Leasing groups take big stakes in Norwegian Air

Two of the world’s largest aircraft leasing companies — including one controlled indirectly by the Chinese state — have become the biggest shareholders in Norwegian Air Shuttle as the embattled low-cost airline sealed its government-backed rescue. Norwegian said on Wednesday that Ireland’s AerCap will own 15.9% while BOC Aviation, majority owned by Chinese state-controlled Bank of China, will have a 12.7% stake after they convert parts of their lease obligations into shares in Europe’s third-largest, low-cost airline. The carrier, which has struggled with high debt levels after a rapid expansion into low-cost, long-haul travel, has unlocked a $300m loan guarantee from the Norwegian government after Oslo set tough conditions for a rescue including boosting its equity ratio. Norwegian said its equity ratio was now 17%, up from about 5% at the start of this year. Norwegian itself has said more support may be needed after the summer, especially as it forecasts no real return in flying until next Easter and that operations will only be back to normal by 2022. “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 has limited revenues,” said CE Jacob Schram.<br/>