Norwegian Air Shuttle to wind up US flight crew arm

Scandinavian group and Irish subsidiaries back in High Court over aircraft leases

Norwegian Air Shuttle: 2,100 people who worked for the group’s long-haul business in Europe and the US are likely to lose their jobs. Photograph: Johan Nilsson

Norwegian Air Shuttle: 2,100 people who worked for the group’s long-haul business in Europe and the US are likely to lose their jobs. Photograph: Johan Nilsson

 

Norwegian Air Shuttle (NAS) is winding up a US subsidiary that hired crew for long-haul flights. The news comes as the Scandinavian group and four Irish subsidiaries are due back in the High Court on Thursday to apply to end aircraft leases and other contracts.

Fort Lauderdale, Florida-based Norwegian Air Resources US Inc filed for bankruptcy in the US bankruptcy court for the southern district of Florida this week.

Job losses

The company hired crew for the group’s long-haul services, which it is axing as it cuts back operations and its fleet in a bid to restructure.

Overall, 2,100 people who worked for the group’s long-haul business in Europe and the US are likely to lose their jobs as it reins in its operations.

Examinership extended

The High Court appointed Kieran Wallace of KPMG as examiner to NAS and its Irish subsidiaries in November. The group chose the Republic’s courts as its aircraft were held through companies registered here.

Last week, the court extended the examinership to April 16th. NAS has agreed to settle outstanding leases with several creditors, but will apply to end other such contracts on Thursday.