The EFTA Surveillance Authority approves amended Norwegian guarantee scheme for airlines due to the COVID-19 pandemic

COVID-19 Pandemic: ESA approves amended Norwegian guarantee scheme for airlines*

The EFTA Surveillance Authority (ESA) has approved a renewal and amendments of the scheme that will make it feasible for more airline operators to access guarantees to help them through the current crisis.

The aviation sector is an important part of Norway’s critical infrastructure, and a major contributor to the country’s economy. Passenger travel has dropped significantly, and airlines have faced serious shortages of liquidity. Given the duration of the disruption caused by the pandemic, it is clear that airlines are likely to face long-term difficulties as the economic impact of the pandemic becomes more apparent.

The amended guarantee scheme aims to make funds more accessible for airline operators. The state guarantee will continue to cover 90% of financing need, but companies can now raise the remaining 10% in the form of new equity or risk capital as an alternative to a bank loan.

The scheme was notified by Norway on 9 July 2020, and was approved by ESA today. You can read ESA’s decision here.

*This is the original title of the press release. The title above has been amended in order to match the e-Competitions format. Individual authors are welcome to provide original independent commentaries on the case law. Articles are subject to approval by the Board of e-Competitions Bulletin before publication based on the Editorial Policy (click here).

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EFTA Surveillance Authority, The EFTA Surveillance Authority approves amended Norwegian guarantee scheme for airlines due to the COVID-19 pandemic, 10 juillet 2020, e-Competitions July 2020, Art. N° 96343

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