Originally Posted by
Speedbrakes Up
Norwegian government investment, if they were to invest in Norwegian, would it not be the Norwegian AOC and the Norwegian element of the business.
Surley Norwegian government funding for an Irish/English AOC and associated companies would not be seen as Norwegian investment in an Norwegian company.
Unless of course the funds going into the Norwegian business and they filter down to the European companies, but surley that is unfair competition, having a European carrier NAI/NUK funded by the Norwegian government.
Food for thought perhaps.
It makes no difference if the AOC is UK (at least before Brexit), Irish or Norwegian. Norway is part of the EEC and implement all EU legislation in order to take part of the EU internal market. Norwegian Air Shuttle will have to follow the same competition rules as the rest of the airlines in Europe and state support is not allowed. Folketrygdfondet (the state fund) is the second largest shareholder in Norwegian and was holding 6,1% of the shares before the issue of new shares two weeks ago.
if private investors are not investing, Folketrygdfondet cannot solely take part in strengthening the finances of the company. The captial raised for SAS in 2009 and 2010 where the SE/NO/DK states funding half the money was not considered to be unlawful state support as the other half was funded by private investors. The capital SAS gained from the states were rather considered a healthy investment than state support.
If Folketrygdfondet is to invest further in Norwegian, the company needs confidence from private investors to raise capital as well. If that confidence is lost, money from the Norwegian state is likely considered illegal state support (if even offered). However it takes time before a decision like that would be final so if NAS is able to turn things around and become profitable again the company might be able to pay back any "illegal" state support received.