MIAMI – In the last few weeks of the year, Norwegian Air (DY) will have two days in court that could forecast the future of the company.
Having received a bailout from the Norwegian Government in the spring, the airline has been told that no further money will be coming.
December 7 – Ireland
Next week, DY will appear in court in Ireland, having filed for bankruptcy protection late last month. According to The Irish Times, the creditors for the Irish subsidiaries had threatened or have already taken legal action against the airline. The legal action was related to defaulted or late payments on the aircraft used by the Irish subsidiaries.
Interterm protection has already been granted from Ireland during the initial hearing, however, the airline will need to gain further approval on December 7. The protection granted will also affect the Oslo-based parent airline.
If longer term protection is granted by the court, this will give Norwegian the chance to have some breathing room to start planning and implementing the restructure of the airline. In the meantime, DY plans to operate domestic flights within Norway, using six aircraft from its fleet.
December 15 – USA
The second court hearing which will occur is scheduled on December 15 in Illinois, USA. Norwegian Air filed a US$1bn lawsuit against Boeing in the summer, at the same time they cancelled major orders with the manufacturer. The lawsuit is related to the losses incurred due to the grounding of the Boeing 737 MAX as well as issues with the Boeing 787.
Boeing wishes to halt the lawsuit, or preferably, have the case dismissed. The problems DY experienced stretch back to the Boeing 787 aircraft, where the aircraft was heavily impacted by engine issues. The Trent 1000 engines were problematic from the onset, including an incident in Rome, Italy, which required rework and replacement of the affected engines.
Norwegian Air had to take the Boeing 787s out of service in order to conduct repairs and replace engines, which affected flight schedules and offerings at the airline.
Featured image: Norwegian Boeing 787-9 Dreamliner G-CKWA at London Gatwick Airport. Photo: Daniel Sander.
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