Category Archives: Norwegian Air Norway

Norwegian commits to reduce CO2 emissions by 45 percent by 2030

Norwegian Air Shuttle made this announcement:

Norwegian has launched a new environmental sustainability strategy that will begin immediately and deliver several industry leading targets. Cutting CO2 emissions by 45 percent, remove all non-recyclable plastics and recycle all single-use plastics are key commitments in the new strategy. The goal is in line with the 1.5°C target set forth in the Paris Agreement.

Jacob Schram, CEO of Norwegian, said: “At Norwegian we take our responsibility towards the environment seriously, and that is why we must look to the future and implement a strategy that produces immediate and tangible benefits for the environment today. Norwegian will continue to instigate a positive change across the industry in this field that will benefit not only the environment but also our customers and our business. The low-cost business model is the sustainability model as it enables efficient energy and resource management.”

Will require 500 million litres sustainable aviation fuels

To limit global warming to 1.5°C, carbon emissions must be reduced by 45 percent by 2030 compared to 2010 levels, according to the International Panel on Climate Change (IPCC, 2018). We commit to improve the carbon efficiency of our operations and will reduce our carbon emissions by 45 percent per passenger kilometer (RPK) by 2030 – compared to 2010 levels. This will be achieved through both fleet renewal and sustainable aviation fuels.

The airline commits to utilising between 16 and 28 percent sustainable aviation fuels by the end of the decade, depending on the level of fleet renewal. The target amounts to up to 500 million litres sustainable aviation fuels by 2030.

To achieve this important goal, it is also crucial to get in place a regulatory framework that actively rewards carbon efficiency and increases both the production and use of sustainable aviation fuel.

Jacob Schram said: “We encourage producers to ramp up production of sustainable aviation fuels. Norwegian will be actively engaging with producers to kick start this vital contribution to the industry and take advantage of the emission savings that these fuels offer.”

Will remove all non-recyclable plastics

Initial elements of the sustainability strategy will also include a 100 percent reduction of non-recyclable plastics and 100 percent recycling of single-use plastics by 2023.

Anders Fagernæs, Norwegian Head of Environmental Sustainability, said: “More sustainable and smarter options are becoming a greater part of the considerations that customers make when choosing which airline to fly with. We will champion this attitude and become the customers sustainable choice by reducing and recycling plastic waste, promoting sustainable aviation fuel and continuing to fly one of the world’s youngest fleets to achieve a 45 percent reduction in CO2 emissions by 2030.”

A solid foundation

Norwegian is already one of the world’s leading fuel-efficient carriers due to its modern fuel-efficient aircraft. Norwegian was the first airline to sign the United Nations Framework Convention on Climate Change (UNFCCC) pledge, committing to become carbon neutral by 2050.

The airline was also voted the world’s most fuel-efficient airline on transatlantic routes in 2015 and 2018 by the International Council on Clean Transportation (ICCT) and since 2010 the airline has reduced its emissions by 28 percent.

Norwegian August 2020 traffic figures heavily influenced by travel restrictions and drop in demand

Norwegian Air Shuttle made this announcement:

Norwegian’s traffic figures for August are heavily influenced by the COVID-19 outbreak and the subsequent travel restrictions and drop in demand. In August, capacity was 94% lower than last year, while the flights that were operated had a load factor of 62.1%.

From July 1 Norwegian reopened 76 routes and put an additional 15 aircraft into service, throughout the summer frequencies and routes were adjusted in accordance with variations in passenger demand linked to changing government travel restrictions and advice.

Compared to the same period last year total capacity (ASK) decreased by 94 percent while total passenger traffic (RPK) decreased by 96 percent. Load factor was 62.1 percent, down 27.9 percentage points. The total number of customers carried in August was 313,316 a decrease of 91 percent.

Norwegian on August 28, 2020 reported its results for the first half year of 2020. The figures are as expected heavily impacted by the COVID-19 pandemic with a net loss of NOK 5.3 billion. During the first half of 2020, 5.31 million customers travelled with the company; a decrease of 71 percent compared to the same period last year. Norwegian successfully converted debt, gained access to state guaranteed loans of NOK 3 billion and conducted a public offering, in addition to implementing a series of cost-reduction measures. Still, Norwegian is facing challenging times ahead.

Before COVID-19, Norwegian had guided the market of a profitable 2020 and the best summer ever. Strict government travel advice and the following drop in customer demand forced Norwegian to ground 140 aircraft and furlough or lay off approximately 8,000 employees. In the second quarter, Norwegian only operated 7-8 aircraft on domestic routes in Norway. Following a successful restructuring process, the company gained access to the Norwegian government’s loan guarantee of NOK 3 billion and an additional NOK 0.3 billion from commercial banks.

“When we entered 2020, we were expecting a positive result and the best summer ever, thanks to successful cost-saving initiatives and a more efficient operation. Then we were hit by COVID-19 and customer demand literally stopped from one day to the next, as government-imposed travel restrictions and travel advice were introduced world-wide. For the past months we have been working tirelessly to make sure that we can emerge from this crisis as a stronger company, well-positioned for future competition. Some of these measures have been painful, but totally necessary if we are to make it through at all. Creditors, bondholders and shareholders have shown us support and trust to find a way forward for the company and our customers are expressing their strong support, for which I am grateful. And not least, I am extremely proud of all our Red Nose Warriors who are keeping up a positive spirit,” said CEO Jacob Schram.

During the first six months of 2020, 5.3 million customers travelled with Norwegian, compared to 18.1 million during the same period previous year. Production (ASK) was down by 69 percent and passenger traffic (RPK) decreased by 72 percent. The load factor was 78.2 percent, a decrease of 6.5 percentage points compared to the first half of 2019. Both load factor and production are adjusted according to the government mandatory blocking of middle seats on domestic routes in Norway in the second quarter of 2020.

Punctuality was at 87.2 percent, an improvement of 7.3 percentage points compared to the first half of 2019.

Poor visibility creates uncertainty ahead

On July 1, Norwegian reopened 76 routes, put an additional 15 aircraft into service and brought more than 600 employees back to work. The market is still highly uncertain, mainly due to changing travel advice from governments across Europe. As the government changes its travel advice, demand is immediately impacted. Going forward the company will continue to adjust its route portfolio in line with demand and government travel advice.

“The COVID-19 crisis has impacted aviation and the travel industry particularly hard, and most companies need government support to survive. We see that many of our main competitors receive considerable liquidity support from their governments as aviation represents the backbone of infrastructure. We are thankful for the loan guarantee made available to us by the Norwegian government which we worked hard to obtain. However, given the current market conditions it is not enough to get through this prolonged crisis,” Schram said.

Norwegian finalizes recapitalization and secures state aid

Norwegian Air Shuttle has made this announcement:

Norwegian confirms that the restructuring is completed and that the state loan guarantee of in total NOK 3 billion has been approved. The company has now converted NOK 12.7 billion of debt to equity and laid a solid foundation for the future, although the next months will remain challenging.

“I want to thank everyone who has supported the company during this unprecedented crisis that has affected the entire the airline industry: The Government and Parliament; customers; employees: shareholders; leasing companies; creditors; bondholders, the travel industry and other Norwegian supporters. Now that we can access the state loan guarantee, we can continue to transform the company. Through this process, the belief in New Norwegian and the company’s strategy have been confirmed by shareholders, the market, bondholders, leasing companies, other creditors and lenders. Nevertheless, the months ahead will remain challenging and with a high degree of uncertainty for the industry. Norwegian will still need to collaborate closely with a number of creditors as the company currently has limited revenues,” said CEO Jacob Schram.

Since the end of 2018, Norwegian has taken significant actions to restructure its operations and return to profitability. The company was on the path to deliver a positive net profit in 2020, and this summer was set to be the strongest in the company’s history. Instead, the coronavirus outbreak and global travel restrictions has led to a substantial drop in demand.

The Company has seized this time as an opportunity to restructure and develop a new strategy and business plan – New Norwegian – for a strengthened airline to re-emerge when travel restrictions are lifted and demand returns.

“In addition to securing that the company survives this crisis, our goal has been that Norwegian should have a strong position in the future airline industry, with a clear direction and strategy. This will ensure sustainable operations and a structure that will be to the benefit of both shareholders, customers and colleagues,” says Schram.

Norwegian Air Shuttle aircraft photo gallery:

Norwegian Air calls for a special meeting on May 4 to discuss its future

Norwegian Air Shuttle (Norwegian Air) is basically in hibernation as its plans its future. The beleaguered airline has called for a special meeting on May 4, 2020.

At that meeting, the management of the company is expected to present a new restructuring plan that will see a much smaller airline if approved. Creditors will be asked to exchange debt for equity.

The company is also planning a hibernation phase that will last until next winter.

Read more from Forbes.

Norwegian aircraft photo gallery:

Norwegian discontinues its transAtlantic Boeing 737 MAX routes

Norwegian.com (Norwegian Air Sweden) Boeing 737-8 MAX 8 SE-RTE (msn 42838) BFI (Joe G. Walker). Image: 947301.

Norwegian has made this announcement:

Norwegian will discontinue its transAtlantic routes originally operated by the Boeing 737 MAX aircraft this September. The decision follows months of substitute aircraft and wetlease operations covering the airline’s routes due to the global grounding of the 737 MAX aircraft. There are no changes to the 46 nonstop routes operated by the Dreamliner from the United States to Europe.

“Since March, we have tirelessly sought to minimize the impact on our customers by hiring, so called wetleasing, replacement aircraft to operate services between North America and Ireland. However, as the return to service date for the 737 MAX remains uncertain, this solution is unsustainable,” said Matthew Robert Wood, Senior Vice President Commercial Long-Haul and New Markets, Norwegian.

In March, Norwegian managed to implement a back-up plan within 24 hours of the Boeing 737 MAX grounding, accommodating all customers booked on the airline’s 737 MAX routes from both New York Stewart International Airport and Providence, as well as launch the new route from Hamilton/Toronto, Canada, to Dublin.

Nonstop services to Cork and Shannon ended in March with the grounding of the 737 MAX aircraft and passengers were rerouted to Dublin flights out of both Providence and Stewart. The service to Dublin from the two U.S. cities and, also Hamilton, Canada, continued, but will now end with the last flight from the U.S. – both Providence and Stewart – on September 14, arriving in Dublin on September 15. The last flight from Hamilton, Canada, will depart September 13. Norwegian will no longer operate any substitute aircraft for the 737 MAX.

This will not affect the airline’s other long-haul services, operated by its Boeing 787 Dreamliner fleet. Norwegian currently operates 46 routes from the U.S. to Europe this summer season, more than any other European airline.

Norwegian would like to thank the partners that made it possible to launch its transatlantic MAX operations back in 2017, specifically the Port Authority of New York and New Jersey, New York Stewart International Airport, Providence’s T.F. Green Airport and Tourism Ireland, as well as the John C. Munro Hamilton International Airport.

Top Copyright Photo: Norwegian.com (Norwegian Air Sweden) Boeing 737-8 MAX 8 SE-RTE (msn 42838) BFI (Joe G. Walker). Image: 947301.

 

Norwegian delays deliveries, reports increased revenues and reduced costs in the first quarter

"Freddie Mercury, British Rock Legend"

Norwegian Air has come to an agreement with both Airbus and Boeing to reschedule the delivery of its aircraft to reduce its capital spending.

Norwegian has also reported its first quarter results. The quarter was characterised by reduced costs, increased revenue and significantly improved on-time performance. The net loss was NOK 1,489 million ($171.7 million), while the company’s unit cost excluding fuel decreased by 8 percent during the same period. The total revenue was NOK 8 billion, up 14 percent.

The airline continued;

Norwegian’s key priority is returning to profitability through a series of measures, including an extensive cost-reduction program, an optimized route portfolio and sale of aircraft. The company’s internal cost reduction program #Focus2019 has been implemented, achieved cost reductions were NOK 467 million this quarter. The company has also strengthened its balance sheet through a fully underwritten rights issue of NOK 3 billion, which secures a stronger financial position. The company is well positioned to continue to attract new customers, not least in the long-haul market, where the development is stronger than in the short-haul market.

For the first quarter, the total revenue was NOK 8 billion, an increase of 14 percent from the same period last year, primarily driven by intercontinental growth and increased traffic in the Nordics. More than 8 million passengers flew with Norwegian this quarter, a growth of 9 percent. The load factor was 81 percent. The company’s unit cost excluding fuel, decreased by 8 per cent compared to the first quarter in 2018. The punctuality increased significantly this quarter, from 73 to 81.3 percent. The regularity was unchanged at 98.7 percent.

“I’m pleased with the positive developments this quarter, despite the 737 MAX issues. We have taken a series of initiatives to improve profitability by reducing costs and increasing revenue. We are optimising our base structure and route network to streamline the operation as well as divesting aircraft, postponing aircraft deliveries and not least implementing our internal cost reduction program, which will boost our financials. I am also pleased that booking figures and overall demand for the coming months look promising,” said CEO of Norwegian, Bjørn Kjos.

Productive meetings with Boeing

In March, Norwegian temporarily suspended operation of 18 Boeing MAX 8 aircraft. The company combined flights and booked customers to other departures within Norwegian’s own network, consequently reducing the impact on passengers. The company will continue to limit passenger disruptions by also offering flights with wetlease companies whenever necessary. The number one goal is to operate its schedule according to plan.

“Our dedicated colleagues at Norwegian have been working day and night to find solutions for our customers. They will continue to do their utmost to ensure that all flights continue to depart as planned, regardless of how long the MAX stays out of service,” Kjos continued.

“We have had some productive meetings with Boeing where we have discussed how we can maneuver through the difficulties the MAX situation is causing Norwegian,” Kjos added.

Top Copyright Photo (all others by the airline): Norwegian Air Shuttle (Norwegian.com) (Norwegian Long Haul) Boeing 787-9 Dreamliner LN-LNR (msn 38784) (Freddie Mercury, British Rock Legend) AMS (Ton Jochems). Image: 946289.

Norwegian aircraft slide show:

Norwegian sells two Airbus A320neo aircraft, launches an upgraded WiFi service on European flights

"Aksel Sandemose, Norwegian author"

Norwegian has made this announcement:

Arctic Aviation Assets, a subsidiary of Norwegian Air Shuttle ASA, has signed an agreement for sale of two Airbus 320neo aircraft.

The aircraft are currently leased out and thus not operated by the Company. Delivery will take place during February 2019. The transaction is expected to increase the Company’s liquidity by $26 million after repayment of debt and have a positive equity effect. Sale proceeds will be used to repay debt and to increase the Company’s liquidity.

The sale is in line with the Company’s strategy of capitalizing on the scale built up over the last few years and the changed focus from growth to profitability. This announcement is an extension of the information provided in the stock exchange announcement “Norwegian strengthens its balance sheet through a fully underwritten rights issue of NOK 3 billion” on 29 January, where sale of aircraft was highlighted as a measure to reduce capital expenditures, in addition to postponement of aircraft deliveries.

In other news, Norwegian is continuing to enhance the passenger experience by commencing the rollout of new and improved inflight WiFi connectivity onboard the airline’s Boeing 737-800 fleet.

Norwegian, named Europe’s Best Low-Cost Airline by SkyTrax, was the first airline to offer passengers free in-flight WiFi on all European flights in 2011. The airline became the first to introduce live television over the skies of Europe in 2015 and in 2018 it took delivery of its first Boeing 787-9 Dreamliner equipped with inflight WiFi. Norwegian became the first low-cost airline to offer customers free WiFi for the full duration of intercontinental flights.

Today, Norwegian has launched an upgraded WiFi experience on its Boeing 737-800 aircraft as part of improving the customer experience. Norwegian operates Boeing 737-800 aircraft on intra-European routes, routes connecting Europe with North Africa, Middle East and on flights between the USA and French Caribbean.

Norwegian will gradually roll out the new Premium WiFi service across its Boeing 737-800 fleet and expects to complete the rollout in mid-February 2019.

Three Wi-Fi packages available

Customers travelling on a Boeing 737-800 aircraft with the new Premium Wi-Fi service available will have a selection of three packages – SURF, the free option and two paid options, SOCIAL+SURF and STREAM+SURF, both offering faster speeds.

  • SURF – Available for free, delivers web browsing, email and text-based messaging
  • SOCIAL+SURF – Provides faster web browsing, access to email and all social media. Available for €5 per device. (Pricing may be subject to change.)
  • STREAM+SURF – Offers faster web browsing, email access and social media in addition to the ability to stream TV shows, movies and music content on services such as Netflix, YouTube and Spotify among others. Available for €12 per device. (Pricing may be subject to change.)

Norwegian recently started introducing WiFi to its Boeing 787-9 Dreamliner and Boeing 737 MAX fleet. Here, customers have two choices – Basic free Wi-Fi for the full duration of long-haul flights and a premium high-speed option, fast enough to stream television shows and movies.

Norwegian expects to have the rollout of WiFi completed on 50 percent of its Boeing 787-9 Dreamliner aircraft by 2020.

Norwegian operates a young fleet of more than 160 aircraft with an average age of 3.7 years.

Top Copyright Photo (all others by the airline): Norwegian Air Shuttle (Norwegian.com) Boeing 737-8JP WL LN-DYP (msn 39047) (Aksel Sandemose, Norwegian author) ARN (Stefan Sjogren). Image: 945580.

Norwegian aircraft slide show:

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Norwegian to lease Boeing 777s for its summer schedule

EuroAtlantic Airways Boeing 777-212 ER CS-TFM (msn 28513) YYC (Chris Sands). Image: 933294.

Norwegian Air Shuttle will wet lease Boeing 777-200s from EuroAtlantic Airways for the Paris (Orly) – Newark route and Privilege Style for the Rome (Fiumicino) – Newark route this summer according to Airline Route.

Top Copyright Photo: EuroAtlantic Airways Boeing 777-212 ER CS-TFM (msn 28513) YYC (Chris Sands). Image: 933294.

EuroAtlantic aircraft slide show:

Privilege Style aircraft slide show:

Bottom Copyright Photo: Privilege Style Lineas Aereas Boeing 777-28E ER EC-MIA (msn 28685) YYZ (TMK Photography). Image: 933584.

Airline Color Scheme - Introduced 2003

Norwegian becomes the first European Boeing 737 MAX 8 operator

Norwegian and Boeing on June 29, 2017 celebrated the delivery of the Norwegian’s first two 737 MAX 8s. Norwegian is the first European carrier to take delivery of the 737 MAX and will deploy the airplanes on transatlantic flights between northern Europe and the east coast of the United States.

Norwegian is the sixth largest low-cost carrier in the world and flies over 500 routes to more than 150 destinations in Europe, North Africa, the Middle East, Thailand, the Caribbean and the US. It currently operates a fleet of more than 100 Next-Generation 737-800s and over a dozen 787-8 and 787-9 Dreamliners. The Oslo-headquartered carrier also has unfilled orders for 108 737 MAX 8s and 19 787-9s.

Copyright Photo: Joe G. Walker. Boeing 737 MAX 8 EI-FYA (msn 42830).

Norwegian continues its fleet renewal

Norwegian´s fully owned subsidiary Arctic Aviation Assets (AAA) has ordered two new Boeing 737 MAX aircraft. In addition, AAA today signed a Letter of Intent (LOI) for a sale-leaseback transaction of 11 Boeing 737-800 aircraft currently operated by Norwegian.

Norwegian has exercised its options to order two new Boeing 737 MAX aircraft that will be delivered during 2018. Following this announcement, AAA now has a firm order of 110 Boeing 737 MAX aircraft and 90 remaining purchase options.The LOI for sale-leaseback of 11 aircraft is expected to reduce the Norwegian Group’s financial net debt by approximately NOK 1.4 billion based on the currency exchange rate NOK/USD of 8.5.

On May 4, 2017, Norwegian announced the sale-leaseback of eight new Boeing 737-800 aircraft to be conducted in the second quarter. Following the sale of 19 aircraft (eight new deliveries and 11 existing), the Norwegian Group estimates a positive net cash flow impact on of approximately NOK 2.3 billion. These aircraft will be leased back to Norwegian me.

“By selling some of our older 737-800 aircraft and ordering two additional 737 MAX aircraft, we are taking another step towards replacing our current fleet with even more fuel efficient and more environmentally friendly aircraft. This allows us to enhance our operation and reap financial benefits. Norwegian’s strategy is to operate and own the newest state-of-the-art fleet of aircraft, giving passengers high-quality comfort and the shareholders as high a return as possible,” said Bjørn Kjos, CEO of Norwegian.

In other news, Norwegian has announced that Jonathan Swift will become its second Irish tail fin hero, with the celebrated author’s portrait to appear on the tail of the airline’s aircraft that will serve the new transatlantic routes from Cork, Shannon and Dublin to the US East Coast.

Norwegian has always honored iconic figures on the tails of its aircraft, featuring personalities who symbolise the spirit of Norwegian through innovation, challenging the norm and inspiring others. To reflect Norwegian’s rapid growth and new routes from Ireland, the airline has begun a series of Irish tail fin heroes. Jonathan Swift will become Norwegian’s second Irish hero, following legendary explorer Tom Crean who was announced earlier this year.

Born in Dublin in 1667, Jonathan Swift was a poet, author and journalist best known for his satirical novel Gulliver’s Travels and for his satirical essay on the Irish famine ‘A Modest Proposal’. Swift studied at Trinity College in Dublin before spending time in England where he wrote A Tale of a Tub published in 1704. During this time Swift also decided upon a career in the clergy and was ordained as a priest in the Church of Ireland.

His greatest known work – Gulliver’s Travels, a book of fantasy, satire, and political allegory -, was written in 1725 and published in 1726. The book was a great success and contributed to Swift’s fame and legacy as a writer and social commentator.

The portrait of Jonathan Swift, which will be used to adorn the tail of a Norwegian aircraft, has been taken from an oil painting of the author by Charles Jervas painted in 1875. The portrait is in the collection of the National Gallery of Ireland, which will celebrate a reopening of the Historic Wings on the 15th June with a two-week summer highlight festival.

From July, Norwegian will launch a series of new low-cost transatlantic routes from Cork, Shannon and Dublin. The flights will serve smaller airports on the US east coast which offer good access into the New York, Boston and New England areas but carry significantly lower landing charges, allowing Norwegian to offer some truly affordable fares.

Norwegian is Europe’s third largest low-cost carrier, carrying 30 million yearly passengers to more than 140 global destinations.

All images by Norwegian.