Norwegian Air was given additional creditor protection by a court in Norway on Tuesday on top of that granted by an Irish judge on Monday, allowing the cash-strapped airline’s restructuring efforts to continue.
See also: Norwegian Air will sell planes and shares to survive.
“A supplementary reconstruction process under Norwegian law will benefit all parties and increase the likelihood of a successful outcome,” said the airline’s chief executive officer, Jacob Schram.
See also: Alitalia has cost taxpayers and creditors $8 billion since 2017.
The company, which helped transform transatlantic travel by expanding the business model of European low-cost airlines to longer-haul destinations, has been forced to ground all but six of its 140 aircraft in the midst of the COVID-19 pandemic, Reuters reported.
If it succeeds in convincing creditors and owners of its future potential, Norwegian could, with the help of the courts, emerge as a smaller but more efficient airline with fewer aircraft, less debt and more capital.
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