Norwegian's tough winter

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Viewing 15 posts - 166 through 180 (of 181 total)

  • canucklad
    Participant

    Surprise, Surprise ……
    Sad for those losing their jobs but there was an inevitability about this. I wonder if Wizz will reconsider their decion about Abu Dhabi.
    Probably not, airline execs do have this incredible blind optimism / faith in their own self ego that allows for not learning from others mistakes that I find amusing


    AMcWhirter
    Participant

    As I have said many times “never say never in aviation.”

    I remember when Laker Skytrain failed in the early 1980s it was said at the time that it was the end of low-cost flying … but look at what’s happened since.

    Yes these LCCs will tackle long-haul routes and some will fail.

    But there will always be someone willing to take a chance.


    AMcWhirter
    Participant

    Surprise, Surprise

    In fact just today Wizzair has told us that it’s launching a route from Abu Dhabi to Tel Aviv on February 12.

    Initially the one-way fare will be Dhs 99 but nearer the time, as we see with the launch of its first route, the fare may well fall to a lower level.

    I hope this airline will not grow too rapidly.


    RoyJones
    Participant

    I think this article sums up Norwegian’s future

    https://www.travelweekly.co.uk/articles/399302/norwegian-air-warns-rescue-highly-uncertain

    The original shareholders will own 1/4 of 1% of the company. The leasing companies and other debt for equity participants are seeing their holdings decimated. I’ be surprised if their chances of getting any money back are greater than M O’L being appointed Chairman of IAG.


    transtraxman
    Participant

    And the saga goes on….
    Now 520 pilots together with 850 cabin crew are affected.
    Also 88 Airbuses are to be cancelled added to the 97 Boeings announced last June.

    “Judge extends Norwegian protection, two more units bankrupt,” (ch-aviation, 23-02-21)

    https://www.ch-aviation.com/portal/news/100937-judge-extends-norwegian-protection-two-more-units-bankrupt


    AMcWhirter
    Participant

    I fear for the future of some airlines.

    IATA is hosting a briefing today and the trade body is concerned as airline bookings are not healthy.


    jjlasne
    Participant

    We might just see a reduction on traffic altogether. For good.


    transtraxman
    Participant

    In BT´s news piece today about Heathrow Airport it is mentioned that after the Prime Minister’s statement bookings at TUI – UK had gone up 500% overnight while Easyjet noted a 300% rise in bookings. At least to me those astonishing rises indicate a desire to get away by Joe Public. So I would expect a tremendous jump in leisure flights from June. Obviously that affects short-haul flights more than long-haul.

    Will that be reciprocated in business travel? Maybe not immediately, but it has always jumped back – – – after the Gulf War, the Twin Towers attack in NY, as well as the various financial crisis in the interim. There will always be a need for business travel where personal contact is essential. However, where there were jaunts in the past maybe they have been shown to be unnecessary and will not be continued. The recovery might be slow for non-leisure long-haul flights, taking even to the end of the decade to improve substantially. The wise men of the travel industry never predicted the level of travel as occurred in 2019 until the mid twenty-first century. But then they have always been wrong. Their estimates have always resulted in a lack of sufficient infrastructure in the UK, meaning we have always been playing catch up. Maybe now is the opportunity to think globally and put projects into motion for once.

    2 users thanked author for this post.

    AMcWhirter
    Participant

    In BT´s news piece today about Heathrow Airport it is mentioned that after the Prime Minister’s statement bookings at TUI – UK had gone up 500% overnight while Easyjet noted a 300% rise in bookings

    Good point transtraxman.

    I ought to have clarified my comments.

    Trade body IATA can only speak on behalf of its members. Three of the largest LCCs in Europe – EZY, Ryanair and Wizzair – are not IATA members.

    It is true that there has been a big jump in the above-mentioned LCCs’ bookings.

    But then one must remember that for months they have operated a very reduced schedule. And the plans they had for expanding schedules from end March have now been put back to just after mid May.

    I suspect the IATA stats are inflated by reduced/cancelled long distance services. So many destinations around the world now impose restrictions of one sort of another.

    Today Air NZ, according to Reuters, has declared a significant loss on account of the fact it cannot operate internationally ex-NZ (Australia is an exception but restrictions remain between it and NZ).


    transtraxman
    Participant

    “Norwegian exits restructuring, Swedish unit seeks bankruptcy”, (ch-aviation 26-5-21)

    https://www.ch-aviation.com/portal/news/104060-norwegian-exits-restructuring-swedish-unit-seeks-bankruptcy

    The focus will change from intra-European flights to domestic Scandinavian flights and from Scandinavia to the rest of Europe.
    The net debt has dropped by $US7.7 billion to about $US2 billion.
    Existing shareholders drop to 4.6% of the capital, creditors get 25.4% and new shareholders get 70% of the capital.
    The aircraft have been reduced 67.3% from 156 to 51 and outstanding orders from Boeing and Airbus have been cancelled.The fleet will concentrate on only using B737-800s.
    The employees drop from 10.215 to about 3.300.

    “Norwegian Air ‘saved’ after restructuring complete”, (Travel Weekly, 26-5-21)

    https://travelweekly.co.uk/news/air/norwegian-air-emerges-from-restructuring

    Norwegian Air Sweden is a separate company. It has no aircraft so operations will not affected. However, It still has debts which have to be resolved thus the bankruptcy proceedings.

    With this sorted out, the process is coming to a conclusion so that Lazarus (or the Scandinavian equivalent from folklore) can rise from the dead to fly the earth again.


    transtraxman
    Participant

    “Karlsen to lead Norwegian after Schram sacked”, (Breaking Travel News, 21-6-21)

    https://www.breakingtravelnews.com/news/article/karlsen-to-lead-norwegian-after-schram-sacked/

    Schram was the CFO of Norwegian and acting CEO from July 2019 to December 2019. The board obviously was not satisfied with Karlsen who only began as COE in 2019 and is due a nine-month notice period (up to March 2022). Thereafter, he will receive 15 monthly payments of his severance package (thus up to June 2023). No agreement was reached concerning a reduction of the package.


    jjlasne
    Participant

    This is a sweet deal: 9-months notice and 15-months severance pay. I wished I had that in March 2020…


    jjlasne
    Participant

    What is ironic as well is that Norwegian has spun off idea-wise two more airlines in Norway: Flyr for domestic/intra-European flights in direct competition with the new Norwegian and Norse Atlantic Airways which is the second coming of the old Norwegian for transatlantic flights.


    transtraxman
    Participant

    It seems that spring has thrown up more positive results.
    “Norwegian July traffic results: passenger demand increased by 50%”, (Aviation24.be 5-8-21)

    Norwegian July traffic results: passenger demand increased by 50%

    “Norwegian sees passenger numbers rise as restrictions ease”, (Travel Weekly 5-8-21)

    https://travelweekly.co.uk/news/air/norwegian-sees-passenger-numbers-rise-as-restrictions-ease

    Filling the Norwegian Air Void left by the demise of Norwegian long-haul. Norse Atlantic Airways will provide the long haul transatlantic Europe – North America flights left vacant. The founders include former members of Norwegian.
    The initial markets are to be based on Oslo, London Gatwick, Paris Charles-de-Gaulle, to New York (???), Miami and Los Angeles LAX.
    Maybe it is the time to start a new thread to follow Norse Atlantic progress.

    1 user thanked author for this post.

    jjlasne
    Participant

    Norse Atlantic seems to be the 2nd coming of Norwegian. Just like Wow and Play are the 2nd and 3rd coming of Iceland Express.

    1 user thanked author for this post.
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