Norwegian start-up airline Flyr, which is set to launch operations in summer 2021, raised $70 million in its initial public offering (IPO) in Oslo, Norway. The new air carrier is betting on the recovery demand from the pandemic and prepares to compete with existing carriers such as Norwegian Air and Scandinavian Airlines (SAS).
The start-up airline may become a serious competitor to other air carriers in the market since the share price of Flyr has grown by 20% on Oslo Euronext Growth stock market, the Nasdaq.com data showed. The Oslo-based airline has also raised $70 million in a public offering which the air carrier might use for its plan implementation to have a fleet of 28-30 aircraft in the next 3-4 years.
Speaking to Reuters, Tonje Wikstroem Frislid, the CEO of Flyr, pointed out that the recently raised money would enable the air carrier “to pursue opportunities in a changing market and a recovering airline industry”. Frislid added that “due to the availability of aircraft and crew, a rapid and demand-driven scale-up is possible for Flyr.”
While preparing for the launch, the airline is looking for staff and the aircraft needed. As for the beginning of operations in Norway, the airline reportedly aims to purchase or lease a fleet of 8 aircraft with future plans to expand the fleet further.
In January 2021, Erik G. Braathen, the founder of Flyr, confirmed that the airline will launch its operations in summer 2021 and operate the fleet consisting of Boeing 737-800 aircraft. The airline justified the choice arguing that the Boeing 737-800 is an aircraft that its management team has a lot of experience with. The star-up air carrier also chose the jet eyeing the opportunity to use simulator capacity in Norway as well as employ crew and mechanics with ample experience and competence on the type.