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As Finnair reported on Wednesday, it plans to receive an unsecured hybrid loan of up to 400€ million ($486 million). This financial aid, subject to EU Commission approval, should help the airline get through the challenging times of the pandemic.
Tytti Tuppurainen, the minister responsible for state ownership policies, said, “The state is committed to acting as a responsible anchor owner for Finnair. Finland’s geographic location is challenging, and therefore we will not manage without functioning air connections.”
Finland’s government has been supporting Finnair right from the beginning of the coronavirus crisis. In March, the state, which holds a 55.9% stake in Finnair, allocated a 600€ loan to the carrier. However, as the industry’s recovery is happening at a very slow pace, Finnair still operates just 10% of its regular capacity.
Finnair’s CEO Topi Manner said, “The hybrid loan would be an important facet in ensuring our financial stability if the recovery in air traffic is slower than expected. We have during 2020 implemented several financing arrangements in order to bolster our finances and enable a cost-efficient cost structure, and we plan to continue these measures.”