Norwegian B787 - LGW based

[marvelman]

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----- FINANCE / DEBT :

2015 - 17,131 Million NOK

Estimates in Million NOK - Source : 4-traders - Thomson Reuters

2016 e - 22,016
2017 e - 33,695
2018 e - 43,416
2019 e - 57,611

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The stock price continues in Steady Persistent Decline.

MINUS - 30 % - From Last April 2016.

MINUS - 11% - From two weeks ago, January 2017

Last April 379 / January 302 / Now 268 again .



Norwegian faces MANY challenges,

Overcapacity - Overexpansion / Increased Volatility / Rising Debt / Rising Financing Interest Rates / Rising Intense Competition / Escalating Fare Wars / Rising Fuel Prices / Underpaid - Overworked Labor Force.

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Just a few remarks of today :


".....Andrew Lobbenberg, who follows Norwegian for HSBC in London, said he was concerned about the carrier’s substantial number of future aircraft deliveries, which he said placed “considerable burden on its balance sheet.”


“.....There is the risk of overexpansion and fuel prices skyrocketing,” said Henry Harteveldt, travel analyst at Atmosphere Research. Budget airlines appeal to very price-sensitive travelers, he noted, “and if something bad happens to the economy, these travelers will be most affected by the downturn.”

" ...Discount carriers like WOW Air, Condor, Thomas Cook Airlines U.K. and Eurowings (a subsidiary of Lufthansa) have been able to muscle their way into the trans-Atlantic market because of a decade-old revision of the “open skies” pact, which eased various restrictions on routes and fares.

...Naturally, the behemoth legacy carriers are not sitting idly by as the upstarts gnaw away at their market share.

This year British Airways will begin flying between Gatwick Airport and Fort Lauderdale and Oakland, routes served by Norwegian.

BA’s parent company, the International Airlines Group, plans to start a long-haul, low-cost operation out of Barcelona this summer, also to compete with Norwegian.

And Air France KLM recently said it would begin a long-haul operation that would be “simple” and “innovative.”

In the United States, JetBlue is considering entering the European market. Philip Stewart, a spokesman, said that the airline had the option to take delivery of Airbus A321LR aircraft and that the plane “could potentially fly to Europe from the East Coast.” He said Europe suffered from a lack of competition and high fares, “and that is certainly an environment that JetBlue competes well in.”

American carriers that already fly to Europe are focusing on new in-flight products to challenge airlines like Norwegian, which offers a “premium” in-flight service with more legroom, meals and airport lounge access, along with three different economy fares. Condor also offers flights with three classes of service.

The president of Delta, Glen Hauenstein, said last week that by next year the carrier would fully roll out its “basic economy” fare — for which seats are assigned at check-in and the ability to make changes or cancel is prohibited — on international flights.

In addition, starting this year Delta will begin offering a higher-priced “premium select” service on Airbus A350 and Boeing 777 aircraft, with improved seat pitch and upgraded meals, among other amenities.

For its part, American recently began offering a “premium economy” service on 787-9 Dreamliner flights from Dallas to Madrid and Paris, and will eventually introduce it on all international wide-body aircraft."

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