COPENHAGEN, Denmark (AP) — Minimal-price carrier Norwegian Air Shuttle mentioned Thursday it will emphasis on European places and shut its very long-haul functions as it struggles with the fallout of the coronavirus pandemic and debt restructuring.
The airline said it will “concentration on its main Nordics small business, working a European quick haul network with slim human body plane. Below these instances a lengthy-haul procedure is not practical for Norwegian and these functions will hence not proceed.”
The plan impacts its flights to the U.S. and implies it will slash its fleet from 140 aircraft to about 50.
Norwegian also wishes to lessen its overall debt to close to $2.36 billion and programs to elevate $473 million to $590 million in new money, together with through a rights concern and a personal placement of shares. The system must be authorised by an Irish individual bankruptcy court docket.
Like other airways, its fleet is now largely grounded as the pandemic has brought about a in the vicinity of-total halt to world-wide vacation.
In November, Norwegian said it was searching for restructuring and bankruptcy safety in Eire, wherever its fleet is held, expressing it was in the fascination of its stakeholders.
Previously that thirty day period, the Oslo-primarily based company said it was facing a “incredibly unsure” long run soon after the Norwegian federal government turned down its ask for for additional economic help. The govt reported that the airline had been struggling monetarily even just before the pandemic and that support must be specific very first at healthful enterprises.
Just after that, Norwegian announced it experienced to lay off one more 1,600 employees and floor 15 of the 21 planes it experienced been traveling with.
In May, the carrier bought $354 million in mortgage guarantees from the federal government as component of its restructuring system. But the next simply call for help was turned down on Nov. 9.