Low-cost provider Norwegian has outlined a simplified enterprise construction and devoted quick 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 entice traders and proceed to serve new and current clients.
The corporate mentioned it could concentrate on its core Nordics enterprise, working a European quick haul community with slim physique plane.
The airline will proceed to fulfill 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 all the time been the spine of Norwegian and can kind the idea of a future resilient enterprise mannequin,” mentioned Jacob Schram, chief government of Norwegian.
The present plan is to serve these markets with round 50 slim physique plane in operation in 2021 and to extend that quantity to round 70 slim physique plane in 2022.
Moreover, Norwegian targets to scale back its debt considerably to round NOK20 billion and to boost NOK4-5 billion in new capital by a mix of a rights concern to present shareholders, a non-public placement and a “hybrid instrument”.
The corporate mentioned it had acquired “concrete curiosity” in participation within the personal placement.
Norwegian has 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 intention to draw current and new traders, serve our clients and help 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.
Below these circumstances a long-haul operation is “not viable,” Norwegian mentioned, and these operations won’t 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.