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Norwegian has started a new dialogue with the Norwegian authorities about a possible rescue package, but it is not certain that the parties will agree, says CFO Geir Karlsen.
Chief Financial Officer Geir Karlsen (left) and Chief Executive Officer Jacob Schram
Fredrik Hagen
Published:,
Norwegian has recently entered into a new dialogue with the Norwegian authorities about possible support for the airline, but there is no guarantee that Norway will participate in a new rescue package.
Here’s what CFO Geir Karlsen said during DNB Markets’ consumer conference on Wednesday.
– During the dialogue with the authorities when the pandemic broke out, we gave them a specific overview of what we needed. (..) Now that we have entered into dialogue with the authorities, we will make a proposal, he says.
It emphasizes that the company does not have visibility of what the State thinks and that there is no guarantee that the parties will reach an agreement.
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I need money before the new year
When Norwegian presented its figures for the previous quarter, both CFO and CEO Jacob Schram reiterated that the company will need more money before the new year.
– We will need more help before the end of the year to get through the winter, CEO Jacob Schram said at the time.
– We have reduced the debt with the company by about 17,000 million in recent months. So we’ve bought time, but we still need more liquidity in the next six to seven months, CFO Geir Karlsen said.
At the same time, they said nothing about how much or what kind of financing should exist.
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Norwegian talks to authorities about potential new support
Financing packages
In Norwegian’s report for the second quarter, the company outlined a new financing package that will secure additional working capital.
Includes loans, a new private placement, and a business and commercial plan reassessment.
The package also includes the sale and refinancing of assets or other sources of financing.
The company had previously estimated that it will “need around NOK 2.2 billion by the second quarter of 2021,” in the notice of the call for the general meeting at the end of June.
However, there are many variables here, CFO Geir Karlsen told E24 last week:
– What makes it a bit difficult to tell is that some assumptions were used to get that number and you have to look at what the assumptions are now, Karlsen said.
– Something has gone in a negative direction, like we fly less now than we imagined three months ago. At the same time, we have received more payment deferrals than we expected, which is positive. There are many variables here.
