NEWS YOU NEED TO KNOW 4
Norwegian to cut routes to offset oil and engine costs
Ian Taylor
ian.taylor@travelweekly.co.uk
Norwegian Air is finalising cuts to its flying programme for this winter and next summer as the carrier struggles with the high fuel price and engine problems with its long-haul fleet.
Geir Karlsen, Norwegian chief financial officer, confirmed: “We are evaluating the whole route programme – long-haul and short-haul. Winter will be challenging market-wise and with
the fuel prices we see. We will take out routes that are not performing.” The capacity reductions will
come in the first months of 2019. Karlsen said: “We will make decisions in the next weeks.” The carrier will also announce
“an adjusted summer [2019] programme” this month, a Norwegian spokesman confirmed. Karlsen acknowledged: “We
are struggling with our on-time long-haul performance – much of it engine-related. We have experienced issues with the Rolls- Royce engines on our [Boeing] 787s
[and] that looks like continuing.” The airline has paid “significant amounts” in compensation to passengers for delays and cancellations, he said, adding: “We will pay close to NOK1 billion (£95 million) by the year end.” Karlsen added: “We are
struggling with high oil prices. We initiated an internal cost-saving programme to save NOK2 billion (£190 million) in 2019.”
He conceded Norwegian has yet
to finance the new aircraft it has due for delivery in the first half of next year. The airline is looking to shed up to 140 aircraft and shift its future aircraft orders to a leasing company which it hopes to set up with a joint-venture partner. Karlsen joined Norwegian in April 2018. He insisted: “We have a
meticulous focus on cost reduction.” › Special Report, page 12
Norwegian Air plans to cut both long and short-haul routes
5 STORIES HOT
5 Roche aims to ease adventure sales
Lucy Huxley
lucy.huxley@
travelweekly.co.uk
The former commercial director of both Travel Republic and Loveholidays is aiming to transform the adventure travel sector with a new online agency.
Chris Roche, who has spent the
past decade at board level of two of the fastest-growing OTAs, both of which completed buyouts, has launched The Adventure People. And he is looking for “an A-Team
of travel agents” with experience in the adventure sector to join the
business, to work either from its offices or from home. The site aggregates adventure
operators on one platform, focusing on local, boutique and independent operators worldwide. Roche says the site allows
customers to “easily find and book” adventure holidays without spending hours browsing lots of websites. It currently features more than 40 suppliers, with “hundreds” waiting to be
6
travelweekly.co.uk 8 November 2018
loaded, offering more than 5,000 adventures. The Adventure People recently
attracted £500,000 in funding from eight ‘angel investors’, seven from outside the travel industry and one from within, Wendy Wu Tours founder Wendy Wu. Roche and the site’s co-founder,
former Travel Republic chief technology officer Andrew Pery, have used the money to build the “unique search engine”. Roche said: “Customers can create
bespoke searches by choosing multiple elements, such as several countries. Or, they may just search
for trips in April 2019 for between £500 and £999 in Asia which include trekking, for example.” The company will be investing
heavily in video marketing, including setting up a YouTube channel and building a filming studio at its Brixton office. “We want to create a community
of adventure people,” said Roche. “This starts with our team all being front of house [on screen]. It’s a kickback against artificial intelligence. People in this growing sector want to speak to and be
inspired by like-minded people.” › Chris Roche: Comment, page 30
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