Airline Norwegian leaves 34,000 customers out of pocket in recovery plan

Airline Norwegian leaves 34,000 customers out of pocket in recovery plan
File photo: Lefteris Karagiannopoulos/Reuters/Ritzau Scanpix
Up to 34,000 people in credit with low-cost airline Norwegian due to cancelled bookings will not get their money back.

A recovery plan presented by the debt-laden company on Thursday revealed that a significant number of customers will not receive refunds.

The 34,000 is actually a small proportion of customers owed money by the company. 98 percent of customers owed money for cancelled bookings up to November 18th last year have been reimbursed, according to Norwegian.

The airline is currently under bankruptcy protection in Ireland and is not allowed to pay the refunds in question under the relevant rules related to this.

Bankruptcy protection involves the company working with creditors in order to find a solution that will prevent it from going bankrupt.

“We wanted to ensure full refunds of the outstanding credit through reconstruction and are sad that this is not possible,” CEO Jakob Schram said in a statement.

As part of the recovery plan, Norwegian aims to halve its debt. That involves repaying just 5 percent of what it currently owes creditors, news wire Ritzau reports.

The company is scheduled to meet next week with creditors who must approve the plan, which must also be rubber-stamped by a judge in Ireland. It hopes to complete the process by May.

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