Norwegian Air

Sensible new plan announced; exiting long haul, focus on Nordics

  • Sectors : Airlines & Other Transport
  • Companies : Norwegian Air

Ratings and price correct at time of issue.

  • Norwegian Air

    Closing Price: 7700nok

  • RATING 01/09/15

  • PREVIOUS RATING 22/01/15

    UNDERPERFORM

DAVY VIEW

Overall, this seems like a sensible plan. In particular, the long-haul business was volatile and generally loss making since its launch in 2013 – in this environment, withdrawal is the only viable option. The short-haul network will pivot around the Nordics, also a practical move given Norwegian’s lack of competitive advantage in the increasingly competitive European low-cost carrier (LCC) short-haul market – better late than never. Another round of significant recapitalisation awaits but the prospect of relative stability thereafter is becoming more realistic.

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Jan 14 2021, 08:35 GMT

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