Norwegian Air offered 3bn krone rescue package from officials
Norway’s government has ridden to the rescue of beleaguered Norwegian Air with the offer of a credit guarantee of 3bn krone.
Shares in the low-cost carrier soared on the news, jumping 18 per cent over the course of the day.
City A.M understands that the 3bn package is part of a 6bn krone package Norwegian officials have put aside for regional airlines including SAS and Wideroe.
After an initial injection, Norwegian will be able to access more cash once it has raised additional equity.
“We are very pleased that the Norwegian government has announced measures focused on aviation in response to the immense financial strain that has been placed on the global industry due to the spread of Coronavirus.
“We have communicated to the Parliament and the government that we need liquidity and we are grateful that this has now been offered to our industry.
“This is crucial to secure the aviation sector in Norway, critical infrastructure and tens of thousands of jobs,” said chief executive Jacob Schram of Norwegian.
“We will now spend time to carefully evaluate the conditions of the proposal and we will do everything in our power to meet these requirements,” he added.
More to follow.