OSLO - Loss-making airline Flyr, which failed on Tuesday to raise the new equity it had aimed for, now instead plans a smaller initial cash injection offered by a group of investors, the company said on Wednesday.
Flyr on Nov. 3 said raising cash was vital for the company to survive the upcoming winter season and prepare for a ramp-up in spring and summer of 2023.
Under the revised plan, Flyr will initially raise 250 million Norwegian crowns ($24.4 million) in a private placement and up to 100 million from a subsequent offering to current shareholders, less than the 530 million crowns it had aimed for.
To cover the remaining cash needs, investors participating in the share issues would get subscription rights allowing them to buy additional stock during the first quarter of 2023, potentially raising another 350 million crowns, Flyr said.
"If the company fails to raise this additional new capital by the end of Q1 2023, the company may not be able to sustain its future operations," Flyr said.
The company, whose rivals include Norwegian Air and SAS, said on Oct. 4 it would implement heavy spending cuts to preserve cash during the winter, including furloughs, and that non-profitable routes were put on hold.
($1 = 10.2480 Norwegian crowns)
