11 MAY 2020
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Shareholders of Norwegian Air Shuttle have voted in favour of its plan to convert debt to equity and relaunch operations with a smaller fleet and fewer destinations from 2021.
Always known as Norwegian and traded on the Oslo Stock Exchange the group includes Irish-based Norwegian Air International, Norwegian Air UK, Norwegian Air Sweden and Norway-based Norwegian Long Haul. Each airline has its own AOC but shares branding and commercial functions with the rest of the Group.
In a 4 May disclosure to the Oslo Stock Exchange, Norwegian says that 95% of shareholders voted in favour of all proposed resolutions having confirmed increased support from lessors for a minimum conversion to equity of $730m – higher than the $550m it announced on 1 May.
Under the airline’s restructuring plan it will remain in a “hibernation phase” – in which 95% of its fleet is grounded and just seven aircraft are operating state-subsidised domestic operations only – until the second quarter of 2021, when a gradual ramp-up will begin.
It does not anticipate “normal operations” resuming until 2022, and the airline that emerges then will operate fewer aircraft and a “rightsized” network focused on the most profitable routes. Whether it remains short-haul or long-haul, or a mixture remains to be seen.
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