Irish Court Give Struggling Norwegian Air Protection

Dec. 7—STOCKHOLM — Norway-based budget airline Norwegian Air welcomed a decision on Monday by an Irish court to shield its Irish subsidiaries against bankruptcy.

The High Court decision also applies to the Oslo-based carrier's parent company, and gives more time for the debt-redden airline to restructure its debt.

According to the daily Irish Times the airline owes creditors an estimated 5 billion dollars.

Norwegian Air applied in November for protection for subsidiaries Artic Aviation Asset (AAA) and Norwegian Air International (NAI). The former owns and leases aircraft for Norwegian, and the latter is one of Norwegian's airlines, the Norwegian news agency NTB said.

"We are pleased that the Irish court considers Norwegian and our situation suitable for the examinership and reorganization process we have initiated," spokesman Esben Tuman said in an emailed statement to dpa.

"This decision gives us room to navigate towards our goal of reducing debt, adjusting the fleet size and again becoming a company that is attractive to all types of investors," he added.

Last month, the carrier reported a third-quarter net loss of 980 million kroner (108 million dollars), as the coronavirus pandemic caused a sharp drop in demand for air travel.

Revenue slumped by more than 90 per cent year-on-year to 1.28 billion kroner.

The airline is currently operating with a skeleton staff of some 600 employees. The pre-pandemic workforce numbered around 10,000 employees.

___

(c)2020 Deutsche Presse-Agentur GmbH (Hamburg, Germany)

Visit Deutsche Presse-Agentur GmbH (Hamburg, Germany) at www.dpa.de/English.82.0.html

Distributed by Tribune Content Agency, LLC.