Norwegian Air Reaches Agreement To End 36 Aircraft Leases, Ireland's High Court Hears
Norwegian Air has withdrawn requests to repudiate a total of 36 aircraft leases after reaching an agreement with the lessors in question as part of a restructuring process, Ireland's High Court has heard.
Late last year, the budget airline was given protection from bankruptcy in both Norway and Ireland, where most of its assets are registered, and is aiming to emerge from the process with fewer aircraft and less debt.
Last week, the airline, which aims to cut its fleet to 53 aircraft from 140 and withdraw from the long-haul market, said that both the Irish and Norwegian processes were going as planned and were expected to end during the second quarter.
As part of the Irish process, which is due to conclude by April 16, the Irish High Court will rule on Friday February 5 on whether to allow the airline to repudiate liabilities, including three aircraft subleases and 25 guarantees tied to aircraft leases.
A lawyer for Norwegian confirmed to the court that an agreement has been secured on the last of 36 aircraft leases it had been seeking to repudiate.