Low-cost provider Norwegian has outlined a simplified enterprise construction and devoted brief haul route community because it plans a return from the Covid-19 shutdown.
With this plan, the provider mentioned it hopes to construct a “sturdy and strong firm” that may appeal to buyers and proceed to serve new and present clients.
The corporate mentioned it might concentrate on its core Nordics enterprise, working a European brief haul community with slender physique plane.
The airline will proceed to satisfy its clients’ wants by providing aggressive fares throughout a broad vary of home routes in Norway, throughout the Nordics and to key European locations.
“Our short-haul community has at all times been the spine of Norwegian and can type the premise of a future resilient enterprise mannequin,” mentioned Jacob Schram, chief government of Norwegian.
The present plan is to serve these markets with round 50 slender physique plane in operation in 2021 and to extend that quantity to round 70 slender physique plane in 2022.
Moreover, Norwegian targets to cut back its debt considerably to round NOK20 billion and to lift NOK4-5 billion in new capital by way of a mix of a rights concern to present shareholders, a personal placement and a “hybrid instrument”.
The corporate mentioned it had acquired “concrete curiosity” in participation within the non-public placement.
Norwegian has just lately reinitiated a dialogue with the Norwegian authorities about attainable state participation primarily based on the brand new marketing strategy.
“I’m happy to current a strong marketing strategy at present, which is able to present a brand new begin for the corporate.
“By focusing our operation on a brief haul community, we purpose to draw present and new buyers, serve our clients and assist the broader infrastructure and journey business in Norway and throughout the Nordics and Europe,” mentioned Schram.
The Covid-19 pandemic has profoundly affected your complete aviation business.
Journey restrictions and altering authorities recommendation proceed to negatively affect demand for lengthy haul journey, and Norwegian’s whole Boeing 787 Dreamliner fleet has been grounded since March.
Future demand stays extremely unsure.
Beneath these circumstances a long-haul operation is “not viable,” Norwegian mentioned, and these operations is not going to proceed.
The consequence of this choice is that the board of administrators of the authorized entities using primarily long-haul employees in Italy, France, the UK and the US have contacted insolvency practitioners.