Originally Posted by
RexBanner
Probably because they liked being sold a product below cost. I don’t think it’s anything more complicated than that. Don’t get me wrong I actually hope Norwegian pull through eventually because it would be indicative of a wider upswing for the industry plus no one really wants or likes to see colleagues on the other side of the fence being put out of work into a desolate wasteland (which is what it’ll be post Covid). Realistically though the government package isn’t massive, how long is 3B Krona really going to last them even if they pull this last throw of the dice off? Genuine question here.
Not long. They have produced a report that claims it will be of benefit to Norway if they pay 12 billion. Not sure if they mean a direct payment to Norwegian or a loan guarantee. I’m pretty sure what they hope for.
The parts of the company that suffers the most are the longhaul parts. That was true even before Corona. Selling tickets below cost will always be popular with the public, but this is putting pressure on everybody else. That was probably what they meant to do.
This company is already split into pieces. Just kill the relevant AOCs and keep the core.
Debt to shares in order to take on more debt, and no guarantee of a profitable future even if they can pull this off. The investors must be thrilled.