By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: Chinese Government Buys into Norwegian
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Have an existing account? Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2024 | All Rights Reserved
Travel Radar - Aviation News > News > Chinese Government Buys into Norwegian

Chinese Government Buys into Norwegian

Travel Radar
Last updated: 20 May 2020 15:10
By Travel Radar Staff 3 Min Read
Share
© Norwegian Air Shuttle
© Norwegian Air Shuttle
SHARE
©Flickr Commons

We reported earlier this month on Norwegian Air Shuttle’s close shave with bankruptcy. The central theme of the escape plan for the low-cost carrier was to convert huge amounts–£950 million to be exact—of debt into equity. The overall plan required approval by the creditors, and if that was obtained, then it would unlock an NK3 billion (£230 million) rescue package from the Norwegian government.

Today it comes to light that the Chinese government now owns a healthy chunk of that equity.

The debt/equity swap is intended to boost the amount of ownership of the airline by its creditors and so avoid having to pay back (at least most of) the debt, since naturally, Norwegian isn’t earning any money worth mentioning. Aircraft lessors were owed a large portion of that debt.

©Flickr Commons

The massive number of shares created diluted the original ownership of the airline enormously and caused an expected plunge in the price of the shares—which hasn’t completely recovered.

But the main story is the lessors, now proud part-owners of the airline. One is the Irish Aercap which leases many of the Dreamliners to Norwegian. Aercap now owns almost 16% of the carrier.

Another is BOC Aviation headquartered in Singapore, which is controlled by Sky Splendor Ltd, which is controlled by the Bank of China and ultimately by the People’s Republic of China.

Norwegian in Dire Straits ©Flickr Commons
Norwegian in Dire Straits ©Flickr Commons

So, if you like the Chinese Communist Party has a 12.7% ownership of the share capital and voting rights of the airline.

Nevertheless, the future is still hazardous for Norwegian. The CEO Jacob Schram has said that it would be in ‘hibernation mode’ for the remainder of this year and that full operations won’t resume until 2022.

12.7% of Norwegian doesn’t amount to pocket change for the Bank of China. Even so, China didn’t become the second-biggest economy in the world by making lousy investment decisions.

 

Good capitalists, these communists.

You Might Also Like

What Seasoned Travelers Do Between Flights That Tourists Don’t

Holger Sindemann Becomes Director and General Manager at N3 Engine Overhaul Services

Qatar Airways Resumes Flights as Qatar Airspace Re-Opens

NTSB faults Boeing for Alaska Airlines incident involving Boeing 737 MAX 9

Etihad Airways and Air Europa Celebrate Inaugural Abu Dhabi-Madrid Flight

Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Travel Radar
By Travel Radar Staff
Follow:
Articles from guest contributors wishing to remain anonymous are credited to this account. Want to contribute to Travel Radar either in-name, or anonymously? Get in touch: [email protected]
Previous Article Rolls Royce to Cut 9 000 Jobs
Next Article A Flight Before COVID19 Pandemic U.S. Airlines Are Ignoring the Need for Social Distancing by Flying at Capacity
Leave a comment
Subscribe
Login
Notify of
guest
guest
0 Comments
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

A robot stands on display at an event, highlighting advancements in robotics and technology.
ForsaTEK 2025 showcase fast-growing technology in aviation
Airlines Airshow & Events Aviation Technology
An Emirates Airbus A380-861 in the air.
Emirates Suspends Flights to Iran and Iraq
Airlines Aviation Incidents & Accidents Travel
Woman Taking Photo in Tropical Resort Lounge
How Honest Travel Reviews Can Help You Avoid Hidden Fees and Choose the Best Tours and Hotels
Aviation Travel
Air India’s widebody Airbus A350-900s exhibited at the 2024 Farnborough International Airshow
Air India Grounds Flights to Middle East, North America, and Europe Amid Escalating Regional Tensions
Airlines Aviation Travel
SkyTeam Logo
SkyTeam Celebrates 25 Years of Global Innovation
Airlines Aviation Did You Know
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • About Us
  • Contact Us
  • Careers
  • Press & PR
  • Privacy & Legal

Our Content

  • News
  • Data
  • Images
  • Jobs
  • Subscribe

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Click here to Signup!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
AdBlock Detected
Ads help us bring you high-quality, independent journalism for free. Support us by whitelisting us from your ad blocker.
Okay, I'll Whitelist
Welcome to the TR Community!

Sign in to your account

Register Lost your password?