ULCC Norwegian Air Shuttle has sent details of its planned financial reconstruction to its creditors and shareholders, ahead of several hearings in the Irish and Norwegian courts that will determine its future in the coming weeks.
After months of uncertainty over whether it would survive the pandemic, Norwegian Air Shuttle may finally be nearing a restructuring solution ahead of a mid-April deadline.
Norwegian Air Shuttle has agreed with Airbus to cancel outstanding orders for 88 A320 family aircraft, as the carrier makes progress toward presenting a restructuring plan that it hopes will secure its future.
Norwegian has posted a NOK23 billion ($2.7 billion) net loss for 2020, with bankruptcy or liquidation “highly likely” in the 2021 second quarter if several conditions are not met.
A portfolio of 12 Boeing 737-8s and two Trent 1000-powered 787-9s, previously operated by Norwegian Air Shuttle, are being remarketed following the LCC’s financial difficulties and decision to scale back its operations.
The carrier which pioneered cheap transatlantic flights between Europe and the US will now focus on short-haul routes as part of a plan to exit insolvency.
Norwegian Air Shuttle said it would focus on operations in Europe and drop long-haul flying as it moves forward with a restructuring process the airline hopes will attract new investment and allow continued operations.
Norwegian Air Shuttle said it was operating nine aircraft after “positive” Christmas bookings, representing a small improvement in its activities from the six aircraft it had been operating in previous weeks.
Norwegian Air Shuttle shareholders have voted in favor of a series of restructuring measures including a rights issue at an extraordinary general meeting Dec. 17.
Norwegian Air Shuttle said it filed for a reconstruction process under Norwegian law, a day after an Irish court ruled it could begin a 100-day restructuring process under the country’s equivalent of bankruptcy protection.
Norwegian Air Shuttle has obtained creditor protection following an Irish court hearing, the latest step in a turbulent period for the debt-ridden long-haul LCC.
Troubled long-haul LCC Norwegian Air Shuttle will seek a five-month protection period for restructuring at a Dec. 7 court hearing as part of the examinership proceedings it initiated in November.
As Norwegian Air Shuttle files for bankruptcy protection in Ireland, Routes looks the number of seats and biggest routes currently operating in Norway.
Norwegian Air Shuttle plans to further cut capacity, leaving only six aircraft from its 140-strong fleet in operation, citing travel restrictions and Norway’s decision not to provide any more financial aid to the low-cost long-haul carrier.
While Jetstar and Sunwing are resuming suspended routes, Porter Airlines has further delayed its planned restart and Norwegian is preparing to ground 15 of the 21 aircraft currently in operation.
During the same week that Wizz Air unveiled plans to enter Norway’s domestic market, a team led by experienced industry executive Erik Braathen is also drawing up proposals for a new carrier in the country.
The Norwegian government has announced plans to further extend its loan-guarantee scheme for airlines to the end of 2020, as the COVID-19 crisis persists.
