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Norwegian

Old 26th Apr 2019, 01:20
  #21 (permalink)  
 
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Well at least SAS are trying their very best to lift profits at Norwegian !!

https://www.euronews.com/2019/04/25/...deadline-nears
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Old 26th Apr 2019, 08:46
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More woes for Norwegian's Longhaul Ops

Just announced: Rolls Royce have issued a SB affecting the Trent 1000 TEN engines used by all of NUK's 787s. It calls for more regular inspections of the blades, and a requirement to uncouple the engines when they reach 700 cycles (so the two engines on any one aircraft have different cycles). This now has a significant impact to NUK's summer operation with increased downtime of the fleet. As a result, 4 (four) wet leases will be drafted in to cover the summer programme. Employers and unions have been notified (less flying, less income for employees).
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Old 26th Apr 2019, 09:41
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But presumably RR will be paying for this?
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Old 26th Apr 2019, 14:27
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They’ll be paying Norwegian’s creditors at this rate. Reimbursement from Boeing doesn’t help if the company has gone to the wall in the meantime. The money won’t be paid immediately.
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Old 26th Apr 2019, 14:35
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I could be wrong but I don't think RR have paid out in full for the previous round of engine troubles yet and the initial problems have been ongoing for almost 2 years. Boeing probably expect to compensate through future discounts on new air frames but that clearly isn't going to help the short term.
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Old 26th Apr 2019, 19:23
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Originally Posted by speedrestriction View Post
I am genuinely interested to find out what I am missing here.

The product is very polished and professional, but the inconvenient truth is that it costs the shareholders a stack of money every time one of their aircraft pushes back from the gate.
Major shareholder via various methods is Norwegian state or Financial institutions. The Norwegian rainy day fund is in excess of $1 trillion and no doubt would fund Airline via various methods.
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Old 26th Apr 2019, 20:43
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The Norwegian Govt has been very careful about not treating the oil trust fund as a slush fund to be used when politically expedient - this is quite different to some other (more corrupt) countries.
Prior to the discovery of oil post WW2, Norway was one of the poorest countries in Europe and living memories of this still exist. The general public are aware the hydrocarbons underwater will not last forever and don't wish to waste the money

Wideroe might be worth spending money on if it needed rescuing for PSO purposes but not sure about a bailout for Norwegian when SAS also services the major trunk routes
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Old 26th Apr 2019, 22:23
  #28 (permalink)  
 
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They would almost certainly keep it afloat even if in just a scaled down form that serves the Norwegian regions and trunk routes out of and around Scandinavia.

The money isn’t going to run out at Norwegian (much to the dismay of the majority of people on this forum).
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Old 27th Apr 2019, 06:24
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DY/D8/DI, like many other 787 operators, have suffered badly for over 2 years with the RR engine issues, and now the MAX debacle is added in to the mix - Surely one has commiserations for them being so seriously affected financially by these two expensive problems, plus other factors such as fuel costs, and possibly the effects of Brexit Etc.

From a pax PoV they have settled down offering a solid product and a decent alternative here in the UK.
Many of my friends now use them for preference on long haul from LGW to the USA and to Europe.

I myself, am booked in July back from JFK to LGW in Premium a few days after my Cunard liner docks in NYC - the flight was part of the voyage package, and the Premium upgrade was only £180pp. So I hope that they are still around - If not it will be up to Cunard to re book us on BA or VS.
I am mindful now that the DY flight maybe subbed to another carrier due to more issues with the 787 and it's engines.

Last edited by rog747; 27th Apr 2019 at 09:27.
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Old 27th Apr 2019, 09:03
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rog747

If you don't mind me asking, which Cunard ship will you be on ?
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Old 27th Apr 2019, 09:26
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Originally Posted by TSR2 View Post
rog747

If you don't mind me asking, which Cunard ship will you be on ?
Hi there - we booked the ''Super T/A'' crossing 14 July
2 weeks on Queen Mary 2 sailing from SOU via LPL, Iceland Newfoundland Halifax and to NYC - cant wait!

The price was amazing and the UG to Premium for the nicely timed day flight back (dep JFK after breakfast at 1130) for £180 was a no-brainer - just hope that DY survives and we get a nice 787 lol
We will be on ships time for 2 weeks, so leaving NYC mid-morning and flying home arriving UK at night means zero jet lag and no red eyes.
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Old 27th Apr 2019, 09:38
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rog747

Sounds like a cracker. Have a good one.
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Old 27th Apr 2019, 17:27
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Originally Posted by Vokes55 View Post
They would almost certainly keep it afloat even if in just a scaled down form that serves the Norwegian regions and trunk routes out of and around Scandinavia.

The money isn’t going to run out at Norwegian (much to the dismay of the majority of people on this forum).
Except the money very nearly did run out at the back end of last year, only saved by an emergency rights issue. By the way a rights issue is the last resort when trying to raise finance. It’s the only thing left after nobody else, including the banks, will touch you with a barge pole. According to these latest financial results they have already burnt their way through a sizeable chunk of this money. You’d have to be an ostrich with your head in the sand to not be able to see that there are major problems with the ongoing solvency of this company, however much you like to imply anyone who questions the business model is some sort of “hater”.
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Old 28th Apr 2019, 10:39
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The money didn’t come anywhere near running out.

Dont worry Rex, we all know Cruz has brainwashed you all into believing Norwegian is the reason for your depleting T&Cs and pathetic pay offer. I assume he promised you all big bonuses if Norwegian ‘went away’ too?
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Old 28th Apr 2019, 12:57
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Whatever makes you feel better. Attacking BA instead of providing an actual rebuttal of the argument presented here is a bit straw man at best and indicates you’re losing the argument. I don’t think anybody from Norwegian has the right to point fingers at other company’s “depleting” Ts and Cs. Coming from the company that pays £80k to a 787 skipper and has its crews slipping in the Days Inn and Park Inn downroute together with the god awful Copthorne at Gatwick. The fact that they’re doing those things and still can’t turn a profit should give you a clue that there is something seriously wrong with their model.

Norwegian’s customer base is the low hanging fruit. They’ve pinned virtually their entire business model on it. Exactly the same customer base that is the first to suffer and stop travelling in any downturn and the same people that all the legacies have to do to pilfer is to unbundle their product and they can thus match if not beat Norwegian on price and they’re still coining it in from their premium cabins.

This is the fundamental problem with the model. It’s clear for anyone to see who has taken their head out of the sand. Are you seriously trying to tell me that a rights issue indicates a healthy company?

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Old 28th Apr 2019, 13:19
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Originally Posted by RexBanner View Post
Whatever makes you feel better. Attacking BA instead of providing an actual rebuttal of the argument presented here is a bit straw man at best and indicates you’re losing the argument. I don’t think anybody from Norwegian has the right to point fingers at other company’s “depleting” Ts and Cs. Coming from the company that pays £80k to a 787 skipper and has its crews slipping in the Days Inn and Park Inn downroute together with the god awful Copthorne at Gatwick. The fact that they’re doing those things and still can’t turn a profit should give you a clue that there is something seriously wrong with their model.

Norwegian’s customer base is the low hanging fruit. They’ve pinned virtually their entire business model on it. Exactly the same customer base that is the first to suffer and stop travelling in any downturn and the same people that all the legacies have to do to pilfer is to unbundle their product and they can thus match if not beat Norwegian on price and they’re still coining it in from their premium cabins.

This is the fundamental problem with the model. It’s clear for anyone to see who has taken their head out of the sand. Are you seriously trying to tell me that a rights issue indicates a healthy company?

I take exception to this, living in the NE Caribbean, for years myself and many others used BA Club World several times a year from Antigua back to UK. Now, a vast majority of us travel back via Florida or New York to use Norwegians PE cabin. The staff onboard are so much friendlier than BA, despite the fact that you dont get a fully lie flat bed the cost saving is significant. Norwegian have a far superior product to BA these days.
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Old 28th Apr 2019, 13:28
  #37 (permalink)  
 
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Intertola,

Thats just it, you’ve highlighted the problem with Norwegian. A far superior product, at a significantly cheaper price, but no premium class. A reason why IAG make a profit and Norwegian have total debt greater than the market valuation of some of the biggest European airlines.
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Old 28th Apr 2019, 14:26
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Originally Posted by RexBanner View Post
Norwegian’s customer base is the low hanging fruit. They’ve pinned virtually their entire business model on it. Exactly the same customer base that is the first to suffer and stop travelling in any downturn and the same people that all the legacies have to do to pilfer is to unbundle their product and they can thus match if not beat Norwegian on price and they’re still coining it in from their premium cabins.
The low hanging fruit you mention is young people who haven't yet the wealth of the older generation.

Sitting waiting to pick up a friend at Gatwick today i met 2 people travelling to Chicago with Norwegian, both late 20's and neither have ever flown BA with no plans to. 25 years ago the opposite would be the case as would be hard pushed to find people then who hadn't flown BA.

Now people will fly Norwegian / Easyjet / Ryanair because of cost but will stick with it because they are brands they know and have delivered consistently.

In 20 years time the older BA fliers will be dead or stopped flying, the current users of Norwegian (assume still around) will still be flying and have added another generation used to flying Norwegian / Easy / Ryanair. The recession it was people with money who stopped flying and couldn't justify X thousand on a seat.

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Old 28th Apr 2019, 14:27
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Originally Posted by Dct_Mopas View Post
Intertola,

Thats just it, you’ve highlighted the problem with Norwegian. A far superior product, at a significantly cheaper price, but no premium class. A reason why IAG make a profit and Norwegian have total debt greater than the market valuation of some of the biggest European airlines.
Norwegian have now changed their strategy of going for growth to profitability. Fully expect them to achieve it.
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Old 28th Apr 2019, 14:47
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Originally Posted by racedo View Post
Norwegian have now changed their strategy of going for growth to profitability. Fully expect them to achieve it.
Well that’s going to be a challenge. Further 787 issues, Max groundings, cash being raised via rights issues (not normal), rising oil prices, lower demand. This is all at the end of the recent airline boom times, Norwegian need to make profit now. The competition have been making profit, raising cash, paying off debt for years now.
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