COPENHAGEN, Denmark — Reduced-price provider Norwegian Air Shuttle reported Thursday it will target on European places and near its extended-haul operations as it struggles with the fallout of the coronavirus pandemic and personal debt restructuring.
The airline stated it will “focus on its main Nordics business enterprise, running a European brief haul community with slender system plane. Less than these circumstances a very long-haul procedure is not practical for Norwegian and these operations will for that reason not continue.”
The plan affects its flights to the United States and means it will lower its fleet from 140 aircraft to about 50.
Norwegian also wishes to minimize its whole debt to about $2.36 billion, and options to raise $473 million-$590 million in new money, such as via a legal rights issue and a personal placement of shares. The system have to be accredited by an Irish personal bankruptcy court.
Like other airlines, its fleet is now generally grounded as the pandemic has prompted a around-whole halt to world-wide vacation.
In November, Norwegian reported it was looking for restructuring and individual bankruptcy security in Eire, where its fleet is held, stating it was in the fascination of its stakeholders.
Before that thirty day period, the Oslo-based mostly firm said it was experiencing a “very uncertain” future right after the Norwegian authorities turned down its request for additional economic support. The govt said that the airline experienced been struggling economically even right before the pandemic and that support ought to be specific first at healthful organizations.
After that, Norwegian declared it had to lay off an additional 1,600 staff members and ground 15 of the 21 planes it experienced been flying with.
In May perhaps, the carrier bought $354 million in mortgage ensures from the governing administration as section of its restructuring system. But the 2nd get in touch with for assist was turned down on Nov. 9.