The troubled airline makes another legal move in an attempt to safeguard is future
In a bid to ensure its survival, budget carrier Norwegian Air Shuttle has entered into a supplementary “reconstruction process” in its home country of Norway.
The move comes after the firm was made subject to an examinership process in Ireland – where many of its aircraft are registered – on December 7.
Jacob Schram, Norwegian CEO, said the initiation of this procedure “will be to the benefit of all parties and will increase the likelihood of a successful result.”
“We will now concentrate on working towards our goal of reducing company debt, reducing the size of our aircraft fleet, and ensuring that we are a company that investors will find attractive. We will be ready to meet the competition for customers after the COVID-19 pandemic,” he added.
In recent months, Hungarian low-cost carrier Wizz Air has ramped up its service provision in Norway, in an apparent bid to threaten its rival through a fares war. For example, a return flight from Oslo/Gardermoen to Tromso on December 16 costs around £75 on Norwegian but only £58 on Wizz for an itinerary that is almost exactly the same.
Both the Irish examinership and Norwegian reconstruction processes are not expected to impact the operations of the business. The firm will continue to fly it route network and both bonds and shares will continue to trade as normal on the Oslo Stock Exchange.
The carrier’s loyalty programme, Norwegian Reward, will also carry on as normal honouring and earing points for its members.