Norwegian-2
Join Date: Nov 2001
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Having just returned from Austin, Norwegian comprehensively exceeded my expectations. A great product and staff that actually smile! All those Neo on order, access to Scandinavia, Gatwick slots and just importantly, pilots - no wonder IAG are looking at a possible take over!
Join Date: Jan 2008
Location: Switzerland ... oh wait: Swaziland
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https://www.ch-aviation.com/portal/n...s-also-at-risk
Delivery of two aircraft being delayed a month is quite a lame excuse for all this.
Delivery of two aircraft being delayed a month is quite a lame excuse for all this.
Join Date: Feb 2005
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Yeah I agree. After all who cares for niceties like sustainability and profitability? After all it’s not as if they’re just keeping prices low to gain market share after which they wouldn’t dream of increasing them.
(Professor Frink’s sarcasm detector not needed).
(Professor Frink’s sarcasm detector not needed).
Join Date: Oct 2005
Location: Leeds, UK & Cork, Ireland
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The IAG move for Norwegian is interesting. Clearly IAG fancy wiping out a dangerous competitor, access to a large fleet of modern aircraft and trained crews. Norwegian also opens up a weak area for IAG - Scandinavia.
Unlike some posters I don’t see Norwegian being folded into BA/EI and Vueling. I think it is more likely to be run as an IAG brand, like Niki was planned to be. Norwegian rewards might be replaced by Avios and some functions brought onto the IAG platforms. The exception I could see is the LEVEL operations, I think they could well be folded into Norwegian and the LGW operations would surely be refocused to compete less directly with BA.
Unlike some posters I don’t see Norwegian being folded into BA/EI and Vueling. I think it is more likely to be run as an IAG brand, like Niki was planned to be. Norwegian rewards might be replaced by Avios and some functions brought onto the IAG platforms. The exception I could see is the LEVEL operations, I think they could well be folded into Norwegian and the LGW operations would surely be refocused to compete less directly with BA.
The IAG move for Norwegian is interesting. Clearly IAG fancy wiping out a dangerous competitor, access to a large fleet of modern aircraft and trained crews. Norwegian also opens up a weak area for IAG - Scandinavia.
Unlike some posters I don’t see Norwegian being folded into BA/EI and Vueling. I think it is more likely to be run as an IAG brand, like Niki was planned to be. Norwegian rewards might be replaced by Avios and some functions brought onto the IAG platforms. The exception I could see is the LEVEL operations, I think they could well be folded into Norwegian and the LGW operations would surely be refocused to compete less directly with BA.
Unlike some posters I don’t see Norwegian being folded into BA/EI and Vueling. I think it is more likely to be run as an IAG brand, like Niki was planned to be. Norwegian rewards might be replaced by Avios and some functions brought onto the IAG platforms. The exception I could see is the LEVEL operations, I think they could well be folded into Norwegian and the LGW operations would surely be refocused to compete less directly with BA.
Unless Kros has indicated that he is willing to exit and sell there is no deal.
Gut feeling at the moment is there is no deal in the offinf and it is a speculative punt by IAG to test the water for a sale and prevent anybody else getting involved.
Bearing in mind Brexit and the fact that IAG will have its own issues because it cannot be more than 50% owned by non EU shareholders I don't see this going anywhere.
In the event that the Airline is for sale I very much doubt that IAG will be the only bidder as would fully expect LH and AF to be in there as well.
Possibly a TPG group bid as well with Ryanair having a share but that looks like a long shot.
Join Date: Jan 2008
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Remember Norwegian Wealth Fund is worth in excess of $1 trillion, taking 1% and investing in Norwegian and see what happens.
Join Date: Jan 2008
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It was the industry-wide assumption about the ME3 too, even a year ago and then... I guess Norwegian state funds need to apply due diligence as well therefore the pocket is deep but not without limits.
Join Date: Jul 2009
Location: NI
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Of course it might be that Mr Kros has slightly more information on the actual financial state of his companies...
Norway is allowed take $3 Billion a year from that as cash.
It could buy IAG in its Investment portfolio and it would seen as a minor investment.
It does however offer significant competition to it across the Atlantic hence a need to snuff out the competition so price and yields TA can rise.
IAG requires BA to be fed at Heathrow for its TA service, Norwegian is offering customers a distinct choice and they are taking it.
Join Date: Mar 2013
Location: UK
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Who is to say that the find would actually want to invest in Norwegian? Throwing money around to support struggling companies is not something that investment funds do unless they can see a financial return, a proper business plan and a management team that can pull it off. I don't remember many political investments by the Norwegian Oil fund but I maybe wrong.
On the other hand, IAG can see clear synergies, it has a track record of running a financially successful airline and can also offer Kros an exit with the promise that the brand he has established will be preserved within the IAG stable.
Its size is very relevant because they can invest when and where they like and have already invested in Norwegian.
As for its size ................ being 40% of the size of UK economy is big, considering Norwegian whole economy is only 16% of its size.
Who is to say that the find would actually want to invest in Norwegian? Throwing money around to support struggling companies is not something that investment funds do unless they can see a financial return, a proper business plan and a management team that can pull it off. I don't remember many political investments by the Norwegian Oil fund but I maybe wrong.
Companies in high growth phases are not cash cows, they require huse levels of investment to invest for growth.
On the other hand, IAG can see clear synergies, it has a track record of running a financially successful airline and can also offer Kros an exit with the promise that the brand he has established will be preserved within the IAG stable.
BA has a history of being involved in practices like this.................. Laker and Virgin spring easily to mind.
Join Date: Mar 2013
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Yes, I agree although there are lot of other reasons (IAG would also get access to a fairly new fleet, a load of pilots and the Scandinavian market). But if Kros does want to retire, IAG has the infrastructure in place to take over the business. Financial investors do not have that.
Join Date: Oct 2006
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As far as I am aware yes, they are not in the EU as such but have to abide by EU rules but have no say regarding laws, free movement etc. There are also in Schenghen.