{"id":236279,"date":"2020-06-18T06:58:00","date_gmt":"2020-06-18T04:58:00","guid":{"rendered":"http:\/\/www.travelreport.se\/?p=236279"},"modified":"2024-02-02T12:37:35","modified_gmt":"2024-02-02T12:37:35","slug":"norwegian-needs-more-money-its-not-over","status":"publish","type":"post","link":"https:\/\/www.travelreport.se\/en\/norwegian-behover-mer-pengar-det-ar-inte-over\/","title":{"rendered":"Norwegian needs more money \u2013 &quot;it&#039;s not over&quot;\u201d"},"content":{"rendered":"<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"673\" height=\"441\" src=\"https:\/\/www.travelreport.se\/wp-content\/uploads\/2020\/05\/Skarmavbild-2020-05-05-kl.-06.26.50.png\" alt=\"\" class=\"wp-image-235910\" srcset=\"https:\/\/www.travelreport.se\/wp-content\/uploads\/2020\/05\/Skarmavbild-2020-05-05-kl.-06.26.50.png 673w, https:\/\/www.travelreport.se\/wp-content\/uploads\/2020\/05\/Skarmavbild-2020-05-05-kl.-06.26.50-300x197.png 300w\" sizes=\"(max-width: 673px) 100vw, 673px\" \/><figcaption>Photo: Norwegian<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The spring storm that brought the company dangerously close to bankruptcy has not passed. For Norwegian CEO Jacob Schram, the helm is still shaking. \u201dGetting more cash is as important as you and I having blood in our bodies,\u201d he says.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The competitors are starting their engines one by one. And Norwegian doesn&#039;t want to be the last to take to the air. Soon, nearly 80 flight routes will resume. 20 of 160 aircraft will be put into service. 600 employees will be called back from layoffs. A total of 900 pilots and cabin crew will get the company flying again.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But this was far from a given just a few months ago. And the turns have been sharp.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">January 30, 2020. WHO classifies the outbreak of the new coronavirus as an international health emergency.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>March 7.<\/strong>&nbsp;Norwegian is canceling all flights from Oslo to Milan, as a result of the virus now spreading in Italy.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>March 13.<\/strong>&nbsp;Europe is the epicenter of the pandemic, according to the WHO.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>March 16.<\/strong>&nbsp;Norwegian is canceling 85 percent of its flights and laying off 7,300 of its approximately 10,000 employees.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>After that,<\/strong>&nbsp;Uncertainty, crisis negotiations and rescue plans have shaken the lives of many of the company&#039;s employees, or Rednose warriors, as they have now come to call themselves internally. The support group &quot;Support Norwegian&quot; on Facebook has more than 60,000 members, several of whom work in the cabin or cockpit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The hashtags #rednosewarrior and #wewillflyagain are used extensively, along with images from previous working days in the air \u2013 with sparkling sunsets and crew members in well-ironed uniforms.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#039;s not an easy job for Jacob Schram. About three months after he took over as the new CEO of Norwegian, the company was on the verge of bankruptcy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201d&quot;It&#039;s really great to be in a situation where you can give good news and not just bad news. I&#039;m super happy about that,&quot; says Jacob Schram, in a semi-stressed but relieved tone when he calls. After TT has been asking for an interview for over five weeks, he has now found time for a seven-minute phone call.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From the beginning of the year to today, the stock has fallen by just over 90 percent. Schram takes a deep breath when asked how he has experienced the past few months.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201dIt started with crisis management at the beginning of March, and it really was a complete crisis.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It was a matter of acting \u2013 and quickly. Customers and staff would be flown home safely. After that, virtually all aircraft would be parked.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201d&quot;It was a matter of cutting costs critically quickly. And we managed to do that. Many people were laid off and unfortunately we had to declare the Swedish and Danish subsidiaries bankrupt. It was not something we wanted to do, but it was a consequence of the very difficult situation,&quot; says Jacob Schram.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That has also been the hardest part of being at the helm in the storm \u2013 letting employees go.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201d&quot;Of course it&#039;s about keeping the company going, but it&#039;s a huge shame that so many lives have been affected in different ways.&quot;\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Shortly thereafter, management was faced with the fact that the company had to be financially restructured to survive, according to the CEO.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201dWe managed it miraculously, but it wasn&#039;t always as we thought it would be.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company is currently working on developing a &quot;new Norwegian&quot; where the Nordic region is the core of the business, but European routes and long-haul routes will also be included.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But the storm is far from over.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The next fateful day is the annual general meeting on June 30. The hope is that shareholders will approve a new share issue, after the company recently completed a debt restructuring of 12.7 billion Norwegian kroner. If they get the green light, the possibility of government loan guarantees of three billion kroner opens up.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Schram sounds hopeful and says that the company has a good dialogue with several authorities in both Norway and Sweden. But the need for new money is still dire.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201dWe are going to need more money. Getting more cash is as important as you and I having blood in our bodies. Money is the company&#039;s oxygen. If we lose too much blood, we die.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201d&quot;The fact that we can now start up is because it concerns flights in the near future and we thus have an overview of our costs and revenues.&quot;\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As early as next year, the company will once again be the &quot;reliable, cheap operator that passengers can count on&quot;, even if it will not be on the same scale as it was at the beginning of 2020. But if the corona crisis persists, Norwegian will need an additional around 2.2 billion Norwegian kroner in a year, according to the company&#039;s annual report.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201dIt&#039;s not over yet,\u201d says Jacob Schram.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Source: TT<\/p>","protected":false},"excerpt":{"rendered":"<p>V\u00e5rens storm som satte bolaget farligt n\u00e4ra konkurs har inte bl\u00e5st f\u00f6rbi. F\u00f6r Norwegians vd Jacob Schram skakar rodren fortfarande. \u201dAtt vi f\u00e5r in mer cash \u00e4r lika viktigt som att du och jag har blod i kroppen\u201d, s\u00e4ger han. Konkurrenterna b\u00f6rjar\u00a0en efter en starta motorerna. Och\u00a0Norwegian\u00a0vill inte vara sist upp i luften. Snart \u00e5terupptas [&hellip;]<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[85,3172,291,858],"class_list":["post-236279","post","type-post","status-publish","format-standard","hentry","category-travel-report","tag-flyg","tag-jacob-schram","tag-norwegian","tag-transport"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Norwegian beh\u00f6ver mer pengar \u2013 \u201ddet \u00e4r inte \u00f6ver\u201d &#8211; Travel Report<\/title>\n<meta name=\"description\" content=\"Norwegian beh\u00f6ver mer pengar \u2013 \u201ddet \u00e4r inte \u00f6ver\u201d \u2013 L\u00e4s senaste nyheterna fr\u00e5n resebranschen p\u00e5 Travel Report.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.travelreport.se\/en\/norwegian-needs-more-money-its-not-over\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Norwegian beh\u00f6ver mer pengar \u2013 \u201ddet \u00e4r inte \u00f6ver\u201d &#8211; 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