COPENHAGEN, Denmark — Reduced-value carrier Norwegian Air Shuttle said Thursday it will emphasis on European destinations and near its extensive-haul functions as it struggles with the fallout of the coronavirus pandemic and personal debt restructuring.
The airline claimed it will “focus on its main Nordics business, working a European limited haul community with slender overall body aircraft. Under these conditions a long-haul operation is not viable for Norwegian and these operations will therefore not proceed.”
The strategy has an effect on its flights to the United States and signifies it will cut its fleet from 140 aircraft to about 50.
Norwegian also wants to minimize its full debt to all around $2.36 billion, and strategies to elevate $473 million-$590 million in new money, such as through a legal rights situation and a personal placement of shares. The strategy will have to be authorized by an Irish bankruptcy court docket.
Like other airlines, its fleet is now primarily grounded as the pandemic has brought about a in close proximity to-full halt to world wide vacation.
In November, Norwegian claimed it was trying to get restructuring and personal bankruptcy security in Ireland, the place its fleet is held, saying it was in the desire of its stakeholders.
Previously that month, the Oslo-based mostly organization said it was struggling with a “very uncertain” future soon after the Norwegian authorities turned down its request for additional monetary guidance. The federal government reported that the airline had been having difficulties economically even before the pandemic and that aid should really be qualified very first at healthful firms.
Soon after that, Norwegian introduced it had to lay off yet another 1,600 workers and floor 15 of the 21 planes it experienced been flying with.
In May, the provider obtained $354 million in financial loan ensures from the governing administration as section of its restructuring program. But the 2nd contact for aid was turned down on Nov. 9.