Originally Posted by
directmisbi
Card aquirers have a hold back of almost 100 percent. Funds are released on the day pax are travelling. This has been the situation for more than a year. Receivables are standing at more than 11 billion nok. These are insane numbers and any normal company would have been bust long time ago if it wasn't for the work of a brilliant CFO. It that context it can't really get worse, only better. Recent analysis from HSBC (Andrew Lobbenberg) estimate that even in their Corona ”high impact scenario”Norwegian woule ”..still be able to meet the book equity and liquidity covenants..”
Norwegian are already in battle mode with most of the network on part-time, recruitment freeze, and a absolute minimum expenditure across the network. Something most companies are only starting to implement under a lot more stressful circumstances.
Please also consider the fact that Norwegian are almost unhegded on fuel, another great advantage towards it's peers.
Lastly, I would like to point out that Norwegian has 18 max on the ground and (as the only company, something most Scandinavian analytics have forgotten) not received a single dime from Boeing yet. Negotiations are ongoing and a large cash amount are expected.
If this is not enough, professional investors can see through all of this, and think 6 months ahead..
Everybody loves an optimist.