Category Archives: Norwegian Air UK

Norwegian commits to reduce CO2 emissions by 45 percent by 2030

Norwegian Air Shuttle made this announcement:

Norwegian has launched a new environmental sustainability strategy that will begin immediately and deliver several industry leading targets. Cutting CO2 emissions by 45 percent, remove all non-recyclable plastics and recycle all single-use plastics are key commitments in the new strategy. The goal is in line with the 1.5°C target set forth in the Paris Agreement.

Jacob Schram, CEO of Norwegian, said: “At Norwegian we take our responsibility towards the environment seriously, and that is why we must look to the future and implement a strategy that produces immediate and tangible benefits for the environment today. Norwegian will continue to instigate a positive change across the industry in this field that will benefit not only the environment but also our customers and our business. The low-cost business model is the sustainability model as it enables efficient energy and resource management.”

Will require 500 million litres sustainable aviation fuels

To limit global warming to 1.5°C, carbon emissions must be reduced by 45 percent by 2030 compared to 2010 levels, according to the International Panel on Climate Change (IPCC, 2018). We commit to improve the carbon efficiency of our operations and will reduce our carbon emissions by 45 percent per passenger kilometer (RPK) by 2030 – compared to 2010 levels. This will be achieved through both fleet renewal and sustainable aviation fuels.

The airline commits to utilising between 16 and 28 percent sustainable aviation fuels by the end of the decade, depending on the level of fleet renewal. The target amounts to up to 500 million litres sustainable aviation fuels by 2030.

To achieve this important goal, it is also crucial to get in place a regulatory framework that actively rewards carbon efficiency and increases both the production and use of sustainable aviation fuel.

Jacob Schram said: “We encourage producers to ramp up production of sustainable aviation fuels. Norwegian will be actively engaging with producers to kick start this vital contribution to the industry and take advantage of the emission savings that these fuels offer.”

Will remove all non-recyclable plastics

Initial elements of the sustainability strategy will also include a 100 percent reduction of non-recyclable plastics and 100 percent recycling of single-use plastics by 2023.

Anders Fagernæs, Norwegian Head of Environmental Sustainability, said: “More sustainable and smarter options are becoming a greater part of the considerations that customers make when choosing which airline to fly with. We will champion this attitude and become the customers sustainable choice by reducing and recycling plastic waste, promoting sustainable aviation fuel and continuing to fly one of the world’s youngest fleets to achieve a 45 percent reduction in CO2 emissions by 2030.”

A solid foundation

Norwegian is already one of the world’s leading fuel-efficient carriers due to its modern fuel-efficient aircraft. Norwegian was the first airline to sign the United Nations Framework Convention on Climate Change (UNFCCC) pledge, committing to become carbon neutral by 2050.

The airline was also 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 2010 the airline has reduced its emissions by 28 percent.

Norwegian August 2020 traffic figures heavily influenced by travel restrictions and drop in demand

Norwegian Air Shuttle made this announcement:

Norwegian’s traffic figures for August are heavily influenced by the COVID-19 outbreak and the subsequent travel restrictions and drop in demand. In August, capacity was 94% lower than last year, while the flights that were operated had a load factor of 62.1%.

From July 1 Norwegian reopened 76 routes and put an additional 15 aircraft into service, throughout the summer frequencies and routes were adjusted in accordance with variations in passenger demand linked to changing government travel restrictions and advice.

Compared to the same period last year total capacity (ASK) decreased by 94 percent while total passenger traffic (RPK) decreased by 96 percent. Load factor was 62.1 percent, down 27.9 percentage points. The total number of customers carried in August was 313,316 a decrease of 91 percent.

Norwegian on August 28, 2020 reported its results for the first half year of 2020. The figures are as expected heavily impacted by the COVID-19 pandemic with a net loss of NOK 5.3 billion. During the first half of 2020, 5.31 million customers travelled with the company; a decrease of 71 percent compared to the same period last year. Norwegian successfully converted debt, gained access to state guaranteed loans of NOK 3 billion and conducted a public offering, in addition to implementing a series of cost-reduction measures. Still, Norwegian is facing challenging times ahead.

Before COVID-19, Norwegian had guided the market of a profitable 2020 and the best summer ever. Strict government travel advice and the following drop in customer demand forced Norwegian to ground 140 aircraft and furlough or lay off approximately 8,000 employees. In the second quarter, Norwegian only operated 7-8 aircraft on domestic routes in Norway. Following a successful restructuring process, the company gained access to the Norwegian government’s loan guarantee of NOK 3 billion and an additional NOK 0.3 billion from commercial banks.

“When we entered 2020, we were expecting a positive result and the best summer ever, thanks to successful cost-saving initiatives and a more efficient operation. Then we were hit by COVID-19 and customer demand literally stopped from one day to the next, as government-imposed travel restrictions and travel advice were introduced world-wide. For the past months we have been working tirelessly to make sure that we can emerge from this crisis as a stronger company, well-positioned for future competition. Some of these measures have been painful, but totally necessary if we are to make it through at all. Creditors, bondholders and shareholders have shown us support and trust to find a way forward for the company and our customers are expressing their strong support, for which I am grateful. And not least, I am extremely proud of all our Red Nose Warriors who are keeping up a positive spirit,” said CEO Jacob Schram.

During the first six months of 2020, 5.3 million customers travelled with Norwegian, compared to 18.1 million during the same period previous year. Production (ASK) was down by 69 percent and passenger traffic (RPK) decreased by 72 percent. The load factor was 78.2 percent, a decrease of 6.5 percentage points compared to the first half of 2019. Both load factor and production are adjusted according to the government mandatory blocking of middle seats on domestic routes in Norway in the second quarter of 2020.

Punctuality was at 87.2 percent, an improvement of 7.3 percentage points compared to the first half of 2019.

Poor visibility creates uncertainty ahead

On July 1, Norwegian reopened 76 routes, put an additional 15 aircraft into service and brought more than 600 employees back to work. The market is still highly uncertain, mainly due to changing travel advice from governments across Europe. As the government changes its travel advice, demand is immediately impacted. Going forward the company will continue to adjust its route portfolio in line with demand and government travel advice.

“The COVID-19 crisis has impacted aviation and the travel industry particularly hard, and most companies need government support to survive. We see that many of our main competitors receive considerable liquidity support from their governments as aviation represents the backbone of infrastructure. We are thankful for the loan guarantee made available to us by the Norwegian government which we worked hard to obtain. However, given the current market conditions it is not enough to get through this prolonged crisis,” Schram said.

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

Norwegian Air Shuttle has made this announcement:

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

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

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

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

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

Norwegian finalizes recapitalization and secures state aid

Norwegian Air Shuttle has made this announcement:

Norwegian confirms that the restructuring is completed and that the state loan guarantee of in total NOK 3 billion has been approved. The company has now converted NOK 12.7 billion of debt to equity and laid a solid foundation for the future, although the next months will remain challenging.

“I want to thank everyone who has supported the company during this unprecedented crisis that has affected the entire the airline industry: The Government and Parliament; customers; employees: shareholders; leasing companies; creditors; bondholders, the travel industry and other Norwegian supporters. Now that we can access the state loan guarantee, we can continue to transform the company. Through this process, the belief in New Norwegian and the company’s strategy have been confirmed by shareholders, the market, bondholders, leasing companies, other creditors and lenders. Nevertheless, the months ahead will remain challenging and with a high degree of uncertainty for the industry. Norwegian will still need to collaborate closely with a number of creditors as the company currently has limited revenues,” said CEO Jacob Schram.

Since the end of 2018, Norwegian has taken significant actions to restructure its operations and return to profitability. The company was on the path to deliver a positive net profit in 2020, and this summer was set to be the strongest in the company’s history. Instead, the coronavirus outbreak and global travel restrictions has led to a substantial drop in demand.

The Company has seized this time as an opportunity to restructure and develop a new strategy and business plan – New Norwegian – for a strengthened airline to re-emerge when travel restrictions are lifted and demand returns.

“In addition to securing that the company survives this crisis, our goal has been that Norwegian should have a strong position in the future airline industry, with a clear direction and strategy. This will ensure sustainable operations and a structure that will be to the benefit of both shareholders, customers and colleagues,” says Schram.

Norwegian Air Shuttle aircraft photo gallery:

Norwegian Air calls for a special meeting on May 4 to discuss its future

Norwegian Air Shuttle (Norwegian Air) is basically in hibernation as its plans its future. The beleaguered airline has called for a special meeting on May 4, 2020.

At that meeting, the management of the company is expected to present a new restructuring plan that will see a much smaller airline if approved. Creditors will be asked to exchange debt for equity.

The company is also planning a hibernation phase that will last until next winter.

Read more from Forbes.

Norwegian aircraft photo gallery:

Norwegian March traffic figures heavily influenced by COVID-19 measures

Norwegian Air Shuttle made this announcement:

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

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

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

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

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

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

Norwegian Air Shuttle made this announcement:

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

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

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

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

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

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

Norwegian’s route network changes

-Thousands of flights have already been cancelled.

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

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

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

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

Detailed reduced schedule – starting March 25

Norway:

Oslo -Bergen/Stavanger/Trondheim: 4 daily departures

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

Oslo -Alta/Kirkenes: 1 daily departure

OSL – Haugesund/Kristiansand/Molde: 1 daily departure

Oslo – Svalbard: 3 weekly depatures

Oslo -Stockholm/Copenhagen: 2 daily departures

Oslo – Helsinki: 4 weekly departures

Stavanger – Bergen: 1 daily departure

Bergen – Trondheim: 1 daily departure

Sweden:

Stockholm – Kiruna: 4 weekly departures

Stockholm – Luleå/Umeå: 2 weekly departures

Stockholm – Helsinki: 2 daily departures

Stockholm – Copenhagen: 2 daily departures

Stockholm – Oslo: 2 daily departures

Finland:

Helsinki – Kittilä: 6 weekly departures

Helsinki – Oulu: 1 daily departure

Helsinki – Rovaniemi: 1 daily departure

Helsinki – Oslo: 4 weekly departures

Denmark:

Copenhagen – Oslo: 2 daily departures

Norwegian Air Shuttle aircraft photo gallery:

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

Norwegian Air Shuttle has made this announcement:

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

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

40 percent of long-haul capacity to be cancelled

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

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

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

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

The short-haul network heavily impacted

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

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

Layoffs

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

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

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

Norwegian Air Shuttle aircraft photo gallery:

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

Norwegian Air Shuttle has made this announcement:

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

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

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

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

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

Norwegian (UK) aircraft photo gallery:

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: