Norwegian Air CEO Steps Down as Struggling Carrier Charts New Direction
Norwegian Air co-founder and CEO Bjørn Kjos is stepping down as the head of the company.
"Leaving the exciting future tasks to a new CEO and taking on a new challenge as an advisor, is a set-up I am very happy with," Kos said in a Thursday statement announcing the change. "I look forward to spending more time working on specific strategic projects that are crucial to the future success of Norwegian."
No immediate successor was named for Kos, who will retain a role as an advisor to the airline's chairman. But the end of his 17-year run as CEO signals a potential change in direction for the European low-cost carrier, which has grown at breakneck speed during the past decade.
Related: Review: Norwegian Air 787 Economy Class — New York to London
Under his leadership, Norwegian has grown from a small domestic operation under the Norwegian Air Shuttle brand into a global low-cost giant. It's grown beyond its initial hubs in Scandinavia to include a major base at London Gatwick as well as several other European cities.
From the US, Norwegian has opened a staggering number of new routes to Europe this decade. Earlier this year, Norwegian flew more than 50 nonstop routes between the US and Europe.
The airline also has opened a Norwegian-branded subsidiary in Argentina, which is now looking into launching flights to the US.
But the departure of Kjos comes amid questions about Norwegian's long-term outlook, with its aggressive growth saddling its balance sheet with debt and regular money-losing quarters. Norwegian also faced issues beyond its control, including engine issues with its Boeing 787 Dreamliners and broader problems with Boeing's 737 MAX that has forced it to unexpectedly take planes out of service.
A number of analysts have routinely predicted the carrier couldn't continue, though so far Norwegian has done just that. Norwegian also has been frequently mentioned as a possible takeover target, and it last year reject overtures from the parent company of British Airways and Iberia.
Related: Norwegian Air: Reviews, Deals, News & Guides
Against that backdrop, Norwegian has begun to focus more on profitability and less on growth. Cost-cutting measures also have been implemented, including a 2018 agreement to sell five Airbus A320neos to help pay down debt.
In the US market, it's axed flights to the French Caribbean and adjusted other routes in an effort to shore up its bottom line. Norwegian acknowledged the strategy shift in Thursday announcement about Kjos.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.