| |
Travel and Leisure > Cruising Sailing > Norwegian coastal line "Hurtigruten" in financial problems
0
Reviews [ add review ],
Article rating : 0.00, 0 votes. Author : Jan-Erik Haugen
Norwegian coastal line "Hurtigruten" in financial problems.
Norway's venerable coastal voyage line known as "Hurtigruten" is considering selling off all its fast ferries, busses and other ferries in an effort to stay afloat.
The troubled passenger and cargo shipping line has logged losses of more than USD 120 million over the past three years and suffers from heavy debt. The costs of massive investment in new cruiseship-like vessels operating in a high-cost environment are taking their toll.
With a debt that reach over 4 billon NKR and a yearly income just under 4 billion NKR the company have big finance problems. This ratio is not very good, and have for a long time and have caused headache among the management for years now.
Various restructuring programs haven't helped much so far. Some analysts have called Hurtigruten a prime takeover target, if the state would allow it.
Managing director Olav Fjell, a former boss of state oil company Statoil, said last week that the line must improve operations and reduce debt.
"We must get more people on board, and get them to spend more money," Fjell told the Norwegian news bureau NTB. "Costs are too high. That's the reason we're looking at the possibility of selling off businesses outside our core operations."
There are more than 300 busses and 54 fast ferries and other ferries the company now consider to
sell.
The financial problems in Hurtigruten ASA do of course affect those 2 400 employees in the company. Now everyone of them and feel unsertain about their future work, but Olav Fjell promises that their interests will be taken good care of.
Both the management and the employees do hope that larger companies with a better finance situation will show their interest.
Some fact about Hurtigruten.
Hurtigruten starts out in Bergen and takes you across the Arctic Circle to Kirkenes, through the heart of coastal Norway. You can choose to join for a short trip, or the whole cruise to Kirkenes and back. Hurtigruten is sailing along this beautiful coastline, through magical fjords to enchanted islands, calling at 34 ports.
Each ship has a distinct style and character and no two journeys will ever be the same. Since the ships leaving every day of the year ,the changing seasons, climate, flora and fauna and the local people you meet will make each voyage a different experience.
Once a major lifeline for the remote coastal communities, it since has evolved into a cruise operation of sorts popular with foreign tourists. Hurtigruten also has expanded into far-flung cruises in the Antarctic, the Mediterranean and around Europe, redeploying vessels in line with seasonal business in Norway.
Find out more about Norwegian fjords
Find out more about personal loans,credit cards and finance
Article reviews
Post your review
[ Note : no HTML/URLs - will removed automatically ]
More articles from Travel and Leisure > Cruising Sailing
|
