Norwegian Air Shuttle said it filed for a reconstruction process under Norwegian law, a day after an Irish court ruled it could begin a 100-day restructuring process under the country’s equivalent of bankruptcy protection.
Norwegian Air Shuttle has obtained creditor protection following an Irish court hearing, the latest step in a turbulent period for the debt-ridden long-haul LCC.
Troubled long-haul LCC Norwegian Air Shuttle will seek a five-month protection period for restructuring at a Dec. 7 court hearing as part of the examinership proceedings it initiated in November.
Norwegian Air Shuttle plans to further cut capacity, leaving only six aircraft from its 140-strong fleet in operation, citing travel restrictions and Norway’s decision not to provide any more financial aid to the low-cost long-haul carrier.
The Norwegian government has announced plans to further extend its loan-guarantee scheme for airlines to the end of 2020, as the COVID-19 crisis persists.
Norwegian Air Shuttle has accused Boeing of “gross negligence” and “clumsy production” in a lawsuit in which the LCC is claiming damages to compensate for the grounding of the 737 MAX and 787 engine troubles, Norwegian newspaper Dagens Næringsliv has reported.
ULCC Norwegian has issued notice to Boeing of its intention to cancel orders for 92 737 MAX and five 787s, together with the GoldCare service agreements accompanying all of the aircraft.
An increase in consumer interest in flights to leisure resorts has encouraged ULCC Norwegian to restore no fewer than 76 routes to its network next month and more than double the number of aircraft in service.
LCC Norwegian Air Shuttle (NAS) may require a further injection of funds before the end of the year, Bernstein Research believes, after the carrier posted its 2020 first quarter (Q1) results.
Norwegian Air Shuttle has won shareholder approval to convert a large slab of debt to equity, a result that makes the ULCC eligible to receive more financial aid from the Norwegian government.
Norwegian Air Shuttle said it expects to remain grounded until April 2021 as it set out a debt-for-equity conversion plan to avoid running out of cash by mid-May.
Norwegian Air Shuttle said its pilot and cabin crew subsidiaries in Sweden and Denmark were filing for bankruptcy, in the latest casualty of the COVID-19 crisis.
LCC Norwegian Air Shuttle is calling a May 4 extraordinary general meeting (EGM) to seek shareholder approval for plans that would convert debt to equity to meet the requirements of a Norwegian state guarantee program and boost its balance sheet.
Norwegian is taking its most dramatic action yet in its effort to deal with the latest U.S. imposed travel restrictions and the fall in demand for transatlantic services.
