Hurtigruten has secured a long-term financial solution to its coronavirus woes.
The Norwegian ferry and cruiseship operator has also unveiled plans to expand its international route network for its expedition vessels.
It has secured a NOK 1bn ($100m) loan in the international market, which it said will secure liquidity through 2021 and into 2022.
“We went rock-solid into the crisis and [have] been very clear from day one that we will come out of it stronger,” chief executive Daniel Skjeldam said.
Hurtigruten will pay interest of around 11% on the loan, which is in line with high-coupon rates with debt secured by other passengership operators that have taken a major hit from the pandemic.
“It has become an expensive but necessary solution,” Skjeldam said.
Meanwhile, Hertigruten is set to expand its international cruise business with routes from Hamburg and the English port of Dover to Norway.
From 2021, it will also start expedition cruise sailings along the Norwegian coast, with three of its vessels slated for an upgrade.
'Perfect alternative'
The biggest upgrade will happen this year with the 15,690-gt Finnmarken (built 2002), which is to be renamed Otto Sverdrup.
The 16,151-gt Midnatsol (built 2003), to be renamed Maud, is also set for a total upgrade.
There will be minor upgrades to the 16,140-gt Trollfjord (built 2002).
Stavanger, Traena, Reine, Fjaerland and Vaerlandet are among the Norwegian destinations that will get regular visits from Hurtigruten's expedition cruise sailings.
Hit hard by pandemic
“We have, over a period of time, observed that more people want ... travel that is starting closer to home, without unnecessary air travel,” Skjeldam said. “This has been enhanced by the coronavirus. Our new sailings [are] a perfect alternative for those who will experience Norway without flying.”
The company, founded in 1893, runs the coastal route between Kirkenes and Bergen with 11 specially designed vessels, in addition to a fleet of expedition cruiseships, two of them hybrid ships working in Arctic waters.
The shipowner has been hit hard by the coronavirus crisis, which led it to lay up 14 of its 16 ships in March. It plans to resume sailings this month.
With about 3,000 employees, the company is one of the country's largest maritime employers, with around 10% of all Norwegian seafarers.
It will employ between 250 and 300 extra Norwegian seafarers before the new services start in January.
“We cannot sit still and wait for this to solve itself,” Skjeldam said of the coronavirus crisis.
Hurtigruten had revenue of almost NOK 6bn ($667m) last year.
