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Norwegian Air in Dispute with Spanish Lender Santander -Report

Airline Norwegian Air Shuttle ASA (NAS.OS) and Spanish lender Banco Santander SA (STD) have become embroiled in a dispute over aircraft funding, according to a report in Norwegian magazine Finanasavisen Tuesday. The Norwegian carrier borrowed money from the Spanish bank to buy five new Boeing 737 aircraft last year, but when the first plane was ready for delivery in May this year the bank, hit by the euro crisis, called for a new funding contract, Finansavisen reports. Santander required a higher interest margin on the loans and discarded the old contract, according to the report. The airline, which managed to find new funding from an American bank, is now considering a lawsuit against Santander, as the delivery of the first plane was delayed by five days, says the report. Newspaper website: www.hegar.no Write to Christina Zander at christina.zander@dowjones.com

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DateTimeHeadline
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