Category Archives: Norwegian Air Shuttle

Norwegian cancels 97 Boeing jets

Norwegian Air Shuttle has canceled its future orders for 97 Boeing jets including 92 737 MAX jets and five 787 Dreamliners.

Norwegian Air Shuttle aircraft photo gallery:

Norwegian to restart short haul flights from the UK and serve a wider European network from July

Norwegian Air Shuttle has made this announcement:

Norwegian is pleased to announce that in line with other European carriers and as a result of increased customer demand the airline will begin to operate flights between London Gatwick to Oslo, London Gatwick to Copenhagen, Edinburgh to Oslo and Edinburgh to Copenhagen from July 1. 2020.

London to Oslo will be operated seven times a week, London to Copenhagen six times a week, Edinburgh to Oslo and Copenhagen twice a week respectively.

Since April Norwegian has only operated eight aircraft on domestic routes in Norway. Now another 12 aircraft will re-join the fleet and be put into operation across Scandinavia to serve our popular core destinations.

From July Norwegian will operate 76 routes across Europe from the airline’s Scandinavian hubs compared to the 13 domestic Norway only flights served today. Other destinations include Spain, Greece and key European cities.

Further destinations and frequency increases will be announced in due course subject to passenger demand and government travel restrictions.

Norwegian announces a new management structure

Norwegian Air Shuttle has made this announcement:

CEO Jacob Schram has announced a new management structure in Norwegian. The biggest changes involve two distinct commercial units in the Group, greater employee and customer focus, more efficient operation and, not least, an organization that facilitates broad cooperation across the business.

“I have been committed to putting in place a management structure that takes us from growth to profitability by delivering our new Norwegian strategy and business plan. In order to run a profitable and sustainable company going forward, I will build the commercial part around two distinct entities with clear P&L responsibilities,” says CEO Jacob Schram.

By bringing departments together to focus on our customers we gain insight and power to innovate and use smart choices throughout their customer journey. We will remain true to the core values of Norwegian which have been in place since its inception – a popular company that offers good quality flights at a good price.

I have also been committed to improving operations through a simplified structure, clear roles and responsibilities, as well as even more efficient operations,” he continues.

The new group management will be in place from June 2, 2020.

The new departments and management positions:

The newly created AIRLINE department will have the full responsibility for the profit of the core business. The department shall ensure an optimal network of routes, optimize prices, plan flight operations, as well as carry out ongoing sales and marketing activities. The department will be headed by Andrew Hodges, who is currently head of Network Strategy & Planning in the current Norwegian commercial department. Hodges has over 20 years of experience in aviation, including 12 years at low-cost airline easyJet, where he has held several management positions in commercial and finance. He has also worked for British Airways and Deloitte.

AIRLINE ECOSYSTEM is also a new department. The department will have full performance responsibilities and will drive new business ecosystems in connection with the company’s core business. This will take place through partner agreements and new customer platforms. A new manager will be announced in due course, meanwhile Brede Huser will lead the department until a new manager is in place. He is currently head of the Norwegian Reward benefits program.

Responsibility for the entire customer journey will fall under the new CUSTOMER department. The department will deliver the agreed products and services to both the Airline and Airline Ecosystem unit through concept / product development, brand & marketing, customer activation and customer service. The new head of this department is Christoffer Sundby, who will start on the 1st of September. Sundby has a broad experience from operational management, product and concept development, marketing and sales backgrounds. He has formerly worked for Unicare, Circle K, Statoil Fuel & Retail, Statoil and McKinsey. Until September 1st, the department will be headed by Kei Grieg Toyomasu, who is currently Head of Marketing and Digital Channels.

OPERATIONS will work towards the Airline profit unit and provide agreed products and services within flight operations, as well as technical and maintenance, ground services, security and emergency preparedness. A new leader for this area will also be announced in due course. Tore Kristian Jenssen will continue to lead the department until a new leader is in place.

CFO Geir Karlsen continues in his position as head of FINANCE & CONTROL.

IT, SUPPLY CHAIN AND PROCESS IMPROVEMENT is a newly created function that will optimize and streamline all of the company’s processes, systems and procurement. IT and procurement will be centralized to this department, which will also run the company’s business centers and provide lean and optimized processes throughout the company. The department will be headed by Knut Olav Irgens Høeg, who is currently responsible for Procurement, IT and the customer center in Norwegian.

The PEOPLE department will have overall responsibility for all the company’s employees, including pilots and cabin crew. All HR activities, including all training and development of employees will also form part of this department. HSE and trade union dialogue will be priority tasks for this unit. The department will be headed by Guro Poulsen, who currently heads Crew Management in Norwegian.

COMMUNICATIONS will be responsible for external and internal communication, sustainability and public affairs. The department will be headed by Anne-Sissel Skånvik.

In other news, Norwegian has confirmed that the company restructuring has been 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.

 

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’s pilot and cabin crew companies in Sweden and Denmark file for bankruptcy

Norwegian Air Shuttle has made this announcement:

Due to the ongoing spread of the Coronavirus (COVID-19) most countries have advised against or have banned non-essential travel. The closure of borders and quarantine restrictions has effectively brought the entire airline industry to a halt. Consequently, almost all of Norwegian’s flight operations have been cancelled, while the costs for air crew remain. The pilots and cabin crew in Scandinavia are employed in subsidiaries in the Norwegian Group.

Unfortunately, despite the measures that the company has already taken to reduce costs, the Board of these companies are left with no choice but to apply for bankruptcy.

The decisions about filing for bankruptcies in the four crew subsidiaries were made by the respective boards on Monday April 20, 2020.

”The impact the Coronavirus has had on the airline industry is unprecedented. We have done everything we can to avoid making this last-resort decision and we have asked for access to government support in both Sweden and Denmark”, said CEO of Norwegian, Jacob Schram.

“Our pilots and cabin crew are the core of our business and they have done a fantastic job for many years. It is heart-breaking that our Swedish and Danish pilot and cabin crew subsidiaries now are forced to file for bankruptcy, and I’m truly sorry for the consequences this will have for our colleagues. We are working around the clock to get through this crisis and to return as a stronger Norwegian with the goal of bringing as many colleagues back in the air as possible,” Schram said.

In Norway, there are efficient furlough opportunities which means that the government pays for all salary related costs throughout the duration of the furlough period. Unfortunately, there is not the equivalent coverage in Sweden or Denmark schemes.

Despite the measures that the company has already taken, coupled with the lack of significant financial support from the Swedish and Danish governments, we are left with no choice.

The Board of the below companies in the Norwegian Group on April 20, 2020 decided to file for bankruptcy:

Norwegian Pilot Services Sweden AB

Norwegian Pilot Services Denmark ApS

Norwegian Cabin Services Denmark ApS

Norwegian Air Resources Denmark LH ApS

Due to the extraordinary situation (force majeure), Norwegian has also notified OSM Aviation that it has cancelled the crew provision agreements with several of its jointly owned OSM Aviation subsidiaries. These companies have crew based in Spain, UK, Finland, Sweden and the US.

The above actions will affect 1,571 pilots and 3,134 cabin crew. About 700 pilots and 1,300 cabin crew based in Norway, France and Italy are not affected.

The process of the subsidiaries filing for bankruptcy is now being managed by bankruptcy courts and bankruptcy trustees in the respective countries.

Video:

Norwegian March traffic figures heavily influenced by COVID-19 measures

Norwegian Air Shuttle made this announcement:

The global outbreak of COVID-19 that took hold across the aviation industry throughout March has heavily influenced Norwegian’s traffic figures. The company experienced a dramatic drop in demand following government-imposed travel restrictions and a general travel decline.

Norwegian immediately responded to this global change in demand and adapted its flight schedule several times during the month. The first step was to cut approximately 15 percent of planned capacity on March 10, this was then reevaluated and adjusted to up to 85 percent of planned capacity from March 16 with most cancellations starting from March 25. Capacity was 40 percent lower than planned while the flights that were operated had a load factor of 72 percent, down 13.8 percentage points compared to the same month previous year.

Compared to the same period last year total capacity (ASK) decreased by 53 percent while total passenger traffic (RPK) decreased by 60 percent. The total number of customers carried in March was 1,153,283, a decrease of 61 percent.

In March, Norwegian operated 77 percent of scheduled flights, multiple rescue flights and continued to maintain a critical regional flying infrastructure.

Jacob Schram, CEO of Norwegian, said: “The speed of the COVID-19 global outbreak throughout March had a profound impact on the entire Norwegian network as cancellations, in line with global travel advice and falling demand, were implemented throughout the month. Norwegian operated multiple rescue flights on behalf of the government to ensure that thousands of Scandinavian passengers could safely return home. I would like to take this opportunity to thank all our dedicated colleagues, our customers and members of the public for their continued support. We will provide further financial and business updates to the Oslo Børs when it is appropriate to do so.”

Norwegian to cancel 85 percent of its flights and temporarily layoff approximately 7,300 colleagues

Norwegian Air Shuttle made this announcement:

The COVID-19 situation is escalating by the hour and due to stagnating demand and enforced travel restrictions by authorities worldwide, Norwegian will gradually cancel most of its flights and temporarily lay off a major share of its workforce.

“What our industry is now facing is unprecedented and critical as we are approaching a scenario where most of our airplanes will be temporarily grounded. Several governments in Europe have already said that they will do everything they can to ensure that their airlines can continue to fly when society returns to normalcy. We appreciate that the authorities of Norway have communicated that they will implement all necessary measures to protect aviation in Norway, consequently securing crucial infrastructure and jobs,” said CEO Jacob Schram of Norwegian.

Norwegian has already discontinued a significant number of its flights and the main priority this week is to maintain as many scheduled flights as possible to ensure that customers are able to immediately return to their home destinations. The company will also work closely with the authorities to arrange flights for the benefit of stranded passengers, if necessary. Customers who are directly affected by route changes and cancellations will be contacted by Norwegian via text message or e-mail.

“We understand that this extraordinary situation is stressful for our customers, but I want to assure everyone that we are working around the clock to ensure that everyone is taken care of in the best way possible at this time,” said Schram.

As a result of most of the company’s planes being parked, Norwegian unfortunately has to temporarily lay off more than 7,300 colleagues in total which equates to approximately 90 per cent of its workforce, which includes pilots, cabin crew, maintenance and administrative staff. The layoff procedures vary from country to country and Norwegian’s team is already in constructive dialogues with union and HSE representatives at all its locations across the network.

“It is indeed with a heavy heart we have to temporarily lay off more than 7,300 of our colleagues, but we unfortunately have no choice. However, I want to emphasize that this is temporary, because when the world returns to normalcy my goal is to keep as many of our dedicated colleagues as possible,” said Schram.

Norwegian’s route network changes

-Thousands of flights have already been cancelled.

-As of March 21, the company will primarily fly a reduced scheduled domestically in Norway and between the Nordic capitals. Some European flights will be operated. All intercontinental are cancelled except flights between Scandinavia and Thailand (last flights at end of March).

-All flights that will be operating will be available for sale on Norwegian.com.

-Limited schedule will remain in place until at least April 17 but will be reviewed on a regular basis in line with changes in travel restrictions and demand.

Norwegian will continue to share updates with its customers, the financial market and the media once new measures are implemented.

Detailed reduced schedule – starting March 25

Norway:

Oslo -Bergen/Stavanger/Trondheim: 4 daily departures

Oslo – Ålesund/Bodø/Evenes/Tromsø: 2 daily departures

Oslo -Alta/Kirkenes: 1 daily departure

OSL – Haugesund/Kristiansand/Molde: 1 daily departure

Oslo – Svalbard: 3 weekly depatures

Oslo -Stockholm/Copenhagen: 2 daily departures

Oslo – Helsinki: 4 weekly departures

Stavanger – Bergen: 1 daily departure

Bergen – Trondheim: 1 daily departure

Sweden:

Stockholm – Kiruna: 4 weekly departures

Stockholm – Luleå/Umeå: 2 weekly departures

Stockholm – Helsinki: 2 daily departures

Stockholm – Copenhagen: 2 daily departures

Stockholm – Oslo: 2 daily departures

Finland:

Helsinki – Kittilä: 6 weekly departures

Helsinki – Oulu: 1 daily departure

Helsinki – Rovaniemi: 1 daily departure

Helsinki – Oslo: 4 weekly departures

Denmark:

Copenhagen – Oslo: 2 daily departures

Norwegian Air Shuttle aircraft photo gallery:

Norwegian to suspend more than 4,000 flights and implement layoffs

Norwegian Air Shuttle has made this announcement:

Following the U.S. ban on travel from most of Europe and the escalating coronavirus situation, Norwegian has decided to ground 40 percent of its long-haul fleet and cancel up to 25 percent of its short-haul flights until the end of May. The changes apply to the company’s entire route network.

Jacob Schram, CEO of Norwegian said: “This is an unprecedented situation and our main priority continues to be the care and safety of our customers and colleagues. The new restrictions imposed further pressure on an already difficult situation. We urge international governments to act now to ensure that the aviation industry can protect jobs and continue to be a vital part of the global economic recovery.”

40 percent of long-haul capacity to be cancelled

From March 13th to March 29th, we will cancel the majority of our long-haul flights to the U.S. from Amsterdam, Madrid, Oslo, Stockholm, Barcelona and Paris.

From March 13th to the end of May, all flights between Rome and the U.S. will be cancelled.

From March 29th until the end of April, all flights from Paris, Barcelona, Madrid, Amsterdam, Athens and Oslo to the U.S. will be cancelled.

All routes between London Gatwick and the U.S. will continue to operate as normal. Our goal is to reroute as many of our customers as possible through London during this difficult period.

The short-haul network heavily impacted

Norwegian will also cancel a large share of its domestic flights in Norway and flights within Scandinavia, such as Oslo-Copenhagen and Oslo-Stockholm. Flights to Italy will also be cancelled. Domestic and intra-Scandinavian flights will be combined to re-protect our customers.

Customers booked to travel on affected flights will be contacted to discuss their options including rebooking onto a flight at a later date. Due to a high number of enquires we encourage all customers to check our website www.norwegian.com/updates for the latest travel advice. If your travels are past April 15th, 2020, please refrain from contacting our Customer Care team at this time.

Layoffs

During a pandemic it is Norwegian’s policy to prioritize and safeguard the health and well-being of employees while ensuring Norwegian’s ability to maintain essential operations and continue providing services to our customers.

Due to the extraordinary market situation as a result of the coronavirus, and thus a dramatic drop in customers and subsequent production decline, we must look at all possible measures to reduce costs. This unfortunately also includes temporary layoffs of up to 50 percent of our employees and the number may increase. All departments will be affected by the temporary layoffs.

We have initiated, in consultation with the unions, a discussion and mapping process and will then return with leave notices to affected departments, stations and employees.

Norwegian Air Shuttle aircraft photo gallery:

Norwegian to cancel approximately 3000 flights and implement temporary layoffs due to the effects of coronavirus

Norwegian Air Shuttle has made this announcement:

Due to the COVID-19 situation, Norwegian is preparing to cancel approximately 3000 flights between mid-March and mid-June. This represents approximately 15 percent of the total capacity for this period. The company has also put several other measures in place, including temporary layoffs of a significant share of its workforce.

The past week, Norwegian has experienced reduced demand on future bookings. The company will cancel about 3000 flights to meet the change in demand. The cancellations represent approximately 15 percent of the total capacity for the period mid-March to mid-June. It will affect the entire network and more details will be shared as soon as they are ready to be implemented. Affected customers will receive information about these changes as soon as they take place.

“This is a critical time for the aviation industry, including us at Norwegian. We encourage the authorities to immediately implement measures to imminently reduce the financial burden on the airlines in order to protect crucial infrastructure and jobs,” said CEO Jacob Schram of Norwegian.

“Unfortunately, cancellations will affect a significant share of our colleagues at Norwegian. We have initiated formal consultations with our unions regarding temporary layoffs for flying crew members as well as employees on the ground and in the offices. We will continue to engage in constructive dialogue with unions and employees to work through this difficult situation together,” said Schram.

Norwegian will continue to share updates with its customers, the financial market and the media once new measures are implemented.

Norwegian (UK) aircraft photo gallery: