Norwegian’s reconstruction process in Ireland, called the Examinership, was approved by the judge in the Irish High Court on March 26. Based on this decision, Norwegian will now send the same proposal for voting in Norway. Following this, the company will start the process of raising capital with the goal of a final resolution by the end of May.
The Examiner process in Ireland is a reconstruction involving several of the company’s Irish subsidiaries. The goal of the process, which started on November 18, 2020, is primarily to strengthen the company financially and to rightsize the fleet in order to adapt to future demands.
The verdict from the Irish High Court was reached following meetings with the company’s creditors, whereby a large majority voted in favor of the reconstruction process. A similar voting process will now take place with the creditors in the Norwegian reconstruction during the next 14 days, prior to the final ruling from the Norwegian Court. The Norwegian reconstruction is therefore continuing as planned, and is expected to be completed by mid May.
“This is a demanding and ongoing process, however, the result of the court rulings enforces our beliefs of a positive final outcome. We are looking forward to and are preparing fora post-pandemic world, without travel restrictions and open borders.”Said Schram.
The decision from the Irish High Court will be legally binding following an appeal period of one month and the company will technically still be in the Examinership until the process of capital raise is finalized. Given that the court proceedings continue as planned, Norwegian’s goal is to finalize the capital raise by the end of May 2021.
Norwegian Air International is an Irish semi-ultra budget airline and a fully integrated subsidiary of Norwegian Air Shuttle, using its corporate identity. It operates flights to destinations in Europe and the Middle East from several bases in Denmark, Finland, Spain, and the United Kingdom, and is headquartered at Dublin Airport.
Norwegian Air International aircraft photo gallery:
Following the government of Norway’s decision to withhold further support from the airline, and the ongoing COVID-19 pandemic, Norwegian Air Shuttle ASA has decided to initiate an examinership process in Ireland relating to its subsidiary Norwegian Air International Limited (NAI), its wholly-owned asset company Arctic Aviation Assets DAC (AAA) and some of AAA’s subsidiaries; Norwegian will also enter in and get protection of the Irish Examinership process as a related party.
Norwegian has chosen an Irish process since its aircraft assets are held in Ireland. Norwegian has taken this decision in the interest of its stakeholders.
The purpose of the process is to reduce debt, rightsize the fleet and secure new capital. This reorganisation process protects the assets of the Norwegian group while allowing the company to focus on the rightsizing of the group. The process is estimated to take up to five months.
Norwegian will continue to operate its route network (currently limited due to the Covid situation) and trade as normal on the Oslo Stock Exchange (Oslo Børs). Norwegian Reward will continue as normal honouring and earning CashPoints for its members. Safeguarding as many jobs as possible, while rightsizing its asset base, will continue to be a top priority for the management team throughout this process.
Jacob Schram, Norwegian CEO, said: “Seeking protection to reorganise under Irish law is a decision that we have taken to secure the future of Norwegian for the benefit of our employees, customers and investors. Our aim is to find solutions with our stakeholders that will allow us to emerge as a financially stronger and secure airline.”
The process of examinership in Ireland allows financially sustainable businesses to address elements of the business which require restructuring with the aim of protecting jobs and preserving the core value of the business. This protection, through a court appointed examiner, ultimately allows a company to secure new capital and implement a legally binding scheme for the settlement of debts.
“Our intent is clear. We will emerge from this process as a more financially secure and competitive airline, with a new financial structure, a rightsized fleet and improved customer offering,” said Schram.
Based on Norwegian’s current cash position and the projections going forward, the company believes it has sufficient liquidity to go through the above-mentioned process.
Norwegian has announced it will commence its first-ever route between Europe and Canada this weekend.
From March 31, 2019 Norwegian will commence a new service from Dublin to Hamilton John C. Munro International Airport.
Above Photo: Chris Futcher.
Norwegian’s new route is the airline’s first-ever transatlantic service to Canada and the only direct flights between Ireland and Hamilton in Ontario. This summer, Hamilton will join Norwegian’s existing services to New York and Providence.
Norwegian will operate flights to Hamilton on Monday, Wednesday, Friday and Sunday using a Boeing 737-800 aircraft.
Top Copyright Photo: Norwegian.com (Norwegian Air International) (Ireland) Boeing 737-8Q8 WL EI-FHC (msn 37159) (6000th 737) LGW (Robbie Shaw). Image: 946105.
Norwegian continues its growth in Ireland by announcing its new expanded 2019 summer schedule with 37% more weekly departures to the USA and Canada.
Norwegian currently operates flights from Dublin, Shannon and Cork airports to New York-Stewart International Airport and Providence TF Green Airport on the US East Coast. Flights are operated using brand new Boeing 737 MAX aircraft.
Norwegian’s increased 2019 summer schedule from Ireland has 40 weekly transatlantic departures and is now available to book for travel from March 31, 2019, as follows:
From Dublin
Hamilton-Toronto – The brand-new daily service to Canada commences on March 31, 2019 and will mark the first direct flight between Hamilton and Dublin. The new route provides passengers with greater choice and flexibility for travel to Toronto and nearby Niagara Falls. Fares from €189 one way.
Providence – Norwegian will increase flights to Providence, Rhode Island to a daily service next summer, up from five flights per week. One of America’s oldest cities, Providence provides good access to Boston and other ideal summer destinations in New England such as Nantucket and Martha’s Vineyard. Fares from €129 one way.
Stewart – Consumers will continue to benefit from twice-daily flights on Norwegian’s popular Dublin-New York-Stewart route following the introduction of a daily morning departure in April.
From Shannon
Stewart – Norwegian will increase its summer service to New York Stewart International Airport from three to five flights per week due to strong passenger demand. Fares from €129 one way.
Providence – Business travellers and holidaymakers will continue to benefit from four flights per week to the heart of New England next summer. Fares from €129 one way.
From Cork
Providence – Norwegian will continue its seasonal service to Providence with three flights per week. The airport’s only flights to the US will continue to offer Cork residents a direct transatlantic link during the busier summer season. Fares from €129 one way.
Norwegian also serves the European cities of Oslo, Stockholm, Copenhagen and Helsinki direct from the Irish capital with fares from €33.51 one way.
Copyright Photo (all others by Norwegian): Norwegian.com (Norwegian Air International) (Ireland) Boeing 737-8 MAX 8 EI-FYG (msn 42831) (Maria Zambrano, Spanish philosopher) PMI (Ton Jochems). Image: 942552.
Norwegian Air Norway (Norwegian Air Shuttle) (Oslo) is a subsidiary of Norwegian Air Shuttle.
Norwegian Air Shuttle recently transferred its first aircraft (Norwegian registered LN-DYY, msn 39012) to the Irish registry according to Skyliner Aviation. The Boeing 737-8JP was reregistered on the Irish registry as EI-FHA on February 17. Ireland is part of European Union. Under Ireland, Norwegian registered aircraft will be able to operate on more European routes due to the prevailing bilateral restrictions from Norway to the EU.
In February 2014, Norwegian Air Shuttle’s Irish subsidiary, Norwegian Air International, received its Air Operators Certificate (AOC). The AOC issued in Ireland gives the company future traffic rights to and from the European Union. Norwegian Air International is seeking rights to operate the Boeing 787s to the United States and theoretically replace Norwegian Long Haul.
The Norwegian Long Haul Boeing 787-8 Dreamliners (currently operating on long range routes) are also registered in Ireland. Norwegian Long Haul however has a separate Norwegian AOC with the IATA code of DU.
All aircraft operate under the “Norwegian” brand.
According to News in English (from Norway) the pilots are striking because airline management wants to “cut their pensions, pay and insurance benefits”. According to the report, the pilots are “fighting for a permanent collective bargaining agreement with Norwegian Air’s parent company, Norwegian Air Shuttle.” The union also fears the company will try to replace them with cheaper crews from crewing agencies or possibly declare bankruptcy.
Meanwhile Norwegian Air Norway (Oslo) issued this statement:
Norwegian regrets that it was not possible to reach an agreement in mediation between the subsidiary Norwegian Air Norway (NAN) and the Norwegian Pilot Union (NPU). Norwegian’s goal remains to implement this weekend flights so far as is possible when a limited number of pilots have been on strike in the first round.
Norwegian had before the mediation proposed several completely necessary cost savings to ensure a sustainable business and future jobs. Unfortunately, the NPU / Parathyroid did not comply with these requirements but instead presented a claim that goes in the wrong direction relative to the agreements reached at the previous hearing in 2013. NPU demand the right to control the Norwegiankoncernen, collective agreements with a company they are employed in, and that the Norwegian collective agreement shall also apply outside Norway. Norwegian could not accept the requirement for koncernansenitet for NAN pilots, ie ansenitet in a company they are employed in. In practice, it would have given Scandinavian pilots the opportunity to oust colleagues at the other bases in Europe.
We really regret the uncertainty being created among our passengers. Our goal has always been to avoid a strike and get a solution and peace in the company. Now we will do what we can to take care of the passengers in the best possible way, says Norwegian’s CEO Bjørn Kjos.
The conflict comes for Norwegian Scandinavian subsidiary Norwegian Air Norway (NAN). This means that long routes between Scandinavia / UK and USA / Asia runs as usual. The bases in England, Finland and Spain are also not directly concerned.
Copyright Photo: Antony J. Best/AirlinersGallery.com. Registered in Norway, Boeing 737-86N LN-NOQ (msn 32658) departs from London (Gatwick).
Air France-KLM (Paris and Amsterdam) and Lufthansa (Frankfurt) and other interested parties have petitioned the European Commission on denying the application of Norwegian Air International (Dublin). ALPA (above) has also taken a strong stand against NAI.
The parties issued this open letter to the EC:
To: President of the European Commission Jean-Claude Juncker and First Vice-President Frans Timmermans
Cc: Commissioners Violeta Bulc and Marianne Thyssen
9.3 million jobs in danger!
We request a firm stance of the new European Commission against abuses of European social standards in the field of aviation!
A new airline has been established called “Norwegian Air International” that wants to offer scheduled services from the UK to the US. They have received an Irish license for this and they intend to employ crewmembers from Thailand that are hired through a Singaporean agency.
Competition in aviation is intense and it keeps us sharp. However, through business models like this we risk entering a downward spiral to the social bottom, risking thousands of qualified European jobs. European aviation currently provides 9.3 million jobs and adds 512 billion Euros to European GDP.
Your new Commission has chosen the strengthening of Europe’s competitiveness as its no. 1 priority and wants to give a stronger boost to jobs, growth and investment.
How can the Commission strengthen aviation’s competitiveness if it allows such abuses of European standards?
If we allow Norwegian Air International to start employing Thai crew on the EU-US routes, others will soon follow and jobs will be lost inside the European Union and created elsewhere. In the maritime sector we have already seen this same scenario play out, resulting in the loss of tens of thousands of jobs. It would be foolish to let the same happen to aviation. Therefore we need your support.
We count on you!
The US has temporarily denied Norwegian Air International’s request for a foreign carrier permit. The European Commission should now take a strong stance and prevent Norwegian Air International from abusing European social standards and legislation through employing Thai crew. We need to preserve European jobs instead of outsourcing them to other continents.
If the European Commission is serious about its jobs and growth commitment, we deserve your support. 9.3 million aviation colleagues count on you.
Norwegian Air Shuttle (Oslo) has again called on the U.S. Department of Transportation (DOT) to approve its pending Irish application to operate its Boeing 787s as Norwegian Air International (NAI) (Dublin). The 787s are currently operated by Norwegian subsidiary Norwegian Long Haul although the aircraft are registered in Ireland. The airline issued this statement claiming the DOT has “received strong opposition from those interests seeking to undermine competition, limit consumer choice and maintain the status quo”. Here is the full statement:
Norwegian Air Shuttle CEO Bjørn Kjos, who will address a standing-room only audience on November 20 at the International Aviation Club, will reinforce the benefits Norwegian Air International (NAI) service will bring to competition in the transatlantic market, the traveling public, and the global aviation industry. Kjos will again call on the U.S. Department of Transportation (DOT) to once and for all approve Norwegian’s application for a foreign air carrier permit that will provide American consumers lower fares and greater choice in air travel.
“Norwegian’s vision is ‘Everyone Should Afford to Fly,’ and it is a principle we intend to bring to individuals and families seeking to travel between the United States and Europe,” said Mr. Kjos. “NAI will provide the traveling public with an innovative, low-cost option that offers award-winning service to new and underserved destinations on brand-new Boeing Dreamliner aircraft. DOT approval of NAI’s application is the final barrier preventing American consumers from the choice they so desperately want and deserve.”
Norwegian Air International, which completed its DOT foreign air carrier permit application in February 2014, has received strong opposition from those interests seeking to undermine competition, limit consumer choice and maintain the status quo. Close to 90 percent of transatlantic air traffic is controlled by the three airline mega-alliances that are permitted to operate with immunity from U.S. antitrust laws. As a consequence, airfares have risen significantly without commensurate improvements in service, and “capacity discipline” by the alliances has severely limited growth in the number of available passenger seats while pushing U.S. airline profits to record levels.
“I believe the values of innovation, competition and the rule of law – so highly prized here in the United States – will serve to overcome the opposition NAI has received from entrenched interests,” said Kjos. “I am confident that adherence to international agreements and the law will be the factors upon which DOT ultimately relies to decide this matter. I am equally confident NAI’s application will be approved by DOT, albeit far overdue.”
Norwegian Air International will open a market of new travelers previously unable to afford the high fares currently offered by the legacy carriers, while serving more destinations worldwide. NAI will directly contribute to President Obama’s goal of generating 100 million foreign visitors to the United States by 2021. Norwegian already employs 300 American cabin crewmembers in Fort Lauderdale and New York, and currently is recruiting American pilots at its New York pilot base. Of the 300 cabin crew, for which Norwegian received more than 7,00 applications, the vast majority worked previously for U.S. airlines and chose to join Norwegian for the pay, benefits and team-spirited environment.
NAI meets all statutory and regulatory requirements to serve the United States and is entitled to DOT approval “with minimum procedural delay” under the U.S.—E.U. Air Transport Agreement. Nevertheless, a full nine months after applying to DOT, NAI continues to await a decision that will allow it to begin low-fare transatlantic service to and from the United States.
“The time is well-past due for the Department of Transportation to fulfill its legal responsibility and approve NAI’s application,” said Kjos.
Copyright Photo: Steve Bailey/AirlinersGallery.com. Norwegian Long Haul’s Boeing 787-8 Dreamliner EI-LNG (msn 35314) with Edvard Munch, Norwegian artist, on the tail, arrives in Los Angeles.
Norwegian aircraft slide show:
Video: By sjcbenw. Description: Cockpit view of Norwegian Boeing 787-8 Dreamliner landing Runway 01R at Stockholm Arlanda (ARN).
Norwegian Air Shuttle (Norwegian.com and Norwegian Long Haul) (Oslo) reported a net profit of NOK 373.8 million ($57.0 million) for the third quarter, down 14% from a net profit of NOK 435.9 million ($65.8 million) for the same quarter in 2013.
The airline issued this full report:
Norwegian reports strong growth in all European markets with a capacity increase of 36 percent and a load factor of 85 percent in its third quarter results. The pre-tax result (EBT) was 505 MNOK, compared to 604 MNOK the same quarter previous year. The costs associated with wet-leasing replacement aircraft and a weak Norwegian Krone (NOK) significantly affected the figures.
Even with strong passenger growth, the load factor was high and increased by three percentage points to 85 percent in the third quarter. Norwegian carried 7.1 million passengers this quarter and the company’s operations at London Gatwick had the strongest passenger growth.
The pre-tax result (EBT) was 505 MNOK, compared to 604 MNOK the same quarter previous year. The combination of a weak Norwegian Krone (NOK), the delayed approval from the U.S. Department of Transportation and costs associated with flight delays, affected the results this quarter. Wet-leasing replacement aircraft and extra fuel, as well as accommodation, food and drink for delayed passengers also created extra costs. The costs associated with the long overdue application before the U.S. Department of Transportation for a foreign air carrier permit for Norwegian’s Irish subsidiary, Norwegian Air International were also considerable. The application is in full accordance with the Open Skies Agreement between the EU and the U.S.
“We’re very satisfied that throughout our world-wide route network, an increasing number of new passengers choose Norwegian. Norwegian has recently received several international awards and was even named ‘Europe’s best low-cost airline’ the second year running. However, we have also experienced some turbulence this quarter. Our results are affected by additional costs related to the pending U.S. permit for our subsidiary in Dublin, consequently reducing our ability to optimize our fleet of aircraft. Even though technical difficulties with our Boeing 787 Dreamliners have also caused additional costs, our long-haul operation now consists of more aircraft and improved reliability. Looking into 2015, we will see a year of consolidation and lower growth. Next year, our fleet of short-haul aircraft will consist exclusively of Boeing 737-800s as older Boeing 737-300s will be phased out,” said CEO Bjørn Kjos.
Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Norwegian will retire its last Boeing 737-300 in 2015. Devoid of a tail photo, Boeing 737-31S LN-KHC (m,sn 29295) arrives in Stockholm (Arlanda).
Norwegian Air Shuttle (Norwegian.com) (Oslo) currently operates its Boeing 787s to the United States under its Norwegian Long Haul division (Oslo). The company would like to move the operation to Ireland as Norwegian Air International where the aircraft are registered. The European Union (EU) through its European Commission has request an “urgent” meeting with the U.S. Department of Transportation (DOT) about the pending application. Several union groups have opposed the application. The EC issued this statement:
In an unprecedented move, the European Commission requested an urgent meeting between the European Union and the United States to discuss Norwegian Air International’s pending application for a foreign air carrier permit before the U.S. Department of Transportation. The extraordinary meeting, which is being requested by the Commission on behalf of the European Union as a party to the U.S-EU Open Skies Agreement, sends a clear message that the European Union is closely watching Norwegian Air International’s application, to fly to the U.S from several cities in Europe which has been pending for over eight months.
Norwegian Air International welcomes the European Union’s action to protect the rights of European airlines under the U.S.-EU Open Skies Agreement, which obligates parties to grant operating authority “with minimum procedural delay.” Asgeir Nyseth, CEO of Norwegian Air International, said, “We are confident that the Department of Transportation will do the right thing and grant our application without further delay.”
Norwegian Air International’s application has taken nearly four times as long as applications of other European carriers applying for the same authority. “We look forward to bringing new competitive and affordable fares on new Boeing 787 Dreamliner aircraft to the U.S.-Europe market,” said Nyseth. With over 300 U.S. based crew, and plans for a pilot base in New York, Norwegian’s new service will bolster the U.S. economy through increased tourism, jobs, and support of the nation’s largest exporter, Boeing.
Copyright Photo: Robbie Shaw/AirlinersGallery.com. Norwegian Long Haul’s Boeing 787-8 Dreamliner EI-LND (msn 35310) with Norwegian Marthoner Grete Waitz on the tail holds shot of the runway at London’s Gatwick Airport. The flight was headed to Fort Lauderdale-Hollywood International Airport.
Southwest Airlines‘ (Dallas) pilots, represented by SWAPA, have issued this statement:
The Southwest Airlines Pilots’ Association (SWAPA) commends the United States Department of Transportation (DOT) for denying Norwegian Air International (NAI) a temporary foreign air carrier operating authorization. NAI is a subsidiary of Norwegian Air which is located in Norway. NAI has sought to operate service to the U.S. as an Irish airline where it has no operating flights or history of operations.
“The denial of a temporary operating authorization is applauded by the pilots of Southwest Airlines,” said SWAPA Governmental Affairs Chair Captain Paul Jackson. “We agree with Secretary Foxx’s assertion that the application of Norwegian Air International is not in the public interest.”
This denial is only for the temporary application and is not a denial of the full application approval for a foreign carrier exemption with the DOT by NAI. The pilots of Southwest Airlines have opposed the application of NAI from early in the process due to the company’s “flag of convenience” strategy that locates the airline away from their home country of Norway. The NAI application for a foreign carrier operating authorization has been on file with the DOT since early this year. It is opposed by airline employees and management across the U.S. and the EU.
“We encourage Norwegian to join the marketplace under the labor laws and rules of their home country and not seek a scheme to avoid them,” Captain Jackson continued. “We strongly believe that our product and the work of our industry can stand up to any competitor if they play by the rules in place and do not seek to lower costs at any price.”
Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 737-7H4 N953WN (msn 36668) taxies to the runway at Seattle-Tacoma International Airport.
Southwest Airlines Aircraft Slide Show: CLICK HERE
