Articles Posted by POD

Compensation plan for tourism of up to NOK 1 billion

by on September 21, 2020 0

The government is introducing a compensation plan of up to NOK 1 billion for tourism companies. In addition, they will provide NOK 250 million for restructuring.

On Monday 21 September, the government will present new proposals for relief measures for industries that are acutely affected by the authorities’ corona measures. Tourism is among the industries hardest hit by infection control measures and travel restrictions.

The situation in tourism is very challenging, and it will continue to be so in the future. The government will therefore introduce a new compensation scheme for tourism companies with a large drop in turnover of …

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Norwegians shareholders agree to the crisis plan

by on May 4, 2020 0

An overwhelming majority of Norwegians’ shareholders have voted in favor of the group management’s rescue plan, which will prevent the company from going bankrupt.

The vast majority of shareholders voted in Monday’s extraordinary general meeting, yes, on all the important points in the rescue plan, reports Dagens Næringsliv.

The goal of the plan for CEO Jacob Schram and the Board of Directors of the company is to gain access to a government crisis loan of NOK 2.7 billion.

Through long negotiations in the last few days, the company managed to bring both bondholders, leasing companies and thus shareholders on board …

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Government’s tardiness threatens thousands of jobs and payouts to over one million travelers

by on April 14, 2020 0

More than three weeks ago, the travel industry association SRF submitted a concrete proposal to the government on a support fund to handle refunds to travelers for canceled trips. The fund finances itself through future fees and thus does not burden the taxpayers. “Unless the government announces soon, thousands of jobs will disappear while consumers risk losing their money,” said Didrik von Seth, secretary general of SRF in a press release.

The corona virus outbreak and the Foreign Ministry’s recommendation for restrictions on all travel make the travel industry completely silent. An entire industry that normally generates billions today has …

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Scandic closes 17 of 27 Danish hotels

by on April 13, 2020 0

Scandic is temporarily shutting down 17 of its 27 hotels in Denmark. For now, the closures are in effect until after Easter.

Scandic Hotels are temporarily shutting down 17 of its 27 hotels. The closures are a consequence of the COVID-19 epidemic and are valid until 14 April.

The hotel chain has so far laid off 650 employees on the basis of the previously concluded agreement between Dansk Erhverv and 3F, which is valid until March 29. After this date, the laid off employees will transition to the new tripartite wage compensation agreement. Scandic estimates that an additional 600 employees …

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TUI signs German bridge loan

by on April 13, 2020 0

KFW and TUI AG confirm the signing of a € 1.8 billion government bridge loan. The loan is guaranteed by the German federal government as part of their Covid-19 support program.

TUI’s current credit facility, the RCF Bank Consortium, supports the KFW loan and adds EUR 1.8 billion to TUI’s existing credit line.

Following the introduction of the international travel restrictions, TUI decided to apply for the KFW loan to mitigate the severe effects of the pandemic until normal business operations can be resumed. Like others, TUI had to temporarily suspend its tour operator business, as well as its flight, …

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Norwegian will convert debt into equity

by on April 13, 2020 0

The Norwegian Board of Directors will, through a number of measures, strengthen the company’s balance sheet and fulfill the Norwegian authorities’ terms in Trades Two and Three of the Government’s loan guarantee scheme.

The Board of Directors proposes that debt be converted to equity by entering into agreements with, among other things, bondholders, lenders, leasing companies and suppliers.

The proposals include:

  • Parts of the debt of leasing companies, banks and other creditors are sought to be converted into shares in Norwegian.
  • Use of other financial instruments to convert other relevant debt to equity or other equity instruments.
  • All or part
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Airlines owe two billion SEK to Swedish travel agencies and tour operators

by on April 8, 2020 0

Airlines from all over the world owe Swedish travel agencies and tour operators SEK 2 billion for travel canceled due to corona. Although the reimbursement obligation is statutory, most airlines do not pay. “In the end, consumers risk losing their money,” said Didrik von Seth, secretary general of the travel industry association SRF in a press release.

Because of the corona outbreak, most airlines now refuse to refund air tickets for travel agents and tour operators. The airlines’ international interest organization IATA writes in an open letter that it is the best solution right now, and that it is in …

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Airlines on the edge fear repayments

by on April 8, 2020 0

The airlines are at risk of losing everything after canceled flights and demands from millions of travelers to get money back, IATA says.

The International Aviation Authority reports on Tuesday that a number of companies will run out of funds if the flights continue to flatten out.

“The companies only have liquidity to carry on for two months on average,” says IATA chief economist Brian Pearce.

Now the airlines are preparing for another round of losses, expecting people to recover around € 35 billion in reimbursements for travel that will never be completed.

The number of flights worldwide has decreased …

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Lufthansa shuts down Germanwings

by on April 8, 2020 0

Lufthansa is closing down low-cost airline Germanwings to cut costs and survive the corona crisis.

– Germanwings flights will not continue. The consequences of this decision will be discussed with the unions, a statement from the company says.

Germanwings is wholly owned by Lufthansa, which also owns Eurowings, SWISS, Brussels Air and Austrian Airlines.

The company says it will put 40 of its 763 aircraft on the ground to cut costs.

In the statement, Lufthansa says they do not expect operating conditions in the airline industry to be as they were before the corona epidemic hit the world.

According to …

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Companies with a revenue drop of 30 percent or more receive cash support

by on April 6, 2020 0

This has been the main focus for NHO Reiseliv in the last couple of weeks, and we are pleased that daily and close cooperation with the government has now produced results, says the NHO Reiseliv director.

Companies that have lost revenue of more than 30 percent per month from April 2020 compared to the same month the year before will receive state compensation. For March, the requirement is set at 20 per cent sales failure because the intervening measures were implemented halfway through the month. The amount of support will be determined on the basis of the inevitable fixed costs …

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