Norwegian annual report 2013

This is Norwegian

Norwegian Air Shuttle ASA, commercially branded “Norwegian”, is a publicly traded airline listed on the Oslo Stock Exchange. Low-cost flight operations started in 2002 after nine years operating as a regional airline. With 20.7 million passengers in 2013 and a route portfolio that stretches across Europe into North Africa , the Middle East, North America and Southeast Asia, the company is the second largest airline in Scandinavia and the largest low-cost airline in the region. By the end of 2013 Norwegian is operating 411 routes to 125 destinations.

With competitive prices and customer-friendly solutions and service, the company has experienced significant growth in recent years. During 2013 20.7 million passengers traveled with the Group, an annual growth of 17 per cent. 

Norwegian is currently renewing its fleet with state-of-the-art Boeing 737-800 aircraft, of which 72 were in the fleet by year-end. The company has a total order of 271 undelivered aircraft on firm order; 60 Boeing 737-800, 11 Boeing 787 Dreamliners, 100 Boeing 737 MAX8 and 100 Airbus A320neo. The orders secure Norwegian one of the newest, most cost-effective and environmentally-friendly fleets in the World.

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altNorwegian was the first airline to offer high-speed wireless broadband on flights within Europe.  The majority of the short-haul fleet was Wi-Fi equipped by year-end 2013.

In 2013 Norwegian continued its expansion outside Norway. The Group will continue its international expansion by basing aircraft and crew around continental Europe. 

Establishing international bases across Europe enables us to tap into new markets, whether they are provincial markets in the Nordic countries, or entirely new markets such as Mediterranean routes from London Gatwick. These bases also enable Norwegian to compete with the most cost-efficient airlines.  To maintain a competitive edge outside Scandinavia, expansion into new markets must be on a level playing field with incumbent airlines. Recruitment for new bases takes place locally to offer competitive and favorable local terms of employment.
 
Our American and Asian operations follow the same strategy. The New York, Fort Lauderdale, and Bangkok crew bases allow Norwegian to easily reach a large number of European destinations, ensuring access to large catchment areas and high volumes. Norwegian has been crisscrossing Europe without paying attention to borders for almost 12 years; we are now pulling the same strategy across the Atlantic and to the Far East. We fly to several European countries from our overseas destinations, not just one - which is the case for most of our European legacy competitors. By way of example, no other European airline offers more non-stop destinations from New York and Los Angeles than Norwegian.

Norwegian’s overall punctuality in 2013 was 86 percent and the percentage of completed flights was 99.6 percent, making Norwegian one of the top major airlines in terms of both flight punctuality and regularity.

Vision and Business Idea – Affordable Airfares for Everyone

Norwegian’s vision is “Everyone should be able to afford to fly”. Norwegian Air Shuttle ASA’s business idea is to give everybody the opportunity to travel by air, attracting customers by offering competitive low fares and a high-quality travel experience based on operational excellence and helpful, friendly service. All of Norwegian Air Shuttle ASA’s activities are guided by our core values and operational priorities.

Core values

Simplicity
Booking a flight with Norwegian must be simple, and customers must be able to fly quickly and efficiently from their origin to their destination. A lean and flat organisation with simple and direct decision-making processes enables the Company to avoid organisational inertia and easily adapt to changes in the market.

Directness
Norwegian values the quality of being honest and straightforward in everything we do and in all communication. We believe that by being direct and transparent we are able to offer the best products and overall customer experience.

Relevance
To ensure a high degree of business relevance we aim to develop strategic capabilities that result in low cost and high efficiency. We embrace new technology and always look at ways to improve and enhance passenger comfort and the company`s overall performance.

 

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Operational priorities

Our operational priorities are safety and service.

Safety

The Group’s highest priority is safety. Everyone in the Group must fulfill their duties to ensure that safety always comes first.

Service

We focus on the customer and our goal is to offer consistently low prices and a good product on the ground and in the air. Helpful, customer-friendly service is an important part of this.

Being on time is an important part of our service. Norwegian’s goal is for over 90 percent of the Company’s flights to be punctual within 15 minutes of the scheduled time. Our customers arriving on time is important to the customer and us as an airline.

Norwegian intends to become the preferred supplier of air travel in its selected markets and to generate excellent profitability and return to its shareholders.

The Group will achieve this by:

  • Adhering to its corporate values.
  • Attracting customers and stimulating markets by offering competitive low fares and a high-quality travel experience based on low operating costs, operational excellence and helpful, friendly service.
  • Offering “freedom of choice” – Our customers will have the option of selecting additional products and services, with the provision of a core low-cost product for price-sensitive customers and a more comprehensive package for those who require a little extra, ensuring broad market reach.
  • Offering a comprehensive network with high frequencies for business destinations, and a desirable choice of destinations for leisure travelers.
  • Maximizing revenues through state-of-the-art passenger revenue management systems.
  • Continuing to develop high-quality, cost-efficient products and services through extensive use of industry-leading technology, and continuously making it more comfortable and convenient to choose Norwegian as a travel partner.
  • Utilizing its strong brand name and efficient distribution channels to further increase ancillary revenues.
  • Continuously monitoring and improving its cost base where possible.
  • Achieving a lean and efficient organization which makes decision-making processes simple and direct, enabling the Group to easily adapt to changes and opportunities in the market.
  • Maintaining an innovative “out-of-the-box” approach to the way we do business by having a positive and entrepreneurial organization, where everyone has the opportunity to make a difference.

Group Employees

By year-end 2013 the Group employed  2,463 permanent employees. In addition, the Group employed 136 apprentices and 1,502 hired staff and pilots. In total, the Group had 3965 people on its payroll, equivalent to 3,738 full-time employees at year end. The hired staff has been engaged to cover production growth, which continues to be extensive

Of the permanent employees of the Group, 87 percent were operative aircraft and technical personnel such as pilots, cabin crew, apprentices, fleet operation administration and maintenance, an increase of one percentage point from 2012.

The Group’s management emphasizes the importance of a constructive and positive partnership with all unions and good cooperation within Norwegian in general.

EMPLOYEES AT YEAR END 2013 2012
OPERATIONS - PILOTS 600 611
OPERATIONS - CABIN CREW 979 906
OPERATIONS - ADMIN 146 118
TECHNICAL 284 282
COMMERCIAL 175 181
ADMINISTRATION 143 139
APPRENTICES 136 147
TEMPORARY STAFF IN CABIN AND PILOTS 1,502 680
TOTAL 3,965 3,064

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