Norwegian Air on brink after support plea denied

Norwegian Air faces a battle to survive.

That after the country’s government on Monday (November 9) turned down a plea for more financial support.

In a statement the carrier said that leaves it in a ‘challenging situation’.

The airline said earlier in the year that it would run out of cash in the first quarter of 2021 unless it got more help.

Years of rapid expansion left Norwegian saddled with almost 8 billion dollars in debt.

In May creditors and lessors took control of the airline with a rescue package that gave it access to over 300 million dollars in state-guaranteed loans.

The company had been seeking more support.

But on Monday ministers said Norwegian’s financial structure made it too risky to offer more aid.

They refused to speculate on the company’s chances of staying in business.

At a news conference Monday morning Norwegian CEO Jacob Schram said he was now evaluating the remaining options.

He didn’t rule out bankruptcy as a potential outcome, but said the cash had not yet run out.

Shares in the airline tumbled again on Monday morning.

They’ve now lost 99% of their value this year.