Norwegian Air to get financial backing from government

Norway is willing to take part in the refinancing of Norwegian Air, Industry Minister Iselin Nyboe said in a statement on Thursday, without indicating how much the government would contribute.

The heavily indebted budget carrier, which has been forced to ground all but six of its 138 aircraft due to the coronavirus crisis, asked the government last week for help.

Norwegian was granted bankruptcy protection by courts in Ireland and Norway last year as it seeks to shed much of its debt, and has said it aims to close down its long-haul service.

“The government’s support significantly increases our chances of raising new capital and getting us through the reconstruction process,” Norwegian Chief Executive Jacob Schram said in a statement.

If its reconstruction succeeds, Norwegian has said it will initially cut its fleet to about 50 aircraft. 

Main Photo: Grounded Boeing 737-800 aircrafts of Norwegian budget carrier ‘Norwegian’ at Arlanda Airport of Stockholm, Sweden. EPA-EFE/JOHAN NILSSON