The low-cost airline, Norwegian, has announced that it will be focusing on Europe with its new business plan. With no long-haul out of Gatwick this will open up possibilities for other operators.
“Our short-haul network has always been the backbone of Norwegian and will form the basis of a future resilient business model,” said Jacob Schram, CEO of Norwegian.
“The new plan is to serve these markets with around 50 narrow-body aircraft in operation in 2021 and to increase that number to around 70 narrow-body aircraft in 2022. On the finance side, Norwegian targets to reduce its debt significantly to around NOK 20bn and to raise NOK 4-5bn in new capital through a combination of a rights issue to current shareholders, a private placement and a hybrid instrument.
“Under these circumstances a long-haul operation is not viable for Norwegian and these operations will not continue.”
At the present time Norwegian has 35 Dreamliners, all grounded.