Norwegian: more units bankrupt, more aircraft remarketed

Norwegian axes MAX, writes off Boeing advance; rivals jostle

Norwegian, Airbus agree terms to scrap 88 deliveries

Norwegian (DY, Oslo Gardermoen) has agreed with Airbus (AIB, Toulouse Blagnac) on the terms of a consent order to cancel a deal to buy 88 aircraft, it was revealed during the carrier’s ongoing bankruptcy protection and restructuring process at the Irish High Court.

Under these terms, the manufacturer will keep the pre-payments Norwegian has made, and the embattled airline will pay it a further EUR700,000 euros (USD850,000), the Irish Times reported.

The aircraft that Norwegian has on order at Airbus include fifty-eight A320-200Ns and thirty long-range A321-200NX(LR)s, according to the ch-aviation fleets advanced module. As previously reported, the airline has axed its long-haul business to focus on Nordic and European routes.

The jets were signed up for in a deal signed in 2012, for Airbus to deliver a total of 100 of them, but the agreement has been revised several times since then so that the company currently has 88 narrowbodies on the manufacturer’s books. Most recently, Norwegian’s asset-owning subsidiary Arctic Aviation Assets, which is also part of...

Judge extends Norwegian protection, two more units bankrupt

Norwegian’s Norway-based subsidiaries for pilots and cabin crew have asked a court for bankruptcy protection, the carrier revealed in a statement on February 23. They have applied for similar restructuring as their parent company has in Norway and Ireland, where most of its assets are registered.

Norwegian Pilot Services Norway and Norwegian Cabin Services Norway, both of which the parent wholly owns, sought protection at the Asker and Bærum District Court in Sandviker, about ten kilometres west of Oslo.

There are 520 pilots and 850 cabin crew in the two companies, and Norwegian stressed that the news does not affect their terms of employment, salaries, and other conditions. Nor does it affect the layoffs the companies have made until now. The operation of the airline will also continue, as usual, it said.

“The goal of the reorganisation process is to emerge from the crisis as a stronger company with reduced debt. The boards of the two subsidiaries have seen it as expedient that they have the same protection as the parent company,” Norwegian CEO Jacob Schram...

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