Budget carrier Norwegian Airlines is permanently dropping all long-haul flights in a bid to survive the COVID-19 pandemic.
In a Jan. 14 announcement, the Oslo-based company said it will now focus on short-haul European and domestic routes. It also said it has asked the Norwegian government for financial aid.
The carrier plans to operate approximately 50 narrowbody aircraft in 2021 and increase its fleet to 70 planes in 2022.
Meanwhile, its fleet of 787 Dreamliner aircraft will be eliminated. At least six of the long-haul planes were recently flown to Ireland, where the UK arm of the company is undergoing insolvency proceedings, for repossession.
Norwegian CEO Jacob Schram said the airline’s short-haul routes have “always been the backbone” of the company and will help it build a “future resilient” business plan.
“By focusing our operation on a short-haul network, we aim to attract existing and new investors, serve our customers and support the wider infrastructure and travel industry in Norway and across the Nordics and Europe,” he said.
The airline was struggling even before COVID-19 crippled the airline industry. It made a splash in 2013 by offering cheap transatlantic flights on a gleaming fleet of modern Dreamliners, establishing major hubs in London and New York. However, by 2019, it was mired in debt and cutting multiple long-haul routes from its schedule.
The pandemic forced the company to ground all Dreamliners in March 2020 and furlough thousands of workers, including over 1,100 British employees at London’s Gatwick Airport.
The airline’s decision to eliminate its long-haul network means that the London employees, as well as staff in France, Italy, Spain and the U.S., will permanently lose their jobs.
Norwegian hopes to raise around $590 million in new capital through various business moves, including a new rights issue and a private placement of shares. The plan must be approved by an Irish court.
The company said it will issue refunds to all customers with future transatlantic bookings.