Norwegian low-cost airline Norwegian, which had been losing money for three years straight, was finally getting back on its feet when the coronavirus pandemic shrunk airline passenger traffic to a third of its pre-crisis volume.

The airline, which suffered from its too fast growth and Boeing’s continuous technical faults, had previously been supported by the Norwegian state, but in late autumn 2020, the social situation was not considered suitable for reviving the airline with tax money.

It was decided to simplify Norwegian’s operations.

– We had to tell the employees that we only pay wages if the flight leaves, says the CEO Geir Karlsen.

There were still 156 planes in 2019. A couple of years later, the company had given up more than a hundred of its planes and almost halved the costs generated by long-term leased planes.

The net debt was reduced by NOK 140 billion, or about EUR 11.9 billion.

After its many changes, Norwegian has found a golden middle ground and reached a new rise. Today, there are around 90 aircraft, and routes outside of Europe have been cut.

The company now emphasizes its Nordicness.

Boeing scares

The planes flown by Norwegian are manufactured by Boeing, whose reputation has been badly damaged. In July, it was reported that it is ready to plead guilty to fraud.

According to a recent report by travel industry news service Skift, 71 percent of air passengers are concerned about Boeing’s safety standards, and closer to a third – 27 percent – ​​would prefer to fly with a European Airbus.

Geir Karlsen says he visited the Boeing factory in Seattle and describes the aircraft manufacturer’s situation as confusing.

– Generally, there have been two or three aircraft outside the factory that are going back to the production line due to manufacturing defects. Now there seemed to be two dozen of them, Karlsen describes.

Boeing’s doors have been opening at a brisk pace lately.

– Many knowledgeable people have been lost there, who changed fields during the pandemic, says Karlsen.

According to his own words, the company needs several years to recover from the crashes.

However, the contract with it is still valid, and Norwegian has no plans to negotiate cooperation with another manufacturer in the near future.

The aviation industry recovered from the corona

A few other things have plagued the European aviation industry in recent years. A large-scale war is raging in Ukraine, which has rearranged flight routes and fueled inflation.

Due to the pandemic, working life has become more flexible and remote work has become more common, so combining travel and work is easier than ever.

At the same time, the locals of several popular travel destinations are tired of too large and badly behaved tourist masses.

Airlines can reduce the carrying capacity of such objects to a limited extent.

– It is a fact that if, for example, all accommodation in Barcelona or Mallorca is constantly full, it does not make sense for us to add routes or seats in that direction, Norwegian’s commercial director Magnus Thome Maursund to point out.

– On the other hand, it is difficult for the airline to start suggesting that, hey, there is such an option B. However, there is no other Barcelona elsewhere.

Despite everything, leisure air travel has revived worldwide after the corona years.

According to Skift, this year the growth curve has hurtled back to the level of 2019 and also passed it.

The popularity of Northern Europe is rising

Europeans’ favorite destinations are slowly changing, but the trend that rears its head is that people from Central Europe are heading north more often than before. The phenomenon already has a name: coolcation (cool holiday).

For example, Germans’ interest in northern lights tourism is growing.

Norwegian has also opened new routes to Italy not only because of Italy’s popularity as a travel destination, but also to attract Italians to Northern Finland.

– Admittedly, we cannot be quite sure whether the popularity of the destinations is due to global warming or the fact that Northern Europe is of more interest as a region than before, says Maursund.

So far, there are no indications that Finns would not want to secure a vitamin D-filled holiday period as usual by traveling to southern Europe or warm destinations outside of Europe.

In the future, however, we will see more spreading of summer vacations to spring and autumn, because in the middle of summer Southern and Central Europe are increasingly tormented by drought, wildfires, floods and other extreme weather phenomena.

Did the shame of flying disappear?

Flying has not returned to Swedes’ everyday life with the same momentum as its neighbors, which Karlsen guesses is due specifically to climate reasons.

– The weak currency certainly has an effect in the background, but also Greta Thunberg and the Swedes’ flight shame.

On the other hand, it now seems that the public discussion about flying shame is on the verge of being exhausted.

– I haven’t heard talk about it for a while, the managing director admits.

An estimated 2–3 percent of global greenhouse emissions come from the aviation industry. The flying of North Americans and Europeans pollutes the most, but in the coming years Asia’s emissions will probably go away.

Regardless of how much flying someone is accused of, climate change and measures to combat the climate crisis will revolutionize passenger flying in the near future.

The introduction of fossil-free fuels is the fastest and most effective way to control aviation emissions. The transition to them will be carried out under the leadership of the EU, which pursues an ambitious energy policy, and not the airlines themselves.

Slow change

For Norwegian, the transition to more climate-friendly flying depends on how the Norwegian government harmonizes its climate policy with the EU’s green transition.

But will the European Commission have time to commit airlines to a 55 percent reduction in greenhouse gas emissions from the level of 1990 emissions?

Geir Karlsen doesn’t know how to take a stand on the matter, but seems a little suspicious. The Fit for 55 package should be agreed upon by 2030.

– Airlines may not commit to it if there are no investors. This will be a big discussion and a significant controversy in the industry, Karlsen predicts.

– Even if a large part of the fuel were renewable and cheaper already, we still wouldn’t see the change happen overnight. Globally, the next 10–15 years will also be largely the same technology as is available right now.

Norwegian’s goal is to almost halve its emissions by 2030. Only half of the reduction in emissions is implemented with the help of technology and by flying more economically.

The rest of the talks will be successful depending on how the renewable fuels market gets wind.

– So far it is very expensive, but the market is growing rapidly.

In Finland, negotiations related to fossil-free fuels are just beginning, but due to environmental concerns and problems, both interest and demand are growing.

The development is slow and the biggest changes will probably take place in a few decades.

According to EU regulations, two percent of the fuel for planes landing on the fields of the Union must be renewable by 2025, but with the success of the current plans, the share of bioenergy has increased to 70 percent 25 years later.