Originally Posted by
True Blue
If this airline was in such a tight corner finance wise, why were they busy announcing new bases/ routes from several European airports? That I just don't get.
Chances are TrueBlue that they were lining up backers/securing sources of finance that they hoped would materialise in the 11th hour, so they carried on business as usual to create hinges for the new ac coming on stream. These sort of airlines need to keep expanding and delivering for economies of scale. When they slow down growth rates, it can pose particular challenges.
What they were attempting to do was based on the premise that they would quite soon turn a good yield on TA business, but a bit like Norwegian Air International that dial didn't turn in the right direction fast enough.
On a related note, what are the implications of this on Norwegian Air International? Bound to be a ripple effect in terms of investor/ market confidence?