Norway’s Government Now Open For Helping Norwegian

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Norway’s government has tried not to prop up failing airlines in the country indicated on Thursday morning that they would be open for a hybrid load if other investors were willing to chip in to save Norwegian.

Norwegian is going through restructuring/bankruptcy proceedings in Ireland and announced last week that they would end all long-haul flying concentrating regional flights to/from the Nordics, as they started their business.

You can access Norwegian here.

Here’s an excerpt from the Local:

The Norwegian government has said it is prepared to offer a loan to low-cost airline Norwegian, which is fighting to stave off bankruptcy.

The announcement represents a change of stance by Oslo, which had previously ruled out the possibility of assisting Norwegian, which is fighting high levels of debt.

Last week, the company presented a plan outlining a way out of its crisis, including a reduction of its debt to around 20 billion kroner, raising four to five billion kroner in capital, and using 50 aircraft this year and 70 next year.

“Norwegian’s new business plan comprises strong changes in the company’s debt structure and the addition of 4-5 billion kroner in capital,” business minister Iselin Nybø said in a statement.

“The plan appears to be more robust than the one we said no to in October. We are therefore taking a positive position with regard to contributing,” she added.

Conclusion

Norway has the largest sovereign wealth fund globally, with more than a trillion dollars in assets as of late 2020. The country certainly has the cash to save Norwegian if they so choose.

Norwegian government owned part of the Scandinavian Airlines System, usually referred to as just SAS, but divested its investment in 2018.

If the government helps Norwegian, I am sure that the SAS’ Norwegian arm will come asking for some cash.

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