[jjlasne]

The Norwegian Government might not want to finance the UK operations. I would say Norwegian will retreat to its hub at Oslo although the long-haul flights from LGW to the USA might still be profitable with operations re-starting next Spring. JetBlue also intends to fly from Boston and JFK to London adding competition at the NYC airport

[transtraxman]

this article from Business Traveller today suggests that we are seeing the beginning of the end for Norwegian. I think the betting should be on what date they actually throw in the towel. Or will there be a last minute white knight who steps into the breach to save the day?
“Norwegian CEO calls lack of financial support “slap in the face””.

Norwegian CEO calls lack of financial support “slap in the face”

[AMcWhirter]

[quote quote=1013211]The Norwegian Government might not want to finance the UK operations. I would say Norwegian will retreat to its hub at Oslo although the long-haul flights from LGW to the USA might still be profitable with operations re-starting next Spring. JetBlue also intends to fly from Boston and JFK to London adding competition at the NYC airport[/quote]

Predictions regarding aviation are almost impossible right now.

Transtraxman has referred to the Norwegian situation above.

Jet Blue had intended to come to the UK in the early part of 2021 but that date has already changed.

Last August Jet Blue’s CEO Robin Hayes told Bloomberg it would not consider serving the UK until late 2021.

But that date might change with the impact Covid-19 is currently having on both sides of the Atlantic.

[RoyJones]

[quote quote=1015539]Predictions regarding aviation are almost impossible right now.[/quote]

Norwegian had financial difficulties before COVID struck. The problems with its RR powered 787s and its Boeing 737 MAX although [partially] compensated, didn’t help. When COVID struck it had tiny reserves, very limited assets and little chance of commercial loans, only state bail-outs to keep it going. Schram has probably done his best but COVID exponentially increased the task of restoring Norwegian to a stable financial situation. I think this is one demise that is 99% predictable.

[SimonS1]

Not looking good.

https://www.bbc.com/news/business-54841427

[jjlasne]

This is really too bad considering that the Norwegian Government has access to plenty of capital – although it might need Parliament support/approval – thanks to its oil reserves and thus sovereign funds.

I also understand that it would be a bad business move to throw good money at bad. Wrapping up Norwegian would also be a terrible waste of resources.

Braathens is also talking about starting another LCC in Norway.

Others are also starting new carriers including LCC’s or expanding routes.

[FaroFlyer]

Norwegian airlines probably does not employ many Norwegian tax payers, so why should other Norwegian tax payers subsidise crew based in other countries? It is a is a bit like a cruise line, and they don’t get state bailouts

[jjlasne]

Just in case: https://www.wsj.com/articles/how-fed-intervention-saved-carnival-11587920400

[FaroFlyer]

[postquote quote=1015639][/postquote]

If I am understanding this correctly, and I had to search elsewhere as I do not subscribe to WSJ, the Fed did not invest in, or lend money to, Carnival. It made funds available to conventional investors. Conventional investors took the financial risk. Not quite the same thing.

[RoyJones]

[quote quote=1015689]If I am understanding this correctly, and I had to search elsewhere as I do not subscribe to WSJ, the Fed did not invest in, or lend money to, Carnival. It made funds available to conventional investors. Conventional investors took the financial risk. Not quite the same thing.

THANKS

11 Nov 2020
at 08:44
#1015689[/quote]

Absolutely correct

[transtraxman]

“Norwegian seeks financial restructuring under Irish law,” (ch-aviation 18-11-20)
“Norwegian chose an Irish process, it explained, as its aircraft assets – Norwegian Air International (D8, Dublin Int’l) and wholly-owned lessor Arctic Aviation Assets – are held there……….
…………..Because the parent is a related party to the two Irish companies, it will also be able to benefit from creditor protection.
“Norwegian will continue to operate its route network, and both its bonds and shares will trade as normal on the Oslo Stock Exchange,” the troubled carrier said.”

https://www.ch-aviation.com/portal/news/97587-norwegian-seeks-financial-restructuring-under-irish-law

[transtraxman]

“Norwegian Air Shuttle Liquidation amounts to €6bn.” (Airways Magazine, 22-11-20)
This is an awful lot of money by any airline standards. I cannot imagine even a large airline supporting such a debt burden for a sustained period. In fact not very long ago I understood that is was an imprisonable offence to knowingly continue trading when in bankrupcy.
The situation is that these 5 Norwegian subsidiaries have sought protection from the Irish authorties until the group runs out of money in March next year.Even the creditors who became shareholders in the previous solution are jumping ship by selling their shares.
Without doubt a book will be written about the rise and fall of Norwegian.

Norwegian Air Shuttle Liquidation Amounts to €6bn

[transtraxman]

“December of Reckoning for Norwegian Air”, (Airways Magazine, 1-12-20)

December of Reckoning for Norwegian Air

I know that you might consider me flogging a dead horse with this topic, but I am extremely interested in seeing how it develops. Norwegian was a well considered very good innovative airline,better than the run-of-the-mill LCCs, but it has flown too high too fast so is now paying the price. What will happen? Is there going to be a (red) white (and blue) knight to come to the rescue at the last moment? Or are the dreaded fiery financial dragons going to mercilessly liquidate the airline?.
I thought some others might be interested in following the saga.

[canucklad]

[quote quote=1024074]Norwegian was a well considered very good innovative airline,better than the run-of-the-mill LCCs,[/quote]

Which is why I’m keeping my fingers crossed for them. Only Jet2 are comparable , and they definitely blow Easyjet and Ryanair , and dare I say Ba’s offering out of the water

But you’re right, inept management that ignored the very obvious reasons why so many failed in the past — so sad for the great staff that do great job at customer facing levels

1 user thanked author for this post.

jjlasne

[RoyJones]

I just wonder how many of the Forum’s regular correspondents have actually flown Norwegian, especially their long haul offering.

[Author]

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