Long-haul low-cost carrier Norse Atlantic is accelerating a major restructuring programme as the carrier seeks to protect its liquidity amid rising fuel prices and challenging market conditions.
The Norwegian airline confirmed on May 7 that it will be bringing forward its Project Falcon cost-reduction plan, which is hoped to deliver annual savings of up to $50bn compared with its 2025 cost base. The measures are designed to simplify the business, reduce overheads and improve flexibility as the carrier works towards sustainable profitability.
Under the plan, Norse will cut around 75 administrative roles, equivalent to approximately 35% of its administrative workforce. It will also consolidate selected office functions, relocate its head office from Arendal to Oslo and close the Arendal office.
The airline said the move to Oslo is intended to bring its commercial and operational activities closer together. Project Falcon also includes crew furloughs, temporary pay cuts for non-flying staff and a more flexible crew base structure with simplified agreements with its air crews. Norse will additionally rationalise its IT and partner systems as part of the wider drive to lower structural costs.
The latest round of cuts follows a wider financial package announced in April, when Norse said it would raise $110 million through a fully underwritten rights issue and had secured a $70 million bridge loan.
The airline also launched a strategic review, which could examine options including a sale, merger or partnership, although it said no indicative offer had been received.
Norse has already moved to reduce its exposure to fuel-price volatility. Earlier this year it completed the transfer of its sixth Boeing 787-9 to IndiGo under a long-term ACMI arrangement, leaving around half of its Dreamliner fleet operating on contracts where Norse says it has no fuel-price exposure.
The airline has also trimmed parts of its own scheduled network, including removing planned summer 2026 Los Angeles services from London/Gatwick, Paris/Charles de Gaulle and Rome/Fiumicino.
