Nov. 18 (UPI) — Low-cost airline Norwegian Air filed for chapter Wednesday in Eire citing monetary instability because of the COVID-19 pandemic.

The service mentioned it is filed for examinership in an try to restructure its enterprise, cut back debt and safe new capital. It is a comparable course of to Chapter 11 chapter in the USA.

Norwegian Air mentioned it plans to proceed to function its routes, which have been downsized on account of decreased journey — significantly worldwide journey — because the begin of the pandemic. The corporate’s shares additionally will proceed to be traded on the Oslo Inventory Trade.

“Looking for safety to reorganize beneath Irish legislation is a call that we have now taken to safe the way forward for Norwegian for the advantage of our staff, prospects and buyers,” Norwegian CEO Jacob Schram mentioned. “Our goal is to seek out options with our stakeholders that may permit us to emerge as a financially stronger and safe airline.

“Our intent is obvious. We are going to emerge from this course of as a extra financially safe and aggressive airline, with a brand new monetary construction, a rightsized fleet and improved buyer providing.”

The corporate mentioned it selected to file for chapter in Eire as a result of that is the place its fleet is held.

Airways worldwide have needed to slash routes, jobs and belongings over the previous a number of months in response to the pandemic, which has led to some nations closing their borders to non-essential journey.