Norwegian Air appoints new chief executive to lead it back to profit
Norwegian Air has named Jacob Schram, a senior adviser at management consultant McKinsey, as its new chief executive.
Schram, 57, takes up the mantle as the low-cost flyer struggles to soothe investors’ concerns about its finances. The Norwegian national will take over on 1 January.
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The airline has already tapped investors for fresh capital twice this year, as it struggles to keep on top of a debt pile worth billions of pounds.
Norwegian’s expansion into the long-haul market has pushed its finances to the limit in recent years, and investors have left in their droves. Shares have fallen 80 per cent this year.
Earlier this summer, Bjorn Kjos, the firm’s chief executive, left after X years at the helm, leaving finance boss Gier Karlsen in charge.
Schram’s appointment will leave some analysts scratching their heads, after many predicted Karlsen would take the top job. Instead, the former boss of Statoil’s petrol station business will take the helm.
He said his primary job would be to bring the company back to profitability.
“Norwegian has made aviation history and I am honored to take on the role as CEO. The airline industry is characterized by strong competition and unforeseen events, but it is also an industry that is important to people everywhere.”
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The airline has scrapped some of its routes in recent months in a bid to save money, such as flights from Ireland to the US.
However, Karlsen has assured investors the airline remains committed to its long haul business in recent months.