Norwegian Air’s New Fleet Looks Good to IAG. The CEO Says He’s Not Selling

As a pilot in the Royal Norwegian Air Force at the height of the Cold War, Bjørn Kjos spent his days chasing Russians out of NATO airspace, a game of cat and mouse that was risky, terrifying—and utterly exhilarating. “It was the best life you can live,” Kjos says, running his fingers over one of two model fighter jets he keeps in his office.

These days, the 71-year-old chief executive officer of Norwegian Air Shuttle ASA is again flying perilous skies—though the risk comes from bankers and rival airlines, not the cockpit of a MiG. Norwegian, which has expanded from a low-cost regional carrier into a globe-spanning colossus shaking rivals with trans-Atlantic fares as low as $99, lost almost $250 million in the fourth quarter of 2017—at a time many airlines are seeing near-record profits. Investors, convinced Norwegian’s shares are defying gravity, made it the industry’s most-shorted stock.