Originally Posted by
DuctOvht
Seriously, what are you talking about? I think you’re living in some sort of fantasy land.
Firstly, IF (and its a big if) an offer is made it will be IAG making it, not BA. Huge difference. IAG have already made an offer and Norwegian’s owners turned it down because it wasn’t high enough. Are you seriously suggesting that these base closures etc. are somehow going to make IAG offer more for what is effectively a dead duck?! If another offer is forthcoming, I’d imagine it would be peanuts compared to what came before.
The reality is that the business model has never been sustainable and in all likelihood this is the beginning of the end. It’s always only been a matter of time until the chickens came home to roost. Norwegian’s expansion has always come across to me as a huge vanity project for its owners, who can’t accept that they haven’t magically unlocked a special way of doing things that would make it work for them, where so many others have failed.
Its the end of the beginning. Do you seriously believe a professional like Willie Walsh, of whom even MOL is showing his respect, would make a move, place two consecutive bids, one higher than the other, literally month before the whole thing went bang?
In any acquisition, you are looking at the assets but much, much more importantly the future value and yield of the investment. The business idea and current product is highly sought after, pax and investors alike. Lufthansa has confirmed interest this summer, and latest news suggest them buying a "listening post" of the shares. I would also look very closely towards Ryanair and MOL in the coming weeks. IAG is defiantly not alone...
Also many posters in here forget the fact that Ryanair and EasyJet only grew truly profitable once they reached their cricital mass. It takes time and it costs money, Norwegian is not there yet and might not need to be in the SH market. Once the LH low-cost is settled in the market, it will be a cash cow.
Regarding the base closures, some things work, some things don't. I truly feel sad for the crew down there, but if you take the CC, most would be able to work 50 percent work pattern out of Oslo and still make the same they did working 100 percent in LPA, TFS, PMI