«NORWEGIAN AIR SHUTTLE ASA ANNUAL REPORT 2013 PLEASE NOTE THAT THIS PDF VERSION STRICTLY CONTAINS INFORMATION REQUIRED BY LAW. THE FULL ANNUAL REPORT ...»
NORWEGIAN AIR SHUTTLE ASA
ANNUAL REPORT 2013
PLEASE NOTE THAT THIS PDF VERSION STRICTLY CONTAINS INFORMATION REQUIRED BY LAW.
THE FULL ANNUAL REPORT IS AVAILABLE ONLINE AND CONTAINS ADDITIONAL INFORMATION SUCH AS CEO’S
REMARKS TO THE YEAR THAT HAS PASSED AND THE STRATEGY AS WELL AS GRAPHICAL PRESENTATIONS,
IMAGES AND MULTIMEDIA CONTENT.
WWW.NORWEGIAN.COM/ANNUALREPORT2013 Norwegian annual report 2013 Board of Directors' report Norwegian Air Shuttle ASA, commercially branded "Norwegian", is a public low-cost airline listed on the Oslo Stock Exchange. The Group operates both scheduled services and additional charter services. Norwegian is the second largest airline in Scandinavia, the third largest low-cost airline in Europe, and has a route portfolio stretching across Europe into North Africa and the Middle East, as well as Thailand and the US. With competitive prices and customerfriendly solutions and service, the Group has experienced significant growth in recent years.
The Group has its headquarters in Fornebu outside Oslo, as well as other offices at Oslo Gardemoen Airport and in Tromsø. Norwegian Air Shuttle Sweden AB has offices at Stockholm Arlanda Airport, and Norwegian Long Haul AS, Call Norwegian AS, NAS Asset Management Norway AS and Norwegian Finans Holding ASA have office addresses in Fornebu.
Norwegian Air Shuttle ASA has established aircraft bases in Norway, Sweden, Denmark, Finland, Spain and the United Kingdom.
In 2013 the Group initiated a restructuring of the organization. The background for the restructuring is to optimize the airline operation, and set a new corporate structure in order to position the company for further international growth.
Two fully owned subsidiaries will be established, each with their own air operator's certificate (AOC) - one in Norway and one in the EU. In line with legal developments in Europe, fully owned country-specific resource companies will be established.Additionally, specific activities of the airline's commercial activities are further reorganized and established in separate new entities including, but not limited to, Norwegian Holiday, Norwegian Cargo as well as brand and marketing activities. A key consideration has been to build a structure which maintains Norwegian's flexibility and adaptability despite growing size and entry into new markets in Europe, and across continents. The restructuring has included the establishment of new legal entities, reorganizing and relocation of key personnel and decision making authority, rights and assets to the relevant entities at their respective legal locations.
Flight Safety The Group has not registered any serious accidents or incidents to either passengers or crew involving the operation of aircraft since the Group was founded in 1993.
The Group’s flight safety office is integrated within the quality department, which reports directly to the respective accountable manager. The department’s primary objective is to work proactively to promote flight safety throughout the organisation. Flight safety is covered in the crew’s training programmes, together with training in security related issues.
The Group analyses information from Flight Data Recorders installed in Norwegian’s aircraft on an on-going basis.
These analyses are carried out in order to ensure that the aircraft are handled and flown according to current regulations and limitations.
Crew members, maintenance personnel and handling agents are also required to use a web- based reporting system to log irregularities. These reports are a valuable tool for statistical analysis and trend monitoring.
The aircraft are subject to a stringent maintenance programme based on the manufacturers’ recommendations and existing rules and regulations Social Responsibility Report Norwegian’s corporate responsibility strategy is primarily based on how Norwegian as an airline can contribute to less pollution and emissions by flying new and fuel efficient aircraft, as described in more detail below. The single most important thing an airline can do in order to make aviation more environmentally friendly is investing in new aircraft.
Our Code of Ethics give directions for a sound working environment and highlights the Group’s guidelines for human rights, prevention of corruption, employee rights and safety for all – both our customers and employees – social conditions and external environment. Norwegian also has a dedicated corporate cooperation with UNICEF on account of the organisation’s overall focus on children’s rights.
Norwegian has for several years partnered with the humanitarian organisation UNICEF through a Signature Partnership.
A Signature Partnership is initiated through the administration of a company’s top-level management.
A Signature Partnership is the highest form of partnership UNICEF Norway offers corporate clients.
Norwegian is dedicated to working with UNICEF on account of its overall focus on children’s rights.
UNICEF is mandated by the United Nations General Assembly to advocate for the protection of children’s rights, to help meet their basic needs and to expand their opportunities to reach their full potential. UNICEF maintains that the survival, protection and development of children are universal development imperatives that are integral to human progress.
This is how Norwegian supports UNICEF
Norwegian's support to UNICEF consists of travel funding and fundraisers. In addition, all Norwegian employees donate their company Christmas presents to UNICEF.
Norwegian's CEO Bjørn Kjos receives many requests to speak at events and give lectures. Neither Bjørn Kjos nor Norwegian charge for this, however, through our partnership with UNICEF, we ask organisations and businesses to transfer 20,000 NOK when Bjørn Kjos holds a lecture. We hope businesses see this as an opportunity to help support an international organisation that works for children's rights.
In 2013, Norwegian donated 1 NOK from each water bottle sold on board to UNICEF's important work. Our passengers bought 1.3 million water bottles throughout the year and therefore contributed 1.3 million NOK to the world's children.
Norwegian had its tenth anniversary on 1st September 2012 and marked the day with a grand jubilee concert at Fornebu. Concert proceeds of 1 million NOK were donated to UNICEF.
Norwegian encourages its employees to engage in UNICEF through internal activities on the company’s intranet.
Norwegian also has two dedicated “Norwegian Inspirators” who take responsibility to spread the UNICEF story throughout the company.
Norwegian has a zero tolerance policy for corruption and every employee is responsible for reporting suspicious behaviour to his or her superior. The company has never had any reported or suspected occurrences of corruption.
Norwegian advocates diversity, something that reflects our growth in Europe, Asia and the United States. Norwegian employs people from several different countries, with a multitude of backgrounds. We believe that diversity creates a better working environment.
Norwegian’s main stakeholders include our passengers, employees, owners, authorities and the media.
Organisation, Working Conditions and the Environment Norwegian has a long-term focus on creating an attractive workplace. An important success factor for Norwegian is maintaining a workforce of highly motivated and skilled employees and leaders. Our goal is to offer unique opportunities to our employees and a company culture that helps us to attract and retain the best people in the industry, regardless of who they are and where we do business. Creating effective arenas for learning and professional development at all levels of the organisation is a priority at Norwegian.
At the end of 2013 the Group employed a total of 3,965 FTEs (full-time equivalents) including apprentices and hired staff. The number of employees is expected to increase in 2014 in accordance with the Group’s planned expansion.
The Group has established bases in London, Madrid, Barcelona, Tenerife, Alicante, Bangkok, New York, Fort Lauderdale and is currently in the process of opening additional new bases abroad.
The apprentice programme in Norway continued in 2013 and by the end of the year comprised 140 apprentices.
During their training – which also included stays in Berlin, London and Las Palmas – the apprentices held internships while working abroad in countries where Norwegian operates. A further intake of apprentices is planned in 2014. All the candidates which graduated in 2013 successfully completed and passed their exams, which were conducted in conjunction with Akershus County Council. The labour unions are also actively included in planning of the apprentices’ curriculum.
Many graduates who passed the examination in 2013 have now attained positions in the Group. Graduates of the programme also visit schools and colleges to promote the programme and help recruit new apprentices. This has been a focus area in 2013 and the programme now provides a steady stream of candidates to fill permanent positions.
Norwegian’s human resources policy is intended to be equitable, neutral and non-discriminatory, regardless of ethnicity and national background, gender, religion, or age.
The Group has reviewed and updated its ethical guidelines, which emphasise the company’s personnel policies. The Group has described its Corporate Governance policies in a separate section of the Annual Report.
Important HES activities (Health, Environment and Safety) are conducted in compliance with labour laws and the Group’s guidelines. Illness absenteeism in 2013 was 7.4 per cent, a decrease compared to 2012. Actively monitoring HES, corporate health insurance policies and continuing cooperation with protective services will insure that illness absenteeism remains a priority.
Norwegian Air Shuttle ASA is a member of NHO Aviation, which is a member of NHO (Confederation of Norwegian Enterprise). The 2013 collective salary review was conducted through local collective bargaining with most unions.
Moderate changes in wages and efficiency were achieved with these unions.
External Environment Flight operations are inherently dependent on fossil fuels and also generate noise. However, the Group’s current aircraft fleet operates well within the levels and restrictions imposed by national and international regulations. During 2013 the Group consumed approximately 735,006 tonnes of Jet A-1 fuel which is equivalent to 87 grams of CO2 per passenger per kilometre or 67 grams of CO2 per seat per kilometre, a reduction of 2 per cent from last year.
The Group is in the process of renewing its short-haul aircraft fleet, replacing the Boeing 737- 300 aircraft with Boeing 737-800s which will further reduce emissions per passenger per kilometre.
The Boeing 737-800 is among the most environmentally-friendly aircraft in production today; the 737-300s which are being replaced emit approximately 23 per cent more CO2 per seat. The Group had a total of 72 Boeing 737-800 in operation by year-end with another 60 on firm order.
Norwegian has firm orders for an additional 200 single-aisle aircraft, 100 Boeing 737 MAX8 and 100 Airbus A320neo, both of which reduce CO2 emissions by 30 per cent compared to the 737- 300. The order will secure Norwegian the most environmentally-friendly aircraft fleet in the world.
The Group operates the Boeing 787-8 Dreamliner for its long-haul operations, which is the most fuel and noise efficient long-haul equipment available. By year-end the Group had three such aircraft in operation and another 11 on firm order; five 787-8 and six of the stretched 787-9. The aircraft type combines a revolutionary composite material design with new engines, which together reduce consumption and emissions by 20 per cent compared to the most efficient comparable aircraft type in operation today.
The Group’s business model promotes high load factors and higher capacity per flight, which makes Norwegian’s operations more environmentally sustainable as emissions per passenger are lower. The company’s emissions per passenger kilometre are well below the industry average and less than many forms of land and sea-based transportation.
The Board believes the Group has complied with all requirements and recommendations with regard to its impact on the external environment, and that the Group takes all possible steps to minimise emissions and other negative effects on the environment.
Aircraft Maintenance The Boeing 737 fleet is operated by the parent company (NAS) and its fully-owned subsidiary Norwegian Air Norway (NAN). The Boeing 787 fleet was operated by the fully-owned subsidiary Norwegian Long Haul (NLH) in 2013, whose operations will be transferred to the fully-owned company Norwegian Air International (NAI) during 2014. Each individual operator has its own Air Operator Certificate (AOC), each with individual civil aviation authority oversight and approval. Each AOC must have a civil aviation authority approved maintenance organisation and maintenance programme.
NAS and NAN manage their maintenance operations from their technical bases at Oslo Gardermoen Airport. NLH manages its maintenance operations from its technical base in Fornebu, Norway.
Line maintenance is performed by NAS for both NAN and NAS at Oslo Gardemoen Airport, Stavanger Sola Airport, Bergen Flesland Airport, Trondheim Værnes Airport, Stockholm Arlanda Airport and Copenhagen Kastrup Airport. Line maintenance for NAN and NAS are contracted to other external suppliers outside Scandinavia.
Continuing airworthiness activities for NLH are sub-contracted to Boeing Fleet Technical Management (Boeing FTM).
Control and oversight of the activities is performed by Norwegian Long Haul Maintenance operations in addition to the civil aviation authorities.