Europe’s third largest low-cost carrier, Norwegian Air Shuttle is on the verge of bankruptcy.
The airline knocking on the bondholders to bail it out from financial crisis.
Norwegian asked bondholders on Monday for up to a two-year extension in repaying two bonds that are about to reach maturity in November, 2021, and February, 2022, amount of $380 million.
In 2018, Norwegian recorded 86% “land factor” carrying 37.3 million passengers, launched 35 new routes, and took delivery of 25 brand new aircraft.
But in July 2019, its founder and CEO Bjørn Kjos resigned abruptly and its stock came down more than 85%.
The tide turned other way when the Ethiopian Airlines 737MAX creased followed by global grounding the MAX fleet.
Norwegian was forced to ground 18 737 Max planes and cancel vital routes, causing a slump to its growth plan.
Airline further suspended flights between three airports in Ireland and three North American destinations: New York Stewart, Providence, RI, and Hamilton, Ontario, saying “Considering the grounding of the Boeing 737 MAX aircraft, we have concluded that these routes are no longer commercially viable,”
Airline’s earning have been deteriorating and finding hard to generate cashflow even after a busy summer season.
The airline, which offered flights between Europe and U.S. cities on the East Coast for as little as $99 one-way, is now going through a tough time.
Global economic slowdown also will further tighten its grip on Norwegian.