Norwegian Air appears primed to receive a lifeline from the
Norwegian government after completing a share sale and winning backing from
bondholders for a refinancing.
The discount transatlantic carrier should now be able to tap
into 2.7 billion Norwegian kroners ($270 million) that was contingent upon
increasing the portion of the company’s assets that are held as equity from
just under 5% to 8%.
Norwegian anticipates the new state aid, which adds to the
$30 million the carrier already received from Norway, will provide it with
sufficient liquidity to last through this year.
The carrier plans to be inactive until next spring, followed
by a summer 2021 ramp-up. Full operations are not expected to resume until
Norwegian is currently flying just seven aircraft and fleet
capacity has been reduced by 95%.