Norwegian Air Appoints Industry Outsider as New CEO to Lead Restructuring

Loss-making Norwegian Air has appointed Jacob Schram as chief executive to take charge of the budget carrier’s restructuring as it struggles with a low-cost, long-haul model in an overcrowded industry, Reuters reported. Schram, who does not have a background in aviation, joins Norwegian from management consulting company McKinsey and was previously a top executive in the petrol retail industry, Norwegian’s board said on Wednesday. He replaces Bjoern Kjos, Norwegian’s founder who stepped down in July having built the carrier into Europe’s third-largest budget airline, shaking up the market for transatlantic travel with low fares to challenge traditional carriers such as IAG’s British Airways. Schram, 57, will be tasked with cutting costs and making the airline profitable again after the breakneck expansion left it with hefty losses and high debts, forcing it to repeatedly ask shareholders for new funds to stave off collapse. Read more