MIAMI – Norwegian Air Shuttle (NZ) has today emerged from bankruptcy protection with a smaller fleet and its debt almost completely wiped out, though the budget carrier still faces tougher competition and continued unknowns stemming from the ongoing pandemic.
On April 12, 2021, DY announced it had obtained an Oslo Court approval for its reconstruction plan. having already secured approval by an Irish Court, the Oslo Court decision marked a milestone in the actions taken by the airline group to land again on financial safe grounds and allows it to prepare the process of raising new capital.
Reconstruction Plan Approved
The carrier gained the confidence of its creditors in April after a reconciliation process that ended on the 9th. Jacob Schram, DY CEO, at the time, commented on the decision by stating, “We are very pleased with this important positive decision by the court. Once we have passed these two biggest legal milestones we can look forward to continuing the work of raising new equity.”
Hee also expressed his satisfaction and said to be proud of the achievements reached by DY during this period and praised his colleagues “that have shown such unwavering commitment and determination for us to succeed.”
For the fiscal year 2020, DY presented a heavy loss of US$ 1.91bn mostly due to the COVID-19 global crisis. Specifically, the carrier lost 92% of its passengers (-540,000), Available Seats per Kilometer (ASK) decreased by 96% and Revenue Passenger per Kilometer (RPK) dropped 97%. The load factor also went down 32,5% compared to 2019.
Norwegian cancelled additional aircraft orders worth 85 billion kroner, taking the airline’s total debt down to 16-20 billion kroner.
As for the DY employees at long-haul bases in the US and the UK who were told their jobs would be terminated as of January 15, 2021, after today’s good news, there was no word on whether DY will recall over 1,000 of its employees based at London Gatwick (LGW).
Featured image: Norwegian Boeing 787-9 Dreamliner SE-RXZ. Photo: Luca Flores/Airways