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“Today, the board unveiled the company’s new business plan based on a simpler structure and route network in Europe without long-haul flights,” the announcement said.
During a press conference, the company added that the measure will affect more than 2,000 jobs.
Norwegian Air Shuttle, which has become the third largest low-cost airline in Europe, has revolutionized the transatlantic travel industry in recent years to offer low-cost long-haul flights.
However, the company faced recurring losses, mainly due to technical problems.
The company’s Boeing 777 Dreamliner ran into trouble with Rolls-Royce engines, and then the use of the Boeing 737 MAX was banned worldwide after two fatal accidents.
At the same time, the company’s ambitious development program increased its indebtedness, which amounted to 66.8 billion at the end of September. crowns (6.5 billion euros).
Since 2017, the company’s unprofitable problems have been exacerbated by the COVID-19 pandemic, which brought the global aviation sector to a standstill last year.
Currently, only 6 of the company’s aircraft are flying, although before the pandemic, the company’s fleet consisted of 140 aircraft.
Meanwhile, the number of workers has fallen from 10,000 before the crisis to 600 today.
The company has filed for bankruptcy protection in Ireland and Norway and is currently preparing a financial restructuring plan.
Norwegian Air Shuttle said Thursday it wanted to reduce its debt to about $ 20 billion. crowns, to attract 4 to 5 billion. crowns in the capital and henceforth retain a fleet of 50 aircraft.
However, the fate of the company will depend on the outcome of the negotiations with the creditors.
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