Shareholders in Norwegian Air voted in favour of management’s plans to raise another NOK 4 billion in the form of new shares, even though it will greatly dilute their own holdings. Management’s crisis plan, which involves a major restructuring of the airline aimed at ensuring its survival, was also approved.
Norwegian’s CEO Jacob Schram called the approvals “important,” as the airline tries to convince bankruptcy courts in Ireland and Norway that Norwegian Air can become profitable when the Corona pandemic is over. He noted that the entire airline industry “is perhaps down at its lowest point, but that can change quickly when travel restrictions end.”
He said Norwegian can become a smaller airline than it has been. He confirmed that the company is now evaluating the fate of its long-distance intercontinental routes: “It’s natural in such a process to discuss everything related to routes, networks and bases, and we’re doing that now.”
Norwegian Air’s shares jumped more than 18 percent on the news.