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 “strong and strong firm” that may entice traders and proceed to serve new and present clients.
The corporate mentioned it might concentrate on its core Nordics enterprise, working a European quick haul community with slim 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 all the time been the spine of Norwegian and can type the premise of a future resilient enterprise mannequin,” mentioned Jacob Schram, chief govt 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 means of a mix of a rights difficulty to present shareholders, a personal placement and a “hybrid instrument”.
The corporate mentioned it had acquired “concrete curiosity” in participation within the personal placement.
Norwegian has just lately reinitiated a dialogue with the Norwegian authorities about doable state participation primarily based on the brand new marketing strategy.
“I’m happy to current a strong marketing strategy at this time, which is able to present a brand new begin for the corporate.
“By focusing our operation on a brief haul community, we goal to draw present and new traders, 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 entire aviation business.
Journey restrictions and altering authorities recommendation proceed to negatively affect demand for lengthy haul journey, and Norwegian’s total Boeing 787 Dreamliner fleet has been grounded since March.
Future demand stays extremely unsure.
Underneath 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 workers in Italy, France, the UK and the US have contacted insolvency practitioners.
