Norwegian files for bankruptcy protection
Norwegian Air Shuttle is filing for protection from its creditors under the Irish equivalent of Chapter 11 in the US.
Two of the low-cost carrier’s main subsidiaries will file for ‘examinership’ in Ireland, which Norwegian says will buy it time to reorganise its debt, cut costs and raise new capital.
"Seeking protection to reorganise 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," said Chief Executive Jacob Schram.
"Our aim is to find solutions with our stakeholders that will allow us to emerge as a financially stronger and secure airline."
The examinership process in Ireland give companies 100 days of protection from creditors. Norwegian said it will continue to operate its network, which has been scaled back to a handful of domestic routes, in the meantime.
The Norwegian government last week refused a second bailout for the airline, saying this wouldn’t be a sound use of taxpayers’ money.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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