Norwegian Air Offered $271 Million State Bailout

By Paul Riegler on 20 March 2020
  • Share

Norway, as seen from the air on a Norwegian flight

The government of Norway said it would provide struggling airline Norwegian Air with credit guarantees of 3 billion Norwegian Krone ($271 million) to help weather the downturn due to the current pandemic.

The money comes with a catch: Norwegian has to convince commercial lenders to loan it an additional 30 million Krone  in order to receive the full 3 billion. The airline also must convince its creditors to postpone installment payments for loans and also to forego interest payments for three months.

Earlier in the week, Norwegian said it was suspending 85% of its flights and laying off 90% of its staff.  It said it will concentrate largely on flights within Norway for the time being.

“As of March 21, the company will primarily fly a reduced scheduled domestically in Norway and between the Nordic capitals,” it said. “Limited schedule will remain in place until at least April 17 but will be reviewed on a regular basis.”

The move follows the U.S. ban announced Saturday on travelers from the European Union’s Schengen Area. Until recently, Norwegian was the largest foreign carrier serving New York area airports.

(Photo: Accura Media Group)

Accura News

Read previous post:
Apple Fined $1.23 Billion by French Antitrust Regulator

France’s antitrust regulator fined Apple €1.1 billion ($1.23 billion) for anticompetitive behavior towards its distribution and retail network. The fine...