London (CNN Business)Norwegian Air wanted to bring a low-cost business model to transatlantic flights. It’s quickly running out of runway.
The coronavirus pandemic and travel restrictions have forced Norwegian Air to ground the vast majority of its fleet, and furlough almost all of its workers. The heavily indebted carrier’s stock has collapsed, and its cash reserves are nearly exhausted.
“Norwegian is dependent on additional working capital in order to continue operating through the first quarter of 2021 and beyond,” the airline said Tuesday as it reported its latest financial results.
One potential rescuer has already turned its back on the airline that once had ambitions to repeat Ryanair’s (RYAAY) short-haul success on longer routes. Norwegian Air said on Monday that the Norwegian government has ruled out providing it with more financial assistance, leaving the carrier in what it described as a “challenging situation.”
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