The Hurtigruten will not sail until mid-June – E24

The crown crisis caused Hurtigruten to stop much of its operations on March 18. The company now announces that the shutdown should extend until mid-June.

– We expect a gradual escalation from mid-June. But for this to be possible, we need to have financial clarifications, says CEO Daniel Skjeldam in a comment.

The company is now planning a gradual rollout of the tours since mid-June. This means that the first departure will be with MS Finnmarken from Bergen on June 16. A decision will then be made for each separate Bergen departure.

“The gradual escalation depends on national and international travel restrictions, the support of the Norwegian authorities, and a host of other issues beyond Hurtigruten’s control,” Hurtigruten writes on his website.

Hurtigruten has put forward two specific measures that can ensure that the company can resume operations:

• A short-term solution where the state temporarily buys more capacity and compensates for lost ticket revenue, as the government has done for trains and planes.
• A long-term solution where Hurtigruten can access liquidity loans through the Government Bond Fund or a loan scheme through GIEK.

Dismissal of nearly 3,000 employees

– If we start sailing in June, it will be a deficit in a period of transition. That is why we have asked the Ministry of Transport and Communications to increase state purchases and compensate for the loss of ticket revenue as they have done for train companies and airlines, says Skjeldam.

The main reason the company presents a reopening as a “deficit business” is that tourism is likely to be severely affected by severe travel restrictions over an extended period.

– We are pleased that many politicians have now said that strong companies like Hurtigruten, which performed well before the crown crisis but now have no income, should have access to loan schemes that ensure liquidity. This is crucial to ensure continued operations, says the CEO.

Due to the crown crisis, the company has had to withdraw 14 of the 16 ships from normal operation. At the same time, nearly 3,000 employees were fired. The last two ships now operate a specially designed route between Bodø and Kirkenes.

Government crisis loan problems

Last week, there were problems when Skjeldam criticized the government for the Government Bond Fund that assesses the credit score during the crown crisis. The company has canceled tickets for more than NOK 700 million so far and has lowered the credit rating to CCC +.

The government met with Hurtigruten on Friday lowering the credit rating threshold to CCC +.

– This is apparently a positive sign. But whether the control has any real effect remains to be seen, communications manager Rune Thomas Ege of Hurtigruten said Friday.

– The fact that the government is now listening and adjusting the Government Bond Fund’s investment mandate is a step in the right direction. But it is too early to say that this is a good solution, he added.