Subsidiaries related are Norwegian Air International, which is in charge of some part of European flights for the company ; and Arctic Aviation Assets DAC, which specialises on rental of A320.
Proceadure similar to US Chapter 11
It is a difficult period for Norwegian, which has suffered heavy losses, due to the crisis of international air travel, as a result of Covid-2019. Norwegian governement decided not to give any further financial support to the group, and consequently, the company decided at November 18th to apply for bankruptcy protection under Irish Examinership process, which is similar to Chapter 11 of US rules about bankruptcy.
In normal time, Norwegian Air International operates with 24 Boeing 737-800, with departures from Denmark, Finland, UK and Spain. Arctic Aviation Assets DAC (AAA)’s activity is the location of Airbus 320 since 2016. Both subsidiaries are located in South Ireland.
“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. Our aim is to find solutions with our stakeholders that will allow us to emerge as a financially stronger and secure airline.” Explained Jacob Schram, CEO of Norwegian in company’s communicate.
Norwegian will be like a ghost for the winter
In normal time, Norwegian employed 10000 persons in 2019. For this winter, only 600 persons, 6 Boeing 737-800 and twelve road would be used. In March 2020, Norwegian obtained a loan of 280 millions of euros (about 3 billions of Norway krone) from Norway government and company’s $ 4.3 billions debt was converted into shares. A financial help which was not sufficient for the low-cost company. And recently, Norway governement decided to withhold further support for the company.