Everyone, to this first half-year presentation of the Norwegian results. The picture on the screen, I think, says everything about the situation that we have had and all other airlines have had during the COVID-19 situation. It is the biggest crisis in airline history since the Second World War, and that has, of course, also affected us. During this situation, we immediately went into crisis management in March, gathered in the war room, and focused on getting the airplanes down on the ground. In this situation, we operated only 78 aircraft in the domestic Norway from April to July, and I would say, naturally, as a consequence of this, we had a 71% reduction in passengers year on year in the first half of 2020 compared to the year before. In this situation, we focused on three things: getting cost out, focus on liquidity, and focus on the equity situation.
We took a number of operational actions that I will come back to in a couple of pages. In addition, as you remember, we did a tremendous focus and job on financial restructure, what we called Phase 1, where we successfully converted debt to equity and public offering, and that together contributed with NOK 15.3 billion to the equity. In addition, we got the Norwegian state aid of NOK 3 billion in loan guarantees, plus NOK 330 million associated in loan from private banks. It is obvious in this extraordinary situation that it has a huge effect on results. We had the first half of the year, NOK 500 million in loss from operations, EBITDA, before other losses and gains.
The good thing that we achieved through the financial restructuring phase was that the net interest-bearing debt was reduced to 47.7 billion NOK from a level of 58.3 billion in Q4 2019. If we look forward now, there is no doubt that I have also said that before, that we will still need more help. We will still focus on cash flow going forward now into the fall, but we will need more help during the end of the year to come through the winter. If you look at trading, we see huge deviations depending on travel restrictions. When a country turns to red and the government comes out with their travel restrictions, it has a huge effect on bookings and demand. So what we see is that especially routes from Norway to Europe go down.
The good thing, the positive thing, is that we see exactly the opposite thing regarding the domestic flying in Norway. We have a lot of flexibility in the cost, especially in the crew cost, because we are only using Norwegian crew in this situation. And the reason why we only use Norwegian crew is because of the furlough system here in Norway, which is very flexible, very good in the COVID-19 situation. Also, the rules are expanded from 26 weeks to 52 weeks, which means that we can exploit this system all the way until the end of March. And that gives us flexibility on the cost side when we either go up or down on the number of routes that we put in place. I also want to highlight that we have used the hibernation period, the period that we entered into in April, quite effectively.
We used that period to build a solid business platform so we can emerge from this crisis as a stronger aviation company, and I will come back on this point later. We have taken extensive actions on the operation as the crisis escalated. First of all, I really want to praise all the Red Nose Warriors, both the flying people and the non-flying people, for the fast action that we did, and also for the fighting spirit that we had through the crisis and still have in the company, despite the extreme conditions that we are in. Some people have worked 200%, other people have worked 0%, but the fighting spirit has been extreme, whether you did the one or the others. We grounded 140 aircraft in April. That was a massive task in itself. We maintained the critical infrastructure in Norway with 78 aircraft in operations on government-funded routes.
Over 80% of the employees were furloughed, and that's approximately 8,000 people. Unfortunately, we had to bankrupt the Swedish and Danish resourcing companies, and we see still a lot of employees from there that are still supporting us as Red Nose Warriors going forward. We are insourcing the Boeing Gold Care Agreement, and we have terminated the purchase agreement with Boeing. We also agreed to divest with OSM. We wanted a closer connection to our people. We wanted to reduce complexity, and we think in a new setup in the future, we can be more efficient. At the same time of all of this happening, we designed a new organizational structure. We have established a management team, and the new organizational structure is really to avoid silos and foster more collaboration.
Then we have developed a comprehensive business platform that is adapted more to the new strategy that happened already in 2019, going from growth to profitability. This should be a new platform for the Norwegian that we will see coming out after the crisis. Just to comment on that platform shortly, this is the business platform. I will comment on that more later. It is on the bottom part here. The fundament of the house is, of course, to have a sound financial platform, securing cash flow, and rebuilding our balance sheet is really the focus there. We want to be much clearer on the mantra, who we are and what we want, and we will come back to that later, not in this presentation, but later.
We have developed a new strategy that is our internal compass, and we have designed a new structure of the organization, one logic and one simplified structure across the company, and then we have focused a lot on leaders and management. We want fewer leaders. We want the right leaders at the right places with the same leadership principles, and then we want to be very clear on the new leadership and operational arenas to avoid silos and foster collaboration, so I will come back more on a couple of these areas, and then Geir will come into now the financial platform. What we did in the early start and all the way to EGM, the 4th of May, is what we call the financial restructure phase one. The work continued after that with a lot of financial restructure activities all the way until now.
That's what we call phase two. And then we know and have said all the time that we will need a third phase, and that's the period that we're going into now because we will need more cash to come through the winter, and that is what we call the financial restructure phase three. Geir will now go through the first half-year financial results and then also talk about the financial restructure that we have done and also a little bit about the structure going forward. And then I will revert with talking a little bit more on strategy and structure.
Thank you, Jacob. I mean, it's quite obvious that we have had a few busy months behind us, and it looks like it's going to be quite busy going forward as well into the new year.
If you look at the fleet in Norwegian today, and we have 140 aircraft as per today. It's down from 156 last year. That is done by a combination of sales of aircraft, and we have also redelivered a few of the leased aircraft during the restructuring that we have now done so far. So as per today, we have 37 787s, three 737s, in a combination of leased aircraft and owned. We have the 18 737 MAXs that have been parked since last year. And then we have the 737 NGs that we are currently flying. On the MAX situation, you're not going to say that much about that, but we don't see any MAXs in the air in 2020. So we think that we will definitely see 2021 before any MAXs are up in the air again.
If you look at the capacity, we have during the period from March until, let's say, until the end of the quarter, second quarter, been flying 78 NGs only, and the remaining part of the fleet has then been parked, as we know, and with a load factor in the area of 50%. So a massive reduction in capacity by reason we all know. Into the P&L, I mean, we didn't publish a full Q1 2020 report, as we all know, and thereby we are then going out with the first half report as per today as such. So this is for six months. I mean, we have an income of NOK 7.1 billion and NOK 1.6 billion loss on EBITDA. We had other losses of NOK 1.146 billion. A majority of that is a loss on fuel or fuel hedge.
As you know, we hedged a relatively small portion of the need early this year, right before COVID-19 kicked in. And we are suffering a little bit on that, and we have had to take losses during the year as we don't really burn that much fuel, as we all know, flying very low capacity. And so we will take care of the fuel hedges towards the end of this year, and for 2021, we are not hedged at all for the time being. So that takes us down to EBIT of NOK 5 billion for the six months. And then we have a positive net financial items of NOK 291. We have a P&L effect from the restructuring in the area of NOK 2.4 billion positive.
I'm not going to go through the details on how that is put together, but I will refer to note nine in the report that we sent out this morning, and you can see how this is built up. We have a slight weakening of the Norwegian krone since, let's say, New Year, and the remaining part of that is really a currency loss as such, in addition to the normal interest expenses. Due to the fact that we will have a lower capacity in the air in 2020, and as we see it also in 2021, we have taken the opportunity now to do a write-down of the deferred tax assets that we have in the company. So thereby, we have done a write-down in the area of $68 million in the deferred tax assets that we have in our Irish subsidiary.
That takes us down to 5.4 net loss for the half year. The balance sheet, not that much to comment, really. I mean, you can see the intangible assets, that's the deferred tax assets, so that is coming down. Fixed asset investments, that's mostly liquidity, cash, very close to cash. Assets held for sale, we have one of the aircraft that we sold last year that is still not delivered. It will be delivered, so that's the one. And then on the receivables, it's relatively high. I mean, when we entered into this COVID-19 situation, we went into a complete new situation for us and also for these credit card acquirers. So it's a lot of manual work done on both sides in order to figure out the transfer of liquidity between us and the customers and between the acquirers and us. And that has been very painful.
It still is, but we are getting there where we can refund the customers. Cash and cash equivalents, close to 5 billion NOK. That includes the support from the Norwegian government that we were able to attract, and it takes us down then to a total assets in the area of 84 billion NOK. The equity ratio, as per this quarter, is 14.6%, materially up due to the restructuring that we have done, and as Jacob said, we have converted debt into equity in the area of 15.3 billion NOK as such, and then the liabilities are also taken down by 14.9 billion NOK, and the difference is the 400 million NOK that we raised in fresh capital during the restructuring. A couple of comments on the cash flow. You can say the sale of the 10 aircraft is included in what we call purchases proceeds of 2.7 billion NOK.
That is the sale of aircraft that we did actually mostly last year, delivered this year. Loan proceeds includes the support from the government. And then you have the principal repayments, including then the debt on the 10 sold aircraft, or actually nine of them. And then we have a debt servicing and on leases of 2.3 billion NOK. We have not paid that much lease hire during the second quarter, so most of this is related to the first quarter of this year. If you look at what we did during the second quarter, I think this is a pretty good summary. So what we did, we converted the outstanding bonds in the area of 3.7 billion NOK from debt to equity. With the leasing houses or the lessors, we converted 11 billion NOK from debt to equity.
We raised, as we all know, NOK 400 million in fresh equity, and we have also then, in second quarter, converted NOK 400 million of vendor debt into equity. That takes us to NOK 15.3 billion net. Then we have a guarantee from the government of NOK 3 billion that is also included. We continued this work during the summer, and as we are not flying any especially long-haul aircraft as of today, it was extremely important for us to negotiate what we call the Power by the Hour solution with the lessors, meaning that we are not going to, or we don't have to pay them anything as long as we don't fly the aircraft.
That means that we anticipate that we will have approximately $300 million, which is kind of the debt that will build over the next months, and that will then potentially be converted to equity during the spring next year. This gives the company huge flexibility where we can pay only if we fly these aircraft. If we start to fly the long-haul aircraft prior to Easter next year, this amount will come down, and that's how we are going to adjust that figure. We have also continued with the lessors, and we have done $300 million more on conversion. And we also have continued with the vendors, $1.2 billion.
We just recently have negotiated with a group of banks. It's more than 25 of them in Norwegian, where we have deferred approximately $200 million of principal from this and next year, and this will then be repaid in the period from 2021 to 2031, which is also giving us a huge flexibility for the next, let's say, 18 months, which is crucial for us. In total, you could say that we have reduced the debt in the company during this last month by close to NOK 17 billion. In addition to that, we have NOK 2 billion of deferred principal. So we have built a leeway, but as Jacob said, we still need support and more liquidity into the company during the next, let's say, six to seven months in order to get through an upcoming challenging winter.
The focus now is to try to find a solution where we can right-size the fleet, as we have said. We have publicly said many times now that we see the long-haul fleet as a little bit too. We have too many aircraft. We are working on solutions and have been working on that the last months to see how we can reduce the number of aircraft, especially on long-haul. We have, as a result of not being able to negotiate an acceptable, I would say, deal with Boeing, decided to file a claim against Boeing, and that was done late June. Time will show now how this case is developing during the next weeks and months as such.
On the funding side, we are in constant dialogue with all the creditor classes in the company as we speak, and we are building a plan that will kind of secure that we can come through the next upcoming winter. With vendors, I think we have a really good dialogue with almost all vendors in the company, and we are kind of having a constructive dialogue with, I would say, more or less all of them. Then the next months, we'll see how they can play a role in the plan going forward.
And on the balance sheet, we will continue to do what we started in the second quarter and see how we can build kind of the company with the fleet that we are planning to fly going forward, and then with the right level of debts as such for the, let's say, years to come as such. So this process is ongoing, and it will be ongoing for the next towards the end of the year. And then we will come back and update the market on, let's say, the plan and how we're going to execute on this when we meet next time in the third quarter. I think that's it, Jacob.
Thank you. And then explaining a little bit more on the business platform. We see three stages in our journey going forward, also beyond COVID-19.
Let me start with the one far out, which basically says that we want to compete in the future of mobility towards 2030. That is really an ambition because we think this business will be extremely exciting. But to do that, we need to be a good and profitable organization within the aviation industry in 2025. But first, it is really license to operate. And that means coming through the winter so we can come towards the summer next year and then hopefully then stand and build the company and come up from the crisis. At that point of time, when we come to March, April, hopefully wave two is over of COVID, and hopefully there is no wave three. Hopefully, we will see a vaccine coming during that year, and hopefully we see a much better summer than we did this year.
We don't anticipate the summer to be 100% like it was before COVID, but at least better than this year. And in our plans, we expect full production from 2022. Coming out of that winter, when we are in March and April, we need to be prepared, and we need to have speed to go forward. And that's the reason why we, in the period where we did all this financial restructuring to save the company, we also focused on what company do we want to be after the crisis? And that is to gain speed when the crisis is over so we don't start at that point because then we will lose a lot. And that's why we have built this house, this business platform that I explained earlier in the presentation.
I will tell you a little bit more about the strategy and the structure and comment a little bit on where we stand on leaders for the company. So when we entered into, I take this slide first, when we entered into the hibernation phase, which was in April, we had two priorities. Number one priority was to do the financial restructure with really the aim of coming through the 4th of May on the extraordinary general meeting, which we did, and that was incredibly important. The second priority we had and the work that started in parallel with the financial restructure was to develop a strategy and business plan with a blank sheet approach to prepare for the new reality and to prepare for a company that is more rigged towards profitability than growth.
We did that in six sprints of 14 days, and I picked 25 senior leaders to do that work, experienced leaders within the system. That strategy that we can present here will serve as our internal compass going forward. I shortly comment on the eight components and some of the strategic actions. There is a lot of strategic actions, activities in each of them, but I comment on some of them. The first and most important in the middle is to create a profitable year-round network, and we said that will fortify the Nordics, and we will prove the long-haul model. We will really focus on the Nordics, but we also believe in the long-haul low-cost model. We need to scale back, and we need to rebuild that.
We have a lot of profitable routes in that model today, but we want to scale it back and then build it from there, so that's the first part on network. The second, the two other building blocks, which is super important if you want to succeed, is the people offer and the customer part. On the people offer, we want to build a new and flexible people offer, and two important activities there will be new CBAs updated to the environment that we are now, updated to the new reality, which I think every airline is going through for the moment, and then the second one is to have a right-sized administrative support office, and that work is going on. On the customer side, it's really to have a sales-oriented, sustainable, and personalized customer journey, much more sales-oriented than we have been.
You have also seen that previously in our strategy, and ancillary income we want to increase significantly. Two very important activities here are to understand the customer journey and find out really the pain points that we want to stand out. Then we want to build a business area called airline ecosystem that will serve as a sales platform. I will come a little bit back to that. The blue parts in the bottom here are simplified and modernized operations, extremely important to run an airline, that we have a simplified structure and standardization. We think we can simplify that from where we are today. We have a complex structure with both an AOC structure and a group structure.
We need to streamline that much more so that the AOC structure is a more legal structure and the group structure is really what's driving the company on operation to avoid overlaps, etc., and have much more clear responsibilities. Another big thing is to insource the Gold Care on the technical side from Boeing. We think we can do that more effectively ourselves, and then to build the fifth block, lean professional backbone, which is really to be much clearer on the support office structure to implement a lean program and a lean culture. This is where we have the full cost base on IT, on procurement, on all the processes that go around in the company to do that even more cost-effective and supportive to the business, so that's gathered now in one organizational unit.
And then the sixth one, to establish a performance management platform and culture, which basically means a business performance system and a people performance system. We can definitely improve on both of them. The seventh one, restructure and strengthen the balance sheet. And I think we already done a lot of things there with the restructuring phase one and phase two, but also now going into the phase three. The eighth important building block is really the thing that ties everything together, institutionalize new leadership expectations, develop a leadership program for the top 150 leaders, and really being much more clear on what are the leadership arenas, what are the operational arenas, etc., from a strategic point of view, from an execution point of view, and from a people point of view. Then we will back this up with structure, with much clearer roles and responsibilities.
The structure is really set from the strategy and not the opposite way around. This structure should have more clear roles and responsibilities. It should drive more collaboration, take down silos in the organization so people collaborate more, and I can see that already. What we have done here to comment on that is we have what we call two business areas, the two red ones down, two business drivers, the blue one across, and then four support functions, which sets the structure in the entire company. The two business areas are airline, which focus on core business, where you have the network, the pricing, the local marketing on routes, and you also have planning towards operation. That's a separate business area in itself, focus on selling tickets, having the right network, the right pricing, etc., and only that.
The other business area is what we call airline ecosystem, which we think, having an airline and being in the travel business, we think we can expand the business more. We already have a very strong reward program. We think we can be even stronger there towards the B2B part. We think we can expand our business with destination products to where we go. We think we can develop e-commerce platforms, and we definitely think we can be even more proactive, sell more on the in-flight part. The in-flight part, in-flight sales is extremely important, and in my view, as an old retailer, I really think we should be more sales-oriented in this, strengthening our ancillary sales, so it's really about putting retail in the air, and I see a trolley in an airplane as a kiosk. I don't see it as a trolley.
If we count all the trolleys we have, we have 500 trolleys. We are actually running a chain of 500 kiosks. That's how we should act in terms of category management, in terms of pricing, in terms of how we sell, etc., etc. The business drivers on the customer side, we have one unit now that will focus on the entire customer journey, understand it, what standard should we have, where should we be like all the other airlines, where should we really excel, how good are we, where are we lagging behind, where are we overachieving, etc. Brand and marketing will be there. Customer care will be there. Concept and product development will be there. Then operations goes without saying. A strong operations in airline is an absolutely must. That's where you gain the cost advantage.
There are so many parts that are pieced together from ground operations, flight operations, to safety, security, compliance, technical, etc. So, being really streamlined there, really good, every piece hanging together, that's where you can gain efficiency. That's where you can gain a cost advantage, and I think we can even improve there, so that's the business drivers that will work in a matrix towards the business areas, and then we have four support functions that are really oiling the engine room, and that is people. We have now gathered everything with people, whether it's crew or admin in one unit, where we have everything from training to development, etc. And then we have, of course, the communication and public affairs. We have the IT supply chain and process improvement. That's what I call with the one strategy called backbone. And then, of course, the finance and control department.
This team is now complete. We have one interim in operation. Yuan is doing a huge and very good job there, so he will continue for a while as an interim there. The rest of the organization is put together, a mix of Norwegian people, new people, etc. So that was ready early June. And now the next level, which I call top 50, was communicated the 5th of August. And I'm very pleased with those people in place. And now we're working with level three and the rest of the organization that will be ready end of October. So then we will have both the strategy, the structure, and the top 150 leaders in place, plus the total organization regarding the admin at the end of October. So my last slide to summarize this.
If we kind of see this half here, I would divide it into three: crisis management, business restructuring, and preparing for the future, emerging from the crisis with a solid business platform. Everything has happened more or less at the same time. On the crisis management, significant operational activities to reduce cost and survive the crisis. As an example, crew costs have been reduced with 83% from February to now, which is a huge achievement. Also the furlough rules have really helped us here. We have had, again, a successful financial restructuring, and we have secured a government guarantee, a loan of 3 billion NOK. Into these, like Geir pointed out, we have a lease holiday with Power by the Hour agreement that goes to April 2021 for the planes that we don't fly.
Then we have also secured sufficient cash for funding through this year. I've been very clear all the time that we will need a round more. If COVID continues, which it has done, we will need more financing to come through the winter, like we have talked about and like Geir has also mentioned. On the business restructuring side, we have developed a new strategy and business plan. I have given you some insight in that now. We have implemented a new organization, a new management team, top 50, working now with L3 and right-sizing in place by the end of October. All of this while we were in crisis. We have agreed to a part from OSM to reduce or to get, first and foremost, to get our employees closer to ourselves.
We believe people are a core strategic resource, and we want to have more control of that. Secondly, to reduce complexity and then increase efficiency that we think we can do in the situation that we are now. We have canceled agreements with Boeing, and we have improved lease rates by cutting that to an average of cutting that with an average of 20% and then permanently lowered the OPEX. Emerging from the crisis with a solid business platform. I talked about this house with six elements. We are preparing for ramp-up through 2021 towards 2022. We already started going 1st of July to 20 aircrafts. I think personally in the winter we will be between 20 and 30 aircrafts. It's very hard to predict. It all depends on the travel restrictions from the government, whether it's closer to 20 or closer to 30.
We will have a gradual ramp-up through the summer towards 2021. Again, of course, all depending on how wave two develops, vaccine, etc. But we are optimistic and believe that summer next year will be significantly better than this year, although not 100% like it was before the COVID. We will, during this fall, complete phase three of the financial restructuring that will help us with the funding from 2021. That's the summary for this first half presentation of the results in Norwegian. Geir could then join me, and then we open for questions.
Thank you, Jacob. We'll first start with questions from the audience here, and we'll start with the financial questions and take the media at the end. I will also take questions from the web. If you have any questions from the web, then please send them by email.
Thanks. Let's start with you, Kenneth.
Kenneth Sivertsen from Pareto. Three questions, if I may. On the strategy side, it seems like you are moving a little bit away from the low-cost model. Is that correct? And if so, could you elaborate? Secondly, should I take all three?
Yeah, take them.
Secondly, it's for Geir, I guess. On the cash burn side, based on your claim now, you have liquidity for six to seven months. It seems like your cash burn is in the high end of what you previously announced in the restructuring process, meaning that it's around NOK 500 million a month, or if you could elaborate there. And third and final, on pre-booking for the winter, how could you give some comments about that?
I could start with the strategy part. No, we are not deviating from the low-cost model.
We will continue to offer affordable tickets to most people. That's definitely the segment that we are in. There are more ultra low-cost players than us, and that has always been and will continue to be. We will not move into the legacy carrier part. I think the strategy, the activities that we're doing will take down costs from where we are now, and we will be even sharper on the customer part. We know that our customers really think we are a little bit unique in the low-cost model, offering good quality for affordable prices, and that's exactly the segment we want to be. We want to offer good quality for affordable prices in a smart way, and we will be more precise on how to do that going further on, but that is really the core, and same with the long haul.
We believe in the model that was created with low-cost long haul, but we see that we need to scale it back to get profitability in it and start slower and build from there. But we believe in that concept, and we want to prove it.
I think, Kenneth, on the cash burn side, I think there's, as you know, there's many variables playing in here. But we came out of the second half with close to 5 billion NOK in total liquidity. Part of that is restricted, as you know. And we are saying that we will need more capital inserted into the company before Easter next year. So it's kind of just to do the math. But I would say that you could say that we have, during the last month, been able to negotiate the deferrals on the prepayments, on the bank debt, on our own aircraft.
But at the same time, you could say that we are probably flying less aircraft in the air now compared to the plan a couple of months ago. So it's kind of a, it's a plus and minus. We have said earlier that we have a cash burn in the area, let's say, between NOK 3 million and NOK 500 million a month, and we are still within that. As you are correctly saying, we are probably in the high end of that cash burn. It's a very special situation. As Jacob said, we are seeing on the pre-bookings, we are seeing that it's very kind of linked to the travel restrictions. When, for example, Spain turned into a green country, we saw it on bookings overnight massively.
At the same time, we saw that when Spain turned into a red country again, it was the opposite, and we saw a lot of cancellations. I mean, the way we have been managing this is to make sure that the aircraft that we put in the air needs to generate what we call a positive DB one and a half contribution, saying that it definitely needs to take care of all the variable costs. It needs to pay part of the other cost as well. If we can even pay some interest expenses, that would be really helpful. What we are seeing is that domestic, actually, in Norway, the domestic is really good. Not really good, but relatively good. The same is actually both in Sweden and Denmark domestic.
But we are suffering kind of from the, let's say, Nordics to Europe has been very fluctuating compared to the travel restrictions. So it's not like it's a long booking line now, not at all. So it's very short. But first of all, it is domestic, really, that is contributing to the numbers as we speak. And today we are flying 25 aircraft. And as Jacob said, we will probably be in the area of between 20 and 30 for the next six months.
Three questions from Ole Martin Westgaard at DNB Markets. Can you give any flavor on how ramping up your production further affects your liquidity, cash burn rate? Do you have any dialogue with Boeing, and do you expect to reach a settlement? And third, what is the amount of overdue payables at the end of Q2?
I think on the liquidity and the cash burn, I think we have probably covered that from the questions from the audience here. I think on Boeing, as I said in the presentation, we have been trying to reach an agreement with Boeing. Obviously, we haven't succeeded yet. That's why we took the decision during the summer to file a claim against Boeing, where we are actually terminating the whole order, both on MAX and on the remaining 787s. We still have a dialogue, but we have filed a claim. We will see during the next weeks and few months how this case issue develops. There was a third question on overdue payables. As we said during the restructuring, we said that we have an overdue vendor debt.
We have converted, as we said, a quite significant portion of that vendor debt into equity. We have also made what we call payment plans with a bunch of vendors, where this will have a liquidity effect now during the next months. And I would say compared to the backlog that we have during the restructuring, we have taken it down somewhat. But at the same time, which is important, is the fact that we have actually had, we are having, I would say, a good dialogue with most of these vendors, and we have made agreements on how this is going to be taken care of for at least a majority of that backlog. Hans Jørgen Elnæs, WinAir AS. I understand that you were going to take over the Boeing Gold MRO for the 787s. And already you made a contract with Lufthansa Technik for your 737 fleet.
So that means that you will build your in-house maintenance on the 737, 787, I mean. Can you comment about that?
And about reducing the 787 fleet, what would be your challenge there? To reduce on the leased ones, or you're going to sell off your own ones? And you defined your main market as the Nordics, and that means that you are trailing SAS. Will you follow the ramp-up of SAS when they're now trying to take advantage of your position? Thank you.
I can start with the last one first. As I said in the strategy, we see the Nordics as a core area that we want to both continue to do as we have done. We have a good position there. We want to protect that, and we want to grow there.
At the same time, during this situation in COVID, we follow each route very closely, and you will see a lot of situations where we will try out new routes, and if it doesn't succeed, then we will close them down again, so I think that will be natural. I think probably SAS will do the same, but the domestic Norwegian will be, or the domestic Nordics will be, we treat Nordics as a domestic area, and we will continue to try there and continue to grow there based on how we see COVID-19 developing. Let's say on the Gold Care side, I mean, as you know, I mean, this is a complex thing to do and to exit the Gold Care program, and this will take a little bit of time to do.
But at the same time, we have been communicating to Boeing that we don't feel it's, what should I say, attractive enough commercially and financially to use those services. But I think you will see that we will still continue to use third parties for part of the fleet, definitely. And I think on the 737 side is probably easier to do it than doing it on the 787 internally in-house. So we will definitely continue to use vendors like Lufthansa and others. And it will take a little bit of time to actually do this transfer. But I think the dialogue that we have started with Boeing is good, very constructive. And I think we will find a way to solve it.
I guess you have to ask Boeing about this, but I think I would say it makes sense for both parties to find another solution on the maintenance part of these aircraft. When it comes to the 787s, as you mentioned, I mean, obviously, as you, I'm sure you understand, that's a difficult task, at least in this market, to divest maybe as many as 15, 16, 17 of these aircraft. We have 37 of them today. 26 of those are leased, 11 owned. And at the same time, as you know, the owners of the leased ones are also the shareholders controlling the company. And I'm not saying that they will, but I think coming from a situation where these guys have been kind of part of a problem because we have too many aircraft.
We need to, and we are already discussing alternatives with these guys where we have to find a solution to take down the capacity on long haul. It's not going to be easy. It's a very different market compared to the short haul market with regards to liquidity and how easy it is to divest. But we just need to find a solution. We are on it.
We have two questions from the web from Daniel Roeska at Bernstein. One is related to the last one. Have you considered abandoning the long haul business? And another one, how large is the funding requirements to ensure SAS is going concern for the next 12 months?
Going concern next 12 months. Well, as we said, we are coming out with close to 5 billion NOK cash out of the second quarter. You know what we have done on the lessor side.
We have now communicated today what we have done on the banking side with deferrals. I think we have been through the cash burn here, and I would say it all depends on how we are looking at the summer next year and whether, I would say, how profitable that will be, and that will kind of then decide how much liquidity we need. I think the plan that we are working on now for the company on, let's say, on the balance sheet liquidity as such is a plan that we are looking not only into 2021. We will actually look into 2022, so because we have to build a plan now that takes us into 2022, obviously, it's extremely complex to do assumptions on 2021. No one knows, but we will try to build enough capacity liquidity-wise to take us into 2022.
I'm not going to comment on the specific figure that we will need as per now. Then the question on long haul, if we're going to abandon long haul. No, we are not. That's part of our strategy. As you saw, I presented on the network. We want to prove the long haul low-cost model. We want to scale back, as Geir has said, with getting fewer 787s. But we also see in the portfolio that we had before COVID-19 that we had several routes that are more than profitable. So we strongly believe in that model. But we want to do it in a smaller basis first and then build from there.
We have one final question from the web here. It's from Petter at ABG. Regarding accounts receivables, can you please elaborate the key issues regarding the holdback imposed by credit card acquirers? Yes.
I mean, the accounts receivable, it is a combination of things, I would say, items. One is the credit card acquirers and how much liquidity that we have with them. Another one is part of the kind of issue that we have with Boeing, also included in that amount. But the credit card acquirers, it's a new situation. I mean, holdback in itself is not really the issue anymore because, obviously, we have been refunding customers more than NOK 5 billion over this period. But a little bit of the issue is that we have offered our customers to, when they are canceling or when we are canceling, to transfer those funds into CashPoints, for example. And that is one issue.
And then the credit card acquirers, including the credit card companies like Visa and Mastercard, is kind of they have actually developed new regulations for this or new principles for this. So, for example, Visa is saying that we can refund this liquidity, but we're not going to do it until four-to-six months after that ticket was supposed to be used. And Mastercard, for example, is saying that we will not refund you until this customer is actually using those CashPoints. And that's obviously a huge issue for us. And that had also resulted in the fact that these guys are holding that liquidity, waiting for the customer to use those CashPoints. And it's completely hopeless for us. And obviously, we are on the case. We have been in it for quite a while. And I think we will find a solution, but it's difficult.
It's also difficult for these credit card acquirers, for this situation is absolutely new for them as well. Even they are developing new systems internally in order to cope with this. The holdback is high today as well, but not by the same reasons as we have been seeing earlier.
With that, we would like to thank you all for participating. Other questions might be directed to investor relations by email. Thank you.