Norwegian Air Declared The Bankruptcy Of Its Two Subsidiaries

Norwegian Air Declared The Bankruptcy Of Its Two Subsidiaries

Norwegian airline Norwegian Air declared the bankruptcy of its two subsidiaries in Ireland. The aim of this step is to protect itself from creditors long enough to find a solution for its financial restructuring. "Seeking protection in the reorganization under Irish law is a decision we have taken to secure the future of Norwegian Air," said Jacob Schram, head of Europe's third-largest low-cost airline, in a statement. "Our goal is to find a solution with stakeholders that will allow us to emerge from the crisis as a financially stronger and safer airline," he added. Norwegian Air, like its rivals, has been hit hard by travel restrictions following the outbreak of a new coronavirus pandemic. However, the company had been struggling with debt for several years before the so-called corona crisis in connection with its ambitious program of expansion of transatlantic low-cost flights. However, in the third quarter, only 25 of its 140 aircraft were operating for the pandemic. The Norwegian government, which provided guarantees to the airlines at the beginning of the year, denied them further financial assistance from taxpayers' money this month, citing the risks.