Norwegian has confirmed it has secured nearly £250 million in state aid it needs to stave off failure and transform the business.
The airline on Wednesday (20 May) confirmed its NOK 3 billion (£245 million) state loan had been approved.
Earlier this month, Norwegian sought to convert sufficient debt to equity to unlock the highest tier of Norwegian government state aid.
It says its proposed restructure is now complete, laying a "solid foundation" for the future.
However, the carrier has warned that despite its efforts and the provision of state support, "the next few months will remain challenging" with revenue limited owing to the coronavirus crisis.
"Now we can access the state loan guarantee, we can continue to transform the company," said chief executive Jacob Schram.
"Through this process, the belief in New Norwegian and the company’s strategy have been confirmed by shareholders, the market, bondholders, leasing companies, other creditors and lenders.
"Nevertheless, the months ahead will remain challenging and with a high degree of uncertainty for the industry. Norwegian will still need to collaborate closely with a number of creditors as the company currently has limited revenues."
Norwegian embarked on efforts to restructure the business and transition from growth to profitability in late 2018, which it said had since been expedited by the onset of Covid-19.
"The company has seized this time as an opportunity to restructure and develop a new strategy and business plan – New Norwegian – for a strengthened airline to re-emerge when travel restrictions are lifted and demand returns," said the carrier.
Schram added: “In addition to ensuring the company survives this crisis, our goal has been that Norwegian should have a strong position in the future airline industry, with a clear direction and strategy.
"This will ensure sustainable operations and a structure that will be to the benefit of both shareholders, customers and colleagues."
New Norwegian will place profitability at the centre of its operations, and pursue an "aggressive cost focus".
It plans to return with a smaller fleet; an optimised route network; a more agile and flexible cost base with regards to crew and operation; flexible pricing and bundles; and a stronger financial footing.
New Norwegian’s fleet is forecast to run to 110 to 120 aircraft, although the plan for its fleet will depend on the post-Covid-19 landscape, with a strong focus on "route profitability".