Flyr airline files for bankruptcy
The Norwegian airline Flyr announced on Tuesday that it will declare bankruptcy after failing to raise the necessary cash for its operations. "There is no longer a realistic opportunity to achieve a solution to the liquidity situation in the near term," the company said in a statement, adding that the board's decision was unanimous. "Consequently, all departures and ticket sales have been cancelled," he added. Flyr, which launched operations in mid-2021 to serve domestic destinations in Norway as well as Europe, said on Monday that weak financial markets and uncertainty over demand for air travel had prevented it from raising more cash. On Monday, the company said it had tried to raise 330 million Norwegian krone ($33 million) worth of financing in recent days, causing its share price to fall 78%, Reuters reported. The company, whose rivals are Norwegian Air and Scandinavian airline SAS, announced on October 4 that it would make sharp spending cuts to preserve cash through the winter, including layoffs, and suspend unprofitable routes. Flyr is the latest Nordic company to have experienced financial difficulties in recent years, due to the pandemic, rising energy costs and falling consumer confidence. SAS itself is undergoing reorganization under Chapter 11 of the US bankruptcy protection proceeding, while Norwegian Air underwent an Irish court-supervised restructuring in 2021, emerging as a smaller regional airline.
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