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Hurtigruten divides scheduled traffic and expedition cruises into two new units. CEO Daniel Skjeldam expects a “harsh winter” and cannot rule out a reduction in the future.
NEW MEASURES: Hurtigruten and CEO Daniel Skjeldam divide the company into two separate business areas. At the same time, preparations are being made for a demanding winter season.
Terje pedersen
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– We are fine-tuning our efforts by creating our own dedicated organizations that will ensure growth and development in each of the two main areas, the Norwegian coast and expedition cruises, Hurtigruten CEO Daniel Skjeldam tells E24.
On Thursday, the company announces a comprehensive reorganization that involves the creation of two new units.
While Hurtigruten Norway will be responsible for the traditional routes business between Bergen and Kirkenes, the growing expedition cruise business will be carried out through Hurtigruten Expeditions.
The latter company will be led by Asta Lassesen, who comes from the position of commercial director at Hurtigruten Group. At the same time, the search for a CEO of Hurtigruten Norway begins.
– This ensures an even sharper focus and an even clearer distinction between two completely unique products and concepts, says Skjeldam.
EXPEDITION LEADER: Hurtigruten Chief Commercial Officer Asta Lassesen is promoted as the new CEO of Hurtigruten Expeditions.
Terje pedersen
– An investment in further growth
Covid 19 has had dramatic consequences for Hurtigruten so far in 2020, with rotation failures, cancellations and criticism for improper handling of an outbreak aboard the expedition ship Roald Amundsen in July.
At the end of the second quarter, the company had about NKr 13 billion in debt and negative equity of NKr 180 million, after taking out a crisis loan at 11 percent interest in June.
Earlier this week, it emerged that the company is considering selling its hotel properties in Svalbard, after receiving interest from both Norwegian and foreign investors.
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Hurtigruten is considering selling properties in Svalbard
– In recent years, Hurtigruten has undergone a large-scale restructuring operation, while we have grown strongly. We enter 2020 with record results, and I am confident that our growth will continue on the other side of the pandemic both along the Norwegian coast and internationally, says Skjeldam.
– You are in a period of financial demand. Can anyone interpret this as a move to make values visible or set up a sale?
– This is not a movement that prepares for the sale of all or part of the company. Rather, it is an investment aimed at further growth in the coming years, says Skjeldam.
Doesn’t rule out hard grips
The CEO rejects that reorganization is the starting point of a streamlining process.
– This is not a savings measure. I am confident that these measures will not only better prepare us to emerge from the crisis, but will also ensure that we can continue the growth that we have had in recent years on the other side of the crisis. But it will lead to organizational changes on the ground. Some features will be added, some will be changed, and some will be removed, says Skjeldam.
It does not hide the fact that there is a danger of downsizing in the coming months. Cruise lines Fjord Line and Color Line have announced layoffs and layoffs totaling 500 man-years in recent weeks.
– We have had to lay off a large part of our employees. But we are one of the few shipping companies that carry out international transport and cruise operations that have not yet had to resort to the reduction. At the same time, we must be realistic about what the next few months will bring. No matter how optimistic we are in the long term, it is impossible to rule out difficult moves in the short term, says Skjeldam.
Expect a “harsh” winter for everyone who works in tourism, both in Norway and globally.
– But with the new organization, Hurtigruten will be even better prepared for what is to come when the world returns to a more normalized everyday life.
