Norwegian Air Shuttle ASA (Norwegian) has announced that the low-cost carrier is ending all long-haul flights. It will now focus on restructuring the airline by concentrating on short-haul domestic routes, flights to other Nordic countries, and key European destinations.
“Our short-haul network has always been the backbone of Norwegian and will form the basis of a future resilient business model,” Jacob Schram, the CEO of Norwegian, said. Approximately 1,000 jobs are likely to go this side of the Atlantic, and a further 1,000 jobs will go on the other side in the U.S., with similar number being shed in Spain, France and Italy. “
Norwegian’s notable, red-nosed fleet of aircraft will be cut back drastically from 140 aircraft to approximately 50, including the disposal of all its Boeing 787 Dreamliners which had been grounded since March.
“Future demand remains highly uncertain,” the airline said. “Under these circumstances a long-haul operation is not viable for Norwegian, and these operations will not continue.” It hopes to cut its debt to about 20 billion Norwegian crowns, (US$2.4 billion), and to raise up to 5 billion crowns (US$591 million), through a mix of new shares and hybrid capital.Email Post to a Friend