Norwegian Air has applied to a court in Norway for protection from creditors

Norwegian Air has applied to a court in Norway for protection from creditors

Norwegian air carrier Norwegian Air on Tuesday asked for protection from creditors in Norway after recently taking the same step in Ireland. The third largest low-cost airline in Europe after the ambitious expansion of transatlantic flights has been hit hard by the COVID-19 pandemic, which has crippled global aviation. The company, which is burdened with huge debt after the expansion, is now struggling to survive. On Monday (December 7), an Irish court granted two Irish airlines' subsidiaries protection from creditors. "The additional refurbishment process under Norwegian law will benefit all parties and increase the likelihood of a successful outcome," said Airlines Director Jacob Schram in a statement. "Our goal is to secure jobs in society and contribute to the provision of critical infrastructure and value creation in Norway," he added. After growing rapidly as Norwegian Air became the third largest low-cost airline in Europe and the largest foreign carrier serving New York, the company recorded debts and liabilities of NOK 66.8 billion (EUR 6.28 billion) at the end of September. Airlines and the rest of the world now look forward to the global introduction of COVID-19 vaccines, which could allow air traffic to return to "normal". Norwegian Air unveiled a rescue plan last week that included a fleet split, debt conversion and stock option options at a fixed price of up to NOK 4 billion. Shareholders are scheduled to vote on the plan at an extraordinary general meeting on December 17. Norwegian Air, a pioneer in low-cost long-haul flights, has been in the red since 2017. The company's debt at the end of September was NOK 48.5 billion. Currently, only six of the 140 aircraft fly on Norwegian domestic routes, and only 600 of the previous 10,000 employees still work.