Category Archives: Norwegian Air Shuttle

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:

Norwegian drops 22 long-haul flights to the United States

Norwegian has made this announcement:

Norwegian has during the past few days experienced reduced demand on some routes, particularly on future bookings. Bookings for flights departing in the coming weeks are less affected. The company has decided to cancel 22 long-haul flights between Europe and the U.S. from March 28 to May 5. Norwegian has a limited number of flights to Northern Italy and other regions heavily affected by the virus. In addition, the company has a higher share of leisure traffic, which seem less affected than business traffic. The company has also already reduced its capacity by up to 15 percent in 2020. Norwegian is monitoring the developments closely and is continuously evaluating additional changes to its schedule.

The following routes are affected: Rome – Los Angeles; Rome – Boston; Rome – New York (reduced number of departures during selected weeks on all these routes) and London – New York (three daily departures are reduced to two on some days).

Affected customers will be contacted by Norwegian and offered a new itinerary.

Given the uncertainty and ongoing impact on overall demand for air travel, Norwegian withdraws its 2020 guidance provided to the market on February 13, 2020. At this stage, it is too early to assess the full impact on our business.

Norwegian aircraft photo gallery:

Norwegian blames its 2019 losses on the grounding of the Boeing 737 MAX and Rolls-Royce engine issues

Norwegian Air Shuttle issued this financial report for the fourth quarter and full-year 2019:

Norwegian reported its full year and fourth quarter 2019 results. Year on year, unit revenue increased in nine consecutive months, driven by maturing routes and the optimization of Norwegian’s global route network. The punctuality has improved considerably during the past six quarters, and in the fourth quarter 2019 it was up 3.1 percentage points to 82.6 percent.

Figures were negatively impacted by the global grounding of the Boeing 737 MAX aircraft and ongoing Rolls Royce engine issues. The net loss was NOK 1,609 million ($173.8 million) in 2019, while the underlying operating result before ownership costs doubled to NOK 6.5 billion.

In 2019, Norwegian secured significant financial milestones that further strengthened the airline’s move to profitability. The internal cost-reduction program #Focus2019 delivered on target with cost reductions of NOK 2.3 billion for the full year and NOK 444 million in the fourth quarter. In addition, the company has postponed aircraft deliveries, sold aircraft, sold its shares in Norwegian Finance Holding and sold its domestic operation in Argentina as well as raised new capital to strengthen the liquidity.

At the same time, 2019 was a challenging year for the industry marked by a tough trading environment. Significant costs caused by the global grounding of the Boeing 737 MAX and the ongoing Rolls Royce engine issues on the Dreamliner fleet meant the company was forced to wetlease additional aircraft to avoid cancellations and delays throughout the network.

The company’s total revenue in 2019 was NOK 43.5 billion, an increase of eight percent compared to 2018, driven by improved unit revenue and increased ancillary revenue per passenger. Norwegian’s shift in strategic focus from growth to profitability resulted in a production growth (ASK) of one percent while unit revenue increased seven percent. The load factor was 86.6 percent and more than 36 million customers chose to travel with Norwegian.

Fourth quarter results

For the fourth quarter, underlying operating result before ownership costs (EBITDAR excluding other losses/gains) improved to NOK 436 million compared to a loss of NOK 118 million in Q4 2018. Total revenue was NOK 8.9 billion, representing a seven percent reduction in revenue driven by capacity reductions and route optimization across the network. However, the revenue reduction was more than offset by lower operating expenses. In Q4, production (ASK) decreased by 19 percent, while a 16 percent improvement in unit revenue and eight percent higher ancillary revenue per passenger countered much of the capacity reduction. More than 7.5 million customers chose to travel with Norwegian this quarter.

“2019 marked a new flight path for Norwegian as the company changed its strategy to move from growth to profitability. We have achieved our initial goal to save NOK 2.3 billion as part of #Focus2019 and concluded several positive financial milestones. The focus of returning to profitability will continue as we focus on Program NEXT to build a strong, sustainable and profitable business to benefit our customers, employees and shareholders,” said Chief Financial Officer of Norwegian Geir Karlsen.

“Throughout 2020, we will turn challenges into opportunities as we remain committed to offering greater choice to customers, contributing to a sustainable aviation industry and refining our products and services. Norwegian has changed the landscape of low-cost travel and as a company we will continue to change and adapt to further attract both business and leisure customers,” said CEO of Norwegian Jacob Schram.

1.7 million tons of CO2 saved

Thanks to Norwegian’s young and more fuel-efficient fleet, 1.7 million metric tons of CO2 were saved in 2019 compared to the industry average. At the same time, 40 percent of the total CO2 emissions were offset through EU’s emissions trading system. Since its launch in December, 123,000 customers compensated their carbon footprint using the partnership between Norwegian and the climate-tech company CHOOOSE during the booking process.

Norwegian in the UK and Ireland:

  • Norwegian carries almost 6 million UK passengers each year from London Gatwick, Edinburgh and Manchester Airports to 30 destinations worldwide
  • Norwegian is the third largest airline at London Gatwick, with 4.6 million yearly passengers, and over 1,200 UK-based pilots and cabin crew
  • In 2014, Norwegian introduced the UK’s first low-cost, long haul flights to the U.S. – the airline now flies to 11 U.S destinations, Buenos Aires and Rio de Janeiro from London Gatwick
  • Norwegian is the only airline to offer free inflight WiFi on UK flights to more than 30 European destinations and 13 long-haul destinations.
  • The airline has one of the youngest aircraft fleets in the world with an average age of 3.8 years, including next-generation Boeing 787 Dreamliner, Boeing 737 MAX and Boeing 737-800s
  • Norwegian has been voted ‘Europe’s best low-cost carrier’ by passengers for six consecutive years at SkyTrax World Airline Awards from 2013-2018, along with being awarded the ‘World’s best low-cost long-haul airline’ in 2015, 2016, 2017, 2018 and 2019
  • Norwegian Reward is the airline’s free to join award-winning loyalty program offering members CashPoints and Rewards that reduce the cost of Norwegian flights

Norwegian aircraft photo gallery:

Norwegian offers customers CO2-offsetting and becomes first airline to sign UN climate action initiative

Norwegian has partnered with climate company CHOOOSE to make it easy for customers to offset their carbon footprint when buying a ticket with the airline. The initiative has been welcomed by the United Nations Framework Convention on Climate Change (UNFCCC).

As of today, Norwegian is pleased to offer its customers climate compensation as a simple, integrated part of the booking process.

Geir Karlsen, Acting CEO of Norwegian said: “Norwegian has been named one of the world’s most environmentally friendly airlines and we are continuously working to reduce our emissions through new initiatives. We’re now putting a price on actual carbon emissions from flying, making it easy for all our customers to take climate action,”

“Even if commercial aviation technology continues to develop and Norwegian keeps reducing its environmental impact, emission-free flying is not possible today. Carbon offsetting is an important tool in managing today’s emissions, and we know that many of our customers would like to compensate for emissions associated with their journey,” he continued.

United Nations Framework Convention on Climate Change: “We welcome this initiative”
Norwegian is the first airline to sign the United Nations Framework Convention on Climate Change (UNFCCC) pledge, committing to become climate neutral by 2050:
Putting a price on carbon in this way also helps driving more action and more ambition at all levels of society, including in business. We welcome this initiative by Norwegian to help their customers compensate their emissions when they travel. Bringing people together is fundamental for global understanding, for the economy, for wellbeing, and for the planet. We welcome Norwegian to our Climate Neutral Now initiative,” says Niclas Svenningsen, Manager, Global Climate Action, UN Climate Change.


Climate offsetting clean energy projects

Norwegian developed the feature to be as informative, simple, and trustworthy as possible. When first selecting a flight, Norwegian informs customers how its flights’ emissions compares to industry average. The CO2 emissions calculation is based on the official methodology of the United Nations’ International Civil Aviation Organisation (ICAO), the International Council of Clean Transportation (ICCT) and Norwegian’s own flight emissions data. Next, customers are offered a simple option to offset their calculated carbon footprint directly in the checkout process. For customers that opt in, offsetting is then performed through carefully selected CO2-reducing clean energy projects in regions Norwegian flies to. The projects are certified by the United Nations and the Gold Standard, which sets the standard for climate and development interventions to quantify, certify and maximise their impact. The Gold Standard also includes contributions to other UN Sustainable Development Goals.
In addition to climate impact, all Gold Standard projects deliver verified benefits to the local communities where they operate – new jobs, clean energy, improved air, and more. If Norwegian Air passengers are passionate about climate justice, they can trust that their contribution goes far beyond offsetting emissions,” said Sarah Leugers, Director of Communications at Gold Standard.

A seamless solution

As the partner for its new solution, Norwegian has chosen the climate-tech company CHOOOSE. Based in Oslo, Norway, CHOOOSE has developed a solution that seamlessly integrates into the customer check-out process, making it easy for customers to connect with the best CO2-reducing projects around the world. In addition to Norwegian, CHOOOSE enables a wide range of partners to integrate climate action directly into their products and services, and now has customers in over 70 countries.

“CHOOOSE collaborates with those who challenge the status quo, demonstrate that they’re committed to reducing emissions, and take responsibility for the elephant in the room – some carbon footprints cannot be entirely avoided based on today’s technology,” said Andreas Slettvoll, CEO of CHOOOSE.

CHOOOSE has achieved a lot in a short time, and together we are offering a best-in-class solution for our customers. CHOOOSE operates in an area that is developing rapidly and absolutely necessary, and represents a new, refreshing approach to climate action,” said Karlsen.

Norwegian was 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 2008, the airline has reduced its emissions by 30 percent per passenger kilometre thanks to new, fuel-efficient aircraft.

Norwegian Air UK aircraft phot gallery:

Norwegian sells Argentinian subsidiary to JetSmart

Norwegian Air Shuttle has signed an agreement for the sale of 100 percent of its Argentinian subsidiary Norwegian Air Argentina (NAA) to JetSMART Airlines.

“We’re taking necessary steps to return to profitability,” said acting CEO Geir Karlsen.

JetSMART will assume the NAA operation with immediate effect. To minimize the impact on passengers, JetSMART will continue to operate the NAA scheduled flights from Aeroparque airport. The parties expect that the integration process will take several months, and the Norwegian brand will be phased out in the domestic Argentinian network during this period.

Over the next six months, the three Boeing 737 currently operated by NAA will be replaced by JetSMART’s Airbus A320 aircraft. The three Boeing 737s will return to service for Norwegian in Europe.

“As Norwegian moves from growth to profitability, we are taking all the necessary actions required to ensure that Norwegian is well positioned going forward. Over the past few months we have made important changes to our route network to ensure long-term profitability. Attaining satisfactory profitability for a relatively small domestic operation has proved difficult to achieve, given the overall situation in the country. While most of NAA’s costs are denominated in dollars, revenue is obtained in pesos only, and the sharp depreciation of the peso against the dollar has created a significant gap between costs and revenue,” said acting CEO and CFO of Norwegian, Geir Karlsen.

Scheduled flights to be operated as plannedAll passengers who have purchased NAA flights will fly as planned.

NAA solely operates domestic flights within Argentina so the new agreement will not affect Norwegian’s long-haul flights between London and Buenos Aires. These are operated by the British subsidiary Norwegian Air UK.

Norwegian’s employees in NAA will, as per the agreement, be employed by JetSMART except for the company’s Argentina-based call center staff. They will continue as Norwegian employees providing customer services to JetSMART’s domestic Argentina operation and to our customers on our long-haul operation between Europe and South America.

“All our colleagues in Argentina deserve a word of recognition for their dedication and hard work. The past two years have proven eventful – not only have they built a fully-fledged airline from scratch, but they have also operated it to the highest professional standards. In doing so, they have earned for Norwegian the gratitude and respect of the Argentinian people,” said CEO of Norwegian Air Argentina, Ole Christian Melhus.

NAA received its Air Operator’s Certificate in January 2018 and started operations on 16th October that year.

The company currently operates a fleet of three Boeing 737-800s, with twenty daily flights across eight routes between Buenos Aires’ Aeroparque airport to Bariloche, Córdoba, Iguazú, Jujuy, Mendoza, Neuquén, Salta, and Ushuaia.

So far, NAA has carried 982,000 passengers.