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Schram overhauls Norwegian structure as rebuild begins

Schram overhauls Norwegian structure as rebuild begins

Norwegian chief executive, Jacob Schram, has announced a new management structure for the low-cost carrier.

The decision follows a successful financial reorganisation of the airline, which allowed for access to NOK3 billion (£230 million) in support from the Norwegian government.

The biggest changes unveiled today involve the creation of two distinct commercial units within the group.

“I have been committed to putting in place a management structure that takes us from growth to profitability by delivering our new Norwegian strategy and business plan.

“In order to run a profitable and sustainable company going forward, I will build the commercial part around two distinct entities with clear profit and loss responsibilities,” explained Schram.

“We need to be able to attract, retain and develop good people, which is why the responsibility for all the company’s employees is placed in one department.”

The newly created Airlines department will have the full responsibility for the profit of the core business.

The department is designed to ensure an optimal network of routes, optimise prices and plan flight operations, as well as carry out ongoing sales and marketing activities.

The department will be headed by Andrew Hodges, who is currently head of network strategy and planning in the current Norwegian commercial department.

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Hodges has over 20 years of experience in aviation, including 12 years at low-cost airline easyJet, where he has held several management positions in commercial and finance.

He has also worked for British Airways and Deloitte.

Airline Ecosystem is the second new department.

This body will have full performance responsibilities and will drive new business ecosystems in connection with the company’s core business.

This will take place through partner agreements and new customer platforms.

A new manager will be announced in due course, meanwhile Brede Huser will lead the department.

He is currently head of the Norwegian Reward benefits program.

Operations will work towards the airline profit unit and provide agreed products and services within flight operations, as well as technical and maintenance, ground services, security and emergency preparedness.

A new leader for this area will also be announced in due course.

Chief financial officer, Geir Karlsen, continues in his position as head of Finance & Control.

IT, Supply Chain & Process Improvement is a newly created function that will optimise and streamline all of the company’s processes, systems and procurement.

The People department will have overall responsibility for all the company’s employees, including pilots and cabin crew.

All HR activities, including all training and development of employees will also form part of this department.

Communications will be responsible for external and internal communication, sustainability and public affairs.

The department will be headed by Anne-Sissel Skånvik.

The new group management will be in place from June 2nd.