Flugblogg
  • Airlines
  • Airports
  • Flight Safety
  • Helicopters
  • Lifestyle
  • About Us
Flugblogg
Support Us
  • Airlines
  • Airports
  • Flight Safety
  • Helicopters
  • Lifestyle
  • About Us
Departure of Icelandair Boeing 753 TF-ISX from Sheremetyevo, Moscow during World Cup 2018 on 17.06.18 // Source: Sergey Popkov
  • Airlines
  • News

Icelandair sales new shares after getting government support guarantee

  • Andrei Menshenin
  • August 19, 2020
  • 2 minute read

Icelandair press-release

Although Icelandair Group entered the Covid-19 pandemic with a strong financial position, the Company will need to strengthen its liquidity position for the upcoming period where flight operations are expected to be at a minimum level. As previously announced, Icelandair Group intends to raise ISK 20 billion through sale of new shares which will provide vital liquidity for the Company. The Icelandic Government has already approved to provide the Company with a guarantee for a credit facility amounting to up to USD 120 million. The guarantee will be subject to terms for the guarantee and the credit facility being agreed upon between the parties, the approval of the Icelandic Parliament and a successful offering of shares in Icelandair Group.

For the last few months, the Company has been working on various mitigating measures which will strengthen Icelandair Group’s liquidity and competitiveness for the short-term and long-term such as the following:Long-term collective bargaining agreements have been completed with pilots, cabin crew and aircraft mechanics which will increase the Company’s flexibility and utilization of resources. Long term agreement have been made with key creditors and vendors regarding concessions for the Company which will be vital in minimizing cash outflow in the upcoming period where the flight schedule is expected to be at a minimum level. Despite the COVID-19 pandemic, the Company has managed to operate a limited but a profitable flight schedule during the summer period. Furthermore, the cargo and leasing operations have been successful during this period by ensuring profitable projects.  Icelandair has completed an agreement with Boeing on additional compensation due to the grounding of the MAX aircraft and Icelandair’s MAX purchase commitment has been reduced by four aircraft. The compensation will strengthen the liquidity position of the Company and the reduced purchase commitment will result in lower capital expenditure in the upcoming years.

Due to these measures, the financial position of Icelandair Group is stronger than what was expected at the time when the shareholders’ meeting was convened on 22 May 2020. The Company aims to sell new shares of ISK 20 billion in nominal terms for a price of ISK 1.0 per share. Furthermore, in case of oversubscription, the board of directors would be authorized to increase the share offering by up to 3 billion resulting in a maximum offering size of ISK 23 billion. Additionally, a proposal will be submitted regarding the authority of the board of directors to issue warrants, which will be stapled to new shares issued following the upcoming share offering, amounting to 25% of the nominal value of the total shares issued. The offering will be held in September, conditioned upon the approval of shareholders’ meeting in order to renew the authority to increase the Company’s share capital. The Company will hold a shareholders’ meeting on 9 September 2020.

Total
9
Shares
Share 9
Tweet 0
Share 0
Related Topics
  • COVID-19
  • finance
  • Icelandair
Previous Article
  • Airlines
  • News

Wizz Air will connect Iceland and Latvia this autumn

  • Andrei Menshenin
  • August 16, 2020
View Post
Next Article
Traffic in Keflavik // Source: Isavia
  • Airlines
  • News

Icelandair will fly a new type of aircraft in four years

  • Andrei Menshenin
  • August 20, 2020
View Post
Read more on Flugblogg
UPS Boeing 747-8F reg. N618UP // Source: UPS
View Post
  • Airports
  • Flight Safety
  • News

Replicas of firearms, fireworks and a bottle with liquid were found on board a freighter with an allegedly “bomb” in Keflavik

  • September 29, 2022
Keflavik airport terminal // Source: Isavia
View Post
  • Airports
  • Flight Safety
  • News

Bomb threat received in Keflavik after UPS freighter diverted there

  • September 29, 2022
Icelandair Boeing 757-200 reg. TF-FIK damaged in Heathrow airport by Korean Air Boeing 777 // Source: CPlanespotting (Twitter)
View Post
  • Airlines
  • Flight Safety
  • News

Icelandair plane was damaged by another aircraft in Heathrow airport

  • September 28, 2022
Air Greenland Bombardier Dash 8 Q200 reg. OY-GRH in Keflavik airport // Source: Andy Todd (flickr.com)
View Post
  • Airlines
  • News

Icelandair signs new interline agreement with Air Greenland

  • September 19, 2022
Heart Aerospace ES-30 // Source: Heart Aerospace
View Post
  • Airlines
  • News

Icelandair joins the development of the electric plane ES-30

  • September 16, 2022
Part of an engine, fallen in the yard in Waremme, from Air Atlanta Icelandic Boeing 747-412F reg. TF-AMC // Source: Facebook page of Hervé Rigot
View Post
  • Airlines
  • Flight Safety
  • News

Air Atlanta Icelandic plane dropped part of an engine in the yard of a house in Belgium

  • September 9, 2022
Near-miss in Keflavik between flights ICE533 and ICE6LC // Source: Flightradar24
View Post
  • Airlines
  • Flight Safety
  • News

The dangerous approach in Keflavik. Arriving plane almost landed on the departing aircraft

  • September 2, 2022
Óli Öder Magnusson is ferrying ultra-light ICP Savanah S to Iceland // Source: Óli Öder Magnusson
View Post
  • General aviation
  • News

On ultra-lights over the ocean. How Icelanders delivered planes from Italy

  • August 30, 2022
Flugblogg on Facebook
Comments Box SVG iconsUsed for the like, share, comment, and reaction icons

Flugblogg

5 days ago

Flugblogg

Eva Guðný Guðnadóttir lauk sínu fyrsta einflugi (solo) í dag! ✔️ ... See MoreSee Less

  • Likes: 33
  • Shares: 0
  • Comments: 1

Comment on Facebook

Megi gæfa og gengi fylgja henni, bk

Flugblogg

1 week ago

Flugblogg

Photos from Flugfélagið Geirfugl's post ... See MoreSee Less

  • Likes: 6
  • Shares: 0
  • Comments: 0

Comment on Facebook

Flugblogg

2 weeks ago

Flugblogg

An unusual guest visited Keflavik #bikf on 25.January: Hungary Air Cargo Airbus A330-243F reg. #halhu, operated by Wizz Air, as WZZ255 from Budapest #lhbp and then as WZZ256 to Managua #mnmg.Photos by Pawel Gw ... See MoreSee Less

An unusual guest visited Keflavik #BIKF on 25.January: Hungary Air Cargo Airbus A330-243F reg. #HALHU, operated by Wizz Air, as WZZ255 from Budapest #LHBP and then as WZZ256 to Managua #MNMG.

Photos by Pawel Gw
  • Likes: 37
  • Shares: 0
  • Comments: 0

Comment on Facebook

Load more
Subscribe to be informed

All copyrights are reserved. Partial copying of materials, video or audio is allowed only with the mentioning of the source: Flugblogg.is
With all inquiries write us to
inboxflugblogg @gmail.com

Flugblogg
Aviation blog with reviews of Icelandic aviation trends, interviews with aviators, aviation analysts and reports on general aviation. Here you will find reviews of the flights of Icelandic airlines, planes, helicopters, routes and airports.

Input your search keywords and press Enter.