Norwegian Air Shuttle may quit Ireland
LNIDA,
You may win award after award- but at the end of the day it is about making money as a company as well- something Norwegian is struggling with more and more!
After a very disappointing last report of massive losses due to lower yields with exponentially rising debts and a plane order worth 25$ billion- something needs to change soon. It is not just about being able to fill up your seats and compete against the whole wide world advertising free internet (although it isn't).
The soon to be released quarterly report by Norwegian is expected to show a loss of 700 million Norwegian kroners which is a staggering 341% worse off than same period a year ago
Primary reason for the losses- lower yields caused by other European low cost companies combined with operational problems within the airline including the 787 operation.
Another good reason to cancel more 787's in the near future!?
You may win award after award- but at the end of the day it is about making money as a company as well- something Norwegian is struggling with more and more!
After a very disappointing last report of massive losses due to lower yields with exponentially rising debts and a plane order worth 25$ billion- something needs to change soon. It is not just about being able to fill up your seats and compete against the whole wide world advertising free internet (although it isn't).
The soon to be released quarterly report by Norwegian is expected to show a loss of 700 million Norwegian kroners which is a staggering 341% worse off than same period a year ago
Primary reason for the losses- lower yields caused by other European low cost companies combined with operational problems within the airline including the 787 operation.
Another good reason to cancel more 787's in the near future!?
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Flying cokeman
Agreed
You need profits to grow and invest and you need customers to make money, clearly the 787 program could have gone better!! to put it mildly.....
The problem with yield is the rate of growth, Norwegian need a year with little or no growth to allow the yield to catch up, the importance of customer satisfaction is paramount for a new-ish airline entering established mature market that are only just now starting to come out of recession, lets see how the markets and share price react to next weeks figures.
You need profits to grow and invest and you need customers to make money, clearly the 787 program could have gone better!! to put it mildly.....
The problem with yield is the rate of growth, Norwegian need a year with little or no growth to allow the yield to catch up, the importance of customer satisfaction is paramount for a new-ish airline entering established mature market that are only just now starting to come out of recession, lets see how the markets and share price react to next weeks figures.
LNIDA,
I agree the company needs to stop growing and consolidate. Problem is Norwegian keep expanding rapidly whilst bleeding heavily.
Today their quarterly was announced- worse off than the experts had predicted.
£80 million loss this quarter and the worrying bit is that despite the planes are full the primary reason for the loss is cost. Their costs are back to 2012 level which will cost them dearly combined with a massive expansion.
edit: forgot to put the million behind the digits :S
I agree the company needs to stop growing and consolidate. Problem is Norwegian keep expanding rapidly whilst bleeding heavily.
Today their quarterly was announced- worse off than the experts had predicted.
£80 million loss this quarter and the worrying bit is that despite the planes are full the primary reason for the loss is cost. Their costs are back to 2012 level which will cost them dearly combined with a massive expansion.
edit: forgot to put the million behind the digits :S
Last edited by The Flying Cokeman; 7th May 2014 at 08:26.
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Norwegian Q1 results
Hi,
The Q1 results presentation is here:
http://www.norwegian.com/Global/norw...esentation.pdf
[Unfortunately the loss is a bit more £80]
The Q1 results presentation is here:
http://www.norwegian.com/Global/norw...esentation.pdf
[Unfortunately the loss is a bit more £80]
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In simple figures, they had €90+ million of (negative ) profit (loss in plain English) for the 1st 3 mths, so, a nice round €1 million a day for the period Jan-Mar.
Expensive these plastic aircraft (when they don't work correctly )
Expensive these plastic aircraft (when they don't work correctly )
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It's a tricky position. I can see they want to expand quickly to achieve market dominance before any competition appears, but that is stretching the bubble very thin and fragile.
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Clearly the next few months are going to be critical, a refusal from the DoT will have a massive impact on LGW, not only will 10's of thousands of long haul flights need to rebooked/refunded, there are also many connecting flights into/out of LGW that have been pre sold.
If at the end of the summer the LGW/US flights are operating and the 787 starts to settle down with 6 or 7 aircraft operating things might improve on the cost side, but adding 12 pilots a week for the first 3 months is a big up front investment.......
If at the end of the summer the LGW/US flights are operating and the 787 starts to settle down with 6 or 7 aircraft operating things might improve on the cost side, but adding 12 pilots a week for the first 3 months is a big up front investment.......
