Norwegian Air ending long-haul flights, amid COVID-19 struggles
Written by Luck on January 14, 2021
COPENHAGEN, Denmark — Low-cost service Norwegian Air Shuttle mentioned Thursday it is going to concentrate on European locations and shut its long-haul operations because it struggles with the fallout of the coronavirus pandemic and debt restructuring.
The airline mentioned it is going to “concentrate on its core Nordics enterprise, working a European brief haul community with slim physique plane. Below these circumstances a long-haul operation is just not viable for Norwegian and these operations will subsequently not proceed.”
The plan impacts its flights to the USA and means it is going to reduce its fleet from 140 plane to about 50.
Norwegian additionally needs to cut back its complete debt to round $2.36 billion, and plans to boost $473 million-$590 million in new capital, together with via a rights difficulty and a non-public placement of shares. The plan have to be accredited by an Irish chapter court docket.
Like different airways, its fleet is now largely grounded because the pandemic has brought about a near-total halt to world journey.
In November, Norwegian mentioned it was looking for restructuring and chapter safety in Eire, the place its fleet is held, saying it was within the curiosity of its stakeholders.
Earlier that month, the Oslo-based firm mentioned it was dealing with a “very unsure” future after the Norwegian authorities turned down its request for extra monetary assist. The federal government mentioned that the airline had been struggling financially even earlier than the pandemic and that assist needs to be focused first at wholesome companies.
After that, Norwegian introduced it needed to lay off one other 1,600 employees and floor 15 of the 21 planes it had been flying with.
In Could, the service bought $354 million in mortgage ensures from the federal government as a part of its restructuring plan. However the second name for assist was turned down on Nov. 9.
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