- Norwegian Air is reducing its long-haul flying by 40% following President Trump's restrictions on travel between Europe and the US.
- The low-cost airline's business model makes it particularly vulnerable to the restrictions that limit which US airports can accept flights from most Continental European cities.
- With financial problems plaguing the airline before the start of the COVID-19 crisis, Norwegian may not survive much longer, according to an airline industry expert.
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One of Europe's leading low-cost, long-haul airlines announced that it will be suspending over 4,000 flights in response to President Trump's proclamation that travel between the US and Europe will be restricted for the next 30 days.
Norwegian Air issued a statement Thursday afternoon detailing the specifics of its transatlantic scale back include canceling a majority of flights between the US and cities in Europe such as Amsterdam, Madrid, Oslo, Stockholm, Barcelona, Athens, Rome, and Paris. The cuts resulting in a 40% reduction of service in its long-haul network.
Unlike most European long-haul airlines, Norwegian had adopted a largely point-to-point business model for its transatlantic routes and isn't tied to a single hub on the continent. The low-cost airline primarily serves routes between North America and Europe with strong demand, starting a low-cost revolution when it first launched by offering inexpensive nonstop flights aimed at leisure travelers.
With a large focus of its business focused on the Continental European destinations that are being restricted under the president's proclamation, Norwegian is heavily at risk and may not survive the season.
At Denver International Airport, for example, Norwegian serves Paris and was scheduled to begin service to Rome at the end of the month. Both routes will be forcibly suspended under the travel restrictions because the airport isn't listed as an approved entry airport.
In conversation with Business Insider, airline industry consultant Henry Harteveldt included Norwegian on his list of airlines that may not survive the drastic reduction in demand airlines are seeing as a result of the spread of COVID-19. Norwegian is particularly vulnerable as it had financial issues before the crisis began.
See Also:
- Here's why Delta, American, United, and other airlines won't be quick to offer refunds even though travel from the US to some European countries is largely banned due to the coronavirus pandemic
- Airlines are scrambling to adjust to Trump's surprise Europe travel ban. Weaker carriers may not make it through the end of the month.
- FAA moves to prevent 'ghost flights' of near-empty planes in the US by easing rules that put them at risk of losing their spots at airports
SEE ALSO: Airlines are scrambling to adjust to Trump's surprise Europe travel ban. Weaker carriers may not make it through the end of the month.
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