50 SKY SHADES - World aviation news

Norwegian initiates a reorganization plan with its daughter companies

Download: Printable PDF Date: 18 Nov 2020 12:44 category:
Publisher:
Norwegian initiates a reorganization plan with its daughter companies - Airlines publisher
Krista Kuznecova
Country: Norway Aircraft: Airplanes Airline: Norwegian Shuttle

Following the government of Norway’s decision to withhold further support from the airline, and the ongoing COVID-19 pandemic, Norwegian Air Shuttle ASA has decided to initiate an examinership process in Ireland relating to its subsidiary Norwegian Air International Limited (NAI), its wholly-owned asset company Arctic Aviation Assets DAC (AAA) and some of AAA’s subsidiaries; Norwegian will also enter in and get protection of the Irish Examinership process as a related party.

Norwegian has chosen an Irish process since its aircraft assets are held in Ireland. Norwegian has taken this decision in the interest of its stakeholders. 

The purpose of the process is to reduce debt, rightsize the fleet, and secure new capital. This reorganization process protects the assets of the Norwegian group while allowing the company to focus on the rightsizing of the group. The process is estimated to take up to five months. 

Norwegian will continue to operate its route network (currently limited due to the COVID situation) and trade as normal on the Oslo Stock Exchange (Oslo Børs). Norwegian Reward will continue as normal honoring and earning CashPoints for its members. Safeguarding as many jobs as possible, while rightsizing its asset base, will continue to be a top priority for the management team throughout this process. 

Jacob Schram, Norwegian CEO, said: “Seeking protection to reorganize under Irish law is a decision that we have taken to secure the future of Norwegian 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.”

The process of examinership in Ireland allows financially sustainable businesses to address elements of the business which require restructuring with the aim of protecting jobs and preserving the core value 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.

“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,” said Schram.

Based on Norwegian’s current cash position and the projections going forward, the company believes it has sufficient liquidity to go through the above-mentioned process.



Loading comments for Norwegian initiates a reorganization plan with its daughter companies...


Recommended

easyJet sees growing confidence for travel following ease of UK restrictions

Following the news that UK-wide restrictions over the Christmas period would be eased, searches for flights and holidays increased by over 200% week-on-week. The airline also saw a significant rise in...

Industry First 4-axis autopilot Flight Test for Airbus AS350 and H125 helicopters

Thales and StandardAero announced the successful first flight test of a revolutionary compact autopilot system that will bring Airbus AS350 and H125 helicopters into a new era of performance and safet...

Cirrus Aircraft Vision Jet will be joining Luxaviation UK managed fleet

December 11 2020 will be special, as Cirrus Aircraft Vision Jet will be joining Luxaviation UK managed fleet. This single-engine jet, based in Milan, will be the first Luxaviation...

The Concept of Operations for Urban Air Mobility released - EmbraerX & Airservices

EmbraerX and Airservices have developed a new concept of operations (CONOPS) for the air taxi market, also known as urban air mobility. Going forward, Eve Urban Air Mobility Solutions, the n...