– We have seen time and again that when Norwegian enters and exits a route, the pricing structure changes. Competition results in lower prices. We see that when Wizz Air offers tickets for 199 kronor, Norwegian does the same.

Hit the districts harder

At the same time, Steen believes that it is right for the authorities to choke on the money bag now.

Because while it’s important for Norwegian to deliver, it’s not right for the state to go in and pay a specific company, he says.

– They will enter and create framework conditions for aviation that allow Norwegian, SAS and Norwegian to survive. As long as they keep track of the general schemes that everyone can participate in, it is a good decision.

For Norwegian to disappear will cost more for the District of Norway, Steen believes.

– There are several routes that are thin and depend on a large network for profitability. For Oslo-Bergen it means little because there is always someone who wants to fly, but that does not mean that people want to fly Evenes-Oslo.

May be interested in the plane

Monday afternoon write

Today’s business

that Torghatten is considering entering the field if Norwegian passes.

The main owner, Brynjar Forbergskog, may be interested in some of Norwegian’s aircraft and employees.

He has already reached into his pockets to become the main owner of Widerøe. Now it is opening up to buy a part of Norwegian, if the company does not manage itself.