The Norwegian government has indicated it would be prepared to support beleaguered Norwegian Air’s efforts to stave off financial ruin, albeit without yet making any firm cash commitments.
In a statement, Norway’s industry minister Iselin Nyboe said the country was willing to take part in refinancing the airline, Reuters reports, a move welcomed by Norwegian chief Jacob Schram.
"Norwegian is pleased to announce the government of Norway has decided to support and contribute to the airline’s funding of new capital, pending certain conditions," said Schram.
"This move significantly increases Norwegian’s chances of working through the crisis caused by the pandemic and to position itself as a key player within Norwegian and European aviation.
“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."