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Old 30th Dec 2018, 15:01
  #22 (permalink)  
RexBanner
 
Join Date: Feb 2005
Location: Botswana
Posts: 711
So why haven’t they (IAG) gone ahead with it? If you have to sell a vast number of aircraft to give you the cash flow to keep your “business model” afloat that’s a pretty sure sign that things aren’t going too well. Norwegian have an eye watering amount of debt. Investors have put some money in to stop them defaulting on banking covenants this time around, that hasn’t solved the issue of the debt, nor does it solve the problem that Norwegian aren’t making enough money in the North Atlantic Summer to offset their huge losses in the winter. Who knew?

They’re selling flights of 10h+ for 150 for god’s sake, do you really believe that that is a profitable business model just because the 787 burns a little less fuel? At this point any further investment/cash is just kicking the can a little further down the road. What you have to remember is that investors like these are basically hedging, it’s a punt and they’ll gain somewhere else in another venture if the Norwegian investment goes down the toilet, which many analysts argue is only a matter of time.

Last edited by RexBanner; 30th Dec 2018 at 15:12.
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