The low cost transatlantic airline Norwegian Air, faces a battle for survival this winter after being hit badly by the economic downturn caused by the pandemic.
On Monday, it revealed the country’s government declared that, it will not provide additional financial support for the airline.
The cash-strapped carrier will now ground all but six of its 154-strong fleet, and furlough 1,600 more staff, keeping on just 600 of its 10,000 workers.
Norwegian Air said in August that, it would run out of cash in the first quarter of 2021 unless it could secure fresh funds and has held talks with the government in the hope of winning support.
“That the government has decided to reject the request for funds is disappointing and feels like a punch in the gut for everyone at Norwegian,” Chief Executive, Jacob Schram, said.
The company and the board will turn every stone to get through this situation,’ Schram said, adding the carrier was not out of cash yet.
Asked whether the company was at risk of bankruptcy, Schram said he would not rule out any potential outcomes.
‘But we need ventilator support to get through the winter,’ he added.
Norwegian’s shares closed down 13.2%, extending this year’s price plunge to 98.5%.
In an update after the market closed, Norwegian announced it was furloughing an extra 1,600 staff, leaving 600 people still working at the airline.
The airline will also park 15 of the 21 aircraft it had in operation in recent months.
Source: news agencies
Presented by DNT Tracy Annan, DNT Scandinavia