[transtraxman]

“Norwegian rejects IAG “takeover bid””,

Norwegian rejects IAG “takeover bid”

Did anyone expect a different reaction?
But the battle/auction is on.
This is not a done deal.
The competitors will not lie down and accept such moves. Wait for more.

[nevereconomy]

BugAdvisor – whether one likes them or not, not sure if one can, at the end of the day, call an airline that consistently fills every seat in an 8-across Business cabin poorly-run …

[FDOS_UK]

[quote quote=865807]BugAdvisor – whether one likes them or not, not sure if one can, at the end of the day, call an airline that consistently fills every seat in an 8-across Business cabin poorly-run …[/quote]

Firstly, I don’t believe that BA constantly fills all the J class seats (and I do fly them a reasonable amount) and secondly, filling seats and filling seats profitably are different things – if you do a lot of rolling forward upgrades, you may have filled that J seat at a WT+ price point or you may be filling them at ex EU prices that are much thinner than from London. AS a frequent user of WT+ from the UK to ME, I can attest that it costs perhaps £100-150 more than EK/EY Y class from Manchester on many occasions.

None of us have BA’s financial data, but some well respected aviation journals have been expressing concerns about falling yields over the past couple of years – what is sure is that IAG has made large profits and BA has contributed to that, but each set of financials is a snapshot of that time – the balanced scorecard seems somewhat out of balance to me (and has for a few years) and thus far, the very strong brand (which the current management inherited and has no credit for creating) has been enough to act as a differentiator.

But the very significant fall in NPS last year was a wake up call.

[Flightlevel]

[quote quote=862726]
But one is right to be sceptical about the regulators’ role – when it comes to the airline industry, regulators have a track record of being one step behind. The definition of the relevant markets will be key.
[/quote]
A quick calculation reveals LH operates 100 more aircraft than IAG so the EU can hardly object to 80 aircraft at Norwegian.
The Norwegian government may do so,in the same way the IAG Lauda Air takeover was stopped.
Unlikely IAG will outbid others if the price is too high since they will know the airline’s value.

[alainboy56]

@BugAdvisor — Just loved your humorous response — couldn’t stop chuckling for a good 10 minutes. Well said!

[Tom Otley]

Analysis piece here

https://www.routesonline.com/news/29/breaking-news/278554/network-analysis-the-impact-of-a-potential-iag-takeover-of-norwegian/

[Tom Otley]

Reports in Spanish newspaper Expansion say that IAG is about to mamke a third offer.

http://www.expansion.com/empresas/transporte/2018/05/21/5b02653e22601d0e068b46ab.html

[mkcol74]

Google translate wasn’t getting all the nuances, however did I understand at the end of the piece it was saying IAG had increased its holding to ~11%?

[AnthonyDunn]

QUOTE But the very significant fall in NPS last year was a wake up call. ENDS

This is a TLA too far for me. What does it mean FDOS?

[FDOS_UK]

[quote quote=867479]QUOTE But the very significant fall in NPS last year was a wake up call. ENDS

This is a TLA too far for me. What does it mean FDOS?[/quote]

Anthony, please ignore the troll. NPS is net promoter score and it asks the question “On a scale of 0-10, how likely is it that you would recommend [company name] to your friends, family or business associates”

The responses are then sorted into three groups – (1) scores of 1-6, which are labelled as ‘detractors’, (2) 7-8 are labelled as ‘passives’ and (3) 9-10 are labelled as ‘promoters’.

The results are analysed and groups (1) and (3) are calculated as a % of the total responses, group (2) is discarded.

The product of subtracting promoters from detractors is the net promoter score or NPS.

If you survey 1,000 people and 400 score 1-6, 400 score 7-8 and 200 score 9-10, then you subtract the 40% of detractors from the 20% of promoters and the NPS is – 20%.

[alainboy56]

@FDOS_UK Thanks for that explanation and whilst on that particular subject but digressing somewhat, I am the guy especially with hotels on their surveys and when asked with a score of 1-10 would I recommend that hotel, and I always answer ‘1’ lowest score – it really miffs them even though all other scores are normally on the high side.
They always call me and say that that has given them a negative score. So I always explain that I do not recommend hotels for example to anyone, it just does not come up in my pub/bar/restaurant/dinner party conversation. And then I say “would you like me to lie”? “Is that what you want”?
I once told the manager at an ALOFT Hotel, when he caught me at reception and gave me a ‘ticking off’ on this subject, that I get excellent rates, excellent service, the staff here treat me like a family friend, and that you (he) even looks after my car sometimes when I go on trips (rather than parking it at the airport), so why should i tell the whole world and perhaps the next time I need to make a booking, the rates are astronomical and or you are full!

Apologies to the rest of you on the subject of IAG and Norwegian. I just wanted to explain that NPS does not always give a true result.

[FDOS_UK]

alainboy56

I agree that NPS has flaws, it’s not a measure that I’d normally recommend, I prefer the CLI (Customer Loyalty Index), as it is somewhat broader.

Here’s a decent summary

https://www.datamar.cz/sites/default/files/CLI_eng.pdf

[Tramor01]

I think NPS is culturally insensitive, in that it assumes that everyone scores the “scale” in the same way. (You could also say it is culturally myopic)
This is certainly not the case when you compare consumers in say the USA versus Germany, or Japan or indeed China, where consumers are unlikely to score both ends of the scale.
This is because respondents in these countries are usually much more considered or reserved in their general scoring of questions.

[FDOS_UK]

[quote quote=867537]I think NPS is culturally insensitive, in that it assumes that everyone scores the “scale” in the same way. (You could also say it is culturally myopic)

This is certainly not the case when you compare consumers in say the USA versus Germany, or Japan or indeed China, where consumers are unlikely to score both ends of the scale.

This is because respondents in these countries are usually much more considered or reserved in their general scoring of questions.[/quote]

You’re right – Likert scales in general are open to differences caused by the responder’s biases.

[transtraxman]

#867442 @mkcol74
Sorry for the late translation…….
The last paragraph of the Expansion article talks about about the increase in the share price of Norwegian which peaks at a nearly 73% increase after the announcement of IAG´s 4.6% investment in Norwegian.Later it settles down to a 39.7% increase. Meanwhile the increase in IAG´s share price in the same period is 11%.

[Author]

Posts