Hard times for Norwegian
I REALLY SHOULDN'T BE HERE
Join Date: Dec 2005
Location: TOD
Posts: 1,086
Apparently the market for used wide bodies is not great at the minute - pulling the plug now would not necessarily result in great returns to the creditors after liquidation.
£2,700,000,000 is a lot of money to owe.
£2,700,000,000 is a lot of money to owe.
Join Date: Dec 2010
Location: Limbo
Posts: 1
https://www.reuters.com/article/us-n...KBN1X30CX?il=0
It’s a testament to Norwegian’s business strategy that they can deliver this kind of result despite of its entire 737MAX fleet grounded and ongoing Rolls Royce engine problems.
It’s a testament to Norwegian’s business strategy that they can deliver this kind of result despite of its entire 737MAX fleet grounded and ongoing Rolls Royce engine problems.
Last edited by directmisbi; 24th Oct 2019 at 08:10.
Join Date: Jul 2007
Location: Germany
Posts: 733
I wish Norwegian and the many ex colleagues who fly there well. This is definitely good in cash flow terms. However the enthusiasm is mainly about another asset sale. It may have been a smart move to order Airbus NEOs particularly given the growing success of the long range 321. It does though give Norwegian a bit more breathing space.
Join Date: Nov 2000
Location: UK
Age: 64
Posts: 1,026
There was a really interesting article, granted by a journalist, about Chinese investors having difficulty picking good investments in the West. There seems to be an assumption of growth rates similar to tho seen in their domestic market and which are unachievable in the stressed companies they choose. Of course there are notable exceptions to this observation, I hope that this is one.
Join Date: May 2000
Location: SV Marie Celeste
Posts: 543
This is not really an asset sale. The aircraft concerned have not been built yet and therefore they are not really company assets. Since Norwegian has decided to stop growing and to concentrate on making some money it makes perfect sense to sell the delivery slots. Better that than to keeping pushing aircraft onto new routes that might take years to become profitable
Join Date: Jan 2008
Location: Netherlands
Age: 42
Posts: 132
Any company can post a profit by selling off all their assets. Medium to long term, I would not say it is looking good. Direct operational costs will definately go up due to the sale and lease back...
Join Date: Sep 2007
Location: Earth
Posts: 169
Originally Posted by lederhosen
I wish Norwegian and the many ex colleagues who fly there well. This is definitely good in cash flow terms. However the enthusiasm is mainly about another asset sale. It may have been a smart move to order Airbus NEOs particularly given the growing success of the long range 321. It does though give Norwegian a bit more breathing space.
Join Date: May 2002
Location: UK
Posts: 171
Join Date: Apr 2010
Location: Under a Rock
Age: 50
Posts: 59
Originally Posted by NEDude
It is true it is about an asset sale, but it is not an asset Norwegian uses in its operation. It is also not a full sale of the assets. Norwegian will have a stake in the leasing company that is buying the airplanes, and will be able to earn some income off of the leases. The big thing this does is reduces the financial obligations of Norwegian over the next few years, significantly reducing their debt load, which has been a noose around their necks.
Join Date: Dec 2014
Location: Uk
Posts: 2
Originally Posted by happybiker
Delays cannot help the balance sheet either!
https://www.dailymail.co.uk/news/art...k-airport.html
https://www.dailymail.co.uk/news/art...k-airport.html
emotional support animals are a massive pain in the ass. However I would think it’s US lawyers that have forced carrying these on airlines.
Join Date: Feb 2011
Location: Scandinavia
Posts: 120
Norwegian apparently looking at buying 40 SSJ in order to secure RU overflight permits, according to NO newspapers:
https://translate.google.com/transla...ale-er-signert
https://translate.google.com/transla...ale-er-signert
Join Date: Dec 2010
Location: Limbo
Posts: 1
Norwegian may have found one "loophole" for large-scale operation to Asia.
If the company is to succeed with low-cost long-distance travel to South-East Asia, access to the Siberian Corridor is a must, but the aviation agreement between Scandinavia and Russia only gives permission to SAS and there is little likelihood that there will be any change to it.
But, if a deal is made with Russian aircraft manufacturer Sukhoi and it includes the purchase of 40 aircraft, then it could open up the Siberian corridor for Norwegian! These 40 Sukhoi aircraft do not have Norwegian use for themselves, but they can be added to the new JV leasing company, where the Chinese bank owns 70% and Norwegian 30%. Sukhoi aircraft are already operating in China and the need for short and medium-haul aircraft in China and a number of other markets in Asia is considerable, thus there is limited downside risk if an order for 40 new Sukhoi aircraft is placed for the new JV leasing company.
If the company is to succeed with low-cost long-distance travel to South-East Asia, access to the Siberian Corridor is a must, but the aviation agreement between Scandinavia and Russia only gives permission to SAS and there is little likelihood that there will be any change to it.
But, if a deal is made with Russian aircraft manufacturer Sukhoi and it includes the purchase of 40 aircraft, then it could open up the Siberian corridor for Norwegian! These 40 Sukhoi aircraft do not have Norwegian use for themselves, but they can be added to the new JV leasing company, where the Chinese bank owns 70% and Norwegian 30%. Sukhoi aircraft are already operating in China and the need for short and medium-haul aircraft in China and a number of other markets in Asia is considerable, thus there is limited downside risk if an order for 40 new Sukhoi aircraft is placed for the new JV leasing company.
