Troubled airline Norwegian has struck a deal for cheaper aircraft leasing and confirmed intentions to raise £520 million.
The latest measures are part of plans for the airline to quit bankruptcy protection.
Under new deals with aircraft leasing companies, Norwegian will operate 51 short-haul aircraft on a “power by the hour” agreement – meaning the airline will only pay for them when they are actually flying.
Norwegian said the deal would “significantly increase the company’s flexibility and limit lease payments in the event of a prolonged period with challenging markets due to the Covid-19 pandemic”. They will fly "primarily in Norway and the Nordics or from Norway/the Nordics to continental Europe".
In addition, the airline has launched a £520 million fund-raising effort via the issuing of bonds and shares.
In its latest bulletin to investors, the airline said it had reduced debt since the end of 2019 by around £5.5 billion and terminated aircraft orders worth £7.3 billion.
A court in Ireland, where Norwegian’s aircraft and other assets are registered, approved the airline’s plan to quit bankruptcy protection in November. A Norwegian court gave its blessing last month and last week a judge in New York gave similar approval.