Bjørn Kjos, who founded Norwegian Air Shuttle, has not lost confidence in the long-haul low-cost business model despite his former venture being stripped down to a small, short-haul airline as it struggled to overcome a too-rapid expansion, too much debt, and the Covid-19 pandemic.
On Monday the 74-year-old entrepreneur emerged as a 15 percent investor in Norse Atlantic Airways, a new Oslo-based airline that will offer low-cost transatlantic services later this year. He is joined by other former Norwegian Air Shuttle executives, including Bjørn Kise, who participated in the founding of Norwegian Air Shuttle in 1993 and served as chairman from 2010 to 2019. Both Kise and Kjos, who at that time were Norwegian Air Shuttle’s largest shareholders, stepped down in May and July 2019, respectively.
Kjos, a former fighter pilot, held the role of CEO for 17 years and built the company from a small domestic operation with 130 employees and four aircraft to a global LCC with more than 11,000 employees and 162 aircraft. Norwegian Air Shuttle is currently operating under the equivalent of U.S. Chapter 11 bankruptcy protection procedures in Ireland and Norway.
Norse Atlantic Airways plans to launch flights between Europe and the U.S. in December using the Boeing 787 Dreamliner.
“We now have a once-in-a-lifetime opportunity to build a brand-new airline from scratch,” CEO, founder, and majority shareholder Bjørn Tore Larsen said in an August 2 statement. “As the world reopens, the public needs an innovative, low-cost intercontinental airline with modern, more environmentally friendly, and fuel-efficient aircraft.”
Larsen stressed the company secured Dreamliners “at very good terms.” The aircraft will be leased and have a “high cabin utilization.”
Norse Atlantic Airways did not return a call from AIN asking about fleet size and whether the Boeing 787s are former Norwegian aircraft. Larsen also was closely linked to Norwegian Air Shuttle as he was a co-founder of OSM Aviation, which provided crew to the airline.
The route network will initially span popular transatlantic destinations such as New York, Los Angeles, Miami, London, Paris, and Oslo. It plans to expand with destinations in Asia as more 787s enter the fleet, the company said, emphasizing that growth will be based “exclusively” on demand and profitability.
“International tourism has been hit hard by the pandemic, and the market for intercontinental flights is currently almost gone. But a new era is coming as the global vaccine program is completed. People will once again go on vacation, visit friends and family, and travel for business. Norse Atlantic Airways will be there to offer attractive and affordable flights to the leisure traveler and the cost-conscious business traveler,” said Larsen.
The company will be listed on Euronext Growth on the Oslo Stock Exchange in April, backed by investors who have already secured shares valued at $24 million.