Norwegian files for bankruptcy protection

Photo: Norwegian Air

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The pandemic has not been kind to Norwegian Air. Trying to reduce its debt, it has entered into the process called “examinership” after the Norwegian government refused to provide further aid to the airline. The reorganization process will be reviewed in the Irish court because the major part of its fleet is held in Ireland, and it is “in the interests of its stakeholders”.

The Norwegian Air’s employees gathered in Oslo on November 18th to protest against the government’s actions that are not directed to support the airline in the face of an “uncertain future.”

The troubled airline will be given 100 days of protection from creditors to develop a legally binding rescue plan and preserve its core business value. The airline will also be working on securing new capital during the upcoming five months.

Jacob Schram, the CEO of Norwegian, said: “Seeking protection to reorganize under Irish law is a decision that we have taken to secure the future of Norwegian for the benefit of our employees, customers and investors. Our aim is to find solutions with our stakeholders that will allow us to emerge as a financially stronger and secure airline.”

Norwegian will continue operating its domestic routes during this winter on six of its aircraft. Before the pandemic, Norwegian was exploiting more than a hundred airplanes. The airline will also continue to trade on the Oslo Stock Exchange.

Source: Norwegian Air