How a regional Norwegian airline survived bankruptcy to become a dominant European low-cost carrier

Countries & Cities · Published 29 September 2026 Swipe more like this →

In short: Founded in 1993 to serve regional routes in Western Norway, Norwegian Air Shuttle transformed into a major European low-cost carrier. After aggressive expansion and a near-collapse during the COVID-19 pandemic, the airline underwent a radical restructuring, shedding its long-haul operations to emerge as a leaner, profitable regional powerhouse.

Norwegian Air Shuttle began as a regional operator, taking over services for Braathens in 1993 using Fokker 50 aircraft. The company was established by former Busy Bee employees and initially employed fifty people. By 2002, following the acquisition of Braathens by Scandinavian Airlines, the airline pivoted to a low-cost model, rebranding as Norwegian and launching its own scheduled services. This shift marked the beginning of a period of rapid, ambitious growth that saw the company expand its fleet and international footprint.

The airline’s strategy relied on aggressive growth, including massive aircraft orders and the launch of long-haul routes to destinations like New York and Bangkok. However, this expansion was derailed by the grounding of the Boeing 737 MAX fleet and the global COVID-19 pandemic. By 2020, the company faced a severe financial crisis, with its market value plummeting and its debt mounting. In response, Norwegian filed for bankruptcy protection in Ireland and Norway, significantly reducing its fleet and cancelling nearly all long-haul operations to focus on a sustainable European network.

Following its emergence from bankruptcy in 2021, the airline streamlined its structure, consolidating operations under new subsidiaries and simplifying its fleet to Boeing 737-800s. Under CEO Geir Karlsen, the company shifted its focus toward profitability and regional dominance. Recent strategic moves, such as the 2024 acquisition of the regional carrier Widerøe, underscore its commitment to strengthening its position within the Scandinavian market. Today, Norwegian operates as a leaner entity, having successfully navigated a period of extreme volatility to remain a significant player in European aviation.

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