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“The purpose of the process is to reduce debt, rightsize the fleet and secure new capital,” Norwegian Air stated. The course of is predicted to take as much as 5 months, it added.
“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,” CEO Jacob Schram stated. “Our aim is to find solutions with our stakeholders that will allow us to emerge as a financially stronger and secure airline.”
Norwegian Air was based in 1993 and started a speedy enlargement almost a decade in the past, in search of to use the enterprise mannequin pioneered by Ryanair in Europe and Southwest within the United States to transatlantic flights. But the aggressive technique left it with large money owed, and little room to maneuver when issues went fallacious.
Norwegian Air stated on Wednesday that it’s going to proceed to function its route community, which has been severely restricted on account of the coronavirus, and its shares will commerce as regular on the Oslo Stock Exchange. The inventory has misplaced greater than 98% of its worth this yr.
The airline carried simply 1 million passengers within the third quarter, in comparison with 10.5 million throughout the identical interval final yr. Its quarterly working loss amounted to 2.eight billion Krone ($310 million), whereas money and money equivalents had dwindled to simply 3.four billion Krone ($376 million) on the finish of September.
— Charles Riley contributed to this report.
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