Last checked at 
* Will focus on Nordic and European routes
* Says has resumed talks with government
* State says is considering whether to take a stake
(Adds industry ministry comment)
By Terje Solsvik and Victoria Klesty
OSLO, Jan 14 (Reuters) - Norwegian Air, which less
than a decade ago challenged British Airways and other
long-established rivals by launching transatlantic flights, said
on Thursday it will end those services, with 2,000 job losses,
and seek government help.
The budget airline, founded in 1993, has been forced to
ground all but six of its 138 aircraft due to the pandemic and
will now focus on Nordic and European routes.
"We have decided that long-haul is no longer in our business
plan," Chief Executive Jacob Schram told an online news
conference.
The plan also involves closing units in the United States,
Italy, France and Britain, including its base at London Gatwick
airport.
"The brutal reality is that (they) will be declared bankrupt
... 2,000 employees are affected," said Schram.
The airline aims to cut its fleet to about 50 aircraft
before expanding to around 70 in 2022, it said.
The plan must be approved by an Irish bankruptcy court. The
next hearing is on Jan. 22.
The company and the centre-right minority government are now
discussing possible state participation, both sides said.
"We are in the process of carefully considering the new
business plan and Norwegian's request to us to participate in a
restructured company," the industry ministry said in a statement
to Reuters.
Norwegian's 35-strong long-haul fleet of Boeing
Dreamliners - most of which are leased - is now up for
negotiation, finance chief Geir Karlsen told Reuters.
"Overall, this seems like a sensible plan," said brokerage
Davy. "The long-haul business was volatile and generally loss
making since its launch in 2013 – in this environment,
withdrawal is the only viable option."
GOVERNMENT HELP?
Norwegian risks running out of cash by the end of March if
it fails to restructure debt and liabilities of 66.8 billion
crowns ($7.89 billion), including 48.5 billion in
interest-bearing debt, it warned late last year.
It hopes to cut debt to around 20 billion crowns and raise
4-5 billion from new shares and hybrid capital.
The new plan aligns with "signals" from Norwegian
politicians about what would be required for the state to
provide further help, Schram told Reuters.
The plan could return Norwegian to profit before interest,
tax, depreciation and amortisation (EBITDA) later this year,
based on conservative assumptions, it said.
However, Bernstein analysts said the planned debt reduction
was too small. "It is more likely in our view, that the current
Norwegian will eventually have to be wound down, and any
continuation of the business will need to be built anew."
($1 = 8.4686 Norwegian crowns)
(Writing by Terje Solsvik and Gwladys Fouche; Editing by Jason
Neely, Mark Potter and Jan Harvey)
