Having previously pledged to work with carriers to overcome the financial difficulties created by the coronavirus pandemic, chancellor Rishi Sunak has now advised airlines to find other forms of funding.
The Norwegian government last week proposed a guarantee of NOK6 billion for the Norwegian airline industry, of which up to NOK3 billion is directed to Norwegian. The guarantee scheme will consist of three tranches with a maximum two years maturity.
The government of Norway has moved to support the flatlining aviation sector in the country, offering more than US$550 million in bailout funds. Some US$250 million will be directed at embattled budget operator Norwegian.
Norwegian will gradually cancel most of its flights and temporarily lay off a majority of its workforce due to stagnating demand and enforced travel restrictions in the wake of the Covid-19 outbreak.
Norwegian has confirmed it will temporarily layoff 50 per cent of its workforce as flight cancellations spiral in the wake of the coronavirus outbreak – a number the low-cost carrier warned could increase
Norwegian will cancel approximately 3,000 flights between mid-March and mid-June as travel demand slumps in the face of the Covid-19 outbreak. This represents approximately 15 per cent of the total capacity for the period.
Norwegian has confirmed it will cancel a number of planned flights in response to the spread of the coronavirus. The low-cost carrier said it had decided to cancel 22 long-haul flights between Europe and the United States from March 28th to May 5th.
Norwegian is launching a new non-stop service from London Gatwick to Aktion Airport, which serves both Preveza and Lefkada in Greece. The first flight will depart on May 3rd.
As a part of the new policy, Norwegian has also increased the size of the underseat bag, increased the weight of checked baggage from 20 to 23 kilos.
Marty St. George has been appointed interim chief commercial officer at Norwegian. He has extensive experience from the aviation industry, recently holding the position of chief commercial officer at Jet Blue Airways.
Jacob Schram has been selected as the new chief executive of low-cost carrier Norwegian. Geir Karlsen, who has led the airline on an interim basis following the surprise departure of Bjørn Kjos in July, will continue in the role of chief financial officer and deputy chief executive.
Norwegian Air has unveiled plans for a $175 million bond issue. The struggling airline said it hoped the move would raise enough cash to meet it needs through 2020 and beyond.