Norwegian Air has fulfilled the first condition to access a government-led rescue package for the airline industry and secured an initial cash infusion of 300 million Norwegian crowns (€24.9 million), the budget carrier said on Tuesday.
Norway said last week that Norwegian Air could obtain credit guarantees worth up to NKr3 billion (€249 million) to help it to weather the coronavirus crisis but must first comply with a series of conditions.
Norwegian, which has grounded most of its aircraft and temporarily laid off 90 per cent of staff, amounting to about 7,300 people, had said it needed access to cash “within weeks, not months”.
The condition for receiving the first NKr300 million rowns from the package was that commercial lenders were willing to supply 10 per cent of that amount while the government would provide the remaining 90 per cent.
“Norwegian is pleased to announce that two Nordic banks have obtained credit committee approval to provide a guarantee for the required 10 per cent,” a company statement said. “Norwegian will secure the necessary headroom to pursue further guarantees from the Norwegian government.” – Reuters