Norwegian could have spent this year better making themselves more deserveable of further support

Norwegian did not spend the time well since the last injection of government loans. Too much concentration on finding finance too little on what makes an airline a viable business. 

They could have gone for doing more cargo. If they by now transported halve of the Norwegian international post and a large portion of its exportable airfreight products if would have given the Norwegian government a reason for why the company needed saving. 

They could have marked them out as bringing something extra to the CoVid19 table by, as the only airline in Europe, offering to transport the nervous in a socially distancing environment by at least offering the option of middle seat free in parts of the cabin. For 50% extra on the ticketprice off course. Then the politicians could have said look what Norwegian brings to the table, we need that, lets give them a helping hand. 

Instead they decided to spend all their effort and most of their time in scouring for finance. Not easy to come by when you the last time sold it by saying you would need even more soon so most likely anyone’s investment will be sunk by the end of the year. Instead of focusing on what operational opportunities they could take advantage of with what extra money came in. In addition they kind of killed off the financial opportunities long before CoVid19 when they announced the change from the fast growth company the investors love, to the type of non differencing airline company, with nothing special that makes them stand out, that is forever a money pit.  

But what can you expect from a top management thin on airline experience. They treat it like any other service company forgetting that in the airline industry the norm is to loose money and only the exceptional occasionally makes some. 

 

It probably didn't help either that they where based in Norway where socialism is so imprinted that it is difficult to make money without some sort of public help. It is a so heavily taxed country that its expected one gets some back. Quite telling that few or no company gets off the ground without some state aid and that the first thing you get asked if you try to sell some service is how close to 100% of it will be covered by government funding. Other airlines like Wizz sees in these days how difficult it is to establish trade in Norway without seriously increasing their costs to Norwegian levels including the intervention of unions. Norway might not have an official minimum wage but each and every sector have a trade agreement that includes a minimum pay for all employee groups involved. And how some Norwegians including companies like to get their name in the press by dissing newcomers that don't follow the trade agreements to the letter, even if they themselves do or would like to follow similar non-conforming practices.

But this aid come at a cost. The problem with the 3000 million nkr already given from the Norwegian government to Norwegian is that it came at a hefty chunk of interest and not at the official 0% plus some admin costs. It went via a bank that took well paid for middleman service the in for of a in this market seriously high interest.