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Norwegian Air boss checks out after 17 years
Norwegian Air’s charismatic boss is stepping down after 17 years as the troubled airline warned the grounding of Boeing’s 737 Max planes will hit profits.
Bjorn Kjos, who will stay on as an adviser to the chairman, will be replaced on an interim basis by finance chief Geir Karlsen.
“I am way overdue,” he said, adding that he didn’t think it was right to lead an airline “past your seventies”.
The 72-year-old, a former fighter pilot, is widely credited as masterminding Norwegian’s rapid ascent, establishing the airline as one of the leaders in both short and long-haul budget services.
While its heavily discounted transatlantic fares have shaken up the market, Norwegian has been left with an unwieldy debt pile and was forced into raising nearly £300m from shareholders earlier this year.
“Bjorn has been the driving force behind the business – the big question now is whether Norwegian Air can maintain momentum as he takes a less active role,” Bernstein analysts wrote.
Already struggling to turn a profit, the grounding of 737 Max jets will cause Norwegian an extra headache.
The airline has 18 of the aircraft and, having previously expected to have them back in service by August, has pushed this back to October. The grounding will cost the airline up to 700m kroner (£65m), Norwegian warned.
After two fatal crashes within five months, Boeing 737 Max aircraft were grounded earlier this year. A Lion Air flight crashed into the sea off Jakarta last year and an Ethiopian Airlines plane crashed shortly after take off in March. Some 346 people died in the two disasters.
Mr Kjos said that despite such problems, the airline had delivered record operating revenue: “I am also pleased with the booking figures for the coming months, especially on long-haul.”
Chairman Niels Smedegaard said a process to find a permanent replacement for Mr Kjos had already begun.
“Bjørn has played an unprecedented role in Norwegian’s success. His vision of offering affordable fares for all, combined with his enthusiasm and innovating spirit, has revolutionized the way people travel for pleasure and for business, not least between the continents. Bjørn is definitely one of the most influential European entrepreneurs of our time,” he said.
Shares fell 3.4pc in Oslo.