The Government of Norway has said it will support and contribute to the capital of Norwegian Air Shuttle just two-months after it refused further support for the struggling carrier.
Since then the airline has entered a restructuring process under an “examinership scheme” in Ireland and a “supplementary reconstruction” process in Norway in a bid to cut its costs.
Once of the biggest results from this has been the closure of Norwegians long-haul operations which resulted in the loss of 1,100 jobs at London Gatwick.
The airline now has what it sees as a realistic strategy for moving forward and its plan has already received backing from Norwegian staff, shareholders and business partners.
Norwegian CEO, Jacob Schram said: “On behalf of everyone at Norwegian, I would like to sincerely thank the government for their support. Norwegian has been faced with a very challenging and demanding situation due to the pandemic, and the government’s support significantly increases our chances of raising new capital and getting us through the reconstruction process we are currently in. We still have a lot of work ahead of us, but a participation from the government underscores that we are heading in the right direction,”
Under the new strategy the airline will reduce its fleet to around 50 aircraft which will be used in 2021 and this will be increased to around 70 aircraft in 2022 subject to how the global situation develops.
The airline’s debt will also be reduced to around NOK 20 billion, and the company will raise four to five billion NOK in new capital including from the Norwegian Government.
Schram added: “With a new business plan, and a participation from the government, we are confident we can attract investors and get through the Examinership and reconstruction process. We have received extensive support from political parties, customers, colleagues, shareholders, and business partners, for which we are extremely grateful, especially during these challenging times. Furthermore, the government’s support will contribute to help securing jobs and maintain healthy competition within the aviation sector,”