November 19 British “Guardian” report 18th under the impact of COVID-19 pandemic, the budget airline Norwegian Airlines has filed for bankruptcy protection in Ireland.
The troubled airline has asked the Irish court to conduct a review process. This can protect its assets while the company strives to reduce debt levels and find new funds for restructuring, which is expected to take up to 5 months.
During this period, Norwegian Airways will continue to fly flights reduced due to coronavirus pandemic, and its shares will still be traded on the Oslo Stock Exchange. Norwegian Airlines stated that it chose to file for bankruptcy protection in Ireland because its fleet was trapped there.
Just a week before Norwegian Airlines filed for bankruptcy protection, the Norwegian government refused to provide the airline with further financial assistance. Norwegian Air said that this move makes it face a “very uncertain future.”
In the spring of 2020, the Norwegian government provided assistance to the airline with strict conditions after coronavirus pandemic caused many aircraft to be grounded around the world. However, Norwegian Air is calling for more financial support because the pandemic continues and the blockade of many markets has slowed the expected recovery of the aviation industry.
Norwegian Airways CEO Jacob Schram stated that the decision to file for bankruptcy protection was to “ensure Norwegian Air’s future development for the benefit of our employees, customers and investors.” Schram said that the company hopes to work with shareholders to find solutions to economic difficulties and intends to keep as many jobs as possible.
The company currently only operates 6 aircraft and only operates domestic routes in Norway in winter. Before the COVID-19 pandemic, Norwegian Air operated more than 100 aircraft at several European bases, including London Gatwick Airport.