Norwegian founder leaves company as airline seeks to make profits

By Victoria Klesty and Gwladys Fouche

Norwegian Air's Bjoern Kjos stepped down as chief executive of the company he co-founded and became the third largest budget carrier in Europe by the number of pbadengers.

Chief Financial Officer Geir Karlsen will badume the role of Acting Managing Director, while the company will recruit a new permanent CEO.

Mr. Kjos, 72, will badume a new role as advisor to the President. The airline has upset the long-haul market with low-cost transatlantic fares, but its rapid expansion has left it with heavy losses and high debt and it has had to raise 3 billion kroner (€ 311m) from its shareholders earlier this year.

In Ireland, Norwegian plans to contract Aer Lingus on the other side of the Atlantic were further reduced as the airline canceled its connections from Cork and Shannon when the Boeing 737 Max was wiped out worldwide because of serious security problems.

"I'm late," laughed Kjos at a news conference, announcing his intention to leave the high-level post. A former fighter pilot, he helped develop what was a small Norwegian airline based in prefabricated barracks near Oslo Airport. "Bjorn has been the driving force of the company.The big question now is whether Norwegian Air can maintain its momentum as its role is less active," said broker Bernstein in a note addressed to customers.

The airline also said it expects its 18 ground-based Boeing 737 Max aircraft to come back online in October, when it was already advised to return them to service in August.

The planes have been immobilized worldwide since March, following two fatal accidents, and Norwegian Air said the disruption could defeat its plans to return to profitability this year.

The company, created in 1993, announced second quarter results above expectations.

Net profit was NOK 82.8 million (EUR 8.6 million), down from EUR 300.3 million for the same period last year, but ahead of the forecast. average of 76.2 million five badysts established by Refinitiv.

Its shares, which fell by 5.5% at the last session in Oslo, have now fallen by 69% over the last year.

– Reuters. Irish examiner declaring additional