Tag Archives: Norwegian Air Shuttle (Norwegian.com)

Norwegian concludes agreement to purchase 50 Boeing 737 MAX 8 aircraft

In May, Norwegian and Boeing announced an agreement in principle for the purchase of 50 Boeing 737 MAX 8 aircraft with options for another 30 aircraft.

Norwegian announced that the various closing conditions related to agreement have been met.

Following this, Norwegian estimates that it will record a net gain of approximately NOK 2 billion in the second quarter of 2022.

Additionally, Boeing and Norwegian have filed to settle all outstanding legal disputes.

Norwegian sees continued passenger growth, up 16% in May

Norwegian Air Shuttle issued this statement:

Norwegian’s traffic figures for May showed that Norwegian had 1.6 million passengers, an increase of 16 percent compared to the previous month.

“As we approach the busy summer months, we continue to ramp up production as planned to meet the increasing demand. Despite capacity constraints at certain airports, we manage to complete almost a 100 percent of our 400 daily scheduled flights with high punctuality,” said Geir Karlsen, CEO of Norwegian.

Punctuality, as measured by the number of flights departing within 15 minutes of scheduled time, was at 84.9 percent in May, an increase from 82.6 percent in April. As many as 97 percent of all flights arrived on schedule or no more than an hour late.

The number of passengers increases month by month, and the company notes that bookings for the summer period continue to grow. A lot of people have already booked tickets to sun and sand destinations and recently Norwegian has seen growth in the city destinations as well. During May, the company opened several new routes to serve the growing demand.

Norwegian had 1,628,040 passengers in May, as compared to 96,909 in May 2021. The load factor was 79.2 percent. The capacity (ASK) was 2,459 million seat kilometres, while actual passenger traffic (RPK) was 1,947 million seat kilometres. In May, Norwegian operated an average of 64 aircraft and 99.7 percent of scheduled flights were completed.

Norwegian has significantly increased its fleet as planned in 2022 and will operate 70 aircraft during the summer. Recently, Norwegian signed an agreement in principle with Boeing that will ensure delivery of new 737 MAX 8 aircraft in the years to come. A continued fleet renewal will give passengers an even more comfortable on-board experience in modern and fuel-efficient aircraft.

Norwegian aircraft photo gallery:

Norwegian to purchase 50 Boeing 737-8 MAX 8 aircraft

Norwegian Air Shuttle ASA has reached an agreement in principle with Boeing for a recommitment to purchase 50 Boeing 737 MAX 8 aircraft.

The agreement also includes options for an additional 30 aircraft. The 50 aircraft are due to be delivered between 2025 and 2028, at a schedule closely corresponding to current aircraft lease expirations.

This entails a limited net increase of the company’s current fleet. The parties’ agreement in principle is subject to various closing conditions, which are targeted to be concluded by the end of June 2022.

The company intends to finance the outstanding balance of pre-delivery payments through positive cash flow from operating activities. A significant share of the aircraft will be owned by the company, ensuring an optimised and balanced aircraft financing structure. Subsequent to the conclusion of these agreements, Norwegian estimates to record a net gain of approximately NOK 2 billion.

“This is a landmark deal that sets out a path whereby Norwegian will own a large share of its fleet. This will result in lower all-in costs and increased financial robustness, enabling us to further solidify our Nordic stronghold. The deal also allows us to serve our customers with state-of-the-art aircraft that can run increasingly on sustainable aviation fuel,” said Svein Harald Øygard, Chair of the Board of Norwegian.

The purchase agreement demonstrates Norwegian’s continuously strong commitment to operate a modern and fuel-efficient fleet. The Boeing 737 MAX 8 is approximately 14 percent more fuel-efficient compared to the previous-generation aircraft, putting the company on strong footing to achieve its target of reducing emissions by 45 percent by 2030.

“The overall terms achieved are attractive for Norwegian, and the deal fits well with our long-term fleet strategy and route program. It will enable us to serve our customers with modern fuel-efficient aircraft with the latest technology, significantly reducing our carbon footprint. The deal will also strengthen the company’s equity considerably, further solidifying Norwegian’s financial position,” said Geir Karlsen, CEO of Norwegian.

Norwegian aircraft photo gallery:

Norwegian recruits 150 crew members in Finland – reopens base in Helsinki

"Bjornstjerne Bjornson, Norwegian writer"

As part of the preparations for the summer season, Norwegian has started recruitment of more than 150 air crew that will be based at Helsinki Airport HEL. Approximately 100 cabin crew and 50 pilots will be ready to operate 27 of Europe’s most popular destinations that the company will service from Helsinki Airport during the summer season.

The newly hired crew start working on a rolling basis over the coming months – March, April and May – as they undergo the necessary trainings before they can welcome the passengers onboard as part of their active duty. The 150 will be the first air crew with Norwegian based in Helsinki since April 2020 when the pandemic hit the global aviation industry. Norwegian received almost 2000 applications for the open positions.

Since June 2021 and the first lifting of travel restrictions, the rate of employment has been high at Norwegian and the company has reopened bases in Copenhagen, Stockholm, Bergen, Stavanger and Trondheim.

In March 2022, Norwegian services 14 routes from Helsinki HEL, including the two domestic routes to Oulo and Rovaniemi. During the summer season Norwegian will gradually scale up almost doubling the number of available routes to a total of 27 of Europe’s most popular destinations directly from Helsinki Airport at the peak of the summer.

Top Copyright Photo: Norwegian Air Shuttle (Norwegian.com) Boeing 737-8JP WL LN-DYB (msn 39163) (Bjornstjerne Bjornson, Norwegian writer) OSL (Ton Jochems). Image: 957115.

Norwegian aircraft slide show:

Norwegian aircraft photo gallery:

Norwegian delivers a profit before tax of NOK 117 million and improved cash position in the fourth quarter 2021

Norwegian today reported its fourth quarter and preliminary full year results for 2021. Passenger demand increased from the previous quarter, however, demand was negatively impacted by the outbreak of the coronavirus omicron variant. Profit before tax (EBT) was NOK 117 million, compared to a loss of NOK 16.6 billion in the fourth quarter of 2020 and a profit of NOK 169 million in the third quarter.

In the fourth quarter of 2021, 3.1 million passengers travelled with Norwegian, up from 0.6 million in the same period last year and 2.5 million in the previous quarter. Production (ASK) was 4.6 billion seat kilometres, while passenger traffic (RPK) was 3.6 billion seat kilometres. The load factor increased to 77.0 percent, up from 52.4 percent in the same period 2020 and 73.1 percent in the previous quarter. At the end of the fourth quarter of 2021, the total operational fleet comprised 51 aircraft.

Norwegian has continued to focus on cost control and liquidity discipline across every aspect of the company, which has led the to an improvement in the cash position. By the end of the fourth quarter, cash and cash equivalents increased to NOK 7.7 billion.

“I am pleased that we have been able to adapt to fluctuations quickly and efficiently, and that we can report a profit and an improved cash position in a quarter strongly affected by the omicron virus and government-imposed travel restrictions. I would also like to thank colleagues from across the airline for their continued dedication and hard work. We are looking forward to welcoming more customers on board heading into the busier spring and summer seasons, with a fleet increasing to 70 aircraft and over 270 routes on sale,” said Geir Karlsen, CEO of Norwegian.

Punctuality, meaning share of flights departing on schedule, was 87.8 percent in the fourth quarter of 2021, down from 94.1 percent in the fourth quarter of 2020 and 91.0 percent in the previous quarter. Norwegian was named the most punctual Nordic airline in 2021, and number three in Europe.

640,000 passengers flew with Norwegian in January

Norwegian Air Shuttle released this statement:

Traffic figures for January show that almost 640,000 passengers flew with Norwegian during the month. This represents a significant increase compared to the same month last year.

Traditionally January is a quieter period for passenger demand, however, figures were also affected by the rapid spread of the omicron virus and associated government-imposed measures and restrictions.

Norwegian had 637,376 passengers in January, compared with 74,224 in January 2021. The load factor was 70 percent. The capacity (ASK) was 1,298 million seat kilometres, while actual passenger traffic (RPK) was 905 million seat kilometres. In January, Norwegian had an average of 45 aircraft in operation, and 99.2 per cent of scheduled flights were operated. Punctuality was 85.9 percent.

Norwegian’s December traffic figures were heavily impacted by COVID-19, down 94%

Norwegian Air Shuttle issued this report:

In December, 129,664 customers flew with Norwegian, a decrease of 94 percent compared to the same period last year. The capacity (ASK) and total passenger traffic (RPK) were both down by 98 percent. The load factor was 52.3 percent, down 31 percentage points.

Jacob Schram, CEO of Norwegian, said: “The pandemic continues to have a negative impact on our business as it has had since March 2020. At the beginning of last year, Norwegian was headed for a positive result in 2020, instead 2020 has been a very challenging year and we now find ourselves fighting for survival. Despite low demand in December, Christmas bookings were positive, and we have succeeded in adapting our operations to the current situation. Our goal is to be a financially strong and competitive airline, with a new financial structure, a rightsized fleet and improved customer offering.”

“The support from our customers, employees and suppliers this past year has been extraordinary. We all wish to travel and meet our friends and loved ones again and at Norwegian our focus continues to be to connect people in a safe and comfortable way. The vaccination is now being rolled out across the world and is good news for both the aviation industry and those who want to travel. We will be ready to meet the competition for customers after the COVID-19 pandemic. 2020 has been a tough year, but we will continue to fight and come out of this crisis as a stronger Norwegian,” Schram said.

Norwegian operated nine aircraft on average in December, mainly on domestic routes in Norway. The company operated 95.6 percent of its scheduled flights in December, whereof 88.5 percent departed on time.

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 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 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: