Having turned to its investors in a desperate bid to accept its bailout plan, Norwegian Air s management is preparing for a "worst-case scenario." If the company receives no government aid soon, it will go bankrupt before the end of this year.

The coronavirus pandemic dealt a heavy blow to airlines and Norwegian is no exception. According to Swedish public television SVT, the company has come „dangerously close to total bankruptcy”, so after several days of negotiations, the management asked its shareholders to accept a rescue package as a „last resort” measure.

Norwegian CEO Jacob Schram will present the plan to shareholders on Monday, foreshadowing the company s intention to apply for state bailout amounting to €240 million in mid-May. Mr Schram hopes this huge loan would keep the company afloat in 2020.

Esper Andersen, an expert at BI Norwegian Business School, also points out that several airlines are in the same predicament, because pandemic restrictions have had a drastic impact on air traffic. He also noted that, although the airline is on the verge of bankruptcy, it is a key player of Norway s economy, so the state is likely to lend a helping hand. Mr Andersen added that Norwegian was the only meaningful rival of Scandinavian Airlines, which would otherwise enjoy a monopoly in the country.