The Downfall Of Norwegian

foreign subscribers and with over 70 unsubscribed make sure to join up and never miss a video towards the end of the 2010s there was no pandemic and one major story that occupied headlines if it wasn't the 737 Max You could argue the secondary story was the Rolls-Royce Trent 1000 Saga and yes this continued for a significant period and impacted Airlines worldwide in a host of different ways cracking and corrosion were found on the engines that were installed on the 787 series key governing bodies such as the Federal Aviation Administration and the European Aviation safety agency authorized mandatory inspections to better understand the problems which in some cases led to groundings as safety was put at the Forefront I'm discussing the 787 engine crisis because this was a significant contributing factor to the downfall of Norwegian yes the airline back in the late 2010 which was labeled as an airline at serious risk of collapse some quoting that its demise would take place in a matter of days thankfully the airline remains in 2023 and is pushing forward on successfully following a major restructure but things could have been very different and how the airline looks now is vastly different from what it once did so let's examine the downfall taking a look at what really impacted their operations and what they've learned and how they've emerged a changed Airline as briefly touched on the airline was significantly impacted by Boeing's ongoing situation during 2019 as they flew both the 737 and 787 families pretty unlucky if I do say so myself as these were the two types in the Boeing family and aviation industry which were undergoing mandatory groundings a lot of scrutiny and had safety concerns or quality assurance problems either way their entire 8 was incurring trouble and it was seemingly all out of their control simply struggling because of the product they had inherited that shouldn't have had these issues it's why Norwegian in many cases has been given the title of being one of the unluckiest airlines no matter how long an airline tries to navigate the pressures at some point the pin will drop and especially for an airline like Norwegian which isn't it said Heights of a middle eastern carrier which comes with a substantial amount of investment and backing the costs do weigh heavy the company began incurring severe Financial pressure especially with their 787 operations with the burden being placed on the entire company because of these maintenance costs went through the roof but for every day these planes remain grounded the costs spiked it's 787 operations focused on transatlantic Missions at a low cost meaning they would be affordable for most consumers these though had already incurred critics over sustainability and once more became the central focus of discussion in the aviation industry and what its viability would be for the long term considering all the negative implications it was having nonetheless the airline pushed on to continue its most popular transatlantic missions and restoring capacity by acquiring the services of the high fly A380 on a wet lease yes that's another throwback for you because if you recall highfly did operate the only second-hand A380 but now not anymore and this was operational while the 787s remained grounded while the right intentions were there for Norwegian the operations with high fly and their 380 wouldn't be the answer they would require and instead would turn into an absolute disaster given its high demand the Gatwick to New York JFK service was the focus these A380 flights incurred substantial delays some exceeding five plus hours and some flights being canceled altogether as Norwegian alongside high fly the ones that owned the A380 and battled with airport restrictions at JFK that limited the number of A380 boardings that could be handled at once additionally it was reported that limited gate space was available to the airline due to the up gauging in aircraft being utilized and JFK not being prepared for this Norwegian worked to improve the situation but in the end it just couldn't be mendered and it became more of a disaster rather than a good idea that maybe the company had envisaged at the beginning it certainly didn't work out in the end and customers were pretty furious at the overall results Norwegian would always face also a tough battle with full service and Legacy carriers on the transatlantic Market while they offered a domestic Network much of their focus and resources were put on those transatlantic markets which at low costs can be hard to sustain if a business doesn't find ways to adapt to continue seeing Revenue come in at all points of the Year this market for Norwegian and other Nordic carriers is very much seasonal and Norwegian was not an airline that pivoted in a manner during low demand Seasons to see revenues continue to grow as mentioned earlier even before the Rolls Royce Trent 1000 crisis there were question marks about their Dreamliner operations and the sustainability of these for the long term the substantial competition was only growing as more Airlines welcomed in Next Generation aircraft and wanted to deploy these onto what they saw as a booming sector with a lot of opportunity to grow as a brand this then made it harder for an airline such as Norwegian to really keep up with their own business model the landscape it's safe to say was changing and with frequent flyer programs brilliant root networks better cabin products and more accessible connections for an airline like Norwegian it became trickier to win customers over and just generally sustain the low costs with their aircraft Norwegian did also feel the effects of an ambitious growth strategy seen far too often before where companies will look to expand to disrupt the market rapidly this can actually be a business model of the sole Airline as well but it's a strategy that has potential to work but comes with Incredible risks and if done wrong does have the potential to lead to a financial state where recovery is not attainable fuel prices and the pandemic for Norwegian were the final Nails in the coffin for this loss making exercise the fluctuation in fuel prices meant sustaining their operations became increasingly more difficult paired with everything else Apple mentioned the pandemic just came down hard on Norwegian what it did do was merely see them collapse but if it gave them anything good it was the time to understand learn downsize and work towards being a more sustainable and smaller business as a result the 797s were removed and transitioned to a North Atlantic Airways transatlantic Services were also subsequently axed as they would no longer fly any wide-body aircraft the fleet was scaled down with many 737s being removed and a focus was put on serving European destinations and doing so in a manner that would be sustainable since this change Norwegian has enjoyed success and has undoubtedly emerged from its restructuring into a more mobile and solid airline that is now looking at where it can expand while some elements have been cut it's largely for the better and while they'll certainly hold the title of the world's unluckiest airline in that period incurring problem after problem that wasn't really related to the airline there were signs already pointing that this would not be a long-term sustainable way of flying and that is why now we don't see the airline flying from the likes of Gatwick to New York JFK if you have any thoughts on Norwegian let me know Down Below in the comments thank you very much for your support take care and be safe and I'll see you next time [Music] foreign foreign foreign

Channel: GlobeTrotting at Dj's Aviation

Views: 27,311

Keywords: aviation, airline, airport, globetrotting, dj's aviation, avgeek, airbus, boeing, daily dose of aviation, aviation analysis, aircraft analysis, planespotting, planes, aircraft

Id: Pao0rcKljIc

Length: 8min 24sec (504 seconds)

Published: Mon Jun 12 2023