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IAG mulls takeover of Norwegian?

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IAG mulls takeover of Norwegian?

Old 23rd Dec 2018, 23:26
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Old 24th Dec 2018, 00:24
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The comments regarding FR are not supported by facts. FR is now unionised in most of its bases with collective agreements in place. Any influx of pilots from a possible Norwegian fail will not allow MOL to suddenly reduce the T&Cs. Sure he might try and renegotiate the agreements but as has been demonstrated across Europe the FR pilots are more than ready to stick it back to him and strike if necessary and protect their position.
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Old 24th Dec 2018, 10:18
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Old 24th Dec 2018, 13:33
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When I see a company putting out financial statements to justify their position their usually doomed.
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Old 24th Dec 2018, 13:50
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Originally Posted by stormin norman
When I see a company putting out financial statements to justify their position their usually doomed.
And I guess youíre a Harvard Business graduate, arenít you?
Ever thought about all the potential customers that doubt to buy tickets because of that Forbes bullshit article? Ever thought about our employees that get this a couple of days before Christmas?
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Old 24th Dec 2018, 14:29
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Originally Posted by stormin norman
When I see a company putting out financial statements to justify their position their usually doomed.
So by your logic if you say nothing your guilty
and if you defend yourself then your Ďusually doomedí
Not much in way of options?
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Old 24th Dec 2018, 14:40
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Old 24th Dec 2018, 18:19
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Originally Posted by krismiler
That doesnít really look much more than a pretty video of a Norwegian aircraft accompanied by cut and pasted extracts from the original Forbes article - nothing new.

Incidentally, Forbes have now amended the headline of the piece from :

Discount carrier Norwegian Air faces collapse by year end.

To:

Discount Carrier Norwegian Air Faces Financial Pressure As Year Ends.

Slight backtrack.

f
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Old 24th Dec 2018, 20:44
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Selling aircraft may give short term liquidity but it increases long term debt. It may prolong the airline for a short while but itís going to make life even more difficult down the road. Dark clouds are forming in the global economy, Norwegian is unlikely to see improved trading anytime soon.
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Old 24th Dec 2018, 21:11
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Originally Posted by TangoAlphad
Mr Grant Martin seems to enjoy writing sensationalist articles. Maybe his talents are wasted with Forbes and he could get a job with a tabloid instead?
Thatís a complete turnaround from his contribution 48 hours ago when he was predicting the demise of Norwegian in 9 days time.

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Old 24th Dec 2018, 21:20
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Originally Posted by krismiler
Wonderful video 🤪
Do you do Weddings and Bar Mitzvahs?
Try one with the mark II Forbes article.
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Old 24th Dec 2018, 23:24
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Am I the only one who thinks it's interesting that this guy mainly just writes about US carrier's (mostly United/Delta) new products and suddenly starts ranting at Norwegian? Paid by them?
Anybody taking that guy seriously must be delusional.
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Old 25th Dec 2018, 00:14
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That video was current when I posted the link, of course things change over time and if a newer one appears I’ll post it.

I would be more concerned about booking a trip on Norwegian than BA or EK. Make sure you pay by credit card, have travel insurance and a back up plan just in case. Up to 3 months advance booking wouldn’t concern me too much at the moment. Whilst passengers on short haul LCCs tend to book closer to departure date, it could affect the long haul bookings for summer holidays. Profit margins are thin and news such as this a few weeks out from when people are going to start booking isn’t good. Paying a few € more for peace of mind with a stable airline could be an attractive option for passengers.

Unfortunately news such as this will cost them business when they most need it.
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Old 25th Dec 2018, 00:33
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Unfortunately we had the same at WOW Air: media was ranting all the negativity possible, costing us a lot, but it was no surprise as it is a well known fact that some of the icelandic journalist are holders of SAGA gold cards from Icelandair...

Otherwise holding thumbs for the guys/gals at Norwegian. My sincere best for our fellow colleagues.
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Old 29th Jan 2019, 10:12
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IAG out John Fredriksen in!

It was a glorious day in Norway today as BjÝrn Kjos announced that Sterna Finance controlled by John Fredriksen has added 3 billion nkr to Norwegian in a stock expansion.
This has been in the making for some time , but the IAG hostile takeover had to be sorted first!
Happy day
Regards
Kpt B
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Old 29th Jan 2019, 14:34
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Originally Posted by BluSdUp
It was a glorious day in Norway today as BjÝrn Kjos announced that Sterna Finance controlled by John Fredriksen has added 3 billion nkr to Norwegian in a stock expansion.
I think this needs some clarification. The business media reports they are today SEEKING 3bn Kr in a Rights Issue. That is where those who currently hold stock are entitled to invest more at a discount, but can of course choose not to if they wish.

https://www.bbc.co.uk/news/business-47039303

3bn Kr is about USD 250m, in other words around the price of one Boeing 787-9.

The 3bn Kr just about covers last year's loss, so not apparent how it will assist future operations. As always when someone looks for money to cover a loss, you have to ask if the operation is loss making not only how they are going to convert it to profitability, but also how they are going to pay the additional money back, in the case of a Rights Issue of shares either in dividends (good luck) or in increased value of the shares, which they could then sell.

I think their aircraft lessors will understand the difference.

From the BBC

"Billionaire John Fredriksen"
Old adage I know, but which a number here will have heard.

Q : How do you become a Millionaire through airline ownership.
A : Start as a Billionaire.

Last edited by WHBM; 29th Jan 2019 at 14:57.
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Old 29th Jan 2019, 14:49
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WHBM

Trust me on this one: John " Storeulv" Fredriksen will not give you the time of the day without charging you for a look at his Rolex!
He would NEVER give BjÝrn Kjos a Ýre ( cent) never mind 3 billion ,unless he can make money.
You can come up with whatever prediction you want, but this is a whole hell of a lot better news the Wee Little Irishman came with.
The day John Fredriksen decide he wants to have a share of something it is usually not small scale.
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Old 29th Jan 2019, 16:09
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BluSdUp, sorry, I donít think you understand, thatís not what has happened. NAS is planning on issuing new shares to its existing share holders so they get a cash injection of 3billion Kr (£268m). John Fredriksen, Bjorn Kjos and Bjon Kise have all agreed to underwrite the new share issue, meaning that if any existing shareholders donít want to purchase their new shares, then they will. Most shareholders would purchase their newly issued shares because otherwise their holding in the company becomes diluted.

No one has given anyone any money - shareholders are being asked to buy newly created shares so that the company has enough working capital going forward. I wish NAS all the best, I really do, however Iím glad I didnít buy shares in them.
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Old 29th Jan 2019, 16:34
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SetStandard
Sorry, but I perfectly understand what is happening and I have experience from chapter 11 representing the workers.
Later stock expansion and later bankruptcy.
The details might be different , but the big picture I get.
Fredriksen is underwriting potentially worthless stocks, according to some here.
He does that only if he can make money OR he can take over the whole shooting match and make a LOT of money.
For Norwegian it is guaranteed money, so no loan default!

Kjos has been pissing away money like a drunk sailor. Fredriksen is a strict Captain and he will make everyone work for the money and get the income up and cost down.
He could start by making the Cabin crew sell me a coffee on Thursday morning.
He will not get into the running of the company for now or maybe ever. But IF he does I suggest everyone gets their shit together.
Interesting journey ahead.
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Old 29th Jan 2019, 16:39
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Originally Posted by SetStandard
BluSdUp, sorry, I donít think you understand, thatís not what has happened. NAS is planning on issuing new shares to its existing share holders so they get a cash injection of 3billion Kr (£268m). John Fredriksen, Bjorn Kjos and Bjon Kise have all agreed to underwrite the new share issue, meaning that if any existing shareholders donít want to purchase their new shares, then they will. Most shareholders would purchase their newly issued shares because otherwise their holding in the company becomes diluted.

No one has given anyone any money - shareholders are being asked to buy newly created shares so that the company has enough working capital going forward. I wish NAS all the best, I really do, however Iím glad I didnít buy shares in them.

You are spot on. For an investor this is a terrible deal and the future is so bleak how would anyone imagine buying more of such a loss making operation. I wonder if they will scrap long haul all together and hope to survive as a regional 737 operation. Their aircraft cost have to be sky high. Unloading the 787ís may be the last of the furniture to burn.
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