Originally Posted by
Speedbrakes Up
Of course they are going to save money, they are selling off assets, closing bases, cutting routes, and asking staff to take unpaid leave and part time.
Also it is the summer season I do hope an airline makes money in the peak season.
The article clearly states the new chinese investment group will take ownership of the airbus deal, and Artic aviation assets are set to make $10 million from each sale!
Unit costs continue to fall as unit revenues increase, which is fully in line with what the company has previously guided. Ancillary revenue per passenger is up 11%, but here Norwegian has more to go, the company is still at the low end of this revenue stream, which is just under 20% of total revenue. Many of the low cost competitors have 25-45% of ancillary revenue.
JV with a Chinese bank is now in place and 27 A320neo will initially enter the leasing company, where Norwegian will own 30% and CCB Leasing (owned by China Construction Bank) will have the remaining 70%. The JV agreement will reduce the financial obligations to Norwegian by NOK 13.7 billion in the first place.
The focus on profitability continues through FOCUS 2019 and the new Next program, which will contribute at least NOK 4 billion at the EBITDAR level in 2021.