The Norwegian government on Thursday provided support to the heavily indebted Norwegian airline Norwegian. This essentially eliminates the risk of bankruptcy, according to Sydbank aviation analyst Jacob Pedersen, who adds that it also sets the stage for an aviation battle between Sweden and Norway in the longer term.<\/p>\n\n\n\n
The details of the Norwegian government's commitment are still unknown, but regardless, the state's involvement is "an invaluable component in saving Norwegian," Jacob Pedersen told Ritzau.<\/p>\n\n\n\n
\u201d"From my point of view, this means that a Norwegian bankruptcy looks very unlikely. This is the counter-reaction needed to attract other financiers," he said.<\/p>\n\n\n\n
In the past year, when the pandemic has thrown the rug out from under the airlines, government support for the sector has been tantamount to a rescue. The announcement from Norwegian will likely be interpreted precisely against that background, believes Jacob Pedersen.<\/p>\n\n\n\n
\u201d"You have one position until you find a new one. For reasons of caution, there hasn't been much help from the Norwegian government until now," notes Jacob Pedersen.<\/p>\n\n\n\n
The government has investigated the many initiatives launched by Norwegian's management to clean up the company's heavy debt. This has included, among other things, restructuring in several countries where the group has companies. <\/p>\n\n\n\n
\u201d"Within a year, Norwegian has planned two major rescue plans," emphasizes Jacob Pedersen.<\/p>\n\n\n\n
At the same time, leasing companies and American banks, which filled much of Norwegian's ownership circle after the first rescue plan where debts were exchanged for shares, resulting in gigantic dilution for previous owners, have reduced their holdings.<\/p>\n\n\n\n
\u201d"We should remember that this is not a rescue of the Chinese leasing companies and the American banks. It has also been significant for the Norwegian government," continues Jacob Pedersen.<\/p>\n\n\n\n
The aviation analyst also emphasizes that the Norwegian government was an important shareholder in SAS not so many years ago, but now instead becomes an important shareholder in SAS's largest competitor.<\/p>\n\n\n\n
\u201d"This sets the stage for a Nordic aviation battle, with Norway and Norwegian on one side and SAS, Sweden and Denmark on the other. It will be exciting to see what opportunities SAS will have in the Norwegian market in the future," Jacob Pedersen told the Danish news agency.<\/p>\n\n\n\n
Regarding SAS in particular, the Sydbank analyst finds it difficult to see that today's news can in any way benefit SAS, since there is now competition between SAS and the Norwegian state.<\/p>\n\n\n\n
\u201d"It is not in itself anything that will affect in the short term, but it will in the longer term, given that Norway is the country where SAS has several of its most important operations," emphasizes Jacob Pedersen.<\/p>\n\n\n\n
Norwegian's stock strengthened by over 13 percent on Thursday morning, while SAS's stock rose 1.5 percent.<\/p>\n\n\n\n
Source: news agency directly<\/p>","protected":false},"excerpt":{"rendered":"
Den norska regeringen gav p\u00e5 torsdagen sitt st\u00f6d till det tungt skuldsatta norska flygbolaget Norwegian. D\u00e4rmed \u00e4r konkursrisken i princip undanr\u00f6jd, enligt Sydbanks flyganalytiker Jacob Pedersen, som till\u00e4gger att det ocks\u00e5 \u00e4r b\u00e4ddat f\u00f6r luftfartsstrid mellan Sverige och Norge p\u00e5 lite l\u00e4ngre sikt. \u00c4nnu \u00e4r detaljerna\u00a0f\u00f6r norska regeringens \u00e5tagande ok\u00e4nt, men oavsett vilket \u00e4r statens […]<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[179],"tags":[],"class_list":["post-237591","post","type-post","status-publish","format-standard","hentry","category-flyg"],"acf":[],"yoast_head":"\n