directmisbi and RexBanner
You’re both quite active on this thread and I find both your post quite informative and credible - so I am, like other aviation colleaques left not knowing what to think about Norwegian....
My honest opinion is that Norwegian offers a superior product when asking value for money - that surely is part of the problem.....
Having gone through the available material on Norwegian homepage for investor relations a whole lot of questions come to mind, hopefully some are able to answer objectively.
- 2016 profit of 1,6 Bn was that a profit of flying passengers from A to B or was it a sale and leaseback of assets to strenghten the balance sheet?
- Also, owning aircraft Vs. leasing, the lease according to their figures is a higher cost for Norwegian, than owning the aircraft. So what good does 70% ownership of the fleet if potential Sale and Leaseback to free cash puts further financial strain on the financials long term?
- Am I correct, if i’d were to say that, if Norwegian investors ( Kjos and Kise included ) have indeed thrown money into the company again - this would be the third time within 30 months?
- Adding to the above - the CFO is on their Q3 reporting the highest, ever equity of 5.34 Bn in company history....! If that is true, and their official debt is nearing 30 Bn i’d say they’re financials is more than a bit stressed - considering the need for fresh cash to not endanger breaching covenants, second time in one year.
- What good does refinancing of a 787 worth 275 mill. cash when they, by their own figures loose close to 1 Bn pr. month during the winter? - that gives liquidity for 10 days operation at current state.
- Is it, by the opinion of all the Pprune experts, at all realistic for Norwegian to slow down or even stop the expansion and consolidate the organization without substantiel further losses?
A bit pessemistic questions I know, but hoping for the best for our colleaques up north. The joint venture thing sounds like a liferaft though. Any further indications on the prospect of chinese businessmen involved with a euro lowco?
With significant amount of respect for Mr. Kjos I would hope that the Director of the Board, in due time appoints a new CEO with no feelings involved. Mr. Kjos has done what many pilots dream of - started and run his own airline - and what an establishment he has created. He has and probably still is running it with norwegian style dignity.
Happy new year to all
