Norwegian low-cost carrier Flyr stopped all flights and filed for bankruptcy on Wednesday morning after its board on Tuesday evening saw no alternatives that would allow for further operation. The Oslo Gardermoen Airport-based airline is the second European carrier in a week’s time to collapse, following UK regional airline Flybe, which went into administration on January 28.
In a statement, Flyr noted that 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.”
The bankruptcy trustees, appointed by the Oslo city court, have assumed responsibility for Flyr and can be contacted via email at email@example.com, it added.
The company had warned on Monday in a filing to the Oslo stock exchange that it was in a precarious financial situation because it failed to raise new capital to pay the EU emission trading system quotas and to ramp up operations for the spring and summer. “Market conditions and continued uncertainty with regards to airline travel and earnings through 2023 have deterred investors from committing capital for the required period of time,” Flyr noted. The company sought to raise 430 million kroner ($42.9 million) in a private placement and 100 million kroner in a repair rights issue last year.
Founded in 2020, Flyr posited a business plan that called for a 30-strong Boeing narrowbody fleet to operate on a network spanning domestic routes in Norway and leisure routes between Norway and European destinations. The pandemic forced it to postpone the start of its operations to June 2021. Its fleet on January 31 consisted of six Boeing 737-800s and six 737 Max 8s. It flew 1.6 million passengers in 2022.