The financial situation of the carrier Norwegian Air Shuttle, which was already ailing before the corona pandemic, has worsened in recent weeks. Various local media reports that top management is holding talks with the Norwegian government about a possible nationalization.

The loans that have already been paid out, for which Norway is liable, should not be enough to get the low-cost airline through the winter. Apparently, like other airlines, Norwegian management assumed that demand would increase continuously from the summer months. New travel and quarantine guidelines from various countries were not expected, at least in the patchwork quilt currently in use.

The situation at Norwegian is now so fatal that only the involvement of the state and the associated financial resources can bring the company through the winter. Negotiations are currently underway as to whether it could be a minority stake or a complete nationalization. However, the negotiations are still at a very early stage and may well burst.

Norwegian media wrote that a possible entry by the state should only be temporary and that the shares should be sold again after the crisis. However, it could prove to be a stumbling block that Norwegian Air Shuttle was already badly hit before the corona pandemic and dragged along a high mountain of debt from this time. Ultimately, it remains to be seen whether the talks will lead to the rescue of the low-cost airline or whether an alternative solution, such as further government-guaranteed loans, can be found.