The Norwegian government will support the recovery plan of Norwegian Air

This year, the company plans to reduce its fleet to 50 machines.

Norway has approved Norwegian Air's low-cost rescue plan, but the government has set certain conditions. The Ministry of Industry has stated that it is willing to support the airline if private investors are also active. The airline, which had to gradually ground almost all 138 aircraft as a result of the new coronavirus pandemic, received creditor protection in Norway and Ireland. Last week, it presented a new recovery plan, which envisages raising new capital in the amount of at least 4.5 billion Norwegian kroner (435.92 million euros), Reuters reported. The company also turned to the Norwegian government. The company said it would support the Norwegian Air plan through a hybrid loan, but industry minister Iselin Nyboe said it would do so if private investors participated in the planned share issue. "The new plan looks better than the October one, which the government rejected, so we are willing to participate in it," the minister said. The minister also added that the government is not interested in becoming a shareholder of Norwegian Air. According to the head of the company Jacob Schram, the government's decision significantly increases the company's chances of managing the restructuring process and overcoming the current crisis. The company's shares, which fell by 98% in the last 12 months, rose by 14%. This year, the company plans to reduce its fleet to 50 machines. In 2022, it could expand to about 70 aircraft, but this will depend on demand and the extent of air traffic restrictions.