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Business & Finance

Norwegian Air says restructuring progressing as planned

  • The budget airline was late last year given protection from bankruptcy in both Norway and Ireland, where most of its assets are registered, and is aiming to emerge from the process with fewer aircraft and less debt.
Published February 26, 2021

OSLO: Norwegian Air said on Friday its examinership process in Ireland and reconstruction process in Norway were progressing as planned and were expected to end during the second quarter.

It booked an impairment loss of 12.8 billion Norwegian crowns ($1.50 billion) related to owned and leased aircraft as well as pre-delivery payments on terminated aircraft orders in the quarter, the company said in its earnings report.

The budget airline was late last year given protection from bankruptcy in both Norway and Ireland, where most of its assets are registered, and is aiming to emerge from the process with fewer aircraft and less debt.

Norwegian, which is currently negotiating terms with lessors with the aim of cutting its fleet to 53 aircraft from the 140 it had before entering the parallel examinership and reconstruction processes, said its fleet of aircraft had shrunk to 131 at the end of 2020.

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