Five days after UK regional carrier Flybe filed for bankruptcy, Norwegian domestic carrier Flyr has been forced to go down the same route after failing to raise only half of the needed cash to see it through the winter season and enable it to prepare for spring demand.
“There is no longer a realistic opportunity to achieve a solution for the short-term liquidity situation,” the company said in a statement, adding the board’s decision was unanimous. Weak markets and uncertainty over demand were blamed for Flyr’s inability to raise sufficient funds. The carrier had been operating a fleet of 12 Boeing 737 jets, including six 737 MAXs on lease from Air Lease Corp.
Flyr confirmed on Monday it had tried and failed in recent days to secure NOK330 million (£27 million) of funding, triggering a 78% drop in its share price. Further trade in the stock will be suspended, Flyr said on Tuesday.
Scandinavian carriers have been hard hit over recent years with rival carrier Norwegian Air undergoing restructuring supervision through Irish courts in 2021, resulting in a slimline version of the original carrier, while SAS is currently undergoing reorganisation under U.S. Chapter 11 bankruptcy protection proceedings.