Norwegian Air warns of ‘uncertain’ future as government refuses aid

Norwegian Air Shuttle warned it was facing a “very uncertain” future after Norway’s government turned down the low-cost airline’s request for additional support to survive the coronavirus crisis. Jacob Schram, Norwegian’s CE, on Monday lashed out at the centre-right government in Oslo, calling it “impossible to understand” why they failed to back the airline that employs thousands in the country and brings in tourists from across the world. Iselin Nybo, Norway’s minister for trade and industry, said that Norwegian had asked for billions of krone of support and that the government considered it was not a “sound use” of taxpayers’ money. “The fact that our government has decided to refrain from providing Norwegian with further financial support is very disappointing and feels like a slap in the face for everybody at Norwegian who is fighting for the company when our competitors are receiving billions in funding from their respective governments,” said Schram. Norwegian entered the coronavirus crisis as one of the most vulnerable airlines in Europe due to its high debt levels. It managed, thanks to a previous support package from Norway’s government, to convert NKr18b ($2b) of debt into equity from leasing companies, bondholders and suppliers, leaving its former shareholders with almost nothing. But as coronavirus has returned in a second wave in Europe and airlines have grounded most of their fleets and extended the timeline for an industry recovery, Norwegian has been forced to ask for additional help. Norwegian is likely to find a second restructuring harder as its biggest creditors, the leasing companies for its aircraft, have stressed that it is highly unusual for them to take an ownership stake.<br/>