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 stated it hopes to construct a “strong and strong firm” that can appeal to traders and proceed to serve new and present prospects.
The corporate stated it could concentrate on its core Nordics enterprise, working a European quick haul community with slender physique plane.
The airline will proceed to fulfill its prospects’ 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 idea of a future resilient enterprise mannequin,” stated 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 scale back its debt considerably to round NOK20 billion and to lift NOK4-5 billion in new capital by a mixture of a rights problem to present shareholders, a non-public placement and a “hybrid instrument”.
The corporate stated it had acquired “concrete curiosity” in participation within the non-public placement.
Norwegian has just lately reinitiated a dialogue with the Norwegian authorities about potential state participation based mostly on the brand new marketing strategy.
“I’m happy to current a sturdy marketing strategy in the present day, which can present a brand new begin for the corporate.
“By focusing our operation on a brief haul community, we purpose to draw present and new traders, serve our prospects and help the broader infrastructure and journey trade in Norway and throughout the Nordics and Europe,” stated Schram.
The Covid-19 pandemic has profoundly affected your entire aviation trade.
Journey restrictions and altering authorities recommendation proceed to negatively affect demand for lengthy haul journey, and Norwegian’s complete 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 stated, and these operations is not going to proceed.
The consequence of this resolution 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.