COPENHAGEN, Denmark (AP) — Low-price carrier Norwegian Air Shuttle explained Thursday it will emphasis on European destinations and shut its long-haul operations as it struggles with the fallout of the coronavirus pandemic and financial debt restructuring.
The airline explained it will “emphasis on its core Nordics company, functioning a European small haul network with slender entire body plane. Less than these circumstances a long-haul operation is not practical for Norwegian and these operations will for that reason not proceed.”
The program impacts its flights to the U.S. and usually means it will minimize its fleet from 140 aircraft to about 50.
Norwegian also needs to minimize its total personal debt to close to $2.36 billion and ideas to increase $473 million to $590 million in new funds, together with as a result of a legal rights situation and a personal placement of shares. The program need to be authorised by an Irish bankruptcy court docket.
Like other airlines, its fleet is now largely grounded as the pandemic has induced a in the vicinity of-complete halt to world vacation.
In November, Norwegian said it was trying to find restructuring and personal bankruptcy safety in Eire, where by its fleet is held, declaring it was in the desire of its stakeholders.
Earlier that thirty day period, the Oslo-centered firm explained it was experiencing a “pretty unsure” foreseeable future just after the Norwegian govt turned down its request for added economic help. The federal government explained that the airline experienced been having difficulties fiscally even just before the pandemic and that assist need to be qualified first at healthful firms.
Just after that, Norwegian declared it experienced to lay off an additional 1,600 staff members and ground 15 of the 21 planes it had been traveling with.
In May possibly, the carrier bought $354 million in personal loan assures from the government as portion of its restructuring approach. But the second get in touch with for aid was turned down on Nov. 9.