Norwegian Air Shuttle ASA will give up the low-cost, long-haul business that made it a household name, returning to its roots operating shorter European flights under a plan to exit Irish insolvency.
The restructured airline would serve the Nordics and European destinations with about 50 narrow-body aircraft in 2021, rising to 70 planes next year, Norwegian Air said Thursday in a statement. It seeks to raise as much as 5 billion kroner ($590 million) in new capital through a rights issue, a private placement and a hybrid instrument.
The carrier sought creditor protection in November and secured court approval last month to attempt a restructuring under Irish examinership. Norwegian Air, which was already struggling before the pandemic, is part of a growing list of more than 40 airlines pushed into insolvency since the Covid-19 crisis upended demand for air travel last year.
