Aviation expert: "The crisis is not over"

Norwegian looks to stay above the water surface. At an extraordinary general meeting on Monday, an overwhelming majority of shareholders voted in favor of the management's rescue plan.

The decision means that the shareholders go from owning 100 per cent of the company to 5 per cent - and the airline's debt repayments of just over ten billion Norwegian kroner to lenders are converted into shares.

On the other hand, the fact that shareholders have given green light to the management's rescue package does not mean that the company's crisis has been averted. According to flight expert Jan Ohlsson, the corona pandemic risks being hit hard against the Norwegian air carrier.

- No, the crisis is not over. Much now depends on how covid-19 is developing and that people are starting to dare to fly again, he says.

Just like SAS, Norwegian has a large proportion of flights on the charter side - and the loss of income during the summer is expected to be large, according to Jan Ohlsson. The reason, he believes, is that the countries have come into disarray when the borders are opened.

- Of course, it's not good for the airlines. Best for them would have been if all countries had opened up at the same time, but it will not be.

At a press conference on Monday, Norwegians CEO Jacob Schram said he was relieved, but that much work remains. The air carrier is now expected to receive a state aid package of 2.7 billion Norwegian kroner in mid-May.

- It may sound like a lot, but it really isn't. Most important for Norwegian is that the covid-19 starts to ring off and that the flights get underway, says Jan Ohlsson.

The Corona crisis has hit hard on the entire aviation industry and thousands of Swedes have had their journeys canceled. But those who bought their trip via Norwegian can now start hoping to get compensation, says Jan Ohlsson.

- They promised to pay back. I think you will be pretty careful about that and take your responsibility. But it will take time, he says.