PPRuNe Forums - Norwegian cuts

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They are closing bases in tenerife, . Las palmas, palma. Rome. New York stewert. And boston. This will have a big effect on charter flights in uk. Ie flights to exeter from ten and Lpa are ops by Norwegian for You and theirs some from cardif f to. The bases are closing from april19 . So will the flights that need to be replaced go implicaTion of more work for air europa or alba star etc!!?

TUI are cutting back third party flying big time due to weak demand. This I’m afraid is Brexit reality.

Is there a list of all the routes that are being cut?

Quote:

Originally Posted by AirportPlanner1 (Post 10364219)

TUI are cutting back third party flying big time due to weak demand. This I’m afraid is Brexit reality.

Stop, stop,stop, with this Brexit bollocks.
Why do you say this is Brexit reality? If this were true, why are Jet2 expanding massively? Why is Ryanair not cutting back on flights from the UK ? Why are Easyjet expanding? I just hate it when people push blame on Brexit.
Did Monarch fold because of Brexit? Is Stansted spending in excess of £800 million because they are worried about Brexit?
Please can we just keep this thread factual, Norwegian have been in the spot light for years and I My honest opinion TUI have never really known what direction they were heading in since the Good old days of Britannia, so not Brexit at all.

Have to agree with daz211. Anything negative is blamed on Brexit while anything positive is just ignored. Ryanair made a big point about cutting back if those stupid Brits voted to leave yet Ryanair has boosted capacity from the UK since we said we were leaving.

Of course it is not Brexit just rank bad management.

Quote:

Originally Posted by LTNman (Post 10364299)

And not just boosted capacity. They’re opening up a brand new base in the UK at Southend, literally days after the official Brexit date!

I’d agree with above, Brexit is just used as an excuse for anything negative. So bored of it all now.

Some of you are sticking your heads in the sand regarding Brexit. Day by day, jobs are leaving the UK. Although some announcements are being drowned out of the news by political events, people are also sticking their fingers in their ears.

People are not spending. I know a business owner with no orders of note so far this year. In central London where I’m based it’s very visibly quieter than previous January’s. Flybe is suddenly on its knees. M&S is cutting harder and faster than planned. Debenhams is looking very shaky. It’s all well and good citing examples of expansion, but these TUI cuts are around the country.

Norwegians Dublin base will also be reducing big time after the summer 19 season finishes

Quote:

Originally Posted by Captain_Caveman (Post 10364431)

Norwegians Dublin base will also be reducing big time after the summer 19 season finishes

For sure? I'd imagine that would be correct if not closing down For starters it's a cost cutting exercise, minimise losses for summer.

Quote:

Tinfoil hat on mate! This is just the economic cycle, we're heading into the next recession, Germany is (almost) there already, and THAT's not Brexit related.
flybe have been on their knees for ages, mainly due to some very questionable management decisions
Knowing one guy with no orders in Q1 is not really a statistically significant example to be fair.
Debenhams is a victim of changing high street habits moving to Amazon et al, Woolies has gone, HMV is still dying.
None of this can in fairness be put down to a poltical decision to have more of our laws made in the UK rather than the EU.
BTW Thomas Cook isn't in the best of shape either but their business model has been squeezed badly, like TUI, by more agile competitors.

#noteverythingisbrexit

Not everything is Brexit no, but a lot of things clearly are and in others it’s really not helping matters. I could go on giving tangible examples such as property sales being at a thirty year low but some people will argue black is white in defence of “the will of the people”, so I’ll just leave it there.

So it’s Brexit that’s caused Norwegian’s financial problems and not the fact that they’re selling their hugely expensive Long Haul expansion way below cost?

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Why are people not spending?

Consider this:

(1) wages are too low and income tax at the lower end is too high (it's even payable on the minimum wage for pete's sake!);
(2) bearing in mind (1) above, VAT is too high for non-luxuries;
(3) the government has to subsidise pay (Gordon Brown's "tax credits" and/or IDS's "universal credit") in order to "make work pay";
(4) the country hasn't had a pay rise for 10 years because of austerity, not brexit, despite runaway inflation (real inflation that people experience rather than government fantasy statistics, RPI/CPI, etc.);
(5) the minimum wage has become the universal wage;
(6) housing insecurity, unaffordable rents and /or high mortgage payments leave insufficient funds for discretionary spending;
(7) job insecurity, zero hour contracts and the gig economy discourages spending and it's adversely affecting the economy.

More to do with crash 10 years ago rather than Brexit. Although job insecurity, zero hour contracts and the gig economycould be laid at the door of the EU as these conditions are rampant throughout Europe as well.

In addition the retail industry has to put up with the government's unaffordable business rates, eye-wateringly high rents levied by greedy landlords/property companies, and ludicrous parking restrictions (ever see a high street without double yellow lines?) and ridiculous parking charges.

To add insult to injury, the retail industry is up against the internet retailers who pay starvation wages and don't pay UK taxes because corporation tax is much lower in Ireland (EU single market rules allow payment of corporation tax in any of the 28 member countries whether trading there or not). Consequently they can undercut the traditional retail industry.

In reality, the present situation has nothing to do with brexit, which has not yet happened and, judging by the way things are going, won't (you read it here first).

Before anyone screams “thread drift”, please be aware that airlines and the aviation industry are not immune from all this.

Many of these big chains are in trouble due to internet shopping. Enjoy town centres now, in 20 years there won't be any as too many people are too lazy to leave their armchairs. A future generation won't even know what a shop is. Nothing to do with Brexit, but it suits many management to blame it.

I can remember when the minimum wage was proposed, those against it made headlines about a massive rise in unemployment which never happened. Now we have companies appearing on the TV complaining about how their wage bills will rise due to a lack of unlimited cheap labour and in fact a labour shortage. Well I hope they do rise as too many people are struggling to make ends meet but parliament will water down Brexit so much that it will be in name only. No wonder the EU is remaining firm when there are those that undermine our negotiating position from day one.

In the south all of London's 6 airports are planning massive expansion so clearly they are not bothered as they can see further than April.

Quote:

Originally Posted by RexBanner (Post 10364473)

So it’s Brexit that’s caused Norwegian’s financial problems and not the fact that they’re selling their hugely expensive Long Haul expansion way below cost?

eviedence please rex? These cuts are to the short haul 737/max operation not long haul!!

I think Brexit is having a slight effect, uncertainty is bound to do that to business and consumer confidence, but there are other larger factors at work hence the slow down in China and Germany, the JLR cuts are down to China not buying expensive SUV in the numbers that they were ( mind you Prince Philip will need a new one 😂🇬🇧)

Norwegian got caught out big style with fuel hedging, I believe FR did too ?

The US bases at PVD/SWF were ghost bases, no pilots based there, although that wasn’t the plan....

PMI was an odd choice, the charter market will still be served, easy enough to do with W patterns from LGW which will remain a major hub for short haul and Long haul

Quote:

Originally Posted by RexBanner (Post 10364473)

So it’s Brexit that’s caused Norwegian’s financial problems and not the fact that they’re selling their hugely expensive Long Haul expansion way below cost?

If you read my first post which started all this you’ll see it was never suggested Norwegian’s woes are down to Brexit. The original poster enquired whether the charter flights Norwegian operate for TUI would be replaced by Air Europa etc. I said no because they are ditching third party flights due to lack of demand. Which apparently is nothing to do with Brexit either as Brexit is the sunny uplands...

Quote:

Originally Posted by EIFFS (Post 10364514)

eviedence please rex? These cuts are to the short haul 737/max operation not long haul!!

Can you read a balance sheet? If so I refer you to Norwegian’s financial statements. Norwegian’s RASK is below its CASK on its long haul operation consistently. It’s clear it’s a money losing exercise unless you seriously think punters paying £170 to fly to LAX in a brand new Dreamliner is a viable money making concern going forward. If you do you’re living in cloud cuckoo land.

They’re cutting the 737 operation because hubris is involved here. It’s that very human thing of pride. They don’t want to do the sensible thing and admit the low cost long haul experiment has failed (yet again) instead they’re going for broke (quite literally) by doubling down on it.