Norwegian airline Flyr files for bankruptcy
Norwegian airline Flyr said on Tuesday it would file for bankruptcy after failing to raise the cash it needed for its operations.
“There is no longer a realistic opportunity to achieve a solution for the short-term liquidity situation,” the company said in a statement, adding the board’s decision was unanimous.
“All departures and ticket sales have as a consequence been cancelled.”
Flyr, which launched operations in mid-2021 to serve domestic destinations in Norway as well as in Europe, said on Monday weak financial markets and uncertainty over demand for air travel had prevented it from raising more cash.
→ Norwegian announces 23 new routes from Oslo and Copenhagen
The company said on Monday it had tried and failed in recent days to secure 330 million Norwegian crowns ($33 million) of funding, triggering a 78% drop in its share price, Reuters reported.
The company, whose rivals include Norwegian Air and Scandinavian carrier SAS, said on Oct. 4 it would make heavy spending cuts to preserve cash during the winter, including furloughs, and put non-profitable routes on hold.
Flyr is the latest Nordic carrier to hit financial difficulties in recent years as the pandemic, soaring energy costs and falling consumer confidence dented demand.
SAS is itself undergoing a reorganisation under U.S. Chapter 11 bankruptcy protection proceedings, while Norwegian Air in 2021 underwent restructuring supervised by an Irish court, emerging as a slimmed-down regional airline.
Related Topics
Singapore Airlines to Invest Over US$1.56 Billion in Next-Generation Long-Haul Cabins and Global Passenger Experience Overhaul
IndiGo in Talks to Acquire Up to 150 Regional Jets from Embraer to Boost Domestic Network
Condor Launches Frankfurt–Bangkok Flights via Abu Dhabi in Codeshare with Etihad Airways
Boeing Projects China’s Commercial Fleet Will More Than Double, Surpassing 9,800 Aircraft Over the Next 20 Years
Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.