IAG mulls takeover of Norwegian?
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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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Ever thought about all the potential customers that doubt to buy tickets because of that Forbes bull**** article? Ever thought about our employees that get this a couple of days before Christmas?
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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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Selling aircraft may give short term liquidity but it increases long term debt. It may prolong the airline for a short while but it’s 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.
Slight? The new article.
https://www.forbes.com/sites/grantma.../#119389ee6c18
https://www.forbes.com/sites/grantma.../#119389ee6c18
That’s 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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Do you do Weddings and Bar Mitzvahs?
Try one with the mark II Forbes article.
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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.
Anybody taking that guy seriously must be delusional.
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.
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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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.
Otherwise holding thumbs for the guys/gals at Norwegian. My sincere best for our fellow colleagues.
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IAG out John Fredriksen in!
It was a glorious day in Norway today as Bjørn 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
This has been in the making for some time , but the IAG hostile takeover had to be sorted first!
Happy day
Regards
Kpt B
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"
Q : How do you become a Millionaire through airline ownership.
A : Start as a Billionaire.
Last edited by WHBM; 29th Jan 2019 at 13:57.
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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 Bjørn Kjos a øre ( 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.
He would NEVER give Bjørn Kjos a øre ( 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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BluSdUp, sorry, I don’t think you understand, that’s 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 don’t 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 I’m glad I didn’t buy shares in them.
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 I’m glad I didn’t buy shares in them.
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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 **** together.
Interesting journey ahead.
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 **** together.
Interesting journey ahead.
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BluSdUp, sorry, I don’t think you understand, that’s 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 don’t 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 I’m glad I didn’t buy shares in them.
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 I’m glad I didn’t 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 787’s may be the last of the furniture to burn.