Hurtigruten Provides Business Update

Penguins and MS Roald Amundsen in Antarctica

Hurtigruten CEO Daniel Skjeldam provided an update on Hurtigruten’s operations and business on a media briefing call.

Skjeldam said he believes a restart of expedition and coastal service will happen gradually.

“That means starting with domestic operations in Norwegian waters – both the scheduled service along the Norwegian coast, and Arctic expedition cruises (many of which takes place fully within Norwegian waters,” he said. “We hope the gradual restart can happen already from June/July. We are optimistic. But we need to take one step at the time. We are in ongoing discussions with relevant authorities about how and when we can restart. Starting operations too soon is not an option.”

Highlights 

  • The company entered 2020 with its best financial result in history, with record-breaking numbers in January and February.
  • As of now, all Hurtigruten voyages until late May are cancelled.
  • The full 2020 Alaska season, with battery hybrid powered MS Roald Amundsen, is cancelled. The Roald Amundsen’s Alaska to Greenland Northwest Passage voyage is also cancelled.
  • 13 of 16 ships are currently laid up.
  • The 14th ship, the Roald Amundsen, is currently in the Atlantic ocean on her way to Europe to join the rest of the laid-up fleet.
  • Hurtigruten has deployed two ships in an amended domestic schedule working with Norwegian authorities. In addition to local travelers, the two ships are bringing mail, medical supplies and other goods to communities in Northern Norway.
  • A flexible rebooking policy for already booked guests (and new bookings) have been established, allowing them to move their bookings free of charge.
  • The company has temporarily laid off 95 percent of shoreside and onboard staff.
  • Non-critical investments are postponed, SG&A costs reduced, non-essential travelling paused, non-committed marketing spend stopped.
  • Deferral of all bonuses.
  • Senior management has taken a voluntary pay cut of 20 percent.
  • Following an initiative from staff, other non-laid off Hurtigruten staff has taken a voluntary pay cut of 10 percent.
  • Hurtigruten is currently engaged in discussion with Norwegian authorities about support packages. 

 

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