Norwegian Air Says It Needs More Time to Pay Off Its $380 Million Debt

Sep 3, 2019

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Norwegian Air is in a lot of debt, and it’s asking its bondholders for more time to pay off a whopping $380 million in outstanding debt.

According to Reuters, the airline is willing to use its take-off and landing slots at London Gatwick (LGW) as security. This is just the latest news in what has been a particularly turbulent few years for the low-cost airline, which has struggled to become financially profitable.

Last year, Norweigan sold five of its Airbus A320neo aircraft to help pay off some of the debt.

“Sale proceeds will be used to repay debt and to increase the Company’s liquidity,” Norwegian said in a statement to the Oslo Stock Exchange at the time.

The airline is also reeling from the grounding of the Boeing 737 MAX following deadly crashes in Indonesia and Ethiopia. The airline had a fleet of 18 MAX jets.

Earlier this year, the airline said that the grounding has made it even more challenging to become profitable, as we wrote earlier this year.

“Due to the uncertainty related to the MAX grounding, the company sees increased risk related to the target of a positive net profit in 2019,” Norwegian said in its earnings report, according to Reuters. Its interim CEO says that the airline does not expect to fly the MAX in 2019.

Some larger airline groups have attempted to bid on a buyout of the airline. IAG, which owns British Airways, made three unsuccessful attempts to buy Norwegian last year.

More recently, Ryanair CEO Michael O’Leary said that it would be “inevitable” that faltering low-cost airlines would close operations in the next several months.

The airline flies dozens of routes, many nonstop, between the US and Europe and North Africa. It recently announced plans to cancel all flights between North America and Ireland on Sept. 15, citing the MAX grounding.

Norwegian had been flying the following routes from the US and Canada to Ireland:

  • Providence, Rhode Island (PVD): Cork (ORK), Dublin (DUB), Shannon (SNN)
  • Newburgh/Stewart, New York (SWF): Dublin (DUB), Shannon (SNN)
  • Hamilton, Canada (YHM): Dublin (DUB)
Delta SkyMiles® Platinum American Express Card

Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.

With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.

Apply Now
More Things to Know
  • Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
  • Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
  • Earn 1X Miles on all other eligible purchases.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights.
  • Fee Credit for Global Entry or TSA Pre✓®.
  • Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Regular APR
15.74%-24.74% Variable
Annual Fee
$250
Balance Transfer Fee
N/A
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.