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: Norwegian Steps Back from the Edge
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 > Norwegian Steps Back from the Edge

Norwegian Steps Back from the Edge

Travel Radar
Last updated: 4 May 2020 10:26
By Travel Radar Staff 2 Min Read
Share
SHARE

Norwegian Air Shuttle has narrowly avoided immediate bankruptcy after an emergency meeting took place this morning.

Airlines across Europe and the world have been seeking government rescue packages as demand has collapsed with fleets being grounded and financial reserves rapidly running out. Both the Air France/KLM and Lufthansa groups have sought and won government support.

© Flickr Commons

Norwegian is no different in most respects, except the conditions imposed by the Norwegian government on how the airline’s assets are financed—a specific ratio of debt versus shareholding. (or ‘equity’) Even before the coronavirus outbreak Norwegian was in financial difficulties due to the massive debt incurred in financing its aggressive low cost/long-haul expansion into the Americas and Asia. A week ago it said that almost all of its 160-strong fleet would stay on the ground until 2021.

After crisis negotiations over the weekend, this morning the carrier has won support from its aircraft lessors—major creditors–on its plan to convert £950 million debt to equity. This plan will give the current creditors majority ownership of the airline and will massively dilute the equity of current shareholders to slightly over 5% of the company’s worth. This (as yet unapproved) plan will unlock a 3 billion Norwegian Kroner (£230 million) rescue package from the Norwegian

© Flickr Commons

government. The airline has already received NKr300 million in emergency funding.

The shareholders are now voting on the plan to relegate them to minor figures and adding insult to injury, are also being asked to approve the creation of a further NKr400 million of shares. A final vote will take place in the middle of the month to approve the entire financing package.

But the airline isn’t out of danger yet. With there being serious reservations about the business model previously in use, the new shareholders in Norwegian are going to demand some significant changes to the strategy to protect their investments. We’ll watch closely…

You Might Also Like

UK government evaluating the Boeing-Spirit Deal

Etihad Airways Prepares to Welcome 7 Million Travellers This Summer

Air Canada Launches New Route to Edinburgh

Oil Price Dip & Rising Demand Fuel Optimism for Airline Stocks

How Canadian Travelers Can Find Fair and Secure Online Casinos That Work Anywhere

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 Hong Kong by Ferry Octavian Easy as one two three? Hong Kong’s three-step tourism recovery plan
Next Article CleanTech airport cleaning booths Full body disinfection booth: Will you have to walk through this before your next flight?
3 Comments
Subscribe
Login
Notify of
guest
guest
3 Comments
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

Emirates sponsorship behind Carlos Alcaraz (ESP) who serves against Frances Tiafoe (USA) in the third round of the Gentlemen's Singles on Centre Court at The Championships 2024
Emirates Sponsors The Championships, Wimbledon
Airlines Airshow & Events Travel
© Toyota
Top 10 Most Reliable Used Cars to Buy in Dubai
Travel
© Xclusive Yachts
The Best Dubai Luxury Experiences in 2025
Travel
Qatar Airways aircraft.
Skytrax’s World’s Best Airlines 2025 Revealed
Airlines Aviation Travel
Red Kiyomizu-Dera Temple in Kyoto, Japan
Top Educational Travel Destinations: Learn and Explore the World
Aviation 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?