Transport | Norway’s budget airline Flyr AS file for bankruptcy

Just 19 months after first flight Flyr company is unable to pay its debts and is seeking protection from its creditors. The bankruptcy process will involve the liquidation of the company's assets and the distribution of the proceeds to its creditors. All future Flyr flights have been canceled and will not be rescheduled.

Passengers who have booked flights with FLYR are advised to contact the airline for more information on their options, which may include alternative flights or a refund. Reference is made to the stock exchange announcement made by Flyr AS ("Flyr" or the "Company") on 30 January 2023 regarding the unsuccessful attempt to raise capital and the critical short term liquidity situation.

The board of directors of the Company (the "Board") has today decided to file for bankruptcy at Oslo city court, and will file for bankruptcy tomorrow, 1 February 2023. The board's decision is unanimous and is due to the fact that there is no longer a realistic opportunity to achieve a solution for the short-term liquidity situation.

More than 400 employees will lose their jobs

As a result of the bankruptcy, more than 400 employees will lose their jobs, told Norwegian daily DAGBLADET, Flyr founder and board Chair Erik Braathen.

All departures and ticket sales have as a consequence been cancelled and ticket sales discontinued. The Company will provide further information regarding the bankruptcy proceedings when the bankruptcy trustee has been appointed.

Since the Company will file for bankruptcy, the Company will request that further trading on EURONEXT GROWTH OSLO is suspended. Questions regarding the further bankruptcy proceedings should be addressed to the bankruptcy trustee when appointed by the Oslo city court.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements according to section 5-12 of the Norwegian Securities Trading Act. The information was prepared by Brede Huser, CEO at Flyr AS, on the time and date provided.

Flyr, which launched operations in mid-2021 to serve domestic destinations in Norway as well as in Europe. Flyr competed mainly with SCANDINAVIAN AIRLINES SAS and NORWEGIAN AIR on high-traffic domestic routes within Norway and on leisure routes to Europe. Flyr has a fleet of 12 Boeing 737-800 and Boeing 737-8 aircraft with an average age of about five years.

SAS is itself undergoing a reorganisation under U.S. CHAPTER 11 BANKRUPTCY BASICS protection proceedings, while Norwegian Air in 2021 underwent restructuring supervised by an Irish court, emerging as a slimmed-down regional airline.