JAKARTA - Norwegian airlines that are losing money will file for bankruptcy, after failing to collect the cash needed for operations.
"There is no longer a realistic opportunity to reach a solution to the short-term liquidity situation," the company said in a statement, adding the council's decision was unanimous.
"Consequently, all departures and ticket sales have been canceled," the company continued, citing Euronews.
Meanwhile, Flyr founder and board of directors Erik Braathen told the Norwegian daily Dagbladet that more than 400 employees would lose their jobs due to bankruptcy, he said.
The flyr, which began operating in mid-2021 to serve domestic purposes in Norway and also in Europe, said the weak financial market and uncertainty over air travel demand saw it fail to raise more money.
Last November, Flyr said it needed funding to stay in winter, as well as prepare for spring and summer 2023. However, it was only able to raise about half of the cash needed at that time.
The company said it had tried and failed in recent days to secure 330 million Norwegian krona ($33 million) funding, which triggered a 78 percent drop in its share price.
Along with the conditions that occurred, the company will return payments for ticket purchases.
If using a credit card, Flyr encourages customers with orders to contact credit card companies, to take care of refunds.
Orders made with travel agents or partners, can also be eligible for refunds through their insurance.
Meanwhile, if you use a debit card, consumers can contact your card issuer because you may be able to file claims based on the return rules for services that have not been or have not been provided.
"The bankruptcy mayor will take over all responsibility for the Flyr going forward, and will share contact information on the flyr.com as soon as it becomes available," the company said.
Flyr is known to operate a chartered fleet of 12 Boeing 737 aircraft, including six Boeing 737 MAX aircraft based on a contract from Air Lease Corp.
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