Norwegian Air files for Oslo ‘reconstruction’

Struggling Norwegian Air today filed for a form of bankruptcy protection in Norway.

The move follows the budget airline last month placing its Irish-based subsidiary Norwegian Air International into a similar ‘examinership’ protection from creditors in Ireland.

The Covid-battered carrier’s filing for reconstruction under Norwegian law will coexist with the Irish examinership process.

The airline will now enter into a supplementary Norwegian reconstruction process “which enhances the outcome of the Irish process with a view to re-size its balance sheet”.

The former low cost long-haul airline had been the third largest at Gatwick with an extensive transatlantic route network.

But the pandemic’s impact and global travel restrictions have left Norwegian Air with a skeleton fleet operating a clutch of routes in  Norway after the Oslo government rejected a bailout plea.

The airline said: “The processes will not have an impact on the current business.

“The company will continue to operate its route network. Both its bonds and shares will continue to trade as normal on the Oslo Stock Exchange.”

Chief executive 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.”

He added: “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.”

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