COPENHAGEN, Denmark (AP) — Low-cost provider Norwegian Air Shuttle stated Thursday it is going to deal with European locations and shut its long-haul operations because it struggles with the fallout of the coronavirus pandemic and debt restructuring.
The airline stated it is going to “deal with its core Nordics enterprise, working a European quick haul community with slim physique plane. Below these circumstances a long-haul operation isn’t viable for Norwegian and these operations will subsequently not proceed.”
The plan impacts its flights to the USA and means it is going to lower its fleet from 140 plane to about 50.
Norwegian additionally desires to scale back its complete debt to round 20 billion kroner ($2.36 billion), and plans to lift 4-5 billion kroner ($473 million-590 million) in new capital, together with by a rights difficulty and a personal placement of shares. The plan should be permitted by an Irish chapter courtroom.
Like different airways, its fleet is now largely grounded because the pandemic has brought about a near-total halt to world journey.
In November, Norwegian stated it was searching for restructuring and chapter safety in Eire, the place its fleet is held, saying it was within the curiosity of its stakeholders.
Earlier that month, the Oslo-based firm stated it was going through a “very unsure” future after the Norwegian authorities turned down its request for extra monetary help. The federal government stated that the airline had been struggling financially even earlier than the pandemic and that assist must be focused first at wholesome companies.
After that, Norwegian introduced it needed to lay off one other 1,600 workers and floor 15 of the 21 planes it had been flying with.
In Could, the provider bought 3 billion kroner ($354 million) in mortgage ensures from the federal government as a part of its restructuring plan. However the second name for assist was turned down on Nov. 9.