Hard times for Norwegian
Join Date: Feb 2005
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Card aquirers have a hold back of almost 100 percent. Funds are released on the day pax are travelling. This has been the situation for more than a year. Receivables are standing at more than 11 billion nok. These are insane numbers and any normal company would have been bust long time ago if it wasn't for the work of a brilliant CFO. It that context it can't really get worse, only better. Recent analysis from HSBC (Andrew Lobbenberg) estimate that even in their Corona ”high impact scenario”Norwegian woule ”..still be able to meet the book equity and liquidity covenants..”
Norwegian are already in battle mode with most of the network on part-time, recruitment freeze, and a absolute minimum expenditure across the network. Something most companies are only starting to implement under a lot more stressful circumstances.
Please also consider the fact that Norwegian are almost unhegded on fuel, another great advantage towards it's peers.
Lastly, I would like to point out that Norwegian has 18 max on the ground and (as the only company, something most Scandinavian analytics have forgotten) not received a single dime from Boeing yet. Negotiations are ongoing and a large cash amount are expected.
If this is not enough, professional investors can see through all of this, and think 6 months ahead..
Norwegian are already in battle mode with most of the network on part-time, recruitment freeze, and a absolute minimum expenditure across the network. Something most companies are only starting to implement under a lot more stressful circumstances.
Please also consider the fact that Norwegian are almost unhegded on fuel, another great advantage towards it's peers.
Lastly, I would like to point out that Norwegian has 18 max on the ground and (as the only company, something most Scandinavian analytics have forgotten) not received a single dime from Boeing yet. Negotiations are ongoing and a large cash amount are expected.
If this is not enough, professional investors can see through all of this, and think 6 months ahead..
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Lastly, I would like to point out that Norwegian has 18 max on the ground and (as the only company, something most Scandinavian analytics have forgotten) not received a single dime from Boeing yet.
Norwegian is already on a “stop sales” with a lot of travel agencies. They don’t book them anymore in a package as they are responsible. Not a very good sign.
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https://mobile.reuters.com/article/amp/idUSKBN20W1Z4
Join Date: Sep 2005
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At least oil is down significantly, I would imagine norwegian are not hedged to a large amount, ironically this has saved a few carriers in the past, the big boys have spare cash to hedge, but end up hedging at a very high price.
to be honest a drop in aviation fuel is welcomed but it's not if sufficient magnitude or even timing to help some airlines out of the mire.
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anybody who can explain this from the reuters article? Why would this be the benchmark for potential problems in an airline. There is much more than only debt/earning ratios. What would be a problematic ratio and what is the ratio for Norwegian and flybe just before it went under.
A three-month shutdown would inflate Air France-KLM's net debt to 7.7 times earnings, Citi calculates, and swell Lufthansa's multiple to 12.4.
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Do you understand Norwegian? There is a press conference announced tomorrow with the Prime Minister of Norway, and Minister for Finance. If not, I can inform you that you will find the red noses flying in and out of an airport near you, also after Covid19.
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They will have to close those futures contract out at a loss.
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Delta even bought a refinery which it later sold at a loss:
https://www.forbes.com/sites/danielr.../#37f79231c198
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Will they use state funding to keep them in the air?
If so, which part of Norwegian? Swedish, Norwegian, International, Irish (if that part still excists), Argentinian?
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News just out.
Norwegian to cancel 3000 flights and slash a “major part” of its workforce.
press release in the link below
https://media.uk.norwegian.com/press...vid-19-2980473
Norwegian to cancel 3000 flights and slash a “major part” of its workforce.
press release in the link below
https://media.uk.norwegian.com/press...vid-19-2980473
Last edited by dcoded; 10th Mar 2020 at 14:37.
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News just out.
Norwegian to cancel 3000 flights and slash a “major part” of its workforce.
press release in the link below, in Swedish however.
https://media.se.norwegian.com/press...vid-19-2980501
Norwegian to cancel 3000 flights and slash a “major part” of its workforce.
press release in the link below, in Swedish however.
https://media.se.norwegian.com/press...vid-19-2980501
Pegase Driver
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This represents approximately 15 percent of the total capacity for this period
That said I am not a financial expert and have no inside knowledge of Norwegian financial situation ...
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Looking at the cash balance (1billion EUR+), many companies would like to be in the same situation... A few perks will be trimmed (no fixed roster for the new joiners, floating pilots extra 1000EUR allowance gone, no more extra payment for random roster) to preserve this.
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