LONDON – Norwegian Air (DY), whose aircraft assets are held in Ireland, has chosen the Irish Examinership process. DY has taken this decision in the interest of its stakeholders.
According to the airline, the purpose of the process is to reduce debt, rightsize its fleet, and secure new capital. This also comes amid the ungrounding of the Boeing 737 MAX by the US FAA. While DY has canceled orders of the type, it is still a customer, having 18 of the aforementioned aircraft in its fleet.
This reorganization process protects the assets of the DY group while allowing the company to focus on rightsizing the group. The process is estimated to take up to five months.
The Process of Examinership
The company will continue to operate its route network and trade as normal on the Oslo Stock Exchange. DY Reward will also continue as normal, honoring and earning CashPoints for its members. It is important to note that safeguarding as many jobs as possible while rightsizing its asset base will continue to be a top priority for the management team throughout the process.
The process of examinership in Ireland allows financially sustainable businesses to address elements of the business that require restructuring with the aim of protecting jobs and preserving the core values of the business. This protection, through a court-appointed examiner, ultimately allows a company to secure new capital and implement a legally binding scheme for the settlement of debts.
According to the carrier’s current cash position and projections going forward, DY believes it has sufficient liquidity to go through the above-mentioned process.
Statement from Norwegian Air
Norwegian Air’s CEO Jacob Schram said, “Seeking protection to reorganize under Irish law is a decision that we have taken to secure the future of DY for the benefit of our employees, customers, and investors. Our aim is to find solutions with our stakeholders that will allow us to emerge as a financially stronger and secure airline.”
Schram aslo said, “Our intent is clear. We will emerge from this process as a more financially secure and competitive airline, with a new financial structure, a rightsized fleet and improved customer offering.”
The group’s aviation asset platform is held by companies based in Dublin, Ireland. Arctic Aviation Assets DAC is the parent company of these companies, and its business area handles aircraft financing and ownership. Arctic Aviation Assets DAC is a wholly-owned subsidiary of DY.
Featured image: Photo: Andrea Ongaro