Norwegian could be nationalised under radical plans being considered by government officials in Oslo. Political leaders in Norway’s ruling coalition have indicated that they favour bailing out the struggling budget carrier rather than the older flag carrier SAS. Airline bosses have held talks with the government last week, local media reported. Jon Gunnes, transport policy spokesman for the Liberal Party, said supporting Norwegian was “very important”. Before the pandemic struck Norwegian was one of the biggest airlines operating from Gatwick airport behind easyJet and British Airways. It had been offering cut-price flights to several cities in North America as well as more distant destinations including Rio and Buenos Aires. Norwegian landed a GBP250m government bailout in March that wiped out shareholders and required creditors such as banks and aircraft leasing companies to agree to a GBP1.2bn debt-for-equity swap. However, faced with a prolonged period of uncertainty, boss Jacob Schram admitted last month that the injection was “not enough to get through this prolonged crisis”. Options on the table are understood to include Oslo taking a major stake in the airline for a temporary period of time, according to industry sources.<br/>
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Bain Capital’s acquisition of Virgin Australia Holdings is on track for October completion, administrator Deloitte has indicated in a letter to creditors and employees. Creditors had on 4 September accepted a proposal that is structured around 10 deeds of company arrangement (DOCAs) for all 41 VAH entities in voluntary administration. “I confirm the DOCAs were executed today, 25 September 2020 and will be lodged shortly with the Australian Securities and Investments Commission (ASIC),” Deloitte says in a same-day letter to creditors and employees. It adds: “As deed administrators we are required under the terms of the DOCA to make an application to court to seek consent orders for the transfer of the VAH shares to Bain Capital. We are well progressed on the documentation for this application and we are hopeful that this process will be completed on or before 31 October 2020.” On completion of the share transfer, the DOCAs will be completed and control of the companies will transfer to Bain Capital. Thereafter, a creditors’ trust will come into effect and creditors who have claims that are released by the DOCAs will become beneficiaries of said trust, subject to various terms, Deloitte says in the letter.<br/>
Malaysia's flagship budget airline AirAsia Group Bhd AIRA.KL are looking at laying off hundreds of employees, as it sought to cope with the coronavirus pandemic, state news agency Bernama reported on Monday. Both its Malaysian unit and long-haul arm, AirAsia X Bhd AIRX.KL plan to cut some hundreds of staff each, Bernama reported, citing a source who attended separate town hall sessions held by both units on Monday. AirAsia did not immediately respond to Reuters’ request for comment. Affected staff will be informed within 72 hours, and AirAsia Malaysia will provide them assistance such as medical benefits and flight coupon redemptions year-end. CEO Riad Asmat said the airline group had reached out to the government but had not received any feedback. Those retrenched will then be rehired once the airline rides through the pandemic. Remaining staff will not have to take pay cuts. Meanwhile, AirAsia X will undergo a wider retrenchment exercise involving technical staff and cabin crew, on a “last in, first out” basis.<br/>