(Last updates: Thursday 11 March, 08:48 CET)
To secure the future of Norwegian for the benefit of our customers, employees, and investors, we have taken the decision to initiate a reorganisation plan for a portion of our business.
We will continue to operate our flights as normal on our current reduced network, and existing and future bookings are not affected. We look forward to being fully up in the skies again once travel demand begins to return.
This process represents another step to enable us to emerge from this global crisis as a stronger and more competitive airline that will continue to serve our loyal customers.
Claims before 18 November 2020
Approximately 98% of refund claims from prior to entering the reconstruction processes booked directly with Norwegian, have already been refunded. Despite our efforts to push the remaining 2% of refund claims forward in these legal processes, it has unfortunately proven impossible to allow the reimbursement of the outstanding refund claims to customers due to the principles of the restructuring processes. This means that those customers will have the same terms as other unsecured creditors and only be entitled to a percentage of their claim.
Customers with outstanding claims where the flight disruption or other expenses associated with the claim occurred before 18 November 2020 will now receive a notice from the Examiner informing how to proceed.
Claims from 18 November 2020
Claims where the flight disruption or other expenses associated with the claim occurred on or after 18 November 2020 will be refunded continuously, and in cases such as this, customers should be assured that they will receive what they are entitled to in accordance with their rights.
This process does not impact our flight operations and we will continue to operate a reduced schedule due to the impact of COVID-19, as previously announced.
The ongoing COVID-19 pandemic has affected the global aviation industry, including Norwegian, in many ways. As a result, Norwegian has entered into an examinership process in Ireland and a reconstruction process in Norway with strict legal requirements that are impacting all aspects of our business. Below you will find details on the temporary changes we are making to our Norwegian Reward loyalty program.
Pausing of Reward program benefits with Norwegian while in reconstruction process
We will be pausing the Norwegian airline-related benefits of our loyalty program. Your membership will remain active, but during this time it will not be possible for you to earn or spend CashPoints or Rewards on Norwegian’s products or services (flight tickets, extra baggage etc.). You will still be able to earn CashPoints with our other Reward partners.
Following the pause, a potential limit on CashPoint spend
Once the pause has ended, you'll be able to earn and redeem CashPoints and Rewards on Norwegian’s products and services, but we will reserve a right to limit the spending of CashPoints as means of payment until the impact of the ongoing pandemic is under control and Norwegian’s commercial activities can return to a new normal.
An extension of CashPoints and Rewards validity
We recognise that the above changes, as well as the ongoing pandemic and government travel restrictions, may not allow you to earn and spend your CashPoints and Rewards as you would normally. With this in mind, we have given all members with CashPoints due to expire during 2021 the opportunity to extend the validity of those CashPoints until 31 December 2022, so they have more opportunity to spend them on future trips.
The expiration of Rewards has been paused since last year, as well as the number of flights needed to qualify for Rewards adjusted, and this will continue until further notice.
Norwegian Reward is a transparent customer loyalty program, and we will be keeping it that way. We will not be devaluing CashPoints (1 CashPoint still equals 1 Norwegian Krone), and we aim to reopen the airline benefits with our award-winning program as soon as the reconstruction and examinership processes, and the COVID-19 situation allow it. That said, we do understand that these temporary changes may affect the way you would like to use our loyalty program, and we apologise for any inconvenience caused.
We will be updating our Norwegian Reward Terms and Conditions to reflect these alterations to the program.
Yes, of course, we continue to operate our route network (currently limited due to the Covid situation) and we look forward to continuing to welcome our loyal customers on board.
Examinership is a well-known and recognised reorganisation process based in Ireland that allows businesses–that in normal situations are financially sustainable—to address elements of the business which require restructuring.
Recently Virgin Atlantic and CityJet have completed similar processes with positive results.
The process is estimated to take up to five months and the aim is to protect jobs and preserve the core value of the business for the benefit of customers, employees, and investors.