Bernie Baldwin

Following a tough 2020, Norwegian took the decision in early 2021 to simplify its business and operate only a short-haul network.

Having ended long-haul services with its Boeing 787s, which had been grounded since March 2020, the airline has strategically refocused on serving its core Nordic and European business. The new plan envisages operating a fleet of around 50 narrowbody aircraft this year with growth back to around 70 in 2022.

According to carrier’s chief executive officer Jacob Schram, the airline now aims “to rebuild a strong, profitable Norwegian so that we can safeguard as many jobs as possible. Our focus will be on developing our short-haul network as we emerge from the reorganisation process”.

The airline filed its financial reconstruction plan in early March 2021, with a target of initiating a capital raise in April and completion happening in May. Schram reported at the time that the Examiner in Ireland and the Reconstructor in Norway both believe that the plan “is in the interest of the creditors and shareholders of the company”.

Indeed, in late March, the Examinership was approved in the Irish High Court, at which point the reconstruction plan was sent for voting in Norway. Approval by the Oslo County Court was announced on 12th April and the company began the process of raising new capital.

The schedule for the airline’s reconstruction is expected to complete in mid-May, giving Norwegian the solid platform needed to rebuild successfully.