Norwegian Air Shuttle and its related companies will apparently live to fly again, but with new owners, including a 12.67% share held by a Chinese-government-owned aircraft leasing company, which will now be its second-largest shareholder.
The fast-expanding high-profile airline hit turbulent air last year as its rapid expansion and capital spending clashed with tight revenues, especially after losing access to its 737 Max fleet. The airline appeared headed for liquidation when Scandinavian governments held off on rescue funding. The new owners, which also include largest-shareholder AerCap, an Irish aircraft leasing company, result from a swap in which creditors took shares in the company instead of being repaid for their loans or money owed them by Norwegian.
Despite the deal, there are stormy skies ahead for Norwegian as restrictions lift and it tries to regain momentum, concentrating not on expanding into new areas but on expanding service in the areas where it has the best chances for profits. Jacob Schram, who became CEO in the midst of Norwegian’s crisis, warned that “Norwegian will still need to collaborate closely with a number of creditors as the company currently has limited revenues.”
