Finnair announced in its Stock Exchange Release on March 16 2020 that it is implementing a funding plan includes funding instruments such as available credit lines, sale and leasebacks of unencumbered aircraft and a substantial, market-based pension premium loan, with the latter yesterday receiving provisional government approval .
The available credit lines included in the funding plan consist of a revolving credit facility totalling to 175 million euros which has already been raised. The statutory pension premium loan totals to 600 million euros, and it has been proposed that the State of Finland would guarantee the loan.
The Finnish Government’s Ministerial Committee on Economic Policy has given its approval on 19 March 2020, but it still requires ratification from the country’s parliament.
“The coronavirus is already now the biggest crisis in the 100-year history of aviation,” says Topi Manner, Finnair’s chief executive. “Even though Finnair is among the strongest airlines at the start of the coronavirus crisis and we have a strong cash position and a healthy balance sheet, with this plan we aim to secure that we weather the exceptional situation and, considering the circumstances, are able to continue our operations from a steady basis once this situation is over.”