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As part of its restructuring process, Norwegian Airlines will switch from long haul operation to short haul.
The airline is taking this move trying to overcome the damaging pandemic’s effect and pay back its debts.
“Our short haul network has always been the backbone of Norwegian and will form the basis of a future resilient business model,” said Jacob Schram, CEO of Norwegian.
Norwegian plans to fly on domestic routes in Norway, across the Nordics, and to the main European destinations with just 50 narrow body aircraft in operation in 2021. In 2022, it will increase this number to 70 aircraft. Another target is to lower its debt to NOK 20 billion and raise NOK 4 – 5 billion in new capital through such activities as a rights issue to current shareholders, a hybrid instrument, and private placement. The examinership under the Irish law and supplementary Norwegian reconstruction will continue uninterruptedly. The plan outlined today is pending approval by the Examiner and Reconstructor, creditors’ support, and a court’s approval.
“I am pleased to present a robust business plan today, which will provide a new start for the company. By focusing our operation on a short haul network, we aim to attract existing and new investors, serve our customers and support the wider infrastructure and travel industry in Norway and across the Nordics and Europe,” commented Jacob Schram.
The airline will be forced to cut its staff in the UK, France, Italy, Spain, and the US.