Category Archives: Norwegian Air Shuttle

Norwegian continues to build up its presence at London’s Gatwick Airport, reports a 2Q net profit of $20.5 million

Norwegian Air Shuttle’s (Norwegian.com) (Oslo) route network from London Gatwick continues to expand. Norwegian is adding four new destinations this winter; Madeira and La Palma for the sun-seekers and Grenoble and Salzburg for the ski enthusiasts.

Norwegian is also increasing the number of weekly departures on its routes from London Gatwick to Lanzarote, Rome and Larnaca.

From October 28 and November 1, respectively, Norwegian offers sun-seekers two weekly flights from London Gatwick to the Portuguese island of Madeira and one weekly flight to La Palma in the Canary Islands. Those more keen on white and powdery conditions in the Alps this winter, can from December 13 fly nonstop to Grenoble and Salzburg once a week.

Today, Norwegian is a major player at London Gatwick airport. The airline established a crew base at the airport in 2013 and now offers 41 routes from London Gatwick. Norwegian has eight Boeing 737-800 aircraft based at London Gatwick today as well as around 90 pilots and 200 cabin crew members.

On the financial side, Norwegian (NAS) reported a second quarter 2014 net profit of 128 million NOK ($20.5 million). According to the carrier, “The second quarter is characterized by strong growth and a record high load factor, and influenced by significant, one-off costs, a weak Norwegian currency and high oil prices. The strike from labor union Parat earlier this year alone cost Norwegian over 100 million NOK in lost revenue.

The second quarter figures also reflect Norwegian’s growth strategy and the company’s goal to fill all its new seats. Despite significant costs related to the start-up of the long-haul operation and higher costs due to the weak Norwegian currency, the unit cost (CASK) is down, strengthening Norwegian’s competitive advantage further. Over the past year, Norwegian has introduced seven Dreamliner aircraft to its long-haul operation.

The total revenue in the second quarter was over 5 BNOK, up 26 percent from the same quarter last year. The pre-tax result (EBT) was -137 MNOK. 6.4 million passengers chose to travel with Norwegian during the second quarter, which is an increase of 16 percent and almost 900 000 passengers more than the same period last year. The company’s traffic growth (RPK) was considerably higher at 46 percent, which reflects that each of Norwegian’s passengers on average flies significantly longer than they did a year ago.”

Record high load factor

Norwegian realized a strong production growth (ASK) of 41 percent. The growth is, naturally, stronger in new markets. Despite Norwegian’s strong capacity growth, the company is still filling its seats. The load factor in this quarter was 80 percent, up three percentage points from the same quarter last year, which is record high for a second quarter.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 737-8JP LN-NGT (msn 41125) taxies at Palma de Mallorca (PMI) with Anton K.H. Jakobsen on the tail.

Norwegian:

Current routes from London Gatwick:

Norwegian to launch nonstop Boeing 787 Copenhagen-Bangkok service on October 30

Norwegian Long Haul (Norwegian Air Shuttle) (Norwegian.com) (Oslo) on October 30 will launch a new Boeing 787 route between Copenhagen and Hong Kong. The new route will operate twice a week. Norwegian already offers nonstop routes between Bangkok and both Oslo and Stockholm.

Norwegian will have a fleet of 17 Dreamliners, with seven currently in service and one more will be delivered in 2014.

Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Boeing 787-8 EI-LNC (msn 34795) prepares to land in Stockholm (Arlanda).

Norwegian:

SWAPA applauds the Dreamjet decision by the DOT but still opposes the Norwegian Air International application

The Southwest Airlines Pilots’ Association (SWAPA) (Dallas), the union representing the pilots of Southwest Airlines, issued this statement:

The Southwest Airlines Pilots’ Association (SWAPA) commends the United States Department of Transportation (DOT) for granting an exemption to Dreamjet, a startup airline, based in France within the European Union (EU).

“The rapid approval of Dreamjet’s application is applauded by the pilots of Southwest Airlines,” said Captain Paul Jackson, SWAPA Governmental Affairs Chairman. “We agree with the DOT that Dreamjet is fit to serve the EU-US market under the terms of the Open Skies agreement.”

This approval for Dreamjet is in contrast to the application for a foreign carrier exemption on file with the DOT by Norwegian Air International (NAI). The pilots of Southwest Airlines have opposed the application of NAI from early in the process based on their flag of convenience strategy and usurping of labor laws with the offshoring of crews.

“We continue to oppose NAI and at the same time applaud the DOT for recognizing EU carriers that comply with the rules and grant them entry to a fair and equitable market,” Jackson continued.

Dreamjet is set to launch five weekly flights between Paris-Charles de Gaulle and Newark Liberty Airport on July 11 with a Boeing 757-200 configured with 74 business class seats.

Note: Dreamjet has now been renamed La Compagnie.

Norwegian launches Boeing 787 flights from London Gatwick to Los Angeles, New York and Fort Lauderdale/Hollywood

Norwegian Long Haul (Norwegian Air Shuttle) (Norwegian.com) (Oslo) this week has expanded its Boeing 787 operations, this time from London’s Gatwick Airport (LGW). On July 2 the fast-growing airline launched Gatwick-Los Angeles service. Yesterday (July 3) Norwegian started Gatwick-New York (JFK) flights and today it will commence Gatwick-Fort Lauderdale/Hollywood service.

According to Norwegian, “almost all of the 291 seats on Norwegian’s 787 Dreamliner are fully booked on the launch trips to Los Angeles, New York and Fort Lauderdale.”

The airline continued (translated from Norwegian), “The launch of long-haul routes from London Gatwick is an important part of Norwegian’s global growth strategy and in a few years, it is Spain’s turn. We are excited that Norwegian’s routes between London and the United States are now running. We think that everyone should be able to afford to fly, even between Europe and the USA. The trans-Atlantic market has for too long been dominated by a few large airlines with expensive tickets and limited flexibility”, says CEO Bjorn Kjos.

In 2013, Norwegian launched the only low cost long-haul routes between the United States and Scandinavia, and between Asia and Scandinavia.

This past year, according to Norwegian, 100,000 Americans have flown with Norwegian and 200 000 passengers have traveled from Europe to the United States with the company.

According to Norwegian, “Currently Norwegian employs 300 American cabin crew at the base in Fort Lauderdale and in New York and 200 at the base in Bangkok. Norwegian had over 6,000 applications for the 300 posts in the United States. 150 pilots fly its 787 Dreamliner and 40 more pilots will be employed, including the base in New York.

Norwegian currently has seven 787 Dreamliners in service. By 2018 the company will have a long-haul fleet of 17 Dreamliners.

Norwegian’s current long-haul Boeing 787 routes:

From New York (JFK): Stockholm (ARN), Oslo (OSL), Copenhagen (CPH), Bergen (BGO and London (LGW)

From Fort Lauderdale/Hollywood (FLL): Stockholm (ARN), Oslo (OSL), Copenhagen (CPH) and London (LGW)

From Los Angeles (LAX): Stockholm (ARN), Oslo (OSL), Copenhagen (CPH) and London (LGW)

From Oakland, CA (OAK): Stockholm (ARN) and Oslo (OSL)

From Orlando (MCO): Oslo (OSL)

From Bangkok (BKK): Oslo (OSL) to Stockholm (ARN)

Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 787-8 EI-LNE (msn 34796) with Norwegian explorer Roald Amundsen on the tail arrives in New York at JFK International Airport (JFK).

Norwegian:

Norwegian responds to the U.S. House legislation

Norwegian Air Shuttle (Norwegian Long Haul) (Norwegian.com) (Oslo) via its Irish subsidiary Norwegian Air International (NAI) (Dublin) issued this statement:

Norwegian Air International (NAI) released the following statement on House passage of Fiscal Year 2015 Transportation, Housing, and Urban Development and Related Agencies Appropriations Act:

“We are disappointed the House legislation includes language attempting to pressure the U.S. Department of Transportation into denying Norwegian Air International’s application. As with anything new and innovative, Norwegian expected opposition from entrenched interests, and we will continue undeterred in the pursuit of our goal of serving the United States.

Norwegian International seeks to offer lower fares to travelers, world-class service on new Boeing 787 Dreamliners, and job creation opportunities through our investment in Boeing aircraft and increased international tourism to U.S. destinations. Norwegian appreciates the support it has received from allies, including three former DOT Secretaries and the hundreds of flight attendants we have hired in the U.S. this year, who share our commitment to growth and competition.

As a licensed carrier of the European Union, Norwegian meets all the legal, safety and operational requirements to serve the United States – and we fully intend to do so in the near future. The time has passed for the Department of Transportation to approve Norwegian’s application.”

Meanwhile the Association of Flight Attendants previously issued this statement:

The Association of Flight Attendants-CWA (AFA) today commended the United States House of Representatives for passing the DeFazio/Westmoreland Amendment that ensures U.S. airlines and aviation crewmembers are afforded a level playing field for transatlantic flying. The bipartisan amendment attached to the 2015 Transportation, Housing, and Urban Development Appropriations Act (H.R. 4745), introduced by Reps. Peter DeFazio (D-OR) and Lynn Westmorland (R-GA), requires that the U.S. Department of Transportation (DOT) follow the protocol contained in the U.S.-EU “Open Skies” agreement.

Currently, the DOT is reviewing an application for a foreign air carrier permit submitted by Norwegian Air International (NAI) that threatens to undercut labor standards both in the U.S. and in Europe by circumventing worker protections, evading international labor laws, and creating unfair competition for airlines covered under the Open Skies agreement.

“Our union is focused on stopping any scheme like Norwegian Air International from severely undercutting our airlines, threatening our jobs, and setting a harmful precedent that would undermine U.S. labor and safety rules. Together with aviation workers from across the industry, we will continue to push back against attempts to dodge laws and regulations that protect good jobs and the safest aviation system in the world,” said Sara Nelson, AFA International President.

“We commend Representatives DeFazio and Westmoreland for their leadership in upholding labor standards and fair competition. This House vote sends a strong signal to the Department of Transportation that NAI’s application is not supported by Congress,” added Nelson.

Copyright Photo: All of the Norwegian Boeing 787s currently operated to the United States are registered in Ireland (EI-) but are currently operated by Norwegian Long Haul. Norwegian Long Haul has a separate AOC and is registered in Norway. Norwegian Air International obtained its AOC from Ireland in February 2014 and hopes to operate from the European Union to the United States. Boeing 787-8 EI-LNB (msn 35305) with explorer Thor Heyerdahl on the tail taxies from the gate at Los Angeles International Airport.

Norwegian:

Norwegian opens its new Madrid base

Norwegian Air Shuttle (Norwegian.com) (Oslo) on June 3 inaugurated its new base in Madrid.

The base in Madrid is Norwegian’s sixth Spanish base along with Barcelona, Alicante, Malaga, Las Palmas and Tenerife. Norwegian also has bases in Sweden, Norway, Denmark, Finland, UK, USA and Thailand.

Two Boeing 737-800 aircraft will be stationed in Madrid and about 75 pilots and cabin staff have been recruited to the base. Norwegian has now 64 flights a week from Madrid to eight destinations (Stockholm, Copenhagen, London, Helsinki, Oslo, Malta, Hamburg and Warsaw).

The six bases in Spain together have 116 routes to and from Spain.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Boeing 737-8JP LN-NGU (msn 39030) with special 1000th markings prepares to land on the island of Tenerife, Canary Islands, Spain.

Norwegian:

Norwegian brings the first Boeing 787 to Orlando

Norwegian Air Shuttle (Norwegian Long Haul) (Norwegian.com) (Oslo) landed the first scheduled Boeing 787 Dreamliner service at Orlando International Airport (MCO) on Thursday night (May 29). The maiden flight from Oslo, Norway to Orlando was the first Boeing 787 to land at MCO. The full flight was greeted with a traditional water salute by the airport rescue fire fighters (ARFF).

Norwegian Air will offer nonstop service between Orlando and Oslo two-days-a-week, Thursdays and Saturdays, with connections to over 94 locations in Europe and Thailand.

Norwegian:

Norwegian to continue to expand operations at London Gatwick

Norwegian Air Shuttle (Norwegian.com) (Oslo) continues to add new routes from its growing operation at London’s Gatwick Airport. The fast-growing low-fare airline will add two additional routes from LGW on September 15 per Airline Route: Berlin (Schoenefeld) and Warsaw.

Copyright Photo: Antony J. Best/AirlinersGallery.com. Boeing 737-86N LN-NOG (msn 35647) completes its final approach to the runway at London (Gatwick).

Norwegian:

Norwegian pleads to allow its Norwegian Air International subsidiary to operate to the USA

Norwegian Air Shuttle (Norwegian Long Haul) (Norwegian.com) (Oslo) is arguing before the DOT and public opinion, citing an editorial by USA Today, to allow its Irish subsidiary Norwegian Air International (NAI) (Dublin) to operate its Boeing 787 Dreamliners on low-fare flights to the United States. Several unions of other airlines are arguing against this approval process. Norwegian issued this statement:

Citing the airline’s “discount ticket prices” that give “passengers a reason to celebrate,” the USA Today has endorsed Norwegian Air International (NAI)’s application to begin flying from the United States. The USA Today argued that U.S. Department of Transportation – which has delayed approval of NAI’s application for months – could provide a major boon to consumers by approving NAI’s application and introducing competition into the transatlantic flight market. The full editorial is available here:

Read the editorial from USA Today: CLICK HERE

The editorial noted that NAI is able to offer fares far below those of U.S. legacy carriers because NAI is more efficient than its competitors. The airline is using 787 Dreamliners, which “provide big savings on fuel costs.” Further, NAI “steers clear of high-cost, congested airports.”

The editorial further criticized opposition to NAI for running ads that “try to cast NAI as a lawbreaker while implying that safety is being compromised.” The editorial clearly states, however, that NAI’s opposition “lacks any proof” that NAI will not follow the highest safety standards and all U.S. laws.

The USA Today made clear that it believes that “unless the critics can prove that [NAI] is doing something unsafe or illegal, the U.S. government should let NAI fly.”

Meanwhile, the Association of Flight Attendants-CWA continues to oppose NAI and issued this statement:

Association of Flight Attendants-CWA (AFA), was joined by the European Transport Workers’ Federation (ETF) as well as the International Transport Workers’ Federation (ITF) in calling on the United States Department of Transportation (DOT) to deny an application for a foreign air carrier permit submitted by Norwegian Air International (NAI).

AFA, ETF and ITF once again spotlight the unfair labor practices established by NAI in their mission to enter the U.S. aviation market. NAI’s business plan is crafted to circumvent worker protections by evading international labor laws, creating unfair competition with EU and U.S. carriers and threatening to degrade labor standards both in the U.S. and in Europe.

Veda Shook, AFA International President stated: “AFA remains committed to a healthy and robust global aviation marketplace that provides career opportunities and good jobs for workers across the world. Competition and growth are essential to our industry but we must remain dedicated to promoting strong labor standards. Skirting international laws in order to gain unfair advantage cannot be tolerated. We call on Secretary Foxx to deny NAI’s current application before such labor practices become the norm in international aviation, triggering a race to the bottom.”

François Ballestero, the ETF Civil Aviation Political Secretary commented: “The attempt of Norwegian Air to import cheap labor from Asia by employing non-European cabin crew on its long-haul routes are an attack on working conditions of the existing workers. The ETF is committed to fight against social dumping and we urge the DOT to put an end to these unfair practices. And we are not alone in our concerns: the Norwegian Minister of Transport and Communications recently raised his concern to the European Commission about the challenges facing European aviation that are created by fragmented operations between multiple countries.”

Gabriel Mocho Rodriguez, ITF Civil Aviation Secretary added: “The practice of establishing subsidiaries and registering vessels under flags of convenience in order to avoid oversight and slash costs has long been a feature of the maritime industry. The results are well known: lower safety standards, sometimes shocking working conditions, little protection for workers. The ITF is well known for fighting these abuses. For decades we have been warning that the flags of convenience model could be copied in the aviation sector. Just last month, our cabin crew committee decisively rejected the outsourcing and flagging out practices of NAI. The AFA together with the IAM (International Association of Machinists and Aerospace Workers), TWU (Transport Workers’ Union) and APFA (Association of Professional Flight Attendants), supported that resolve and are actively lobbying the U.S. government and urging it to prevent those unacceptable practices being imported into the US. The ITF will continue to support their effort.”

The ETF represents more than 250,000 civil aviation workers all over Europe, including 80,000 cabin crews.

The ITF represent more than 650,000 civil aviation workers all over the world, including nearly 100,000 Flight Attendants in the United States.

Copyright Photo: James Helbock/AirlinersGallery.com. Boeing 787-8 EI-LNB (msn 35305) is pictured at Paine Field in Everett.

Norwegian:

Norwegian signs a contract for three additional Boeing 787-9 Dreamliners, loses $137.6 million in the first quarter

Norwegian Air Shuttle (Norwegian Long Haul) (Norwegian.com) (Oslo) has entered into an agreement for the delivery of three new long-haul Boeing 787-9 Dreamliners. Two of the aircraft will be delivered in 2016 and one in 2017.

Norwegian continues to expand its international operations and has agreed to also lease two 787-9 Dreamliners. Norwegian will put two of the planes in service in 2016 and one in 2017. Today, Norwegian has five long-haul type Dreamliner 787-8 in its fleet and another three on order. In addition, Norwegian has already placed an order for six 787-9s. With this new contract, Norwegian in 2018 will have a long-haul fleet of 17 long-haul 787s.

Facts about Boeing 787-9 Dreamliner:

Holds up to 20 percent more passengers than 787-8
Six meters (20 feet) longer than the 787-8
Significantly greater cargo capacity than the 787-8
Eight percent less fuel per seat than today’s version, which also gives the corresponding reduction in environmental emissions

In other news, Norwegian announced a quarterly loss before taxes of -813 million NOK ($137.6 million). Quarterly earnings were affected by additional costs for hiring of crews and a weak Norwegian crown.

During the first quarter, the revenue increased to 3.55 billion Norwegian kroner, an increase of 22 percent compared to the same quarter last year.

9 million passengers flew with Norwegian representing growth of 24 percent. The traffic growth (RPK) was at 50 percent, which is also linked to each Norwegian passengers now fly much longer than they did a year ago.

The figures also show strong output growth with an increase of 48 percent (ASK). The load factor was 77 percent in the first quarter, up one percentage point compared to the same quarter the year before. Adjusted with extra costs and a weak currency decreased costs (CASK) by nine percent in the first quarter.

Extra costs associated with long-haul operations accounted for 78 million NOK. These costs included the leasing of aircraft, additional fuel and the cost of hotels, food and drink to passengers affected by technical and operational problems with long-distance business.

During the first quarter, Norwegian phased in five new Boeing 737-800s and a Boeing 787-8 Dreamliner. With the Dreamliner (EI-LNE) that was delivered last week, Norwegian now has a total of five long-haul aircraft in service and 12 on order.

Copyright Photo: Duncan Kirk/AirlinersGallery.com. The first, the pictured 787-8 EI-LNA (msn 35304) displays the likeness of Sonja Henie on the tail.

Norwegian: