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

Air New Zealand Set to Receive New Airbus A231neo

PSA Airlines Set to Debut Aircraft 639 in July 2025

TAP Air Portugal: Terceira To San Francisco

BETA Technologies Lands Passenger-Carrying Electric Aircraft

Etihad Airways Enhances Sydney Route

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

Professor Ahmet Bolat
Turkish Airlines Chairman secures second term of IATA board
Airline Economics Airlines
STARLUX Airlines Starwalker 801
Etihad Airways signs codeshare partnership with STARLUX Airlines
Airline Economics Airlines Route Development
Emirates Aircraft
Emirates Reveal Two New Routes Across East Asia
Aircraft Airlines Route Development
TEF internship group
Jamaica’s Tourism Initiative: TEF’s Summer Internship Pulls in 12000 Applicants
Aviation Careers
An image of a STARLUX aircraft arriving at Taipei Songshan Airport.
STARLUX Airlines Begins Taipei-California Flights
Airlines Airports Route Development Travel
//

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?