Tag Archives: Travel Industry

Norwegian Air may not survive the pandemic

London (CNN Business)Norwegian Air wanted to bring a low-cost business model to transatlantic flights. It’s quickly running out of runway.
The coronavirus pandemic and travel restrictions have forced Norwegian Air to ground the vast majority of its fleet, and furlough almost all of its workers. The heavily indebted carrier’s stock has collapsed, and its cash reserves are nearly exhausted.
“Norwegian is dependent on additional working capital in order to continue operating through the first quarter of 2021 and beyond,” the airline said Tuesday as it reported its latest financial results.
One potential rescuer has already turned its back on the airline that once had ambitions to repeat Ryanair’s (RYAAY) short-haul success on longer routes. Norwegian Air said on Monday that the Norwegian government has ruled out providing it with more financial assistance, leaving the carrier in what it described as a “challenging situation.”
Read the full article here.

Forbes: How Norway’s Travel Industry Is Coping Amid Coronavirus Lockdown

Tourism in Norway had been booming for a decade. Overnight stays in 2019 increased for the sixth successive year, hitting a new record of 35.2 million guest nights—a figure that excludes private rentals such as AirBnB and the ever increasing number of day visits from cruise ship passengers. Almost 170,000 people work in the tourism sector in Norway, approximately 6.7% of the country’s workforce. Everyone in the industry had expected another record-breaking year. Then came the emergency coronavirus measures implemented to try and stop the spread of COVID-19.

Since March 16, Norway’s borders have essentially been closed to all non-residents. While domestic travel remains possible, the authorities have strongly advised against all but essential travel. The recent ban on overnight stays in cabins and several municipalities introducing quarantine regulations for anyone returning home has brought the travel industry to an unprecedented halt. With the emergency measures extended until April 13, the industry—and its employees—are facing an uncertain future.

Read entire article HERE.