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Hard times for Norwegian

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Hard times for Norwegian

Old 6th Oct 2020, 14:12
  #821 (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
  #822 (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
  #823 (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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Old 7th Oct 2020, 05:34
  #824 (permalink)  
 
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I should think the Norwegian government doesnít want wizz anywhere near the important inter Scandinavian routes
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Old 9th Oct 2020, 14:06
  #825 (permalink)  
 
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From Scandiland news: They now consider closing their Gatwick base.
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Old 9th Oct 2020, 14:47
  #826 (permalink)  
 
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ManaAdaSystem.....in line with what you say, the rumour I hear suggests that Norwegian's short-haul ops at LGW will cease on 30th November and any folk presently on furlough will correspondingly be made redundant.
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Old 9th Oct 2020, 20:08
  #827 (permalink)  
 
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Kirks gusset

I'm not sure the Norwegian government will see WIZZ as a suitable replacement, most of the local jobs would be low paid line maintenance, cabin crew a few pilots and any profits from revenue will go back to WIZZ home country, WIZZ cost base similar to FR which tells you all you need to know about well paid jobs, Oslo will step in to Norwefgian.
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Old 9th Oct 2020, 20:24
  #828 (permalink)  
 
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I suspect that there will be many airlines in state ownership before this is over, not much point having a trillion dollars rainy day sovereign wealth fund and not using it when it pisses it down, Norway is heavily dependant on tourism, the plan would be to privatise it downline, a bit like the SNP with Prestwick except that the Norwegians are well educated and the SNP are thick as mince.
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Old 9th Oct 2020, 20:29
  #829 (permalink)  
 
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Don't Norway and the EU have an Open Skies agreement?
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Old 10th Oct 2020, 08:40
  #830 (permalink)  
 
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Originally Posted by EIFFS View Post
any profits from revenue will go back to WIZZ home country
So, to Switzerland?

Also, how much of Norwegian's profits has Norway been getting recently and what's their ROI on current aid?
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Old 10th Oct 2020, 09:18
  #831 (permalink)  
 
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I donít see Norwegian in their current shape and form surviving however:

Norway might be interested in a controlling stake in a ďnationalĒ airline serving OSL. If Norwegian can renegotiate its leases and Norway can buy the airline on the cheap it might be viable in the long term in a much smaller form. Look at the Aerlingus model connecting Europe and North America or Finnair between Asia and Europe. Competing on a short haul market with WIZZ or RYR would be a complete death sentence as is LH loco.
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Old 10th Oct 2020, 09:49
  #832 (permalink)  
 
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Tourism may well be important for Norway, as with every other country, however, the tourism income results from people visiting the county and spending internally. Of course there is an element of infrastructure revenues from taxi, airport staff etc. The means by which tourists get to the county matters not, and in the case of NAS, most of the "revenue" is hoovered up with the historical debts , most of which reside outside Norway. The proposed closure of LGW SH ops was always on the cards, there was no way the Company would stump up wages for Foreign workers when haemorrhaging funds at home. Perhaps the cost savings may be enough to allow the LH ops to start again.
Norwegian Air’s short-haul flights from Gatwick will not be affected as they are operated by pilots and crew based in the Nordics, the spokesman said.
One assumes the LH crews will be subject to the "flexi contracts" agreed at the May re-structuring meeting..i.e paid when needed to fly.
Sad times once again, Spain only costs them social taxes so may be safe until the summer when things should pick up... unless Wizz take advantage of the routes,
The release of the locked up shares yesterday (9th) resulted in a 24% fall in share prices.
https://www.marketscreener.com/quote...k-up-31509812/

Last edited by Kirks gusset; 10th Oct 2020 at 10:09.
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Old 10th Oct 2020, 11:50
  #833 (permalink)  
 
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I can assure you no one I know of in LH, has any sight , or knowledge of “ flexicontracts “, or any such thing.
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Old 10th Oct 2020, 17:31
  #834 (permalink)  
 
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Kirks gussett

I have absolutely no idea where you get your information from but a sizeable chunk of it posted on this thread is utter rubbish .
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Old 10th Oct 2020, 17:36
  #835 (permalink)  
 
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Probably the same "rubbish" that was presented at the investor relations meeting in April before the May bail out agreement and the vision for the "New Norwegian"

Increased use of seasonal agreements to manage winter trough
https://www.norwegian.com/globalasse...april-2020.pdf
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Old 11th Oct 2020, 14:19
  #836 (permalink)  
 
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Truth be told , itís always been seasonal and I think it was this time last year they were asking who wants to go part time , leave of abscence, unpaid leave etc.
But thatís a soundbite for investors you have there and doesnít relate directly to the reality for the crews
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Old 11th Oct 2020, 14:47
  #837 (permalink)  
 
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Correct, this is about roster flexibility more than anything else. Not flexicrew contracts like easyJet had. It is a no go in the Nordics.

As for LGW SH and new Norwegian, operate Scandi to LGW and then connect to Norwegian LH, where there is a market to operate and a decent sized long-haul network. Why bother going LGW-ALC, let the vultures battle it out..

Last edited by uncle-traveling-matt; 11th Oct 2020 at 15:10.
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Old 12th Oct 2020, 06:45
  #838 (permalink)  
 
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The management of Norwegian is considering shutting down longhaul ops out of LGW. according to the news here in Scandinavia.
The companys shares are now very close to beeing worthless, trading at 0.7 NOK at the Oslo stock exchange.
The only chance this company has is if the norwegian government decides to re capitalize the company. Something they sofar have been reluctant to do, as it is considered to be the same as throwing money into a bottomless pit.
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Old 12th Oct 2020, 08:10
  #839 (permalink)  
 
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or are they awaiting bankruptcy so they can pick up whatever remains they want? Re-negotiating leases and so-on?
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Old 14th Oct 2020, 03:45
  #840 (permalink)  
 
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Diavel

Still the message before was they needed more funds at the end of this year after the earlier lifeline, so for govt it shouldnt come as a surprise they need more ..

Q3 report due 29/10 so maybe some more info then about the situation...
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