Norwegian begins ‘reconstruction’ process in Norway

Norwegian 787 landing at Cardiff Airport (Image: Nick Harding/TransportMedia UK)
Norwegian 787 landing at Cardiff Airport (Image: Nick Harding/TransportMedia UK)

Troubled Scandinavian budget airline Norwegian Air Shuttle (DY/NAX) (Norwegian.com) has begun a supplementary reconstruction process under Norwegian law in an effort to prevent the company collapsing.

The move comes shortly after the airline’s Irish subsidiary Norwegian Air International (D8/IBK) recently claimed protection from creditors under the Irish examinership rules.

Norwegian CEO, Jacob Schram said: “A supplementary reconstruction process under Norwegian law will be to the benefit of all parties and will increase the likelihood of a successful result. Our aim is to secure jobs in the company and to contribute to securing critical infrastructure and value creation in Norway,”

The airline has to focus on reducing its overall debt after the Norwegian government refused to step in and help the airline with further loan guarantees.

It plans to start reducing the size of its fleet which contains modern Boeing 737-800, Boeing 737 Max 8 and Boeing 787 Dreamliner aircraft.

The goal is to make the airline more attractive to investors as it prepares for the post-covid airline market.

Schram added: “We will be ready to meet the competition for customers after the COVID-19 pandemic,”

In addition to Dublin based Norwegian Air International, Norwegian Air Shuttle also has a UK subsidiary based at Gatwick, Norwegian Air UK (DI/NRS).

About Nick Harding 1417 Articles
Nick is the senior reporter and editor at UK Aviation News as well as working freelance elsewhere. He has his finger firmly on the pulse on Aviation, not only in the UK but worldwide. Nick has been asked to speak in a professional capacity on LBC, Heart and other broadcast networks.