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Hard times for Norwegian

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Hard times for Norwegian

Old 28th Sep 2020, 14:36
  #801 (permalink)  
 
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Meester, perhaps the fact that the round trip to Miami with BA in Dec is £376 and with NAS is £829 is not exactly encouraging travel, thats if you can travel at allTravel to USA is subject to entry restrictions
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The share price is not a prediction, more of a kind of "fact"

To gain any sort of traction they should delay LH ops until Feb/Mar 2021 when hopefully they would be in a position to resource them properly.
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Old 28th Sep 2020, 20:00
  #802 (permalink)  
 
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The share price is but you seem to have drawn a lot of conclusions from example of a ticket price - ie not enough money for winter and ď slashing LH from gatwick ď - where are these two statements from ?
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Old 28th Sep 2020, 20:15
  #803 (permalink)  
 
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https://www.telegraph.co.uk/business...-nationalised/

"Norwegian could be nationalised under radical plans being considered by government officials in Oslo.Political leaders in Norway’s ruling coalition have indicated that they favour bailing out the struggling budget carrier rather than the older flag carrier SAS.

Airline bosses have held talks with the government last week, local media reported."
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Old 29th Sep 2020, 08:57
  #804 (permalink)  
 
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It should read; former flag carrier SAS. Norway sold off its shares some time ago.
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Old 29th Sep 2020, 12:12
  #805 (permalink)  
 
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Exactly. Last batch of shares in SAS were sold off in 2018. Due to the current circumstances with covid19, SAS tried to persuade the Norwegian government to retake a stake in the company, but Norway wisely refused. The Norwegian politicians seem to think it is better to keep a healthy competition in the Nordic market, and support Norwegian. More to come over the next weeks.
As for LH, CEO confirmed that a decent part of routes we're healthy and profitable, hence expect to see red nosed 787’s operating out of LGW again,once restrictions are lifted.
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Old 29th Sep 2020, 18:15
  #806 (permalink)  
 
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From the CEO: https://app-cdn-test.ft.com/content/...onid=companies

The whole point of reducing operations to a minimum was survival, the taking over of the shares in the service companies effectively plugged the court actions in Spain, kept the pilots on basic state aid, although OPCs are being done etc. If they try and re-launch LH ops before financially capable it will be good night merry Christmas.. a bit of patience is needed.
And ticket price is not the only consideration when booking, with BA if your plans are effected you can change your fight dates and destination with no fees.. With NAS you can change your flight date OR get a refund.
Agreed, once Covid restrictions are eased the USA routes may pick up, but these days everyone is price sensitive and looking for security.

Perhaps this explains things a little clearer :

https://www.travelweekly.co.uk/artic...ash-to-survive

The old chestnut of card companies withholding liquidity crops up again ! not the first airline to suffer..

Last edited by Kirks gusset; 29th Sep 2020 at 22:07.
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Old 30th Sep 2020, 09:58
  #807 (permalink)  
 
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Are OPCs being done outside the Norwegian 737 lot who have kept going ?

I’ve heard of some paying to renew 787, but personally I really dont t see the point yet - keep your powder dry etc.
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Old 3rd Oct 2020, 09:22
  #808 (permalink)  
 
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Need to keep an eye on the share prices after 9th October:

https://www.marketscreener.com/quote...onds-31385225/

Another deal done with the creditors for the end of lease maintenance obligations, the "bonds" will be tradable 9th October and 9th Dec.
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Old 3rd Oct 2020, 12:20
  #809 (permalink)  
 
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Back to square one.
Why would the Norwegian government pay a Chinese/Irish owned airline to fly between LGW and the US?
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Old 3rd Oct 2020, 15:15
  #810 (permalink)  
 
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Because they believe that one day you can make money on those routes and pay back the debt (or at least some of it)
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Old 3rd Oct 2020, 17:59
  #811 (permalink)  
 
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Because the Irish and the Chinese are only transitional owners, Norway needs an airline to connect the regions to each other and to the outside world, SAS needs a competitor to keep prices down, nobody in Scandi wants or trusts Ryanair and an airline serving just Norway does not have the size and economies of scale to be competitive. Having shafted the foreigners with the debt equity swap Norwegians will buy back the company for 1 Kroner and go on to make a nice pile.
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Old 4th Oct 2020, 00:04
  #812 (permalink)  
 
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You forget itís going to cost some 12-15 billion NOK before they can buy the company for 1 NOK.
Not saying itís impossible, but that is a lot of money to pay for jobs in other countries.
The way this company is organised continous to be a problem for them.
The company was i bad shape before Covid, something a lot of people seem to have forgotten.
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Old 4th Oct 2020, 13:49
  #813 (permalink)  
 
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What are the legal / EI competition implications of a state owned airline, Norwegian, operating out of the UK to the US / Southern Europe (potentially with G registered aircraft and a UK AOC) in direct competition with non state owned airlines?

Think it would open a whole can of worms and a lot of legal challenges from the likes BA / Virgin / EasyJet / Jet2 especially after the UK airlines appear to have been thrown on the scrapheap by Boris and his chums, potentially interesting times ahead.
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Old 4th Oct 2020, 19:34
  #814 (permalink)  
 
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If the Norwegian Government to take a stake in the airline, considering BOC is Chinese state owned they would be in bed with a whole myriad of partners. They would have to shell out too much to take a controlling interest in the company as the existing shareholders would need their equity bought out. Norwegian Air Uk is the Uk AOC holder and as such would not be considered a "State owned" airline.
It may be that the new Norwegian would get preferential treatment in the home country but outside of Norway it is just another carrier.
One issue is who will now pay the staff in the UK given the Furlough scheme changes and if the Norwegian government will want to pay foreign wages with state funds. In Spain it's the Spanish Government meeting the costs apart from social taxes, not the same here in the UK.
A condition of any AOC is "financial stability".
From 9th October onwards will be an indication of how the markets react.
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Old 4th Oct 2020, 20:45
  #815 (permalink)  
 
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Will there be a Norwegian outside Scandinavia?
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Old 5th Oct 2020, 18:36
  #816 (permalink)  
 
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The suggestion is a temporary solution whilst/ if the airline can generate any liquidity :
The government stated that there was an option to bail out the struggling air carrier rather than revive Scandinavian Airlines, which is already partly owned by Denmark and Sweden. The government officials considered that taking a majority of Norwegian Air stake would result in the temporary airline’s nationalisation. The long-term nationalisation of the carrier would be hardly possible as there are law-related issues with other European airlines such as Lufthansa .

The airline has already given multiple hints that it would need more financial support from the government. Earlier in September 2020, Schram warned that the state loan guarantee was not sufficient enough to get through COVID-19 crisis. The airline claimed that it would need a new rescue package despite the already-secured €285 million (NOK3 billion) state aid guarantee.
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Old 6th Oct 2020, 13:23
  #817 (permalink)  
 
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Not good news when a heavyweight like Wizz starts competing on your domestic routes..

https://www.routesonline.com/news/29...mestic-market/
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Old 6th Oct 2020, 14:12
  #818 (permalink)  
 
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And one of the Braathen brothers starting up another airline too.
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Old 6th Oct 2020, 14:30
  #819 (permalink)  
 
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fruitbat

Wizz is cash rich at the moment and well placed to see things through the next 2 years. The call the Norwegian government will have to make is whether to pour money down the drain with one operation, which is already under financial pressure and scrutiny, or sit back and let Wizz create new jobs and sustainability within their own domestic markets. Most governments are just interested in employment statistics and if Wizz create new positions and bring revenues to the country that may influence their decisions. What is bizarre is that the LH routes "on Hold until 03/21, according to the management "t are still being advertised from UK from Dec. Being bullish is one thing but surely this strategy is a home goal and will destroy any credibility the airline has left. Everyone would dearly like the LH to kick start again for the sake of all the crews.. but this nonsense?

https://www.travelweekly.co.uk/artic...d-covid-crisis
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Old 7th Oct 2020, 05:21
  #820 (permalink)  
 
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The main problem with Wizz is the quality of jobs they create not the quantity, unfortunately. Hopefully Norwegian politicians see this and they can put a clear message through to their voters on the subject. I would be extremely sad to see Norwegian go as well as Wizz thrive (even though i have many friends working for the latter due to lack of better opportunities at the moment).
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