There is a financial crisis in Flyr after the airline did not land a new agreement on financing. Thus, it is completely unknown what will happen to the company. Monday’s flights to Malaga, Alicante and Las Palmas went as normal. Flyr has no flights on Tuesday. What happens next has not been clarified. The charter company Ving informs TV 2 that their customers will not be affected by the problems in Flyr. Earlier this month, it became clear that Flyr will transport Ving’s customers to Mallorca, Crete and Tenerife. The company writes that they will provide updated information as soon as possible. They ask everyone who has booked trips to follow updates directly from Flyr, or on the company’s website. – Simply no room for them Professor of social economics Frode Steen at the Norwegian School of Economics (NHH) says that it is unclear whether Flyr will make it in this round. However, he does not believe that there is room for a company like Flyr in today’s Norwegian airline market. Professor of social economics Frode Steen at the Norwegian School of Economics (NHH) Photo: Hallvard Lyssand – They started in a market where it was already very tight. They hoped there would be more space. It wasn’t to be. In addition, Widerøe has invested more abroad than before, so it has become much tighter. It doesn’t help that the business model is good, or that they do a good job. There is simply no room for them, says Steen to news. Thinks a shrunken SAS can make room for Flyr He believes, however, that there can be room for Flyr in the Norwegian market if SAS becomes smaller. – Flyr needs to be alive until around March/April. Then they know a little more about what is happening with SAS and then it may be that things go well, but they have to get the money needed for that, because they are losing money, and it is very unclear whether they will be able to that, says Steen. – You think that Flyr has a chance if they manage to stay on the wings for a while longer? – Yes, the assumption is that the SAS that comes out of the reconstruction will be smaller than the SAS we see today, says the NHH professor. The Flyr share gained momentum when the Oslo Stock Exchange opened on Monday morning. The stock fell more than 70 percent when trading started. – Too bad for the Norwegian consumer Investor Jan Petter Sissener is the largest shareholder in Flyr through his fund Sissener Canopus. He tells Dagens Næringsliv that he still has faith in the company. – But clearly no one else has it. I accept what they say now, then we’ll see what the board can come up with. We knew that the company was looking for money, and I had hoped and believed that more people than me could count this home, he says. Investor Jan Petter Sissener is the largest shareholder in Flyr through his fund Photo: Margret Helland / news Sissener emphasizes to E24 that his shareholding in Flyr only makes up a small part of the fund’s portfolio, and that they will not spend so much time on Flyr. – But it is a great pity for the Norwegian consumer, he says. Chairman Erik Braathen at Oslo Airport before departure on Flyr’s first flight to Tromsø in the summer of 2021. Photo: Torstein Bøe / NTB Fly considers alternatives In November last year, Flyr agreed to a rescue plan that would secure the company NOK 700 million in fresh funds. This assumed a price per share of at least one penny, but over time the share price has been below what was necessary to be able to carry out the plan, writes NTB. The company has therefore been working on an alternative financing plan since before Christmas. “Unfortunately, Flyr has not been successful with the alternative financing plan and is now in a situation where the board must assess whether there are alternatives for further operations,” says Flyr chairman Erik Braathen in the press release. High demand Chairman Erik Braathen of Flyr says that the company has recently experienced high demand for charter missions and the rental of aircraft and crew to others. The reason is a lack of flights globally. – Before Christmas, we had negotiated an agreement with a European airline corresponding to six aircraft in production in the period from March to October, provided we had an alternative financing plan in place. The company and the financial advisers expected that this agreement would result in the alternative financing plan being successful, says Braathen.
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Flyr did not succeed with new financing plan – news Norway – Overview of news from different parts of the country
