The impatience shown by Geir Kalsen, CFO of Norwegian Air, regarding the Argentine subsidiary caused a certain embarrassment for the Norwegian low-cost airline. In an interview where he commented on the results of the first quarter of 2019, the CFO stated that “If the Argentine project does not match the plan, we are prepared to withdraw.”
Norwegian Air debuted in Argentina just over six months ago and wants the operation to go red until August.
To ensure that the plans are still standing, the airline’s CEO in Argentina was optimistic this weekend in his statements. Ole Christian Melhus has also announced that Norwegian routes will double from September and sales to these new destinations will begin in the coming weeks, including Ushuaia, on the southern tip of the South American continent.
“I am very proud to be part of the Norwegian Air Argentina team because the work we have done so far will allow us to announce new national destinations very soon, doubling the number of routes operated in the country starting in September.In accordance with our plans, very soon we will offer more options at low prices so that more Argentines can travel and explore this fantastic and beautiful country,” said the CEO of Norwegian Air Argentina.
Melhus also praised the best sales results and confirmed that the company’s Boeing 737-800 will return to Argentina in the second half to allow for expansion of the routes – currently used by the parent company to compensate for the grounding of the 737 MAX models.
Ambitious plans
Norwegian Air was one of the first low-cost airlines to take an interest in the South American market and took advantage of President Mauricio Macri’s opening policy that allowed foreigners to operate on local air transport. The problem is that the Argentine economy is in crisis while the competition has increased and is more aggressive.
With its policy of lower prices, sometimes up to half the price of other companies, Norwegian works with a small margin to become profitable, despite its lean structure. The airline also showed interest in the Brazilian market, with an eye on a possible opening, but the topic has not been mentioned since. Today the British division, responsible for the main international routes, operates two flights from London (Gatwick) to Buenos Aires and Rio de Janeiro.
