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Low-cost carrier Norwegian has welcomed news of a six billion krone credit guarantee for carriers in the region, as the aviation industry continues to be battered by the impact of the coronavirus pandemic.

Norwegian will have access to around half of this amount (some £230 million), with an initial cash injection followed by further funds providing the airline has raised further equity.

In a statement Norwegian’s CEO Jacob Schram said:

“We are very pleased that the Norwegian government has announced measures focused on aviation in response to the immense financial strain that has been placed on the global industry due to the spread of Coronavirus.

“We have communicated to the Parliament and the government that we need liquidity and we are grateful that this has now been offered to our industry.

“This is crucial to secure the aviation sector in Norway, critical infrastructure and tens of thousands of jobs.

“We will now spend time to carefully evaluate the conditions of the proposal and we will do everything in our power to meet these requirements.”

The carrier also released the following statement:

“Norwegian Air Shuttle ASA (the “Company”) is pleased that the Norwegian
government has announced a guarantee package of NOK 6 billion that will limit
some of the damage to air transportation due to the Covid-19 pandemic. NOK 3
billion of the guarantee package will be allocated to Norwegian.

“The Company has decided to retain financial and legal advisors with a view to
evaluate and act upon the package with a goal to mitigate the current
circumstances the Company is facing, and in order to ensure that the Company
emerges with a sustainable financial platform, taking into account the best
interest of all parties.”

Earlier this week Norwegian confirmed plans to cancel “most flights”, and temporarily lay off 90 per cent of staff, in the face of “stagnating demand and enforced travel restrictions by authorities worldwide”.

norwegian.com