Norway will not inject any more funds to Norwegian airline.

Aviación al Día

5 years ago

The Norwegian government announced on Monday that it has no intention of offering further financial support to Norwegian, leaving the airline with a “very uncertain future”, the company said.

This decision caused the company’s shares to plummet on the stock market, which registered a drop of more than 20% in their price after the news was announced.

Specifically, the Norwegian Ministry of Transport has communicated its refusal to an additional injection of financing to support the group’s business, impacted by the Covid-19 crisis, Cinco Días reported.

Last August, Norwegian already indicated that it would run out of liquidity in the first quarter of 2021, unless it received an economic injection.

In a statement, Norwegian said it faces a “very uncertain” future after the Norwegian government’s decision not to provide more funding to the group to try to survive the current crisis caused by the pandemic.

The group’s CEO, Jacob Schram, considered the Norwegian government’s decision to be “very disappointing” and a “slap in the face for all those who are fighting for the company in Norway, when our competitors are receiving billions in funds from their respective governments.

The low-cost airline has some 2,300 workers in Norway and thousands more in the other countries where it has a presence.

Last May, the airline already reached an agreement with its creditors to give them almost all of its capital stock to access a state loan for 3 billion crowns (about $330 million).