Norwegian Finalizes Recapitalization Plan, Secures NOK 3 Billion in State Aid
Norwegian Air announced on Wednesday that they have finalized their recapitalization plan, including the approval of NOK 2 billion in state aid. The company has also converted NOK 12.7 billion in debt to equity as they prepare for the future.
Today, Norwegian Air announced that they have finalized their recapitalization plan, having been approved for a loan guarantee of NOK 3 billion (USD$302.4 million) in state aid. The carrier has also converted NOK 12.7 billion (USD$1.28 billion) worth of debt to equity, thereby securing the airline’s future. Norwegian has taken significant actions since 2018 to restructure operations and return to profitability and was on track to deliver a net profit for 2020, prior to the global COVID-19 pandemic. In Wednesday’s announcement, Norwegian’s CEO, Jacob Schram said,
“I want to thank everyone who has supported the company during this unprecedented crisis that has affected the entire airline industry: The Government and Parliament; customers; employees; shareholders; leasing companies; creditors; bondholders; the travel industry and other Norwegian supporters. Now that we can access the state loan guarantee, we can continue to transform the company. Through this process, the belief in New Norwegian and the company’s strategy have been confirmed by shareholders, the market, bondholders, leasing companies, other creditors and lenders. Nevertheless, the months ahead will remain challenging and with a high degree of uncertainty for the industry. Norwegian will still need to collaborate closely with a number of creditors as the company currently has limited revenues. In addition to securing that the company survives this crisis, our goal has been that Norwegian should have a strong position in the future airline industry, with a clear direction and strategy. This will ensure sustainable operations and a structure that will be to the benefit of both shareholders, customers and colleagues.”
Norwegian Air is the world’s fifth largest low cost carrier, carrying over 36 million guests in 2019. The airline usually operates over 500 routes to over 150 destinations in Europe, North Africa, the Middle East, Thailand, North America and South America. Norwegian operates a young and fuel-efficient fleet of over 160 aircraft, with an average age of only 4.6 years.
Source: Norwegian Air