BUSINESS NEWS


Norwegian Air enters bankruptcy protection


Norwegian Air entered bankruptcy protection in Ireland last week, leaving just a skeleton domestic operation in Norway. The carrier insisted it would


emerge financially stronger from the Irish examinership process, which involves subsidiary Norwegian Air International and associated businesses. But it now has just six aircraft flying. The insolvency process provides


protection from creditors for up to 100 days. Norwegian Air chief executive


Jacob Schram said bankruptcy protection was required after


Norway’s government refused additional aid earlier this month. Norway’s trade and industry minister turned down the request saying it was “a significant risk”. Schram insisted the move would


“secure the future of Norwegian”. He said: “Our aim is to emerge as a financially secure airline.” The carrier ceded majority


control to its creditors in a financial restructure in May.


Norwegian is protected from creditors for 100 days


Jet2 cuts winter capacity by 50% after posting £69m half-year loss


Jet2 has cut capacity for this winter by half after reporting a pre-tax loss of almost £120 million for the six months to September 30. Passenger numbers in the half


year fell by more than 90% to below one million against more than 10 million in summer 2019, resulting in a half-year loss after tax of almost £69 million. However, Jet2 announced an


element of expansion last week with the opening of a base at Bristol from April 1 next year. Executive chairman Philip


Meeson described news of a potential vaccine as “welcome” but said: “We continue our cautious


approach to summer 2021.” He said: “At this stage, we


anticipate winter 2020-21 seat capacity will be about 50% less than winter 2019-20. With travel advice remaining uncertain, we expect forward bookings to continue to display a pronounced shorter lead time than in previous years.” Meeson added: “We’ve taken a


disciplined approach to capacity which has seen us deliver a better- than-expected cash position to the scenarios modelled in May. We’ve taken actions to improve liquidity.” Jet2’s parent company,


previously Dart Group, changed its name to Jet2 in September.


Lundgren: 2021 demand is unclear £1.27bn


Ian Taylor


The Covid crisis has done no permanent damage to aviation, according to easyJet chief executive Johan Lundgren, who rejected the idea that vaccines should go to those able to travel ahead of the vulnerable. EasyJet reported a £1.27 billion


loss for the 12 months to September and will operate no more than 20% of capacity to the end of the year. Announcing the results, Lundgren


said: “There is no visibility beyond this quarter to say what demand will be next year. The travel restrictions are holding people back.” But he insisted: “I don’t think the


industry is permanently damaged. “We believe it will take up to 2023


before we see a recovery to 2019 levels, but we know demand will come back. There is a need to travel. We see that when restrictions are removed.”


travelweekly.co.uk


EasyJet’s loss for the 12 months to September


He said: “No one has visibility to


say what demand will be next year. The pandemic is there and we all see the infection rates. Hopefully, with a vaccine and testing, customers will be confident to make travel plans.” Lundgren dismissed a suggestion


that airlines would benefit if vaccines went first to younger people able to travel, saying: “This is a public health issue. It’s important a vaccine goes to the people most vulnerable. It is a medical question.” He added: “The vaccine is good


news. I wrote to the [UK] prime minister to offer our support in distributing and administering the vaccine.”


Lundgren argued: “When the


pandemic is lifted we will be in an economic downturn. Certain things are bound to happen. Short haul will recover quicker than long haul. Leisure travel will recover quicker than business travel. People will gravitate to companies they trust and to companies that are lower cost.” He said: “We retain the ability to ramp up operations when demand


returns.” But for now, he said: “We only focus on flying that generates a positive contribution. “We were not forced to pull back


[this autumn] to the extent some competitors are doing.” Lundgren insisted Brexit would


have no impact, saying: “We prepare for all scenarios. We would like a deal, but in case of a hard Brexit you won’t see any disruption of easyJet.”


26 NOVEMBER 2020 39


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