Oslo The financially troubled budget airline Norwegian Air has gained some Chinese aid. On Thursday, the management presented its much sought-after partner for months, which is taking the company's billions of pounds off its shoulders. The winner was CCB Leasing, owned by China Construction Bank.
The Chinese help Norwegian to buy 27 Airbus aircraft ordered and take over 70 percent of the fleet. This reduces the debt burden of the airline. Their own capital investment is reduced by the deal by its own account by $ 1.5 billion.
Norwegian has shaken the market for long-haul flights with low-priced transatlantic tariffs, but has paid off its rapid expansion with heavy losses and accumulated debts. The company was therefore forced to ask shareholders for a cash injection and defer debt repayments. In addition, it was burdened by ongoing engine problems and the flight ban for its Boeing 737 Max aircraft.
In order to tackle the financial difficulties, the group also announced a new round of cost cutting and the removal of unprofitable air connections. The restructuring program is already showing results: at the equivalent of 160 million euros, the quarterly profit was higher than expected by experts.
At the Oslo Stock Exchange, investors tore themselves over Norwegian stocks, which at times gained 23 percent in value. “This company is pulling out all the stops to make it better again,” commented the analysts of the securities trader Bernstein.
More: The Norwegian airline suffers from engine problems and the flight ban for the Boeing 737 Max. Now Norwegian asks his creditors for patience.
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