Category Archives: Norwegian Air Shuttle

Norwegian and JetBlue announce intent for partnership

Norwegian and JetBlue have signed a Letter of Intent (LOI) for an interline agreement.

The partnership will allow customers to combine low fares in a convenient single booking for connecting flights between Europe and the Americas. Customers will have the possibility to book connecting flights on both airlines’ websites by combining the best of the complementary and expansive networks. The partnership is planned to launch in early Summer 2020 and bookable in early 2020.

The partnership will connect more than 60 U.S. and nearly 40 Caribbean and Latin American cities to Norwegian’s network via New York-JFK, Boston and Fort Lauderdale airports. Norwegian currently offers more than 20 nonstop routes to Europe from these three airports. Customers will also be able to check in their luggage to their final destination.

Flights will be bookable during the first half of 2020 through both airlines’ websites and travel agents using the GDS booking system.

Norwegian offers close to 50 nonstop transatlantic routes from the United States and more than 550 routes overall with access to most European destinations via connections within Norwegian’s network at any time of the year.

Photo: Norwegian.

Norwegian discontinues its transAtlantic Boeing 737 MAX routes

Norwegian has made this announcement:

Norwegian will discontinue its transAtlantic routes originally operated by the Boeing 737 MAX aircraft this September. The decision follows months of substitute aircraft and wetlease operations covering the airline’s routes due to the global grounding of the 737 MAX aircraft. There are no changes to the 46 nonstop routes operated by the Dreamliner from the United States to Europe.

“Since March, we have tirelessly sought to minimize the impact on our customers by hiring, so called wetleasing, replacement aircraft to operate services between North America and Ireland. However, as the return to service date for the 737 MAX remains uncertain, this solution is unsustainable,” said Matthew Robert Wood, Senior Vice President Commercial Long-Haul and New Markets, Norwegian.

In March, Norwegian managed to implement a back-up plan within 24 hours of the Boeing 737 MAX grounding, accommodating all customers booked on the airline’s 737 MAX routes from both New York Stewart International Airport and Providence, as well as launch the new route from Hamilton/Toronto, Canada, to Dublin.

Nonstop services to Cork and Shannon ended in March with the grounding of the 737 MAX aircraft and passengers were rerouted to Dublin flights out of both Providence and Stewart. The service to Dublin from the two U.S. cities and, also Hamilton, Canada, continued, but will now end with the last flight from the U.S. – both Providence and Stewart – on September 14, arriving in Dublin on September 15. The last flight from Hamilton, Canada, will depart September 13. Norwegian will no longer operate any substitute aircraft for the 737 MAX.

This will not affect the airline’s other long-haul services, operated by its Boeing 787 Dreamliner fleet. Norwegian currently operates 46 routes from the U.S. to Europe this summer season, more than any other European airline.

Norwegian would like to thank the partners that made it possible to launch its transatlantic MAX operations back in 2017, specifically the Port Authority of New York and New Jersey, New York Stewart International Airport, Providence’s T.F. Green Airport and Tourism Ireland, as well as the John C. Munro Hamilton International Airport.

Top Copyright Photo: Norwegian.com (Norwegian Air Sweden) Boeing 737-8 MAX 8 SE-RTE (msn 42838) BFI (Joe G. Walker). Image: 947301.

Norwegian’s financial turnaround moves in the right direction: Increased revenue and reduced cost

Norwegian has made this announcement:

Norwegian’s second quarter results are characterized by reduced growth and improved profitability, in line with the company’s strategy. Despite the reduced production growth and grounding of the Boeing 737 MAX aircraft, the underlying operating result before ownership costs more than doubled from the same quarter in 2018.

The underlying operating result before ownership costs was more than 2.3 billion Norwegian kroner (NOK), the highest ever in a second quarter and NOK 1.2 billion higher than last year.The unit revenue (RASK) increased by 13 percent, and the revenue per passenger per kilometer (yield) increased by 11 percent. For the second quarter, the total revenue was more than NOK 12 billion, an increase of 19 percent from the same period last year, primarily driven by intercontinental growth. Almost 10 million passengers flew with Norwegian this quarter, on par with the same quarter in 2018. The load factor was 88 percent, up 1.2 percentage points from last year.

Norwegian’s key priority is returning to profitability through a series of measures, including an optimized route portfolio and an extensive cost-reduction program. The production growth (ASK) in the second quarter was six percent, down from the peak growth of 48 percent in the second quarter of 2018. The company’s internal cost reduction program #Focus2019 continues with full effect and achieved cost reductions this quarter were NOK 554 million, consequently reaching the goal of NOK 1 billion so far in 2019.

“Norwegian’s Q2 results show that we are delivering on our strategy of moving from growth to profitability. Despite operational issues outside of our control, like the grounding of our 737 MAX fleet, we are delivering the highest second quarter operating revenue in the history of Norwegian. I am also pleased with the booking figures for the coming months, especially on long-haul,” said CEO of Norwegian, Bjørn Kjos.

During the second quarter, Norwegian has introduced four Boeing 787-9 Dreamliners to its fleet. With an average age of only 3.8 years, Norwegian’s fleet is one of the most fuel efficient and most modern in the world.

MAX update
In March, Norwegian temporarily suspended operation of 18 Boeing MAX 8 aircraft. The company has combined flights, booked customers to other departures within Norwegian’s own network, consequently reducing the impact on passengers. The company will continue to limit passenger disruptions by also offering flights with wetlease companies whenever necessary.

The 737 MAX grounding has affected both demand, operating expenses and production negatively. Norwegian expects the negative impact on the 2019 results to be approximately NOK 700 million.

In other news, CEO Bjorn Kjos (above) has stepped down.

The airline made this announcement:

After 17 years as the CEO of Norwegian Air Shuttle, Bjørn Kjos will leave the position and continue in a new role as an advisor to the Chairman, with effect from July 11th. Until Norwegian appoints a new CEO, CFO Geir Karlsen will act as interim CEO, while Chairman Niels Smedegaard will take on a more active role in the management.

“I am very pleased Bjørn will remain at the company as an advisor to the Board and the Chair. As Norwegian moves from growth to profitability, it will be an advantage for the company to benefit from Bjørn’s extensive network, in-depth knowledge of and experience with global aviation. We have already started the process of recruiting a permanent new CEO,” said Niels Smedegaard, Chairman of the Board of Directors at Norwegian.

“I am confident that the Board of Directors will find the best qualified successor to lead the next chapters of the Norwegian story together with the top management team. Leaving the exciting future tasks to a new CEO and taking on a new challenge as an advisor, is a set-up I am very happy with. I look forward to spending more time working on specific strategic projects that are crucial to the future success of Norwegian,” said Bjørn Kjos.

Bjørn Kjos is one of the founders of Norwegian Air Shuttle. During his tenure as CEO, the company has developed from a small domestic operation with 130 employees and four aircraft to a global and award-winning low-cost airline with more than 11,000 employees and 162 aircraft.

“Bjørn has played an unprecedented role in Norwegian’s success. His vision of offering affordable fares for all, combined with his enthusiasm and innovating spirit, has revolutionized the way people travel for pleasure and for business, not least between the continents. Bjørn is definitely one of the most influential European entrepreneurs of our time,” Smedegaard said.

Following a demanding period of financial and operational challenges, fueled by significant investments, Norwegian changed its strategy from growth to profitability in 2018. Going forward, the company will harvest from its rapid global growth and investments. Running a profitable business and boosting company value to the benefit of shareholders, customers and employees will be key for the CEO going forward.

“We have to ensure that Norwegian is well prepared and positioned to handle volatile markets and unexpected events. It is crucial that we continue to deliver on our cost reduction initiatives and that we constantly ensure that we have a route portfolio that yields profit. It is also important that the new CEO develops an organization that embraces continued improvement and operational excellence,” Smedegaard added.

Top Copyright Photo (all others by the airline): Norwegian Air Shuttle (Norwegian.com) (Norwegian Long Haul) Boeing 787-9 Dreamliner LN-LNR (msn 38784) (Freddie Mercury, British Rock Legend) LAX (Michael B. Ing). Image: 946965.

Norwegian aircraft slide show:

Fortune: What happens when your business relies on the Boeing 737 MAX? Just ask Norwegian Air

Read the full story from Fortune: CLICK HERE

Norwegian delays deliveries, reports increased revenues and reduced costs in the first quarter

Norwegian Air has come to an agreement with both Airbus and Boeing to reschedule the delivery of its aircraft to reduce its capital spending.

Norwegian has also reported its first quarter results. The quarter was characterised by reduced costs, increased revenue and significantly improved on-time performance. The net loss was NOK 1,489 million ($171.7 million), while the company’s unit cost excluding fuel decreased by 8 percent during the same period. The total revenue was NOK 8 billion, up 14 percent.

The airline continued;

Norwegian’s key priority is returning to profitability through a series of measures, including an extensive cost-reduction program, an optimized route portfolio and sale of aircraft. The company’s internal cost reduction program #Focus2019 has been implemented, achieved cost reductions were NOK 467 million this quarter. The company has also strengthened its balance sheet through a fully underwritten rights issue of NOK 3 billion, which secures a stronger financial position. The company is well positioned to continue to attract new customers, not least in the long-haul market, where the development is stronger than in the short-haul market.

For the first quarter, the total revenue was NOK 8 billion, an increase of 14 percent from the same period last year, primarily driven by intercontinental growth and increased traffic in the Nordics. More than 8 million passengers flew with Norwegian this quarter, a growth of 9 percent. The load factor was 81 percent. The company’s unit cost excluding fuel, decreased by 8 per cent compared to the first quarter in 2018. The punctuality increased significantly this quarter, from 73 to 81.3 percent. The regularity was unchanged at 98.7 percent.

“I’m pleased with the positive developments this quarter, despite the 737 MAX issues. We have taken a series of initiatives to improve profitability by reducing costs and increasing revenue. We are optimising our base structure and route network to streamline the operation as well as divesting aircraft, postponing aircraft deliveries and not least implementing our internal cost reduction program, which will boost our financials. I am also pleased that booking figures and overall demand for the coming months look promising,” said CEO of Norwegian, Bjørn Kjos.

Productive meetings with Boeing

In March, Norwegian temporarily suspended operation of 18 Boeing MAX 8 aircraft. The company combined flights and booked customers to other departures within Norwegian’s own network, consequently reducing the impact on passengers. The company will continue to limit passenger disruptions by also offering flights with wetlease companies whenever necessary. The number one goal is to operate its schedule according to plan.

“Our dedicated colleagues at Norwegian have been working day and night to find solutions for our customers. They will continue to do their utmost to ensure that all flights continue to depart as planned, regardless of how long the MAX stays out of service,” Kjos continued.

“We have had some productive meetings with Boeing where we have discussed how we can maneuver through the difficulties the MAX situation is causing Norwegian,” Kjos added.

Norwegian aircraft slide show:

Norwegian is forced to schedule a Boeing 787-9 to replace a Boeing 737 MAX from Dublin to Stewart Airport

Norwegian has made this announcement:

In response to the instruction by the European aviation regulatory bodies to suspend operations of the Boeing 737 MAX, Norwegian will temporarily deploy a Boeing 787-9 Dreamliner to operate US flights from Dublin Airport to support affected customers.

Norwegian is continuing to minimise inconvenience caused by the temporary grounding of the Boeing 737 MAX by providing customers with SMS and web updates and care and assistance while re-routing passengers within its network.

Customers booked on affected transatlantic routes to and from Ireland serviced by the 737 MAX will be rebooked onto flights using the 787-9 Dreamliner. The 787 Dreamliner, registered G-CKWF with Charles Lindbergh on the aircraft tail, will operate the Dublin-New York Stewart (SWF) route daily.

The first flight will be operated today on flight D81763 from Dublin Airport to New York Stewart International Airport (SWF) at 15:20 local time. Arrangements are being made to accommodate passengers booked to travel from Dublin to Stewart and Providence on the new Dreamliner service with plans to bus passengers to Providence upon arrival in New York.

Norwegian will position the 787-9 Dreamliner aircraft and crew from London Gatwick to Dublin Airport this afternoon at 13:30 local time.

The Boeing 787-9 Dreamliner has 338 seats configured with a Premium cabin offering 56 seats and 282 seats in economy.

We would like to apologise to affected customers and we remain committed to ensuring that customers can continue to travel on Norwegian’s network.

Norwegian suspends flights with Boeing 737 MAX aircraft, following recommendations by European aviation authorities

Norwegian has issued this statement:

Following the decision by the relevant aviation regulatory bodies to temporarily suspend operations of Boeing 737 MAX, Norwegian will not operate any flights with this aircraft type until further notice. We remain in close dialogue with the aviation authorities and Boeing, and follow their instructions and recommendations.

Norwegian has more than 110 Boeing 737–800 aircraft in its fleet, which are not affected by this temporary suspension.

We would like to apologize to customers who will be affected by temporary cancellations and delays, but the safety and security of our customers and colleagues will never be compromised, and once authorities advise to cease operations we will of course comply.

Tomas Hesthammer, Norwegian’s acting Chief Operating Officer said:: “In response to the temporary suspension of Being 737 MAX operations by multiple aviation authorities we have taken the decision to not operate flights using this aircraft type, until advised otherwise by the relevant aviation authorities. We would like to apologize to customers for any inconvenienced caused, however, safety will always remain our top priority.”

Norwegian has 18 Boeing 737 MAX 8 in its fleet today. The total order of these aircraft is 110.

Norwegian followed-up with the additional statement:

All aircraft that are currently airborne will continue to destination or return to home base. We are now working on re-allocating our fleet options with other aircraft types, re-bookings to other flights and combining flights to minimise inconvenience caused for our passengers. We would like to apologise to customers who are affected, but the safety and security of our customers and colleagues will never be compromised. Affected passengers will be informed via SMS and our web pages.

Top Copyright Photo: Norwegian.com (Norwegian Air International) (Ireland) Boeing 737-8 MAX 8 EI-FYI (msn 42834) (Arthur Collins, American radio communications pioneer) LGW (Antony J. Best). Image: 943737.

Norwegian (Ireland) aircraft slide show:

Norwegian announces seasonal service from New York to Athens and Chicago to Barcelona

Norwegian will introduce new nonstop service from New York to Athens and Chicago to Barcelona for the 2019 summer season.

Service from Chicago’s O’Hare International Airport to Barcelona-El Prat Airport begins June 7, 2019; and service from John F. Kennedy International Airport to Athens International Airport begins July 2, 2019. Both new routes will be summer seasonal until October 26, 2019.

These new routes will be operated by Boeing 787 Dreamliners.

Norwegian presents 2018 full year results and the strategy for returning to profitability

Norwegian Air Shuttle today released this statement:

Norwegian today reported its full year and fourth quarter 2018 results, figures strongly affected by engine issues, fuel hedge losses and tough competition in a period of strong growth. The net loss was NOK 1.454 million ($169.3 million) in 2018, while the company’s unit costs, excluding fuel, have decreased by 12 percent during the same period.

The key priority going forward is returning to profitability through a series of measures, including an extensive cost reduction program, an optimized route portfolio and sale of aircraft. The company is also strengthening its balance sheet through a fully underwritten rights issue of NOK 3 billion in order to increase its financial position.

The company was hit by several unforeseen challenges during 2018. Continued tough competition and high jet fuel prices affected the results, in addition to significant costs related to Rolls Royce engine issues on the Dreamliners. Norwegian was forced to wetlease aircraft to avoid delays and cancellations on intercontinental flights. Norwegian has now reached an agreement with the engine manufacturer, which will have a positive effect in 2019. The Dreamliner operation is now running smoothly, and we don’t foresee that engine issues will affect our service going forward. Going into 2019, Norwegian’s growth and investments will decrease considerably, and a series of initiatives have been undertaken to return to profitability this year.

The company’s total revenue was more than NOK 40 billion, an increase of 30 percent compared to 2017. A total of 25 brand new aircraft entered the fleet, contributing to a production growth (ASK) of 37 percent. The load factor was 85.8 percent and more than 37 million passengers chose to travel with Norwegian, an increase of 13 percent compared to the previous year.

Fourth quarter results

For the fourth quarter, the total revenue was NOK 9.7 billion, an increase of 23 percent from the same period last year, primarily driven by international growth as well as increased traffic in the Nordics. More than nine million passengers flew with Norwegian this quarter, a growth of 12 percent. The load factor was 80.9 percent. The company incurred losses of NOK 1.8 billion on its current hedge positions in Q4. Some of the loss has since reversed due to the latest increase in the jet fuel price.The company’s unit costs, excluding fuel, decreased by 14 percent compared to the fourth quarter in 2017.

“We have taken a series of initiatives to improve profitability by reducing cost and increasing revenue going forward. We have optimised our base and route structure to streamline the operation as well as divested aircraft, postponed aircraft deliveries and not least started an internal cost reduction program, which will boost our financials and bring us back to profitability,” said CEO of Norwegian Bjørn Kjos.

“Going into 2019, we will enter a period of slower growth and fewer investments, while constantly looking for new and smarter ways to improve our efficiency and offer new products and services to attract new customers,” Kjos added.

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 with more than 1,000 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 12 U.S destinations, Buenos Aires and Rio de Janeiro from London Gatwick
In 2017, Norwegian also launched affordable transatlantic flights from Edinburgh, Belfast, Dublin, Cork and Shannon to the US East Coast, using the brand new Boeing 737 MAX aircraft
Norwegian is the only airline to offer free inflight WiFi on UK flights to more than 30 European destinations
The airline has one of the youngest aircraft fleets in the world with an average age of 3.7 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 and 2018
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

Top Copyright Photo (all others by the airline): Norwegian.com (Norwegian Air UK) Boeing 787-9 Dreamliner G-CKWC (msn 38893) (Robert Burns, Scottish Poet) JFK (Fred Freketic). Image: 945600.

Norwegian UK aircraft slide show:

Norwegian sells two Airbus A320neo aircraft, launches an upgraded WiFi service on European flights

Norwegian has made this announcement:

Arctic Aviation Assets, a subsidiary of Norwegian Air Shuttle ASA, has signed an agreement for sale of two Airbus 320neo aircraft.

The aircraft are currently leased out and thus not operated by the Company. Delivery will take place during February 2019. The transaction is expected to increase the Company’s liquidity by $26 million after repayment of debt and have a positive equity effect. Sale proceeds will be used to repay debt and to increase the Company’s liquidity.

The sale is in line with the Company’s strategy of capitalizing on the scale built up over the last few years and the changed focus from growth to profitability. This announcement is an extension of the information provided in the stock exchange announcement “Norwegian strengthens its balance sheet through a fully underwritten rights issue of NOK 3 billion” on 29 January, where sale of aircraft was highlighted as a measure to reduce capital expenditures, in addition to postponement of aircraft deliveries.

In other news, Norwegian is continuing to enhance the passenger experience by commencing the rollout of new and improved inflight WiFi connectivity onboard the airline’s Boeing 737-800 fleet.

Norwegian, named Europe’s Best Low-Cost Airline by SkyTrax, was the first airline to offer passengers free in-flight WiFi on all European flights in 2011. The airline became the first to introduce live television over the skies of Europe in 2015 and in 2018 it took delivery of its first Boeing 787-9 Dreamliner equipped with inflight WiFi. Norwegian became the first low-cost airline to offer customers free WiFi for the full duration of intercontinental flights.

Today, Norwegian has launched an upgraded WiFi experience on its Boeing 737-800 aircraft as part of improving the customer experience. Norwegian operates Boeing 737-800 aircraft on intra-European routes, routes connecting Europe with North Africa, Middle East and on flights between the USA and French Caribbean.

Norwegian will gradually roll out the new Premium WiFi service across its Boeing 737-800 fleet and expects to complete the rollout in mid-February 2019.

Three Wi-Fi packages available

Customers travelling on a Boeing 737-800 aircraft with the new Premium Wi-Fi service available will have a selection of three packages – SURF, the free option and two paid options, SOCIAL+SURF and STREAM+SURF, both offering faster speeds.

SURF – Available for free, delivers web browsing, email and text-based messaging

SOCIAL+SURF – Provides faster web browsing, access to email and all social media. Available for €5 per device. (Pricing may be subject to change.)
STREAM+SURF – Offers faster web browsing, email access and social media in addition to the ability to stream TV shows, movies and music content on services such as Netflix, YouTube and Spotify among others. Available for €12 per device. (Pricing may be subject to change.)

Norwegian recently started introducing WiFi to its Boeing 787-9 Dreamliner and Boeing 737 MAX fleet. Here, customers have two choices – Basic free Wi-Fi for the full duration of long-haul flights and a premium high-speed option, fast enough to stream television shows and movies.

Norwegian expects to have the rollout of WiFi completed on 50 percent of its Boeing 787-9 Dreamliner aircraft by 2020.

Norwegian operates a young fleet of more than 160 aircraft with an average age of 3.7 years.

Top Copyright Photo (all others by the airline): Norwegian Air Shuttle (Norwegian.com) Boeing 737-8JP WL LN-DYP (msn 39047) (Aksel Sandemose, Norwegian author) ARN (Stefan Sjogren). Image: 945580.

Norwegian aircraft slide show: