COPENHAGEN, Denmark (AP) — Minimal-price tag carrier Norwegian Air Shuttle reported Thursday it will emphasis on European places and close its extensive-haul operations as it struggles with the fallout of the coronavirus pandemic and debt restructuring.
The airline mentioned it will “aim on its core Nordics enterprise, operating a European shorter haul community with narrow system plane. Beneath these conditions a lengthy-haul procedure is not viable for Norwegian and these operations will thus not go on.”
The approach impacts its flights to the U.S. and implies it will reduce its fleet from 140 aircraft to about 50.
Norwegian also wants to lower its overall financial debt to around $2.36 billion and programs to elevate $473 million to $590 million in new cash, which include via a rights difficulty and a private placement of shares. The strategy have to be accredited by an Irish individual bankruptcy courtroom.
Like other airways, its fleet is now mostly grounded as the pandemic has prompted a in close proximity to-full halt to global travel.
In November, Norwegian explained it was trying to get restructuring and personal bankruptcy protection in Ireland, in which its fleet is held, stating it was in the interest of its stakeholders.
Earlier that thirty day period, the Oslo-dependent company claimed it was going through a “really uncertain” foreseeable future right after the Norwegian governing administration turned down its ask for for extra fiscal support. The govt reported that the airline had been struggling financially even prior to the pandemic and that aid need to be targeted first at nutritious organizations.
Following that, Norwegian declared it had to lay off an additional 1,600 staff members and ground 15 of the 21 planes it had been flying with.
In May possibly, the provider acquired $354 million in mortgage guarantees from the govt as component of its restructuring strategy. But the 2nd phone for help was turned down on Nov. 9.