Norwegian Air Shuttle has secured some financial breathing space, after its bondholders voted in favour of changes to their investment terms. Norwegian has been seeking to delay the repayment of two unsecured bonds, NAS07 and NAS08, to ensure sufficient liquidity for the coming winter. The company wanted to extend the maturity date of NAS07 from Dec 2019 to Nov 2021, while NAS08—due in Aug 2020—would be pushed back to Feb 2022. In return for the extension, the company was offering bondholders an interest rate premium and additional security. Updating the market Sept. 16, Norwegian said both sets of bondholders voted in favour of the proposed amendments “with sufficient majority.” Norwegian acting CE Geir Karlsen said: “It will give us added financial headroom going forward,” <br/>
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The Korean govt conditionally approved Air Premia's revised business plan Monday, a move that will keep the airline on track to begin operations by Sept 2020. In March, the LCC was granted a license after the Ministry of Land, Infrastructure and Transport approved its business plan, which differentiated itself from other LCCs by promising to provide "premium economy services" and operating only mid- to long-haul flights to destinations including the US, Canada and Vietnam. However, just a month after the approval, Air Premia was on the verge of losing the license as a conflict arose between management and shareholders over purchasing new aircraft. The shareholders wanted to replace then-CE Kim Jong-chul with Kim Se-young and Sim Joo-yeop who would jointly head the firm. <br/>
Thomas Cook has delayed a crunch creditors’ vote until next week, giving the stricken tour operator more time to smooth obstacles to a GBP1.1b rescue package aimed at saving it from collapse. Fears for the future of the tour operator have been mounting, as it threatens to buckle under the weight of high debt, intense competition and one-off factors. The company, which employs 20,000 staff, including 9,000 in the UK, succeeded Monday with a courtroom application to put off a creditors’ vote over the terms of a GBP900m rescue funding injection – which could yet rise to GBP1.1b – until next week. The travel group also needs to persuade the CCAA – which administers the Atol scheme covering travel companies – that it should renew its licence at the end of Sept for another 12 months. <br/>
Virgin Australia has moved to reverse the partial spinoff of its loyalty program, reaching a deal to buy back the stake it had previously sold. Virgin confirmed Monday it had entered negotiations to repurchase the 35% stake in its Velocity frequent flyer program held by investment company Affinity Equity Partners. This deal is expected to be worth A$700m (US$480m) and is scheduled to close by year-end. Completion is subject to certain conditions including finalising documentation, funding and govt approval. When concluded, the purchase will once again give Virgin Australia full ownership of Velocity. The airline sold the 35% stake to Affinity in 2014, resulting in a A$336m gain for Virgin. At the time, the carrier said selling the stake would give access to the capital and resources to allow Velocity to grow more quickly. <br/>
China Eastern LCC China United Airlines will be the sole commercial aircraft operator at Beijing Daxing International for the first few weeks after the opening of the facility, which is scheduled for the end of September. Flights by other airlines at Daxing International will begin in late October as they introduce winter schedules, China United deputy president Sun Li said. In all, 16 airlines will fly from the airport during the winter schedule period, CAAC said. Its figures for the number of routes opened in that time suggest that operations will step up slowly. Sept. 9, CAAC airport division chief Liu Chunchen said the airport would be ready for operations Sept 15. China United’s services will be moved from its current base Beijing Nanyuan Airport, which will close to civil users when Daxing International opens. <br/>