Some press reports in Norway over the last week or so suggested that Norwegian Air was going to breach its banking covenants when they were tested on 31st December.
It looks like the reports may have been correct, as the company unveiled a number of measures on Monday to inject new liquidity into the airline.
One Boeing 787 has been refinanced, raising $30m in cash (although of course long-term debt is increased by $30m)
A new cost-saving programme has been launched – no details yet – which is expected to save NOK 2bn in 2019. This will include closing unprofitable routes.
An “agreement” has been reached with Rolls-Royce over compensation for the Boeing 787 engine issues which have blighted Norwegian’s performance. However this is paid – either in cash or in kind – it will have an impact from the start of 2019.
Financing has been secured for all aircraft delivered due in H1 2019
Talks are continuing over the sale of some or all of its wholly owned aircraft
None of this is going to help Norwegian in the long term – in fact, by pushing up its long term debt it will make life tougher down the line – but it will get it over the next bump in the road.
The hope will be that falling oil prices and the maturing of existing routes will improve revenues in the medium term.
How to earn Avios from UK credit cards (February 2024)
As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!
In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.
You qualify for the bonus on these cards even if you have a British Airways American Express card:
There are two official British Airways American Express cards with attractive sign-up bonuses:
You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points. These points convert at 1:1 into Avios.
Run your own business?
We recommend Capital On Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios.
You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies and has a 30,000 Avios sign-up bonus.
There are also generous bonuses on the two American Express Business cards, with the points converting at 1:1 into Avios. These cards are open to sole traders as well as limited companies.
Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.