Norwegian Air’s bondholders threw the airline a lifeline by accepting the airline’s Gatwick landing/departure slots as collateral for their previously unsecured bonds in return for delaying repayment on the bonds for 2 years. This gives Norwegian more time to try to complete it’s transition from a growth-oriented to a profit-oriented airline. Headwinds still exist — the latest being the jump in the price of oil (and therefore jet fuel) following Saudia Arabia’s cut in oil production due to a drone attack.
Posted by
11569 posts
Good news as we just booked flights with them this winter.
Posted by
Huntsville, AL, USA
8319 posts
That may mean we have two more years of European travel ahead of us. We travelers need budget air carriers like Norwegian Air Shuttle to provide competition to keep prices down. Now look for some big deep pocket air carriers to match or close to match airfares on some popular Norwegian routes trying to put a "nail in their coffin."
Posted by
Greater Sacramento
604 posts
I was pleased with our recent Norwegian flights at such low prices. However, I do wonder as we've talked about in the past if Norwegian will gradually cut more and more transatlantic flights if they are such money losers, or limit the super economy fares that they offer per plane. I did notice that a fair amount of people on our flights were getting more than the basic service, with drinks, meals, luggage etc, not sure about seat reservations. When there was boarding for premium ticket holders lots of people started boarding. I mention this to underscore that while Norwegian is a discount airliner, lots of there passengers are paying closer to legacy airliner prices. Glad to see they are getting this new extra time.
Posted by
San Francisco Bay Area
5697 posts
Great! Gives us a chance to experience Norwegian, which many friends have recommended (OK, another one said "never again!")
Guess I should make travel plans gor 2020 to someplace Norwegian flies.
Posted by
OP
Southeast US
4045 posts
It may be worth seeing 3rd quarter numbers (released Oct 24) or even 4th quarter numbers (released early February) before getting too excited about buying Norwegian tickets. Given the collapse of Thomas Cook, I suspect the credit card companies aren't going to be relaxing their hold backs any time soon.
Posted by
Uppsala, Sweden
6970 posts
True, it is important to remember that this does not mean that all problems are solved for Norwegian. It means the immediate threat ot bankrupcy is gone. But they still have to figure out a way to become profitable and how to repay these loans in two years.
Posted by
SF Bay Area, CA, USA
226 posts
Great news as I booked my Mother on a Nonstop Norwegian flight from OAK-CDG before meeting us in Barcelona for our Med/TransAtlantic Cruise after her Thomas Cook flight was cancelled. As I was on the phone with Bank of America Processing the Chargeback I was booking her on the Norwegian flight for $280 with meal, seat assignment at front of cabin and luggage with Priority Boarding and $12 Medical Cancellation insurance.
She saved $50 from the Thomas Cook flight which had her flying via Manchester to Paris. Her Vueling flight booked direct is for $80 to Barcelona with luggage and a seat.
Thanks Norwegian for saving the trip and for saving money!