Norwegian's tough winter

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This topic contains 62 replies, has 21 voices, and was last updated by  canucklad 6 Nov 2019
at 15:50
.

Viewing 15 posts - 46 through 60 (of 63 total)

  • transtraxman
    Participant

    An interesting article about Norwegian was presented in Travel Weekly 16-8-19
    “Comment: Can Norwegian Air fly on?”

    http://www.travelweekly.co.uk/articles/340478/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.

    3 users thanked author for this post.

    cwoodward
    Participant

    Having looked at the numbers Norwegian is gone to where many have gone before with no return.

    1 user thanked author for this post.

    mkcol74
    Participant

    Have just read this about the sale of the credit card business.


    tomwjsimpson
    Participant

    Have just read this about the sale of the credit card business.

    Just seems like stealing from Peter to pay Paul to me. Once they run out of assets to sell and they can’t pay off their debt it’ll be goodnight


    jjlasne
    Participant

    All very good information yet I would have to lose the OAK/CDG flight which so near my humble abode.


    capetonianm
    Participant

    mkcol74
    Participant

    https://qz.com/1688156/why-is-norwegian-air-failing/

    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.


    transtraxman
    Participant

    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”.

    https://centreforaviation.com/members/direct-news/norwegian-air-shuttle-offers-bondholders-security-in-exchange-for-amended-bond-maturities-490529

    …………and it might.


    transtraxman
    Participant

    Over the first hurdle……
    “Norwegian’s bondholders accept debt relief plan,” (ch-aviation 17-9-19)

    https://www.ch-aviation.com/portal/news/81600-norwegians-bondholders-accept-debt-relief-plan

    ………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.

    AMcWhirter
    Participant

    Norwegian is stopping two short-haul routes from Ireland this winter.

    https://fora.ie/norwegian-air-dublin-routes-cut-4812509-Sep2019/

    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.

    https://www.airliners.de/norwegian-sparprogramm-deutschland/51875


    transtraxman
    Participant

    So much for Norwegian`s “tough” winter, as it goes on another spending spree.
    “Norwegian Considering Large Sukhoi Superjet Order”, (Simple Flying 29-10-19)

    Norwegian Considering Large Sukhoi Superjet Order

    Of course the real reason is that it is buying overfly rights from the Russians so that it can offer flights to the Far East from Europe. I think it is rather cynical for the airline to go cap in hand to a Norwegian billionaire, negotiate with the banks to cover its credits and then agree with the Chinese to form a joint venture for aircraft leasing to buy its extravagant purchases of aircraft which load it with heavy debt. After all that it immediately decides to go on another spree – the airline deserves to go bust.


    jjlasne
    Participant

    Not a very safe aircraft. It crashed during a demonstration in Indonesia. But then, it is not the first airliner crash in Indonesia which has a pretty bad record.


    capetonianm
    Participant

    The crash in Indonesia was caused by a pilot trying to pull off a difficult manoeuvre too close to a mountain and was CFIT. The aircraft cannot be condemned as unsafe for that.

    1 user thanked author for this post.

    alainboy56
    Participant

    Didn’t one (SSJ100) crash in a ball of flames recently in Moscow?


    capetonianm
    Participant

    https://www.cnbc.com/2019/11/04/budget-airline-norwegian-is-doomed-ryanairs-michael-oleary-claims.html

    Ryanair’s CEO Michael O’Leary has said that rival airline Norwegian is bound to go bust sooner or later, claiming that the company is “doomed.”
    Never one to mince his words, O’Leary told CNBC Monday that the rival budget European airline Norwegian was saddled with too much debt.

    1 user thanked author for this post.
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