Norwegian Air may not survive the pandemic

Norwegian Air wanted to bring a low-cost business model to transatlantic flights. It's quickly running out of runway. The coronavirus pandemic and travel restrictions have forced Norwegian Air to ground the vast majority of its fleet, and furlough almost all of its workers. The heavily indebted carrier's stock has collapsed, and its cash reserves are nearly exhausted. "Norwegian is dependent on additional working capital in order to continue operating through the first quarter of 2021 and beyond," the airline said Tuesday as it reported its latest financial results. One potential rescuer has already turned its back on the airline that once had ambitions to repeat Ryanair's short-haul success on longer routes. Norwegian Air said on Monday that the Norwegian government has ruled out providing it with more financial assistance, leaving the carrier in what it described as a "challenging situation." CEO Jacob Schram said that the decision "is very disappointing and feels like a slap in the face." Airlines around the world are getting significant financial support from their respective governments, he said, and Norwegian Air should receive the same because of its contribution to Norway's economy. "How anyone could come to a different conclusion is impossible to understand," said Schram. Norwegian Air was founded in 1993 but began a rapid expansion nearly a decade ago, seeking to apply the business model pioneered by Ryanair in Europe and Southwest in the United States to transatlantic flights. In 2012, it placed an order for 222 aircraft, the biggest in European aviation history. But the aggressive strategy left it with huge debts, and little room to maneuver when things went wrong. Tuesday's earnings statement shows that Norwegian Air is in significant distress. The carrier operated just 25 of its 140 planes during Q3, and passenger numbers dropped to 1m from 10.5m during the same period last year.<br/>