Category Archives: Norwegian Air Shuttle

Norwegian appreciates support from the Norwegian Government

Norwegian is pleased to announce that the government of Norway has decided to support and contribute to the airline’s funding of new capital, pending certain conditions. This move significantly increases Norwegian’s chances of working through the crisis caused by the pandemic and to position itself as a key player within Norwegian and European aviation.

“On behalf of everyone at Norwegian, I would like to sincerely thank the government for their support. Norwegian has been faced with a very challenging and demanding situation due to the pandemic, and the government’s support significantly increases our chances of raising new capital and getting us through the reconstruction process we are currently in. We still have a lot of work ahead of us, but a participation from the government underscores that we are heading in the right direction,” said Norwegian CEO, Jacob Schram.

Norwegian entered into an Irish examinership process and a supplementary reconstruction negotiation in Norway late last year. On January 14, 2021, the airline presented a new business plan (LINK) based on a simplified business structure with a focus on a European route network and discontinuing its long-haul operations, as well as significantly reducing its debt. The plan comprises a fleet of around 50 aircraft in operation this year, and to gradually increase to approximately 70 aircraft in 2022, pending demand and potential travel restrictions. The debt will be reduced to around NOK 20 billion, and the company will raise four to five billion NOK in new capital.

“With a new business plan, and a participation from the government, we are confident we can attract investors and get through the Examinership and reconstruction process. We have received extensive support from political parties, customers, colleagues, shareholders, and business partners, for which we are extremely grateful, especially during these challenging times. Furthermore, the government’s support will contribute to help securing jobs and maintain healthy competition within the aviation sector,” added Schram.

Norwegian closes its long-haul network, Gatwick jobs at stake, will focus on Europe and 737s

Norwegian has made a major decision to shut down its long-haul Boeing 787 Dreamliner network and concentrate on short-haul operations from Europe with this announcement:

Norwegian’s Board of Directors has outlined a simplified business structure and dedicated short haul route network. With this plan, Norwegian can build a robust and solid company that will attract investors and continue to serve new and existing customers.

Norwegian has long been recognized as an industry leader in low cost travel, winning numerous awards. The company will build on this foundation, focusing on its core Nordics business, operating a European short haul network with narrow body aircraft. The airline will continue to meet its customers’ needs by offering competitive fares across a broad range of domestic routes in Norway, across the Nordics and to key European destinations.

“Our short haul network has always been the backbone of Norwegian and will form the basis of a future resilient business model,” said Jacob Schram, CEO of Norwegian.

The current plan is to serve these markets with around 50 narrow body aircraft in operation in 2021 and to increase that number to around 70 narrow body aircraft in 2022. Furthermore, Norwegian targets to reduce its debt significantly to around NOK 20 billion and to raise NOK 4 – 5 billion in new capital through a combination of a rights issue to current shareholders, a private placement and a hybrid instrument. The company has received concrete interest in participation in the private placement. Norwegian has recently reinitiated a dialogue with the Norwegian government about possible state participation based on the new business plan.

The COVID-19 pandemic has profoundly affected the entire aviation industry. Travel restrictions and changing government advice continue to negatively influence demand for long haul travel, and Norwegian’s entire Boeing 787 Dreamliner fleet has been grounded since March 2020. Future demand remains highly uncertain. Under these circumstances a long haul operation is not viable for Norwegian and these operations will not continue. The consequence of this decision is that the board of directors of the legal entities employing primarily long haul staff in Italy, France, the UK and the US have contacted insolvency practitioners. Norwegian will continue to assess profitable opportunities as the world adapts and recovers from the impact of COVID-19.

Customers with bookings affected by the future changes in our route network will be contacted directly and will be refunded. The examinership and reconstruction processes undertaken in Ireland and Norway will continue as planned, and the plan presented today is subject to approval by the Examiner and Reconstructor, support from the creditors and subsequently court approval.

Norwegian Air Shuttle aircraft photo gallery:

Norwegian Air Shuttle aircraft slide show:

Norwegian’s December traffic figures were heavily impacted by COVID-19, down 94%

Norwegian Air Shuttle issued this report:

In December, 129,664 customers flew with Norwegian, a decrease of 94 percent compared to the same period last year. The capacity (ASK) and total passenger traffic (RPK) were both down by 98 percent. The load factor was 52.3 percent, down 31 percentage points.

Jacob Schram, CEO of Norwegian, said: “The pandemic continues to have a negative impact on our business as it has had since March 2020. At the beginning of last year, Norwegian was headed for a positive result in 2020, instead 2020 has been a very challenging year and we now find ourselves fighting for survival. Despite low demand in December, Christmas bookings were positive, and we have succeeded in adapting our operations to the current situation. Our goal is to be a financially strong and competitive airline, with a new financial structure, a rightsized fleet and improved customer offering.”

“The support from our customers, employees and suppliers this past year has been extraordinary. We all wish to travel and meet our friends and loved ones again and at Norwegian our focus continues to be to connect people in a safe and comfortable way. The vaccination is now being rolled out across the world and is good news for both the aviation industry and those who want to travel. We will be ready to meet the competition for customers after the COVID-19 pandemic. 2020 has been a tough year, but we will continue to fight and come out of this crisis as a stronger Norwegian,” Schram said.

Norwegian operated nine aircraft on average in December, mainly on domestic routes in Norway. The company operated 95.6 percent of its scheduled flights in December, whereof 88.5 percent departed on time.

Norwegian Air Shuttle initiates a reorganization process in Norway

Norwegian on December 8, 2020 filed for a reconstruction under Norwegian law. This process will coexist with the Irish Examinership process.

Following Norwegian being made subject to the examinership process in Ireland on December 7, 2020 the company now wants to enter into a supplementary Norwegian reconstruction process. This was announced in a notice to the Stock Exchange.

“A supplementary reconstruction process under Norwegian law will be to the benefit of all parties and will increase the likelihood of a successful result. Our aim is to secure jobs in the company and to contribute to securing critical infrastructure and value creation in Norway,” said Norwegian CEO, Jacob Schram.

“We will now concentrate on working towards our goal of reducing company debt, reducing the size of our aircraft fleet, and ensuring that we are a company that investors will find attractive. We will be ready to meet the competition for customers after the COVID-19 pandemic,” said Schram.

Norwegian filed for the Irish Examinership on November 18, 2020. The processes will not have an impact on the current business. The Company will continue to operate its route network. Both its bonds and shares will continue to trade as normal on the Oslo Stock Exchange. As earlier stated, Norwegian Reward will continue as normal honoring and earning CashPoints for its members.

Norwegian Air Shuttle aircraft photo gallery:

Norwegian Air Shuttle aircraft slide show:

Norwegian’s passenger traffic was down 95% in November

Norwegian Air Shuttle has issued this traffic report:

Norwegian’s traffic figures for November are strongly affected by lower demand due to travel restrictions in Europe. The bookings for Christmas look positive.

In November, 124,481 customers flew with Norwegian, 95 percent fewer than the same month last year. Total capacity (ASK) decreased by 96 percent while passenger traffic (RPK) decreased by 98 percent. The cabin factor was 44.4 percent, a decrease of 39 percentage points.

The pandemic continues to have a negative impact on our business. With travel restrictions throughout Europe, demand will be very low. The fact that vaccines are coming soon is good news for the aviation industry and we will compete for customers when it becomes possible to travel again. Our goal is now to create a financially strong and competitive airline with a new financial structure, an adapted size of the aircraft fleet and an improved range for our customers, says CEO Jacob Schram.

62 extra departures in Norway – Tickets for next summer are now available and it looks positive with the bookings. It is clear that people have started thinking about the summer holidays. It is also worth noting that the bookings for Christmas are good and we have set up 62 extra departures in Norway. We look forward to flying our customers home for Christmas, Schram continues. In total, Norwegian completed 72.7 percent of the planned flights in November, of which 94.8 percent went according to schedule.

"Joan Miro, Spanish Artist"

Above Copyright Photo: Norwegian.com (Norwegian Air UK) Boeing 787-9 Dreamliner G-CKOF (msn 38786) (Joan Miro, Spanish Artist) JFK (Fred Freketic). Image: 952173.

Norwegian to reorganize its assets under Irish law

Norwegian Air Shuttle made this announcement:

Following the government of Norway’s decision to withhold further support from the airline, and the ongoing COVID-19 pandemic, Norwegian Air Shuttle ASA has decided to initiate an examinership process in Ireland relating to its subsidiary Norwegian Air International Limited (NAI), its wholly-owned asset company Arctic Aviation Assets DAC (AAA) and some of AAA’s subsidiaries; Norwegian will also enter in and get protection of the Irish Examinership process as a related party.

Norwegian has chosen an Irish process since its aircraft assets are held in Ireland. Norwegian has taken this decision in the interest of its stakeholders.

The purpose of the process is to reduce debt, rightsize the fleet and secure new capital. This reorganisation process protects the assets of the Norwegian group while allowing the company to focus on the rightsizing of the group. The process is estimated to take up to five months.

Norwegian will continue to operate its route network (currently limited due to the Covid situation) and trade as normal on the Oslo Stock Exchange (Oslo Børs). Norwegian Reward will continue as normal honouring and earning CashPoints for its members. Safeguarding as many jobs as possible, while rightsizing its asset base, will continue to be a top priority for the management team throughout this process.

Jacob Schram, Norwegian CEO, said: “Seeking protection to reorganise under Irish law is a decision that we have taken to secure the future of Norwegian for the benefit of our employees, customers and investors. Our aim is to find solutions with our stakeholders that will allow us to emerge as a financially stronger and secure airline.”

The process of examinership in Ireland allows financially sustainable businesses to address elements of the business which require restructuring with the aim of protecting jobs and preserving the core value of the business. This protection, through a court appointed examiner, ultimately allows a company to secure new capital and implement a legally binding scheme for the settlement of debts.

“Our intent is clear. We will emerge from this process as a more financially secure and competitive airline, with a new financial structure, a rightsized fleet and improved customer offering,” said Schram.

Based on Norwegian’s current cash position and the projections going forward, the company believes it has sufficient liquidity to go through the above-mentioned process.

Norwegian is forced to furlough an additional 1,600 employees following the government’s decision not to give further support

Norwegian is forced to furlough employees and reduce capacity considerably following the government’s decision to not support the company financially to get through the corona crisis while simultaneously imposing travel restrictions that actively discourage passengers from travelling. The consequences of the government-imposed travel restrictions are critical and Norwegian needs to keep its running costs to a minimum, while the company continues to work on solutions to survive.

“Following today’s disappointing announcement from the government, we have no choice but to furlough an additional 1,600 colleagues and park 15 of the 21 aircraft we’ve operated the past months. Recently government-imposed travel restrictions have effectively stifled any hope of a stable and progressive recovery, Norwegian has been hit from all sides by factors outside of our control. This is a sad day for everyone at Norwegian and I sincerely apologise to all our colleagues that are now affected, but there is no other alternative. Prior to COVID-19, Norwegian employed more than 10,000 people, but the coming months there will be only 600 colleagues employed. Our goal is to keep six aircraft on domestic routes in Norway, and I expect that Norwegian will also receive route support from the Ministry of Transportation, as previously announced,” said CEO Jacob Schram of Norwegian.

Unfortunately, the significant route reduction will also affect customers who have already booked a flight with Norwegian.

“We will do everything we can to offer affected customers alternative travel option and I sincerely apologize for the inconvenience caused by this situation. All affected customers will be notified by us directly,” said Schram.

These routes will be operated

Oslo – Alta

Oslo – Bergen

Oslo – Bodø

Oslo – Evenes

Oslo – Haugesund

Oslo – Kirkenes

Oslo – Molde

Oslo – Stavanger

Oslo – Tromsø

Oslo – Trondheim

Oslo – Ålesund

Tromsø – Longyearbyen

Norwegian will not receive a lifeline from Norway, what is next?

The government of Norway today announced that Norwegian Air Shuttle will not receive further financial support.

The airline responded with this statement:

The government of Norway today announced that Norwegian will not receive further financial support, which Norwegian had clearly communicated was necessary to maintain operations throughout the COVID-19 crisis. The company is now facing a very uncertain future, but it will do everything in its power to get through this crisis and to continue doing what Norwegian has been doing for almost 20 years: Ensuring competition and providing affordable fares for all.

“First of all, I would like to thank our customers, colleagues, the Norwegian Parliament, shareholders, leasing companies, creditors, bondholders, the travel industry, and all others who have been supporting Norwegian in these challenging times. The fact that our government has decided to refrain from providing Norwegian with further financial support is very disappointing and feels like a slap in the face for everybody at Norwegian who is fighting for the company when our competitors are receiving billions in funding from their respective governments,” said Norwegian’s CEO Jacob Schram.

Norwegian has 2300 employees in Norway and several thousand more in other countries.

“We are called Norwegian, We are Norwegian. We are a part of Norway and Norway is a part of us. This is the way it has been for almost 20 years. The support that we have received from our customers throughout all these years has meant a lot to us, in particular now during the COVID-19 crisis. We offer routes from Kristiansand in the south to Svalbard in the north, routes that cannot be replaced overnight. It will take time and it will have consequences for the competitive situation in Norway, like we have seen before. We also notice that airlines across the world that are also dependent on support to survive, are receiving billions from their respective authorities. Based on the number of tourists we fly to Norway, we contribute to sustaining 24,000 people in our country and boost the local economy by approximately 18 billion NOK per year. That alone clearly demonstrates that even moderate financial support, would constitute a profitable investment for Norway. How anyone could come to a different conclusion is impossible to understand. The local travel industry and businesses have again and again emphasized the importance of Norwegian’s route network. I recently visited all of our four bases in Norway and also met with local politicians and businesses,” said Schram.

Ever since the pandemic hit aviation across the world in March, Norwegian has made a substantial financial restructuring of 18 billion NOK from debt to equity. At the beginning of 2020, Norwegian anticipated the best summer ever for the company.

“We could clearly see the results of our hard work to go from growth to profitability, which was initiated in 2018. With further support to get Norwegian through this unprecedented crisis for the aviation industry, we would come out as a more sustainable and competitive airline, with a new structure and improved operation. Without support, the way forward has become much more uncertain. However, we will do whatever we can get through this crisis, to the benefit of our hard-working colleagues, our «Red Nose Warriors», and our customers,” Schram added.

Norwegian aircraft photo gallery:

COVID-19 continues to heavily impact Norwegian’s traffic figures

Norwegian Air Shuttle issued this report:

Norwegian’s traffic figures for October are heavily influenced by lower demand caused by continued travel restrictions across Europe, with several new red zones.

In October, 319,477 customers flew with Norwegian, a decrease of 90 percent compared to the same period last year. The capacity (ASK) this month was down 93 percent, while the total passenger traffic (RPK) decreased by 96 percent. The load factor was 55.3 percent, down 32 percentage points.

Jacob Schram, CEO of Norwegian said: “The pandemic continues to have a negative impact on our business throughout the autumn as travel restrictions remain and new ones are imposed across large parts of Europe. As this pandemic will continue to affect travel for several more months, we will continue to adapt our route network in line with changing demand.”

The company operated 99.3 percent of its scheduled flights in October, whereof 95.6 percent departed on time.

Norwegian Air (UK) aircraft photo gallery:

COVID-19 heavily impacts Norwegian’s September traffic figures – down 90%

Norwegian’s traffic figures for September are heavily influenced by lower demand caused by new and stricter travel restrictions across Europe.

In September, 319,370 customers chose to fly with Norwegian, a decrease of 90 percent compared to the same period last year. The capacity (ASK) this month was down 93 percent, while the total passenger traffic (PRK) was 96 percent lower. The load factor was 52.8 percent, down 37 percentage points.

The company operated 99.2 percent of its scheduled flights in September, with a 97.6 percent on time departure.

Jacob Schram, CEO of Norwegian, said: “In September several European countries were classified as ‘red’ by the authorities. We have seen that as soon as the authorities impose new travel restrictions demand is immediately impacted. We are continuously adapting our route network in line with changing demand, but the frequent changes in travel restrictions make forward planning difficult, both for us and our customers. Looking ahead, this continues to be a prolonged crisis that is far from over.”