Norwegian's tough winterBack to Forum
An interesting article about Norwegian was presented in Travel Weekly 16-8-19
“Comment: Can Norwegian Air fly on?”
The following quotes are particularly relevant, though not the only ones……..
“Norwegian largely blamed the grounding of Boeing’s 737 Max since March for the commercial failure of the routes (from Ireland to USA).”
This argument is debunked by………
“Yet the carrier pulled its US flights from Edinburgh, launched with the 737 Max, last autumn – before the first of the two crashes which led to the aircraft’s grounding. So the lack of commercial viability can’t all be down to the loss of the smaller, fuel-efficient aircraft.”
The article delves into the whole model, questioning whether there has been gross mismanagement, which leads to the conclusions to be drawn by the stepping down of Bjorn Kjos from the role of COE.
Any potential suitor for Norwegian will have to look at the numbers very carefully. No one, not even IAG, will want to start getting the business off the ground with €6.5 billion debt hanging round its neck. A good look at all the conditions of all the loans is needed, especially the mysterious one made in the last week of last December by a Norwegian billionaire, which just kept Norwegian afloat. All might indicate that Norwegian has gone passed the point of no return.
So if the third quarter´s results are not super excellent expect the airline to fail in the coming months.
Then there will be a scramble for the assets, aircraft, crews and slots. We know IAG wants the Gatwick business and any other out of its bases(including LEVEL´s). IAG would most certianly have to give up a large number of slots at Gatwick. Maybe swaps with another airline are on the line.(Eurowings at Dusseldorf?) However, who would want the all important Scandanavian domestic flights?(SAS, Wideroe?).
An interesting autumn awaits us.18 Aug 2019
Why Norwegian Air is failing
“Norwegian’s debt to assets ratio currently exceeds 60%, with total liabilities of more than $62 billion.” I hope John Mancini has his $ & NOK mixed up.22 Aug 2019
This communication was received from Norwegian (via CAPA 3-9-19). Norwegian is betting the family silver on getting through the winter……….
“Norwegian Air Shuttle offers bondholders security in exchange for amended bond maturities”.
…………and it might.4 Sep 2019
Over the first hurdle……
“Norwegian’s bondholders accept debt relief plan,” (ch-aviation 17-9-19)
………the airline might have a future as it makes it through the winter – “Norwegian was on track to reach targeted cost-reductions of NOK2 billion kroner (USD223 million) in 2019.”
1 user thanked author for this post.18 Sep 2019
Norwegian is stopping two short-haul routes from Ireland this winter.
While from Germany there are more cuts. [DE]
Airliners.de reports that all its flights from CGN and DUS will be dropped from the start of the winter timetable.18 Sep 2019