The Norwegian government will not provide additional financial support to Norwegian Air, which has been hit hard by the Coronavirus pandemic, and the Ministry of Industry, the Ministry of Transport said in a statement today
Norwegian Airlines, which shut down most of its fleet in August, said it will run out of cash in the first quarter of 2021 unless it can secure new money and hold talks with the government in hopes of winning support.
CEO Jacob Schramm said: « The government’s decision to refuse the request for funds is disappointing and feels like a punch in the guts of everyone in Norway. »
Creditors and lessors took control of the airline in May with a bailout that allowed it to obtain state-guarantee loans worth 3 billion Norwegian kroner ($ 329 million), thus preventing a collapse.
“Norwegian Airlines has requested billions of crowns as additional support, and the government has concluded that this will not be a responsible use of public funds,” said Industry Minister Eislyn Nybo
She said the aviation industry is likely to provide adequate services and continue to see healthy competition for the next time.
Scandinavian airline SAS is a major competitor in Norway, and Hungary’s Wizz Air recently launched several domestic airlines
“The Norwegian company is currently assessing the effects of the current situation with the aim of protecting the interests of all stakeholders,” the company said.
The company said that more funding may come from selling the aircraft, converting more debt into equity or from owners and the Norwegian government, while refusing to specify how much it might seek.
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Norwegian Air Shuttle, Government, Finance, Norway
World News – California – Norway says it will not provide further support to Norwegian Airlines
SOURCE: https://www.w24news.com
