Airline Flyr seeks up to $51m in cash to survive winter

Loss-making airline Flyr plans to raise up to 530m Norwegian crowns ($50.73m) in new equity to alleviate a "very strained financial situation", the Norway-based carrier said on Thursday. 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. The new shares will be sold at just 0.01 crown each, a 96% discount to Wednesday's closing price, reflecting the company's near-term liquidity needs, challenging capital market conditions and investor feedback, Flyr said. "By implementing these measures, we will be well positioned to ramp-up with full force for the coming spring and summer," board Chair Erik Braathen said. The share issue comes in the form of an institutional offering of 430m crowns and a further 100m for other investors. Braathen's private investment company will invest 10m crowns in the share issue.<br/>