Category Archives: Norwegian Air Shuttle

Norwegian records its first annual loss after 7 years of profits for 2014 due to expansion and fuel hedging

Norwegian Air Shuttle (Norwegian.com) (Oslo) recorded a net loss of NOK 1.05 billion ($138.5 million) for 2014, a surprising change from a net profit of NOK 322 million $42.4 million) in 2013. Norwegian blamed the reversal on its expansion and fuel hedging. The airline issued these details (translated from Norwegian):

Norwegian’s results for 2014 are characterized by strong revenue growth, increase in capacity and investment for the future. Fuel hedging for 2015 represents a major expense item on the 459 million Norwegian kroner, which affects the annual result significantly. Major expenses for 2015 has thus been taken already in the beginning of the year. Results for the year amounted to -1.05 billion NOK compared to 322 million Norwegian kroner for 2013.

After seven years of surpluses presents Norwegian negative annual results. Sales amounted however, to 19.5 billion NOK – an increase of 25 percent. Capacity (ASK) increased by 35 percent, yet the load factor of 81 percent, up three percentage points from the previous year. A total of 24 million passengers traveled with Norwegian in 2014, an increase of 16 percent from 2013.

For the fourth quarter totaled underlying earnings to the same level as in 2013. The deficit of -958 million NOK depends largely on fuel hedging for 2015 and a weak krone. Thanks to the transfer of large parts of the Norwegian’s fleet to the subsidiary Arctic Asset Aviation Ltd. (AAA), the value of aircraft increased as the dollar. This has had a positive effect on 361 million Norwegian kroner on equity, which effectively compensates currency losses for operations during the fourth quarter of 2014.

Explanation of results in 2014

Major changes in exchange rates and fuel hedging for 2015 negatively impacted earnings and accounted for 690 million Norwegian kroner for the year as a whole. Furthermore, delays in the long lines cost the company 265 million Norwegian kroner in 2014. These costs include lease expenses, additional fuel and the cost of hotels, food and drink to delayed passengers. Cost of delay in the approval of the EU’s application for a US pilot’s license totaled EUR 117 million Norwegian kroner. Only “one-man strike” among cabin staff union Parat effected in May 2014 being accounted for 101 million Norwegian kroner.

Fourth quarter 2014

In the fourth quarter the Norwegian 4.6 billion Norwegian kroner, an increase of 22 percent compared to the same quarter last year. Profit amounted to SEK -958 million NOK compared to -194 million Norwegian kroner last year. During the fourth quarter flew 5.65 million passengers, with the company which corresponds to a passenger growth of eight percent. Capacity growth increased further towards the end of the year to 21 percent, while load factor increased by three percentage points to 81 percent.

“There is no reason to hide the fact that 2014 was a weak year for Norwegian. At the same time, we see several bright spots in the beginning of 2015. 2014 was marked by international expansion, particularly substantial investment in long-haul traffic. We notice that our growth strategy takes the form of an even stronger foothold internationally. Despite high investment costs, we have managed to reduce unit costs and renewed fleet further so that the average age is now down to 4 years.

We enter 2015 with good demand for air travel and get the full effect of low oil prices during the first quarter. Meanwhile, there is no doubt that the costs must be reduced further to ensure the company’s competitiveness in a very tough industry”, says Norwegian’s CEO Bjørn Kjos.

Copyright Photo: SPA/AirlinersGallery.com. Norwegian Boeing 737-8JP WL LN-NGD (msn 39049) with the image of Ivo Caprino on the tail arrives at Gatwick Airport near London.

Norwegian aircraft slide show:

Norwegian announces three new routes

Norwegian Air Shuttle (Norwegian.com) (Oslo) has announced new weekly nonstop flights between Stockholm (Arlanda) and Bastia in Corsica starting on April 25. Additionally the airline will launch new twice-weekly nonstop flights between Madrid and Nice starting on March 29 as well as weekly flights between London (Gatwick) and Kefalonia in Greece on April 18.

Copyright Photo: SPA/AirlinersGallery.com. Boeing 737-8Q8 LN-NOD (msn 35280) with Sonja Henie on the tail approaches the runway at Gatwick Airport near London.

Norwegian aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Europe-2/Airlines-Europe-2/Norwegian-Air-Shuttle

Norwegian carries a record number of passengers in 2014

Norwegian Air Shuttle (Norwegian.com) (Oslo) set a new passenger record in 2014 with nearly 24 million passengers. The carrier transported three million more passengers in 2014 than the previous year. Since its inception in 2002, 130 million passengers have traveled with Norwegian.

According to the airline, “2014 was characterized by high capacity growth but also a high load factor. The load factor in 2014 was 81 percent against 78 percent in 2013. In 2014, the airline renewed the fleet considerably, launched many new routes – both intercontinental and in Europe and established new bases in the United States and Spain.”

Copyright Photo: SPA/AirlinersGallery.com. Boeing 737-8JP LN-DYG (msn 39165) with Swedish opera singer, Jenny Lind, arrives in London at Gatwick Airport.

Norwegian aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Europe-2/Airlines-Europe-2/Norwegian-Air-Shuttle

Norwegian calls on the DOT again to approve its NAI application

Norwegian Air Shuttle (Oslo) has again called on the U.S. Department of Transportation (DOT) to approve its pending Irish application to operate its Boeing 787s as Norwegian Air International (NAI) (Dublin). The 787s are currently operated by Norwegian subsidiary Norwegian Long Haul although the aircraft are registered in Ireland. The airline issued this statement claiming the DOT has “received strong opposition from those interests seeking to undermine competition, limit consumer choice and maintain the status quo”. Here is the full statement:

Norwegian Air Shuttle CEO Bjørn Kjos, who will address a standing-room only audience on November 20 at the International Aviation Club, will reinforce the benefits Norwegian Air International (NAI) service will bring to competition in the transatlantic market, the traveling public, and the global aviation industry. Kjos will again call on the U.S. Department of Transportation (DOT) to once and for all approve Norwegian’s application for a foreign air carrier permit that will provide American consumers lower fares and greater choice in air travel.

“Norwegian’s vision is ‘Everyone Should Afford to Fly,’ and it is a principle we intend to bring to individuals and families seeking to travel between the United States and Europe,” said Mr. Kjos. “NAI will provide the traveling public with an innovative, low-cost option that offers award-winning service to new and underserved destinations on brand-new Boeing Dreamliner aircraft. DOT approval of NAI’s application is the final barrier preventing American consumers from the choice they so desperately want and deserve.”

Norwegian Air International, which completed its DOT foreign air carrier permit application in February 2014, has received strong opposition from those interests seeking to undermine competition, limit consumer choice and maintain the status quo. Close to 90 percent of transatlantic air traffic is controlled by the three airline mega-alliances that are permitted to operate with immunity from U.S. antitrust laws. As a consequence, airfares have risen significantly without commensurate improvements in service, and “capacity discipline” by the alliances has severely limited growth in the number of available passenger seats while pushing U.S. airline profits to record levels.

“I believe the values of innovation, competition and the rule of law – so highly prized here in the United States – will serve to overcome the opposition NAI has received from entrenched interests,” said Kjos. “I am confident that adherence to international agreements and the law will be the factors upon which DOT ultimately relies to decide this matter. I am equally confident NAI’s application will be approved by DOT, albeit far overdue.”

Norwegian Air International will open a market of new travelers previously unable to afford the high fares currently offered by the legacy carriers, while serving more destinations worldwide. NAI will directly contribute to President Obama’s goal of generating 100 million foreign visitors to the United States by 2021. Norwegian already employs 300 American cabin crewmembers in Fort Lauderdale and New York, and currently is recruiting American pilots at its New York pilot base. Of the 300 cabin crew, for which Norwegian received more than 7,00 applications, the vast majority worked previously for U.S. airlines and chose to join Norwegian for the pay, benefits and team-spirited environment.

NAI meets all statutory and regulatory requirements to serve the United States and is entitled to DOT approval “with minimum procedural delay” under the U.S.—E.U. Air Transport Agreement. Nevertheless, a full nine months after applying to DOT, NAI continues to await a decision that will allow it to begin low-fare transatlantic service to and from the United States.

“The time is well-past due for the Department of Transportation to fulfill its legal responsibility and approve NAI’s application,” said Kjos.

Copyright Photo: Steve Bailey/AirlinersGallery.com. Norwegian Long Haul’s Boeing 787-8 Dreamliner EI-LNG (msn 35314) with Edvard Munch, Norwegian artist, on the tail, arrives in Los Angeles.

Norwegian aircraft slide show:

Video: By sjcbenw. Description: Cockpit view of Norwegian Boeing 787-8 Dreamliner landing Runway 01R at Stockholm Arlanda (ARN).

From JustPlanes:

Norwegian operates its first biofuel flight on November 11

Norwegian Air Shuttle (Norwegian.com) (Oslo) on November 11 operated its first biofuel flight. The airline issued this statement (translated from Norwegian):

Norwegian for the first time operated a flight with biofuel on November 11, 2015. Norwegian’s flight DY 631 between Bergen and Oslo had nearly 50 percent biofuel in the tank. This corresponds to 40 percent less emissions than an average flight with ordinary fuel.

Norwegian’s CEO Bjorn Kjos brought Norway’s Climate and Environment Tine Sundtoft aboard this rare but very important flight between Bergen and Oslo. The new Norwegian Boeing 737-8JP with the registration of LN-NIF (msn 39434) was filled with sustainable fuel and let out a total of 3178 kg or 40 grams per passenger kilometer. Older aircraft with normal jet fuel emits 5786 kilograms or 74 grams per passenger kilometer on the same route.

At Norwegian, we are very keen to do all we can to make flying more environmentally friendly. Norwegian has a clear goal of reducing CO2 emissions by 30 percent per passenger during the period 2008 to 2015. The most important environmental measure is to have the new aircraft, and Norwegian’s fleet is among the newest and most environmentally friendly in Europe. But the new aircraft is not enough. Sustainable biofuels is also important. This flight with biofuel from Bergen to Oslo is an important milestone in the industry’s joint efforts to make sustainable biofuels available to airlines, said Norwegian’s CEO Bjorn Kjos.

With the development of new technologies and the conditions that give the airlines a good incentive to invest in environmentally friendly options, like Norwegian help make aviation carbon neutral before in 2050.

Photo: Norwegian. Norwegian’s Captain Georg Myhre before take-off of the historic flight.

Norwegian aircraft slide show:

Norwegian’s third quarter net profit drops by 14%, will phase out the last Boeing 737-300 next year

Norwegian Air Shuttle (Norwegian.com and Norwegian Long Haul) (Oslo) reported a net profit of NOK 373.8 million ($57.0 million) for the third quarter, down 14% from a net profit of NOK 435.9 million ($65.8 million) for the same quarter in 2013.

The airline issued this full report:

Norwegian reports strong growth in all European markets with a capacity increase of 36 percent and a load factor of 85 percent in its third quarter results. The pre-tax result (EBT) was 505 MNOK, compared to 604 MNOK the same quarter previous year. The costs associated with wet-leasing replacement aircraft and a weak Norwegian Krone (NOK) significantly affected the figures.

Even with strong passenger growth, the load factor was high and increased by three percentage points to 85 percent in the third quarter. Norwegian carried 7.1 million passengers this quarter and the company’s operations at London Gatwick had the strongest passenger growth.

The pre-tax result (EBT) was 505 MNOK, compared to 604 MNOK the same quarter previous year. The combination of a weak Norwegian Krone (NOK), the delayed approval from the U.S. Department of Transportation and costs associated with flight delays, affected the results this quarter. Wet-leasing replacement aircraft and extra fuel, as well as accommodation, food and drink for delayed passengers also created extra costs. The costs associated with the long overdue application before the U.S. Department of Transportation for a foreign air carrier permit for Norwegian’s Irish subsidiary, Norwegian Air International were also considerable. The application is in full accordance with the Open Skies Agreement between the EU and the U.S.

“We’re very satisfied that throughout our world-wide route network, an increasing number of new passengers choose Norwegian. Norwegian has recently received several international awards and was even named ‘Europe’s best low-cost airline’ the second year running. However, we have also experienced some turbulence this quarter. Our results are affected by additional costs related to the pending U.S. permit for our subsidiary in Dublin, consequently reducing our ability to optimize our fleet of aircraft. Even though technical difficulties with our Boeing 787 Dreamliners have also caused additional costs, our long-haul operation now consists of more aircraft and improved reliability. Looking into 2015, we will see a year of consolidation and lower growth. Next year, our fleet of short-haul aircraft will consist exclusively of Boeing 737-800s as older Boeing 737-300s will be phased out,” said CEO Bjørn Kjos.

Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Norwegian will retire its last Boeing 737-300 in 2015. Devoid of a tail photo, Boeing 737-31S LN-KHC (m,sn 29295) arrives in Stockholm (Arlanda).

Norwegian Aircraft Slide Show:

The EU puts additional pressure on the DOT to approve the application of Norwegian Air International

Norwegian Air Shuttle (Norwegian.com) (Oslo) currently operates its Boeing 787s to the United States under its Norwegian Long Haul division (Oslo). The company would like to move the operation to Ireland as Norwegian Air International where the aircraft are registered. The European Union (EU) through its European Commission has request an “urgent” meeting with the U.S. Department of Transportation (DOT) about the pending application. Several union groups have opposed the application. The EC issued this statement:

In an unprecedented move, the European Commission requested an urgent meeting between the European Union and the United States to discuss Norwegian Air International’s pending application for a foreign air carrier permit before the U.S. Department of Transportation. The extraordinary meeting, which is being requested by the Commission on behalf of the European Union as a party to the U.S-EU Open Skies Agreement, sends a clear message that the European Union is closely watching Norwegian Air International’s application, to fly to the U.S from several cities in Europe which has been pending for over eight months.

Norwegian Air International welcomes the European Union’s action to protect the rights of European airlines under the U.S.-EU Open Skies Agreement, which obligates parties to grant operating authority “with minimum procedural delay.” Asgeir Nyseth, CEO of Norwegian Air International, said, “We are confident that the Department of Transportation will do the right thing and grant our application without further delay.”

Norwegian Air International’s application has taken nearly four times as long as applications of other European carriers applying for the same authority. “We look forward to bringing new competitive and affordable fares on new Boeing 787 Dreamliner aircraft to the U.S.-Europe market,” said Nyseth. With over 300 U.S. based crew, and plans for a pilot base in New York, Norwegian’s new service will bolster the U.S. economy through increased tourism, jobs, and support of the nation’s largest exporter, Boeing.

Copyright Photo: Robbie Shaw/AirlinersGallery.com. Norwegian Long Haul’s Boeing 787-8 Dreamliner EI-LND (msn 35310) with Norwegian Marthoner Grete Waitz on the tail holds shot of the runway at London’s Gatwick Airport. The flight was headed to Fort Lauderdale-Hollywood International Airport.

Norwegian:

Norwegian Long haul to launch two new Boeing 787 routes to Orlando

Norwegian Long haul (Norwegian Air Shuttle) (Norwegian.com) (Oslo) continues to develop long-range operations and launching new routes from Copenhagen to Orlando, and between London Gatwick and Orlando. In addition, the company is also increasing frequencies on several existing destinations between Europe and the USA.

The new nonstop route to Orlando, Florida will be the fifth long distance flight from Copenhagen and the fourth from London Gatwick. Norwegian flies previously between Oslo and Orlando.

As previously reported, Norwegian started operations to Orlando International Airport (MCO) on May 29, 2014.

Norwegian will fly once a week (Mondays) from Copenhagen to Orlando, starting on March 30, 2015.

Norwegian will fly once a week (Saturdays) between London Gatwick and Orlando starting on April 4, 2015.

Norwegian is also increasing the number of flights between the following destinations: Stockholm – Oakland, increased from two to three flights a week, Oslo – Los Angeles extended from one to two times a week, London Gatwick – New York (JFK) expanded from three to six flights a week and London Gatwick – Los Angeles expanded from two to four times a week.

Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Boeing 787-8 Dreamliner EI-LND (msn 35310) with Norwegian marathon runner Grete Waitz departs from Stockholm (Arlanda).

Video: Flying on the Norwegian 787 from Stockholm to Fort Lauderdale/Hollywood:

Norwegian:

AG:

The DOT tells Norwegian it needs more time to reach a decision on Norwegian Air International

Norwegian Air Shuttle (Norwegian.com) (Norwegian Long Haul) (Oslo) issued this statement (translated from Norwegian) concerning the delay by the Department of Transportation (DOT) in approving the controversial application of Norwegian Air International (NAI) based in Ireland:

The U.S. Department of Transportation’s (DOT) decision to continue processing the application for the Norwegian EU-based subsidiary does not affect long-haul flights between Europe and the USA. Norwegian Air Shuttle has all rights to fly. The subsidiary Norwegian Air International (NAI) (Dublin) is still waiting for a permanent permit to fly.

The decision by the DOT means that it needs more time to process the application for a permanent permit to fly for NAI. The license will be the same as Norwegian already has in the parent company Norwegian Air Shuttle (Oslo). DOT has also not granted the application by NAI for a temporary permit to fly. Norwegian expects the American authorities, based on the Open Skies agreement between Europe and the USA , will approve the applications that have been considered too long. NAI is in every respect an EU company that got its Irish flight license in February 2014.

Norwegian flies today with Norwegian pilot’s license and has all air rights and is therefore not dependent on a temporary permit for the NAI subsidiary. NAI must have a permanent permit issued by American authorities to fly to the European-based flight certificate (AOC).

“It is unfortunate that American authorities are further delaying our application that have been considered for over six months. We look forward to answering any new questions that the ministry has so that we can get a permanent permit to fly without further delay”, says Asgeir Nyseth, CEO of NAI.

Both the European Commission and the Irish authorities support NAI’s rights to fly under the Open Skies Agreement. The Federal Aviation Authority (FAA) and the Transportation Security Administration (TSA) has also approved the application and confirmed that the NAI meets all the required safety requirements.

“Norwegian DOT expects to see through all the false accusations and the massive campaigns that have been waged to stop us, both among competitors and unions. Norwegian does exactly what the Obama administration wants; create new jobs and contribute to increased tourism and growth in the tourism industry” continues Nyseth.

Great support from the United States

Norwegian has received considerable political support in the United States, including the three previous transport ministers from both the Democratic and Republican side, as well as local authorities and airports. In addition, tourist organizations, the US Travel Association and the Travel Technology Association have shown great support.

Norwegian started the long haul division in 2013 with new, fuel-efficient Boeing 787 Dreamliners. The company now has three long-haul bases; in New York, Fort Lauderdale/Hollywood and Bangkok. The fourth base is now established at London Gatwick. 300 American cabin crews are based in the United States.

Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Norwegian Long Haul’s Boeing 787-8 EI-LNF (msn 35313) lands at Stockholm (Arlanda).

Norwegian Aircraft Slide Show: CLICK HERE

Norwegian Air International calls on the DOT to grant its application

Norwegian Air International (subsidiary of Norwegian Air Shuttle) (Norwegian Long Haul) (Dublin) today (August 26) filed its reply to the U.S. Department of Transportation’s (DOT) notice of August 4, 2014 requesting comments on the meeting between the U.S. Government and the European Commission. Norwegian Air International urges the Department to grant its application for an exemption and a foreign air carrier permit without further delay.

Norwegian Air International is joined by many supporters, who have also filed in support of its application, including the Irish Aviation Authority, U.S. Travel Association, American Society of Travel Agents, European Low Fares Airline Association, the Oakland, Orlando, and Fort Lauderdale/Hollywood airport authorities, Federal Express, and Atlas Air. The American public deserves more choice and lower fare options for flights between the U.S. and Europe. The U.S. economy will benefit from the increased tourism, and Norwegian’s fleet of Boeing 787 Dreamliners—the largest of any European airline—represents thousands of jobs at Boeing and Boeing’s suppliers throughout the U.S.

In the Notice, the Department summarized the views of the European Commission that a party to the Open Skies Agreement cannot unilaterally deny an airline’s application based on the so-called “social dimension” article of the agreement. “The Commission’s position echoes what we have been saying from the beginning, and we trust that the clear views of the Commission answer once and for all our opponent’s objections in this regard,” said Asgeir Nyseth, CEO of Norwegian Air International. “We look forward to the Department approving our application so that we can enjoy the same rights afforded to every other European airline serving the U.S. market – rights guaranteed to us under the Open Skies Agreement.”

As described in its prior filings, Norwegian Air International promises to offer the American public competitive fares, award-winning service that is responsive to market preferences and demand, and increased service to previously-underserved markets. Norwegian Air International’s support for the U.S. aviation industry is evidenced by its multibillion-dollar commitment to Boeing, its hiring of hundreds of U.S.-based cabin crew, and its support for hundreds of jobs at U.S. airports and the communities it will serve. It will provide new competition for Americans flying to Europe in a market that is dominated by three immunized airline alliances that currently control nearly 90 percent of the market.

The public interest in promoting service authorized by the Open Skies Agreement strongly supports the grant of Norwegian Air International’s application. The grant of the application will enable the Department to protect the important opportunities made available to U.S. carriers by the European parties to the Open Skies Agreement. It will afford an airline of Ireland, one of America’s closest partners in Europe, access to route authority it fully deserves under the Open Skies Agreement.

Open Skies has succeeded beyond all expectations, and it has done so because America made a principled decision to focus on fostering competition and new opportunities, not on protecting the existing market shares of a small number of incumbent carriers that already dominate the market. Three former Secretaries of Transportation — Andrew Card, Norman Mineta, and Mary Peters — have confirmed that these guiding principles of breaking down barriers and increasing competition are the core values the U.S. has sought to promote in open skies agreements. “If the Department wishes to stay the successful course of Open Skies, and promote a pro-growth, pro-competition, pro-consumer policy, the Department should grant Norwegian Air International’s application without further delay,” Norwegian International stated in today’s filing.

Over six months after Norwegian Air International completed its application, and with a regulatory docket filled with hundreds of pages of pleadings, the Department must now make a decision. It is time to let Norwegian Air International fly, and give consumers the choice they deserve.

Copyright Photo: Antony J. Best/AirlinersGallery.com. Norwegian Long Haul’s Boeing 787-8 Dreamliner EI-LNE (msn 34796) with Norwegian explorer Roald Amundsen on the tail holds short of the runway at London’s Gatwick Airport (LGW).

Norwegian: