Norwegian Airline’s Record Profit in 2023 and its Impact on Argentina’s Aviation Market

2024-02-17 16:33:56

The news is recent, but distant. He arrives from Norway. She met yesterday. The Norwegian airline from that country obtained an operating profit in 2023 of more than US$200 million.

According to European media reports, the operating margin was 9%, a record for the company.

“I am delighted to announce that Norwegian achieved record profits in 2023. Our loyal customer base continued to grow and we are grateful for the trust they place in us. Colleagues across the company have worked hard to ensure operational excellence, from the planning of our network and services to their daily execution,” said Geir Karlsen, CEO of the company.

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Also highlighted is the growth plan they have planned with more aircraft and new routes, which shows the strength of the airline in a market as competitive as the European one.

Why is this news interesting in Argentina? Because Norwegian He operated in the country a few years ago, but decided to leave, abruptly, when he understood the particularities of Argentina.

Its arrival occurred during 2017, in a context in favor of companies, in which the opening of the skies and the arrival of several airlines were promoted. low cost.

That was the line that the former president marked Mauricio Macriand carried out by the then Minister of Transportation; Guillermo Dietrich.

There was talk of the “airplane revolution”, the El Palomar airport was opened for these new companies, competition grew, ticket prices dropped and the number of passengers grew.

A battle was also opened with the aeronautical unions to break the monopoly of Argentinian airlinesclean up the company and remove privileges from state managers and union members.

It was on that stage that he landed Norwegian with three aircraft, the coverage of several domestic routes and the Buenos Aires-London connection. Everything seemed promising until the political winds changed.

With the possibility of the return of Kirchnerism to power, Norwegian managers decided on a quick exit. First discreetly and then publicly, he negotiated the sale of his operations to another low costwhich had recently begun flying in Argentina.

Before the end of 2019 and barely assumed Alberto Fernandezthe agreement between the two companies was known and Norwegian left the country.

Argentine businessman Ricardo Clarke played a key role in the arrival of the Norwegian airline to these lands. Living in that country for decades, he was the manager of its arrival in 2017 and maintains close ties with the company. He is co-author of a book regarding the 20 years of the company’s life in which he devotes several pages to the “Argentine homeland.”

MDZ consulted him to find out what were the reasons that led to the company’s departure, ranging from political, economic and cultural issues.

“Knowing perfectly the idiosyncrasies of Norwegians, especially businessmen, I don’t think it would have been possible for Norwegian work in a country with a dominant company and a monopoly like Argentinian airlines“, with powerful unions and corrupt and mafia leaders, in a country governed by left-wing populists,” said the businessman, in relation to the return of Kirchnerism.

“Norwegian has never invested in a country with these characteristics, they are not ‘trained’ to face these tremendous obstacles that, to this day, no one has been able to overcome,” he added.

“When in Norwegian They saw that populism was returning and they knew the obstacles they were going to put in their way, they made the decision to leave Argentina. There were no other reasons,” Clarke said.

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“It is true that the company, at that time, was having problems in Norway and around the world and they needed to make a general replacement. I was not an employee of Norwegian. I had contact with the company and with the company’s leadership for the management I did for its arrival in the country. What I express is a personal impression that is expressed in the book. Knowing the Norwegians, I am convinced that the company would not have continued in Argentina because it was already known that the government of Mauricio Macri, which had given full support, was difficult for it to continue, especially with the change of government. It was a political, cultural and economic combination, but the political factor was very important,” Clarke said.

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