Friday, 5 Jun 2020

Norwegian secures NOK3 billion in government support

Low-cost carrier Norwegian has secured the necessary approvals to unlock emergency funding.

The Norwegian government last week proposed a guarantee of NOK6 billion for the Norwegian airline industry, of which up to NOK3 billion is directed to Norwegian.

The guarantee will be up to 90 per cent from the Norwegian government provided that financial institutions contribute with the remaining ten percent.

The guarantee scheme will consist of three tranches with a maximum two years maturity.

Two Nordic banks have now obtained credit committee approval to provide a guarantee to Norwegian for the required ten per cent for the first tranche.

Norwegian will secure the necessary headroom to pursue further guarantees from the Norwegian government, the carrier said.

The company added it was now working with GIEK and the ministry of trade, industry and fisheries to clarify the criteria and terms related to the remaining tranches under the scheme and to obtain further guarantees from financial institutions in order to back such remaining tranches.

Norwegian will update the market with its further plan of action and implications for its stakeholders as soon as the criteria and terms have been finalised.

Currently, most of the Norwegian fleet is grounded and the company has reduced its operations to a minimum.

Norwegian will primarily operate domestically in Norway and Sweden and between the Nordic capitals, in order to deliver on its corporate responsibility of maintaining critical infrastructure so that people and necessary goods and medical supplies can be transported during this unprecedented crisis.

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