How to BANKRUPT an Airline! The Collapse of Norwegian Air Shuttle

[@MentourNow]

Get an Exclusive NordVPN deal here ➼ nordvpn.com/mentournow It's completely risk-free with Nord's 30-day money-back guarantee! ✌

[@motorsportfan86]

I would suggest AS other Airlines for that Format Panam , Air Berlin and interflug as ideas because all of them hast intressting Stories and downfalls pan am die to Costs and many accidents including Teneriffa and lockerbie , interflug because of the end of the DDR and The Events with the Treuhand Afterwards that got interflug dissolves and Air Berlin high Costs and The BER Airport Desaster that brought Them down because they couldt use IT AS their Station and Drehkreuz Like Lufthansa with Frankfurt does.

[@jessicadias3556]

Peter, can you make a video about Ryanair and Wizz? Ryanair has recently had some safety problems in Italy. I saw Reddit comments saying that they have some pretty bad policies. Which I have no idea if true, ofc.

[@PeterKoroteev]

Nord does not work in China. Express VPN is better

[@orionxtc1119]

"Fokkers" always make me laugh

[@underland1983]

Clearly Ginger/Carrot Top you dont know capitalism lol

[@fredrikjohansson]

Every time Norwegian starts to fly at my local airport the SAS flights half in price, and when they leave the SAS tickets double in price. Airlines like Norwegian are very important for us consumers!

[@MentourPilot]

True that!

[@Ticklestein]

That’s how demand and supply work indeed 😂

[@kjflynn3379]

Think Freddie Laker 😮

[@redmondohanlon1687]

@@TicklesteinI’d call it price gouging.

[@benchoflemons398]

@@redmondohanlon1687 price gouging does not exist without government support. Only supply and demand

[@MarcusKern-e3m]

I am a former Norwegian 787 Captain. They gave me a chance to tick the "long haul wide body Captain" box on my CV. When I joined I was only hoping to get my type rating money back (3 year bond), as I still dont trust the long haul low cost idea, and I did. My horizon is not big enough to judge financial decisions, but they were definitely not exactly followed by luck and fortune. 787 issues, Trent issues, Max issues, Airbus issues and then COVID on top. This could have all gone well. Unfortunately it didn't. I am to this day still incredibly proud to have reached my personal career goal and I agree with your documentary that it was a very nice place to work for, as long as it lasted. The end was what it was, and in my case the Italian tax payer made my transition to my current job easier, though everybody was struggling during COVID. Although many criticize Bjorn Kjus for various decisions, most of us owe him to what many see the peak of their career.

[@oscccar1]

I work with an airline that purchased the ULDs used in the DY Dreamliners and it’s make me sad every time I see the Norwegian logo (or traces of it). Personally I hade the privilege to fly to Phuket once and I thought the customer experience was amazing…😢

[@zimzam9166]

If you actually were what you said you were, then you'd know that Norwegian never had any 787s

[@zimzam9166]

I am a current CEO of Norwegian air and I spend my free time posting comments on KZbin

[@MrStian78]

@@zimzam9166you have no idea what you are talking about. Troll!

[@aj1918]

@@zimzam9166I flew on Norwegian 787s from Boston to Gatwick, CDG, and Oslo

[@ACPilot]

For those confused. Norwegian is still around and growing. Rapid downsizing was required to save the airline through a chapter 11 process after covid. Conditions from norwegian goverment was to drop long-haul although Norwegian wanted to keep a downsized longhaul division. After covid the airline went through a ramp-up process starting with a smaller fleet of 737‘s. Many crew has since been rehired. The fleet growing with MAX8‘s including those previously operated by Flyr. Orders for more MAX8 and MAX10‘s. Norwegian did not go bankrupt.

[@j_taylor]

What does Chapter 11 mean in Norway?

[@Dan_C604]

Thank you, I was really confused until the end when I thought…. Well, is it bankrupt or not? It was confusing.

[@nickskier1]

Also technically, before covid, the largest branch of Norwegian was an Irish-registered company. That division as part of the restricting was shit down so in a way you could argue one part of Norwegian was closed in bankruptcy

[@edsmale]

They DID go bankrupt

[@ACPilot]

@@edsmale Chapter 11..

[@lucast3006]

Norwegian used to fly a direct route from Denver to London which I took quite a bit. It was a fraction of the cost of BA and United which flew the same direct route and I always found the crew to be nicer than that of those other two. As soon as Norwegian left Denver, the price offered by BA and United went way up.

[@NicolaW72]

As it the usual when LCCs disappear.

[@SMGund]

Same here. I flew with Norwegian from Oslo to Denver via London, and paid only about $400 for a round ticket.

[@DenDodde]

Turns out that if you borrow infinity money, only care about valuation and ignore profits, you can push ticket price down quite a lot. But at least the smart people that got the ball rolling managed to dip out before it caught up to them, so that's nice i guess.

[@prabuddhaghosh7022]

​@DenDodde Banks are given infinite free money by central banks through qe. If some of that money instead of going to banker bonuses covers bank loan losses and in the process enables airlines to give us below cost tickets I am all for it. It's the publics money in the first place.

[@pizzabagerenmujaffa8123]

@@SMGundthat is becouse they underpay the staff ......not the pilot , but the staff is underpayed and placed under irish company rights ...so they dont pay tax , and have noone from norway hired as cabin crew ...

[@MrMudbill]

As someone who lives in a fairly remote town in Norway, Norwegian is the reason why many of us can afford to travel as much as we do. It's easy for remote areas to fall under a monopoly by one airliner. In our case that is usually SAS. Even Widerøe is exceptionally expensive because they have a monopoly on small airports around the coastline. A 30 minute Widerøe flight can cost as much as a 5 hour Norwegian flight down to Spain. Needless to say, the competition has been healthy for our experience, and as well as that, Norwegian's service has always been wonderful.

[@PatrikRasch]

Very true! - northern Norway

[@RocketdadsDog]

I remember lidl.... according to norwegian businesses an imposter. Monopolies regne in Norway.... my nr.1 company is Ryanair who started everything that everyone else copied...

[@fitosolares]

Norwegian is my favourite airline. Cheap like Ryanair, but without any of its hassles. I wish nothing but success to them!

[@MentourNow]

Same here

[@erikbuiten14]

Cheap like ryanair? Ryanairs average ticket price is 27.3€, Norwegian 63.2€. More than double the price for the same service, same seatpitch, older aircraft etc.

[@poruatokin]

@@erikbuiten14 Yeah, but it's RyanAir. Once was enough for me, never again.

[@erikbuiten14]

@@poruatokin that was not the statement. He said they are cheap like Ryanair and better service, I just proved him wrong with empirical facts.

[@poruatokin]

@@erikbuiten14 "Cheap" is relative to quality of service, plus Ryanair will rip you off with all those little extras, so no, not cheaper.

[@driver288]

I love Norwegian. They are low cost but very transparent. Almost always on time and mostly clean new planes and friendly staff. I often choose them before other alternatives. They are the Mcdonalds of aviation. Consistent. Stable. You know what you get. They also fly to major airports which not all low cost carriers do. I guess the pandemic was the big nail in the coffin for Norwegian long haul. The short haul business is still working well. I flew them to and from tje UK and Spain this year with no issues.

[@sgam43]

Same here. If I can I always go for Norwegian vs SAS, which is often the competition. Usually a lot cheaper than SAS, and if you're actually taking luggage along also competitive with the low-cost alternatives to Europe. SAS used to be reliable, but these days if there's a "Cancelled" on a departure board more often than not it's SAS. Now THAT'S "sic transit" for you...

[@steinarnielsen8954]

So basically not a low cost carrier. Norwegian has ridiculously long turnaround times, specifically because they prefer congested airports. Ryanair in comparison operates with 25 minute turnarounds.

[@TheKievKen]

Terrible analogy. McDonald's? Really? Why does everything have to be compared to American stuff?

[@driver288]

@@TheKievKen what would you compare it to then? It doesn’t have to be an American thing. Compared to American low cost airlines Norwegian is way better and doesn’t compare.

[@janintelkor]

@@TheKievKen mcdonalds is also a pretty shitty restaurant. Workers are exhausted, and it's not even cheap nowadays, you can get far better grade food for the same price

[@Beerbellybilly1]

As a former ground handling agent in SAS I remember the good old times with both Busy Bee, Braathens and Norwegian. After Norwegian passed puberty they really stirred up the more or less monopoly that SAS had and made air travel affordable for Norwegians and other Scandinavians

[@oscccar1]

As I ramp worker, I love Norwegian!! All the 737 have a sliding carpet ☺️

[@pezlover1974]

Man, I loved Braathens

[@ferrariasparta]

buying a Ferrari and leaving it in a garage is probably way more profitable than driving it

[@mikezappulla4092]

That’s not profitable at all.

[@venorando3672]

@@mikezappulla4092 True, however, it's far less profitable to drive it for a few reasons. The value of cars like these generally tend to plummet when they get driven long distances, just as all cars drop in value based on how many km it has been driven. Supercars also absolutely devour fuel! And they are extremely expensive to maintain, the cost of which will of course go up the more wear and tear the car experiences. So no, it's not profitable at all, but driving it is FAR more expensive than just leaving it in your garage. I agree that the analogy is a bit poor here.

[@spacedriver24]

​@@venorando3672 The solution.....don't buy a Ferrari

[@venorando3672]

@@spacedriver24 Facts

[@edwardranno7119]

Maintenance on a Ferrari cost more than the car itself if you drive it.leaving it in the garage is a good idea

[@massimocalvo5104]

The best airline I've ever been working for. I left just before the collapse started (when the chief financial services left) because i gelt something strange was going on. I feel sorry for what happened as I felt that airline as family. I flew with amazing people and still missing most of them.

[@strikingscorp4659]

Norwegian Air was the airline that not only help me connect with my long distance Girlfriend but also help me find my love and passion for Aviation. I truly owe it all to Norwegian Air, I am thankful that they pulled through in the end

[@t_hanos21]

Yeah they are great for the flights i usually take between trondheim and oslo

[@strikingscorp4659]

@@t_hanos21 For me its London to Trondheim, sometimes Oslo to Trondheim too 😅

[@robertzeurunkl8401]

I am a senior software developer at my (small) airline company, and I wrote our "Acclimation" (FAR 117) software. It involves some of the most COMPLEX calculations of all the software I write. It has to take into account time zones, 60 degree longitudinal travel (and back again: RE-acclimation), acclimation status, circadian rhythms, 36 hour rest, 72 hour rest. What KIND of rest? (A flat bed? Or a seat? If so, what level of inclination does it provide?). In Theater vs Out of Theater? Does the flight require an augmented crew? Which crew members will "expire" mid flight, requiring an augmented crew? All this just to make sure your pilot is not fatigued when he lands the plane. CRAZY attention to detail!

[@mudduck1332]

I flew on Norwegian from Denver to Paris in 2019. And to the UK in 2020 weeks before the pandemic broke out. Absolutely loved flying on them. I wish things went differently, as I’d absolutely look into them again.

[@kylewitter2806]

I was so happy when they started flying cheap flights on Dreamliners out of Denver. Unfortunately never got to fly on them but still…

[@MentourNow]

Yeah, both crews and passengers generally loved them

[@bbferreira78]

I flew in a Dreamliner from Oslo to New York. Really nice flight. Maybe not taken the kids had something to do with it, but I remember being really comfortable.

[@davidoberg203]

This is practically a Harvard Business School case in less than an hour. Very insightful.

[@MentourNow]

Thank you!

[@ferrariasparta]

@@davidoberg203 just more fun and less antisemitism

[@andrasbiro3007]

And they'd teach it as good example, unfortunately. Short term thinking dominates the business world.

[@bertbergers9171]

Case on what? I am very curious how you see this one? Because i have an opinion on this case and on Harvard Business (or any MBA matter of fact).

[@joonaskekoni2867]

​​@@andrasbiro3007Humans tend to keep doing what worked the last time...

[@carsongent8420]

I flew them from Oakland to Barcelona, no complaints. I flew back from Barcelona to LAX, due to a cancelled flight, to Oakland, they handled it well. I miss them.

[@flightforensics4523]

We had the aircraft maintenance contract here in the US. Since I was pretty much the only certified 787 tech...I REALLY got to know the crews. Both flight deck and cabin crews. Long story short? Really knowledgeable folks and super friendly!

[@michaelkarnerfors9545]

Norwegian Air Shuttle (more specifically Norwegian Air UK, and later Norwegian Air Sweden) has one of the cutest callsigns: REDNOSE. There is an amusing ATC video when a REDNOSE flight arrives at JFK for the first time.

[@bertbergers9171]

LOL nice!!!

[@phueal]

REDNOSE is fantastic. Still not sure whether it beats BA's SPEEDBIRD though... 🤔

[@sveinfarstad3897]

Rudolf (Rudolph) Edit... Rudolph the red nosed reindeer

[@michaelkarnerfors9545]

@@phueal SPEEDBIRD competes in the Elegance, Prestige & Cultivation category, along with DYNASTY, HERITAGE, and GEMSTONE. REDNOSE is more in the Cute, Fun & Heartwarming class.

[@Dmiliunas]

@@phueal RedNose is a Indicator to a (the one had drunk some Vodka to stay warm in cold temperatures, thus a Red Nose) And now is tipsy. So imagine Tipsy pilot. But totally works as Noth air;one as a fun factor.

[@shotelco]

...in 2016 thru 2018, It got to the point that my daughter was flying nonstop from Las Vegas to Europe (Copenhagen, Stockholm, London, and Oslo) for an "extended weekend" once every 6 weeks or so on Norwegian it was so cheap. Typically about $150 each way.

[@osmund10]

After a headline of "bankryptcy", perhaps this story would be more complete by mentioning that Norwegian in summer 2024 flew more passengers that SAS and had a net profit, against a noticeable loss for SAS? And the fleet has continued to grow?

[@rvarsigfusson6163]

Thanks for info.... really like The Red Nose

[@MeetConservatives]

Everything on KZbin is clickbait nowadays, unfortunately.

[@alexrain1060]

and that it's stock value for the last 5 years is down by 99,61%

[@Dutchgguy1]

Norwegian is up and running well. Achieving their best result ever in 2023, and in line with the same result this year. Outperforming any Nordic airline. 👌

[@NoBSMusicReviews]

Norwegian flew to my small local airport, Stewart, in the mid Hudson Valley. It was so great to have a low-cost airline flying to Europe from my local airport. I was very sad to see it go. I wonder if Iceland's PLAY, which currently flies out of Stewart, will survive.

[@rchrd42]

It’s a shame they stopped flying from Budapest to London… they’ve had the kindest crew and in general a different atmosphere.

[@phueal]

I flew to the US and back on Norse Atlantic in 2023. The safety cards, seat headrest covers, and a few more things literally still had Norwegian branding!

[@MrNikodemus5]

I don't get it - when did the whole operation of Norwegian bankrupt ? Yes, they cut back drastically during the pandemic - well done so. There were next to no passengers. Some of the subsidiaries were bankrupted, but clearly there was no sustainable business at the time to keep it together. As I have observed it, they did survive the pandemic, and they have been able to build up their core business thereafter. As a Norwegian citizen, living in Norway - I basically stopped flying SAS when Norwegian emerged, not only because of low prices, But due to DIRECT flights. SAS has discriminated my countrymen for ever, and still do - by insisting us to commute via Copenhagen, or Stockholm going basically anywhere out of Scandinavia. That might sound reasonable looking at the map, how ever when you realize - Norwegians fly much more than Danes and Swedes, and Norway has been the most profitable part of SAS for ages - it's outrages the way SAS has treated passengers from Norway. Now SAS has been through Chapter 11, shareholders has lost most of their investments, and now been sold off all together. I totally disagree - I salute Norwegian for surviving, being a much better proposition for me that SAS ever was, is, or possibly will be. If that happened at cost of a lot of employees, so be it - the pandemic was not a management fault - but an act of God. From my perspective, Norwegian survived, and came out of the pandemic with a reasonable good product. SAS at the other hand, still insist of flying all over the place to get somewhere, at the double price, and still struggle major. Who am I? I'm one of those dumb fucks, who have hold gold cards at SAS, British Airways simultaneously - now I fly Norwegian on a weekly basis or more frequently - and as long as they exists, I never go back. Simply because they serve me better :)

[@Catonzo]

Just as I watch this, Norwegian Air Shuttle stocks is up 7%. By all means this is natural swinging of their stock prices and I take this as no indication of their future, but at least they are still swinging. My local airport actually has majority departures by Norwegian to Oslo. I live in a mid sized "city" (by Norwegian standards - the country, not company - and "city" is 10k people and up) in a region consisting of 100k inhabitants and we have enough people for them to need four-five departures a day to Oslo. Most of it is industrial traffic, with engineers from suppliers to the local maritime yard and Equinor facilities. It's actually a very important option for us to have and Norwegian makes that possible. They are also surprisingly often on time or even beating it by 30 minutes. They are trustworthy. We need them because the other closest airport is just shy of 2 hours away.. and it would make it less viable to even have an active airport if they were to go bankrupt and cease flights here. I hope they survive. I loathe SAS. The prices they used to have for that flight to Oslo made driving cheaper.. and that's NOT a good option. Might as well not have them then. Today it's much cheaper.. but only because Norwegian offers the same route. I wish them the best of success to make it through turbulent times.

[@fabxr]

Chances are high NAS will survive. They are highly profitable nowadays.

[@alexrain1060]

Just as I watch this, Norwegian Air Shuttle stocks is down by 10%

[@alexrain1060]

And last 5 years down by 99,61%

[@JKB-]

Now with that said. There was a state monopoly with SAS. Every time they almost went bankrupt the norwegian state came and saved them. Norwegian managed to end this monopoly and sliced ticket prices tenfolds! (Ticket Oslo-Tromsø cost 600 euros in 2000!) We are very lucky for having what was the greatest low cost airlines and still is among the best!

[@fred6907]

I noticed how the media constantly were going after Norwegian, yet had no problem when SAS was HEAVILY subsidized by taxpayers money over and over again. SAS still lose a ton of money. Starting anything in this shitty country is almost impossible at this point, with all the "anti-rich" rethoric going on. No wonder lots of the rich people move to Switzerland. I would do the same thing if I was stinking rich. We'll all be equal soon, although equally poor.

[@JKB-]

@@fred6907Could not have said it any better.

[@goodlife6277]

​@@fred6907Karen please...

[@paul_boddie]

@@fred6907 "No wonder lots of the rich people move to Switzerland." People keep claiming this but it doesn't seem to stand up to scrutiny. Of course, if the tabloids keep printing the same story, I can see that one might get this impression, however.

[@fred6907]

@@paul_boddie Guess you haven't read the news in the last 4 years then.

[@mikaelbohman6694]

When I worked in Norway in the 2010s I often flew with Norwegian to Stockholm. They were cheaper, friendlier and on time compared to SAS.

[@glendewing8858]

Australia has an interesting case study similar to this at the moment - Rex - a regional carrier operating mainly Saab Turbo props decided to enter the main trunk routes between Australian state capitals using B737s in direct competition to Qantas, Jetstar and Virgin Australia. Rex was forced into voluntary administration a couple of months ago - and has ceased its jet operations immediately while still flying on regional routes while the administrators seek a buyer.

[@BrassLock]

The suburb of Reservoir was on the flight path of many Rex Aviation aircraft heading to Melbourne from 2005 to 2010. I was able to enjoy my hobby of photographing many of their aircraft at that time.

[@smalltime0]

Rex also stole planes from the US in a heist, and the former CEO refuses to reveal where they are.

[@NicolaW72]

Indeed - and comparing the history of Norwegian with that of Rex it is astonishing that they were able to make if from a regional carrier with 6 Fokker 50 to what they were at their peak and still are after returning from collapse.

[@andrewwarcup684]

​​@@smalltime0this story has nothing to do with REX 737 operation. They were SAAB planes, and stripped for spares.

[@smalltime0]

@@andrewwarcup684 Its not like they're separate airlines, lol

[@CardinalDoctor]

I just want to say thank you. Last year I was watching your videos about to graduate college and I decided I wanted to switch track and learn to fly. After some delays I passed my PPL checkride yesterday. Next is instrument rating

[@eb4661]

Interesting seeing the old Busy Bee Fokker 50s, as I was passenger on way back in the eighties. I didn’t know their tiny fleet was a buy up and Norwegian Air Shuttles start!

[@unpunnyfuns]

my father worked offshore, and seeing the busybees land on Torp when he got back home after two weeks on an oil platform has made them a core memory.

[@TekindusT]

I flew Norwegian a few times between Berlin and Barcelona in the early 2010s, and it really was the first time I had ever heard of Norwegian. They had to fight Ryanair, easyJet, Germanwings and Vueling in that route and while flying them I always thought how had they decided to come in that saturated route in the first place. It was great for passengers but it was clear that something had to give.

[@S85B50Engine]

When they closed the Argentina branch, they dodged a big one. In 2019, the new presidency kicked out all airlines except for the massive white elephant known as Aerolíneas Argentinas. I would love a video on how an airline that had a state-impossed monopoly on all air domestic routes still managed to opperate at a MASSIVE loss.

[@19godfather93]

Doesn't need any video, mate. Google Air India. It was effectively the only airline in the sky for a solid 40 years, the only competitor being its own subsidiary which it later absorbed in 2007 (kooky, I know). It started getting mild level of real private competition in 1991, from one other airline. Only in 2003 LCCs and private airlines really swarmed the market. What did they have to show for over 50 years of domination operating a state owned, near monopoly, luxury carrier - charging $150 for a 2 hr flight back in 2000s India? BILLIONS in losses. Struggling financially and always limping behind time, with garbage service, and just bleeding money. It too was nicknamed the White Elephant. Opposite side of the world, same damn story. Fuckin governments.

[@S85B50Engine]

@@19godfather93 the one I'm talking about offered a notoriously 💩 service (always late, always on strike, overpriced, etc.) for exorbitant prices. The problem is not that no one wanted to compete, it's that no one was allowed to compete.

[@cdmc2]

Thank you for this insight into the underlying economics of the airline business. As a retired exec from a different industry your description seems to indicate that Norwegian Air execs fell into a common problem with success. Execs start to believe they are brilliant, ignoring the part good timing has in their success, start to feel invincible and take more aggressive risks. They forget that the external business environment can change and then get caught when something unexpected happens. There can also be an erosion of company values that led to your original success. Expansion is always risky and adding a significant new business like adding long haul trans Atlantic routes to short haul regional routes is even more risky. In the end it looks like Norwegian management got blinded by their own success.

[@Skaitania]

Love that you have extended the channel about aircraft disasters to include airline disasters.

[@NicolaW72]

😅

[@gcorriveau6864]

I've lost track of the number of airlines that have failed as a direct result of the drive to "keep growing." What is the reason that they seem compelled to grow instead of occupying a profitable, proven niche with a solid business plan (isn't that Southwest's success?). It seems like 'growth' is a euphemism for 'ponzi scheme' - or is it just that executives and owners get bored? I'd like to know because it inevitably causes much turmoil for stakeholders. Good topic -thanks for the new video.

[@ves5624]

It’s what happens when you have investors who only care about making money. They can invest in you, or invest in someone else. If they invest in you, then they may want you to grow so that the value of their investment might grow as well. Investing in airlines is hard because there is not much airlines can do to be more profitable than their peers.

[@DeltaEntropy]

If you don’t grow, you get outgrown by your competition and then they leverage their size to push you out of the market. It’s one of the reasons that unregulated markets trend towards monopoly. One company outgrows the others like a tall tree, choking out their competitors with the shade.

[@victortaveira8271]

Southwest is under attack and new investors expecting some unrealistic goals. Whatever future holds, I would like to see the impacts and aftershocks

[@stan-bi3hl]

Depending on interpretation, the fiduciary duty part of stock market rules can be interpreted as enforcing growth-oriented operation. And outside of stock markets, pump-and-dump investors will demand similar strategy, backing it up with investing in stock companies instead. This is in no way limited to airplanes.

[@KevinEnjoyer]

Every airline: desperately grappling with their lessors and lack of funds Ryanair: Your price tag means nothing if I am the only customer

[@RaymondCalloway]

My eldest granddaughter and I flew on Norwegian Air Shuttle from JFK to London Gatwick in August of 2017, and it was a thoroughly enjoyable flight with very good service. A couple of years later I was heading back to the UK and looking to book a flight from Boston Logan to Manchester. Going to Norwegian's website and couldn't find a flight and after a while I relaized the airline was no longer flying to and from the States across the Atlantic. Watching this video I now know, thank you!

[@JulesOfIslington]

Just before the pandemic started, I booked a trans-Atlantic flight with Norwegian for the summer of 2020. When Norwegian cancelled that flight, it gave me a choice between a full refund or a credit for a future booking on Norwegian worth 10% more than what I had paid for my ticket. I rightly demanded a full refund to my credit card, as I felt that I couldn't be sure that the airline would continue after the pandemic, and they never resumed trans-Atlantic service.

[@ehtlam100]

Just the fact that they immediately offered you a FULL refund says it all about Norwegian! Ryanair passengers fight for years to even get a reply when applying for refunds. Make sure to fly norwegian whenever you visit Europe :D

[@matthewlopez9314]

In 2018, Norwegian Air's affordable fare from Oakland --> Arlanda allowed me and my wife to attend our friend's wedding in Sweden. That trip was one of the great experiences of my life and gave me first-hand exposure to Scandinavian lifestyle and public policy, both of which opened my mind to new possibilities. I returned the next year on a working vacation, again on Norwegian, just before the pandemic. I was sad to see them in trouble and feel like I owe them a debt of gratitude.

[@PDRstudiosAviation]

Hello! Thet actually recovered quite well, they earned more than SAS last year and were about to aquire Widerøe. I flew with them yesterday and the day before that, and their seat are really Nice

[@ehtlam100]

SAS earned nothing, the past 15 years. Deficit every year. And Norwegian now owns Widerøe which have led to Widerøe making new records every month!

[@spkbri]

"...so I thought I would look at some other airlines with a notable but turbulent recent history." I have a feeling we're getting an Alitalia video sooner or later...

[@MentourNow]

Stay tuned!

[@NicolaW72]

That is a good idea - and adding ITA to it.

[@19godfather93]

Yeah, Alitalia is a given, considering it's gone bankrupt twice 😂 I hope Petter covers some other downfall stories of once iconic carriers: Air Deccan / Kingfisher - India, early 2010s: Ushered in the era of LCC in India, before they came around flying in India was a luxury, costing $150 for a 2 hr flight in a 3rd world country, back in 2000s. Monarch - UK, late 2010s: LCC pioneer in UK with a complicated journey. Sabena - Belgium and Ansett - Australia, 2001: Two failure stories of once glorious legacy airlines with lots of parallels, also not very much known outside their home markets.

[@malcolm20091000]

Sad. We flew LAX-Barcelona RTs three times on Norwegian 787s. Loved the plane, the seating, the very friendly and efficient service, and the price! Even an upgrade to business class was doable at reasonable cost. Perhaps those were signs of an airline struggling to make some extra money, but to us, those were wonderful experiences. I notice several other comments on their great service, price, and ability to upgrade.

[@colins2]

Amazing to see all the positive comments here. I flew Norwegian quite a few times between Singapore and London before Covid and have only good things to say about them.

[@rominaelorrieta3686]

We are well alive and we keep on going! Our main issues were the 787s engines, the grounding of our “new” fleet of 737MAX8s and the 2020 pandemic… We are now facing changes, but Norse is pretty much doing our LH routes again, and I really have my fingers crossed everything goes great for them. Our biggest challenge right now is Boeing itself…

[@kevinmoffatt]

The company had everything bad thrown at it in a very short space of time; very little of it predictable and any business that fails to grow isn't going to be around for very long. Sheer bad luck in my opinion.

[@The_ZeroLine]

How could an airline as adorable as Busy Bee 🐝 be allowed to go bankrupt? 😢

[@FloorItDuh]

One could say they had total hive collapse.

[@stevemawer848]

Their backers told them to buzz off?

[@The_ZeroLine]

@@FloorItDuh The beemanity!

[@ehtlam100]

Norwegian is well alive and flying all over europe with thousands of employees! :D

[@CATOGUSTAVSON]

"Collapse" is too harsh imho. They're in a restructuring phase and recently bought Widerøe who is at an all time high right now. Together they had 2.6 million passengers in September with aload factorof 85.2%. Their stocks are up 7.16% today (7 October).

[@trjozsef]

Accounting professional here: 2018 financial reporting (early 2019) was when IFRS16 entered into effect. This meant that for all leased aircraft the lease liability needed to be shown among liabilities (cf. equity ratio that you mentioned) instead of just the cash outflow as expense item.

[@zirconium5849]

Wow, respect for pronouncing Widerøe correctly!

[@Ruscombephotos]

I flew Norwegian from New York to Paris round trip in 2018 on a Dreamliner and was really impressed as a passenger, then, a year later, I flew with them from New York round trip to Gatwick on a clapped-out old 747-400, configured for economy only with the most uncomfortable aircraft seats I have ever sat on. All of Norwegian’s Dreamliners were having their engines replaced by Rolls-Royce at RR’s expense and Norwegian had wet leased some 747-400s to fly their longhaul routes. I’m sure the airline having its Dreamliners out of action while Rolls-Royce had to replace engines must have been very damaging for Norwegian.

[@DeepBlueW]

I live in Seattle and remember how awesome it was to find a low cost flight to London in Summer 2019 that I could even afford to splurge on first class in a 787! Went to try to repeat that this year and was sad to see it didn't last....

[@tristanmills4948]

They were some of the most comfortable flights I've taken over that route too, although maybe some of that was because it wasn't crammed full.

[@chrisrand5185]

I used to enjoy flying with Norwegian Air as they differed from other low cost airlines in caring about their customers, both on the ground and in the air. I realised how large their fleet was growing when they seemed to run out of Norwegian famous characters on their tails!

[@mohidahmed4739]

Also worth mentioning is the impact of Norwegian Boeing 787 groundings due to Trent 1000 problems.

[@MentourNow]

I did mention that.

[@per995]

They had the battery problems too I think in 2013 on the 787. Some problems with the quality issue that started fires. That caused a grounding. Another typically Boeing issue that they kept secret for awhile knowing the problem

[@zeitgeistx5239]

@@per995their talking about the impact on Norwegian not on the 787 in general. Norwegian didn’t even have 787 at the time you’re referring to.

[@per995]

@@zeitgeistx5239 Norwegian used 3 of the 787 that were grounded with the other airlines at the time They was early user of the 787 and had several different issues also Am I wrong?

[@AlessandroMaccari]

I still like Norwegian, as they did (and still do) apply a hybrid model, whereby fares are somewhat lower than mainstream airlines but their service level is way higher than the traditional low-cost carriers like Ryanair. For once, they offer protected connections, which means that if you miss the connection due to a delay in the first flight they will arrange for your next ticket to be changed at no fee on the next available flight. The hybrid model is very good when you travel from secondary airports, say in Northern Sweden.

[@TheresaMayNot]

Really sad to see what’s happening to Norwegian! I last flew with them in 2016 when they upgraded me on a flight from Copenhagen to Las Vegas. I’ve only had good experiences with them.

[@MrStian78]

Norwegian are growing again.

[@EduardsToms]

Very good series, brings me back to my experience while working at a similar airline - Primera Air. We had a great strategy to be among the first low-fare long-haul narrow-body transatlantic operators (we were the first ones launching Stansted-Newark flying A321N). However, we were running a very similar set of issues and problems as mentioned in your video - very low Equity ratio, low cash flow, full control of banks, tech breakdowns with expensive ACMIs, delayed B737-9 deliveries (we were supposed to be the launch customers), costly A321N options to commence the transatlantic operations.... We got used to the mode of fighting one problem after another. Unfortunately, we were not as resilient as Norwegian and had a very slim chance to get through with a very few remaining options...

[@NicolaW72]

I remember slightly to Primera Air. It´s one of the "Disappeared" of the European Aviation Industry in the years before the Pandemic like Monarch, Small Planet Airlines and Germania, too.

[@alexyew3167]

First thing to do when I have a break in school, watch another fantastic and interesting new video of Mentour Now. In my opinion, their growth plan was just to ambitious with no real financial thoughts behind their actions. But at the same time it was also a bit unlucky because no one saw the pandemic for example coming. So it was a combination of both of these factors and Norwegian is still very important to us customers

[@nshamon]

I learned so much from your program, thank you! I had thought Norwegian was just a victim of a lot of bad luck, 737 Max grounding, 787 grounding, COVID-19. I had flow their 787 from Boston to London Gatwick and found the flight Really nice. I had also flown their 737 Max from Providence, Rhode Island to Cork Ireland, where there was a policeman (Garuda) at the immigration desk!

[@ClausMallorca]

I remember flying the first 737-500 as a FO for Lufthansa, which were leased from Braathens!

[@MentourNow]

Cool!

[@AdAstraBaby]

I used to fly Norwegian from the UK to Greece all the time, and loved every minute. There was never any stress, delays or hassle. The price was affordable, the seats comfy. And then they suddenly disappeared. Literally a week before this video dropped I was thinking what might have happened, because their flight destinations changed drastically. I flew to Amsterdam a few days ago and saw my first Norwegian plane in years, which made me so happy, like seeing an old friend. Thank you for the brilliant explanation, Petter.

[@CumulusGranitis]

Nicely presented assessment Petter.

[@marybarry2230]

I absolutely loved flying Norwegian airlines albeit briefly! They started a direct flight from Providence, Rhode Island into Cork Ireland, which was the first time there was any direct flights from America to Cork. I loved the new Dream Liners that were so comfortable and at the time, had plenty of room to be able to lie down and sleep for the first time ever in all my flying years! The round-trip price was absolutely fabulous! I was so disappointed when they discontinued that route and then of course I heard of them almost going bankrupt and discontinuing other routes as well! I sure hope somehow they will return to their better years and will again start up routes between America and Ireland. Thank you so much for making this video which thoroughly explained behind the scenes of what happened with Norwegian!

[@AEFisch]

I loved the 787 Trans Atlantic very reasonable business class. I flew a lot and just needed a decent level of comfort and no fancy meals nor the absolute lay flat seat. Was a great balance on a top notch airplane to cross the ocean many times. I had flown the several all business niche cross Atlantic airlines that used 757's before that. Was a great model for me and all those businesses seats I flew were full.

[@razy1857]

I'm afraid this scenario is unfortunately very common... Successful periods and positive developments cloud thinking by the managements and shareholders about the potential upcoming problems, vigilance and foresight are lost under the impression that success is guaranteed and the constant growth business model is set as the only option for ever.... And although the air transport is very sensitive to any economic shocks, airline managements often tend not to realise that it is not possible to build on past successes, but they have to also to take into account the crisis factor into their decision-making, which is unfortunately not uncommon in aviation. Over-ambitious development projects have led to collapse for many, but this approach is still evident....

[@Die4dutch2]

24:00 Well said Mentour! My dad is also yet to be paid out what owed and together with his old colleagues he is still in a lawsuit with Norwegian. Its a real shame because as whomever I have asked, they said Norwegian was the best airline theyve worked for. Yet refuse to pay the crews even after Norwegian is clearly healthier again

[@jo_magpie]

Norwegians growth supported by their share of the two very lucrative domestic routes between Oslo-Bergen and Oslo-Trondheim, the 3 and 4 busiest routes in europe(1.7 and 1.8 million passangers a year). Now that their back focusing on these routes they'll do fine, especially with SAS on the verge of extinction.

[@snuffle2269]

I flew Norwegian Air JUST ONCE. As an American flying on a Norwegian airline out of NY I didn't realize I couldn't buy food or drink unless I had Norwegian Kroner and my CC wasn't acceptable. So it was a long flight. We got delayed in departures so I missed my connection in Norway and spent the night in the terminal to get the very early flight over to my country (shuttling the aircraft to be there early to bring back a full flight). The Dreamliner was nice.

[@kenbrown2808]

I think a little of both. they did get blindsided by some major catastrophes, but tat the same time, thy also took massive risks that may have bit them even without the catastrophes.

[@MentourNow]

Yep, it’s a combination of several factors

[@fred6907]

Not to mention competing with a company that get subsidized by taxpaying dollars constantly.

[@eduarddombai717]

Thank You very much for the video! I used to work for Braathens and Wideroe in MMK airport until about year 2000 until these airliners stopped flying to our airport. I did not follow much the situation in Norway after that. After Braathens bankruptcy I fought that SAS became monopolist in Norway for long. But that was not the case as I learnt from Your video! :) Now I remember that there was small airline called Norwegian Air Shuttle but never thought that Norwegian now and that small airline in the past is the same. Managers of Norwegian are really heroes!

[@NicolaW72]

It was both Björn Kjos who made the big Norwegian LCC out of the small commuter airline and directed it into its collapse. So, yeah...

[@Arutha_Con_Doin]

But isn't "Collapse" a bit harsh? Considering they are still flying and don't seem to cease operations any time soon. I just flew with them 2 weeks ago and everything went absolutely fine.

[@MentourPilot]

No, if you look at where they were, it’s definitely a collapse but not a bankruptcy.

[@stianby]

@@MentourPilotIf something collapses, it’s in the word that it ceases to exist. If a bridge collapses for instance. Recession is a more correct assessment. Their venture into long haul was a good idea per se, but the pandemic was the nail in the coffin. And it was a managed down sizing, and relocation to keep flying.

[@hurri7720]

Yes I would agree. I have used them due to the price and pleased due to the price.

[@phueal]

@@stianby No, "collapse" can just mean that it's now a remnant of their former lofty heights. For example a company's sales can "collapse" without meaning that they have literally dwindled to zero. A person can “collapse” without literally dying.

[@Arutha_Con_Doin]

@@MentourPilot In the subtitle you even say "how to bankrupt an airline". This whole thumbnail just fells a bit like click bait, which by the quality of your videos wouldn't really be necessary imho.

[@filipgyllenskepp1032]

I was on the first flight from Sweden to Puerto Rico. Norwegian had fixed catering outside the plane and the pilots and the crew was eating with the passengers. That was the best memory of Norwegian.

[@azuresflames2473]

I wouldn't call it greedy, greedy in my views is personal, say if a company is failing and the executive milk every last cent to give themselves a massive bonus before leaving it for dead. Norwegian I would say, like many other companies, expanded too fast, got too ambitious with it goals and exhausted its resources. This strategy is high risk but also high reward. The best case scenario is that they'd be threading on thin ice but building a business strategy around a "best case scenario" is never a good idea. They got high on their successes and expanded too quickly, got away with it for some time until the resources ran dry and issues outside of their control pop up(engine issues, 737 max, covid etc) and all of the sudden they had no buffer to get through tough times. The restructuring/downsizing was needed and hopefully with make them more financially sustainable in the long run.

[@Rautaman]

In Finland Norwegian was also active in flying local flights and competing with Finnair. When Norwegian left the prices went up and many local routes are now in danger of going out of business without competition.

[@nemzi8969]

Even train prices got risen

[@ilmarilah1195]

Sponsor ends at 8:35

[@ingvaraberge7037]

What I used to like about Norwegian was that it was an airliner run by a pilot. I always assumed that even though a low cost airliner, a pilot would not compromise security for profit. When Bjørn Kjos quit, it reduced my trust in the company a bit, but after all they seem to have been able to continue running the company in his spirit. And I am already so used to flying Norwegian that I don't really hesitate to continue using them. After all, Norwegian planes are clean and tidy, look well maintained, the crew gives a professional impression, the flights are normally on time and booking on their webpage is easy and convenient. And all of this for 1/3 of the price of a full cost airliner, incredibly enough. The end of the company has been forecasted many times, but for some strange reason they have always continued operating. So also these days, but since they have survived so many times before, I guess they will do it also this time.

[@TomasPetersson-h4e]

It is obvious to me that Norwegian lacked consequential thinking and strategy, I was the CEO of a Swedish company that was the daughter of a Danish group in the 90's. Where "short-termism" and the wrong strategies made me leave the job. Instead of investing in those that actually worked and gave black numbers, they chased volumes in a fiercely competitive market. A bit recognizable in Norwegian's history. Now, often wearing the toe of one leg is not a good solution either. In my opinion, Norwegian should have put the emphasis on what worked and fully consolidated this part. and then expand volumes on a smaller scale at a slower pace. Then Norwegian would never have had to go bankrupt. It is important to know that they are the same owners behind the current Norwegian as they were then. And Norse, as you mentioned, is run by the former chairman of the board. Weary good as usual, thank you Petter..

[@davidoberg203]

While it is not "apples-to-apples," there was a US energy company (Enron) that ended up bankrupt through failed corporate strategy, financial shenanigans, and outright illegal accounting. Norwegian Air is fortunate to have recovered.

[@2Links]

​@@davidoberg203 To be fair, they're not that comparable - Enron was famously insanely fraudulent.

[@alexsoul247]

Hey guys, just wanted to say a huge thank you for the amazing content you put out! What really stands out about your videos is how you find and share those lesser-known aviation incidents where no one was harmed. It’s so much more enjoyable to watch and learn because everyone’s safe, and we all get to learn and improve without a heavy price to pay. It feels like getting a sneak peek into the insiders' community. Big thanks to the whole team for the great work you’re doing! (edited) oops, wrong video, was meant to publish this comment in Mentor Pilot under Wizz Fligh 801 story

[@zimzam9166]

@@alexsoul247 shameful. Just shameful. And you actually paid money for this brown-nosing comment on the wrong video.

[@vintagetriplex3728]

Before covid Norwegian air use to fly from paris to new york and they even had flights from miami to Martinique (an overseas french territory). That made absolutely no sense.

[@MentourNow]

They tried all sorts of routes

[@Jc-17]

@@MentourNowyou should make one of this videos about TAP such a bad managed airliner

[@Robostomp]

Thanks for the detailed video about a company I've flown the most so far. I used to be their returning client for six years flying from HEL to Spain mostly. I remember noticing something wasn't right in the summer of 2019, actually being aware of the 737 MAX crisis having had watched Mentour's videos; that kinda figured why Norwegian was on the verge of its hard time. Even so, in early 2020 we flew a Smartlynx's flight from LGW to HEL, probably subcontracted/outsourced (?) by Norwegian, as I believed, "because of undelivered 737s. 20-year old A320 felt… different to what we had got used to. We haven't got back to travelling the way we used to "thanks" to the pandemic and something else later… Norwegian's livery is like a sign of the good, almost careless times.

[@Fay7666]

18:30 You _did_ describe a good chunk of Ferrari owners right there.

[@philipf2705]

I really love your videos explaining the business side of airlines. Please make more! I think that CEO's shouldn't receive any severance pay when they leave the company in a terrible situation and resign abruptly. I've followed many different companies and it seems like everytime a CEO makes poor/risky decisions, they resign immediately and they affect so many lives.

[@Lukasparezzz]

Petèr your transitions into the sponsors are always so smooth. One of the only times I don't mind listening all the way trough. Great story telling

[@MentourNow]

Thank you 😅

[@KuK137]

If only he didn't lie about using them and wasn't shilling that ScamHelp so hard for like a year...

[@327Erich]

"Aggressive growth plan" is an understatement! Going from 40 aircraft to ordering 220+, including 100 from a make you've never flown? That seems a bit risky when you're already dealing with slim margins and a low equity rating. Any bump in the road becomes a road block, and Covid and the MAX issues were significantly more than bumps in the road. It's unfortunate timing, but a solid business plan that valued profit stability as much as growth could have helped the company dodge these two punches, or at least minimize the effects of them.

[@steveminor9932]

Would love you to do flybe or monarch next

[@heidirabenau511]

Perhaps Thomas Cook?

[@Conqueeftador69]

As far as Norway likes to distance itself from its eastern european neighbours, this is a clear cut case of "we're not allowed to tell to the boss he is utterly inept and his decisions are disastrous". If it's not - then pretty much it's entire management is useless. I found interesting the stement in the video "risks don't always bring rewards" , but in this case all I see is ineptitude. People who actually win while "risking it" most of the time have an actual plan

[@jamesbriers696]

Planning your future service and financials around an uncertified plane type is a case of hope over experience. Few new types meet their launch dates and delays appear to be the norm these days. Their business plan was way to sensitive to any delays or problems.

[@Growlizing]

Norwegian were playing extremely risky finances, then with the grounding of the MAX8 and two quarters were they lost a lot of money on bad fuel price hedges, they were in deep financial trouble right as the pandemic was about to hit in 2020. The Norwegian that exists today, is really a different company, as if you held NAS shares in 2019, you would still be down something like 99.7%, so the company is practically a new company.

[@rolf7135]

Interesting story. I think they tried to grow too quickly, taking on too much debt, and encountering a bit of bad luck along the way. I’m not sure if their issues with implementing new models can be chalked up to bad luck or should be expected. While Norwegian certainly faced its share of challenges, the company (though not its shareholders) seems to have experienced an incredible streak of good fortune during COVID-19, especially when compared to SAS.

[@denidale4701]

I just flew Norvwegian once from Spain to Belgium and I had never heard of them before as I was usually flying Ryanair. It felt like a fancy airline in comparison. Beautiful new planes, internet on board, beautiful blue night light in the cabin. Also the crew and service surrounding the flight felt much higher class. I always told myself that I would fly them more often, but sadly they never offered flights on the routes I took.

[@driesvdc2]

Fascinating story! Thank you for sharing!

[@MentourNow]

Glad you enjoyed it!

[@BMC2]

Would love to see you make a video on successful airlines too, like how Ryanair uses a very simple yet successful formula.

[@Chess_mcqueen95]

a wise man once said start an airline with " billions " to make " millions "

[@antisoda]

As a Norwegian, my thoughts were: _"Oooh! A KZbinr has made an entire video about something Norwegian! Whee! This is gonna be aweso…… Uhm… Hmm… It's about Norwegian Air Shuttle… Urrk! This is gonna hurt!!!"_ :)

[@VegaTheLyra]

0:41 this pun is golden lol

[@thewholeworld-2032]

I used to travel to Thailand with Norwegian 3-4 times a year. In 2013 I was supposed to travel with Norwegian from Bangkok to Oslo. Just before my transport to the airport arrived, I got SMS that said the flight was canceled. I umpacked and went to the beach. Later, 1-2 hours, I got a new SMS telling me the cancelation was canceled, and the flight was on. Now it was too late for me to get to Bangkok, and I lost the flight. I took another flight a week later. Norwegian refused to refund my ticket, and I spent another 5000 NOK in travels just trying to get my money back with no luck. I have not traveled with Norwegian since...

[@GarfieldRex]

Aaaaaaa so that's why Avianca is getting three 787s from them. From Norwegian Air UK division.

[@MrSnout5]

Flew LGW-OSL-BKK; very good ticket price but my beef was that they would not or could not book our luggage through to Bangkok, so we had to go through the whole luggage/security process in Oslo, both ways! We also learned from the Thai cabin crew on the return BKK-OSL flight, that their wages were paid in Thailand and at Thai rates. So yes, Norwegian were very 'creative' with their employment/outsourcing schemes.

[@davidjonsson469]

They were unlucky. But respect has to be earned. Good luck to them.

[@beezie0074]

Norwegian used to have 5 AOC`s you had Norway, Sweeden, UK, Ireland and Argentina and you may have heard them on ATC youtube vids causing a bit of confusion with same livery planes using "Norshuttle/Rednose" etc depending on what AOC they were flying under

[@pongokamerat8601]

It was mess

[@kimchristensen3727]

That's the typical European low cost carrier's way of doing business. All so they can squash unions, underpay employees, play tax games and bully national authorities to get what they want.

[@3373just]

Norwegian were amazing as a UK passenger! Free wi-fi before most airlines didn't even have a paid service! 👍

[@steinarnielsen8954]

Not anymore.

[@3373just]

@@steinarnielsen8954 do you not understand the past tense "were" 🤦🏻‍♀️ or the video was just too difficult for you to understand? 🤡

[@PekPiu]

You forgot to mention that Norwegian had an EASA AOC in Finland. And as an EU coutry, they could now operate within EU regulations. Also, the planes were pushed to lessors, but also the Norwegian stock landed quite quickly to the lessors too. Now lessors wanted their planes to fly, and they did push their fleet to be active and in production, which meant Norwegian could continue ops, with new company and new owners. Norwegian still exists, while they do not have the same wide network that they used to. I have 3 bookings on Norwegian active, and it seems to work as fine as ever before, while technically it was created as a new operator after all of those major hickups.