After many injections from governments in another countries, Norwegian Air has secured an initial cash infusion of 26.6 million dollars (300 million Norwegian crowns) from a government rescue package for the airline industry, the budget carrier said on Tuesday.
“The government guarantee scheme is crucial for the company as the current state of the capital markets in combination with the challenging times for the airline industry limit the options available,” Norwegian government said.
A condition for receiving the first 300 million crowns from Norway’s rescue package was that commercial lenders were willing to supply 10% of that amount while the government would provide the remaining 90%.
Norwegian, which has grounded most of its aircraft and temporarily laid off 90% of staff, amounting to about 7,300 people, had said it needed access to cash “within weeks, not months”.
The support from government is coming after leasing company DP Aircraft said a unit of Norwegian Air had failed to make payments relating to two Boeing 787 Dreamliner aircraft in its fleet.
Norwegian’s shares rose following the announcement, trading up almost 5% at 9.36 Norwegian crowns.