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Old 16th Nov 2020, 14:50
  #908 (permalink)  
vikingivesterled
 
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The Norwegian government have found out it has options and there will be other airlines than Norwegian around post CoVid19. The airline rescue package they are discussing is just about some 0 departure/passenger tax and whether it should be for the full year or just for part of it that the party Venstre (leftist turned environmental) is arguing for since it won't have much effect when few people are flying. Plus some extra purchases of seat support, basically an extension of what most countries do to keep needed but uneconomical routes going. This was the equvalent of 100 mill Euro before and might be a bit higher next year. None of which will do much for an airline that is hardly flying, like Norwegian. The politial parties are more busy with saving the airports, including the many Norwegian don't fly to.

The cost saving initiative was made for an airline world that was rosy red. Not taking into account the real world that is full of financial ups and downs. And the main plan of selling extras to passengers continued to be the plan after the passengers disappeared due to CoVid19. No new plan was made on how to generate more income from the opportunities that was around utilizing the assets they had including the freight friendly 787 (as compared to the 737). They had a chance to do something when they where allowed borrowing the extra 3 billion nkr last summer, but instead they decided to hibernate. In the process disapointing the many leasing company majority shareholders by not returning maximum on the pay lease only when using deals.
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