Hard times for Norwegian
Join Date: Nov 2000
Location: I wish I knew
Posts: 618
Hasta La Vista
Spain (if it ramps up) one aircraft in AGP and one in BCN, 2021/22 then if the tooth fairy comes, up to 6 aircraft in summer 2022, 3 each base. Total Pilots needed 72 at 100%
Unions will negotiate the terms
Spain (if it ramps up) one aircraft in AGP and one in BCN, 2021/22 then if the tooth fairy comes, up to 6 aircraft in summer 2022, 3 each base. Total Pilots needed 72 at 100%
Unions will negotiate the terms
Join Date: Aug 2015
Location: Sunnydale
Posts: 181
Gordomac
in the case of Kjos he got out well before the company failed. Can’t be bothered to look up the other ones. I see a lot of ex employees cheering this on massively on LinkedIn and I think to myself “do you honestly think MK2 will be any different to MK1”. The only way it could is if they massively slash costs. Easiest way to do that is slash salaries which at the moment are so easy to do.
anyone who thinks pure low cost long haul will ever be a success will also likely invest in the Ponzi scheme I’m launching tomorrow.
and no I’ve never been bitten by them but I know plenty who have.
in the case of Kjos he got out well before the company failed. Can’t be bothered to look up the other ones. I see a lot of ex employees cheering this on massively on LinkedIn and I think to myself “do you honestly think MK2 will be any different to MK1”. The only way it could is if they massively slash costs. Easiest way to do that is slash salaries which at the moment are so easy to do.
anyone who thinks pure low cost long haul will ever be a success will also likely invest in the Ponzi scheme I’m launching tomorrow.
and no I’ve never been bitten by them but I know plenty who have.
Join Date: Apr 2003
Location: Northumberland
Posts: 5,794
Originally Posted by sangiovese.
Apparently trying to be EI registered to circumnavigate restrictions on employment law in Norway. No doubt this will allow them UK access.
Join Date: Apr 2005
Location: Utrecht, The Netherlands
Age: 38
Posts: 34
Wouldn't hold my breath, but interesting how this one is going to play out.
https://simpleflying.com/norse-atlantic-block/
New administration, new ideas and some of the people there have been known not to be to fond of dodging labor laws...
https://simpleflying.com/norse-atlantic-block/
New administration, new ideas and some of the people there have been known not to be to fond of dodging labor laws...
Join Date: Jul 2009
Location: Coast to Coast...
Posts: 163
Errrr, the US aren't exactly ones to talk about labor rights are they? Situation is complex right now. If Norse wants any favors from the Norwegian govt they might think twice about choosing Ireland as a flag of convenience again but I agree it's a possibility. But they'd simply be taking advantage of the same exploitation that big Europe offers and Ireland offers Amazon, Apple et all.
Join Date: Aug 2007
Location: Ireland
Posts: 194
Norwegian hired Adrian Dunne from Ryanair as EVP Operations.
Ex-Ryanair director lands new role at Norwegian Air | Travel Weekly
Ex-Ryanair director lands new role at Norwegian Air | Travel Weekly
Join Date: Dec 2010
Location: Limbo
Posts: 9
Irish court clears Norwegian restructuring for take-off.
Ireland’s High Court cleared the way on Friday for Norwegian Air to raise new capital and emerge from bankruptcy protection in Ireland and Norway in May by approving the airline’s restructuring scheme.
Ireland’s High Court cleared the way on Friday for Norwegian Air to raise new capital and emerge from bankruptcy protection in Ireland and Norway in May by approving the airline’s restructuring scheme.
Join Date: Nov 2002
Location: Dublin
Posts: 643
26th March to 9th April Voting period for the creditors in Norwegian Restructure
26h March to 26th April Appeal window for Irish process
9th April to 9th May Appeal period for Norwegian process
Mid May Start to raise capital, minimum required to exit is 4.5 Billion NOK
End May planned Exit and continued capital raising for continued operations.
Its doubtful there will be any "appeals" as no creditors objected, the biggest hurdle will be the capital raise, the 4.5 Billion is just "start up", continued operations need far more for remainder of 2021, and they have agreed to pay Airbus and some creditors to stave off objections during the examinership, these will become legally binding contracts.
If they "down size" in Spain there will be contract severance payments to be made so at the moment it's a very thin line but when the government support for workers ceases the unions will want to know where their members stand.
Given they only operate 7 airframes at the moment, and those not full, the revenue forecast on 50 airframes which forms the basis of the cash flow seems a bit "pie in the sky" compounded by new competition on their existing Nordic routes
Basically, a lot of the initial funding will be spent, no new funding, no survival
26h March to 26th April Appeal window for Irish process
9th April to 9th May Appeal period for Norwegian process
Mid May Start to raise capital, minimum required to exit is 4.5 Billion NOK
End May planned Exit and continued capital raising for continued operations.
Its doubtful there will be any "appeals" as no creditors objected, the biggest hurdle will be the capital raise, the 4.5 Billion is just "start up", continued operations need far more for remainder of 2021, and they have agreed to pay Airbus and some creditors to stave off objections during the examinership, these will become legally binding contracts.
If they "down size" in Spain there will be contract severance payments to be made so at the moment it's a very thin line but when the government support for workers ceases the unions will want to know where their members stand.
Given they only operate 7 airframes at the moment, and those not full, the revenue forecast on 50 airframes which forms the basis of the cash flow seems a bit "pie in the sky" compounded by new competition on their existing Nordic routes
Shareholders have to agree to their holdings being reduced to a combined total of just 4.6%, and 1,600 unsecured creditors plus customers seeking refunds must accept just 5% of what they are owed plus a ‘pro rata’ share-out of a NOK 500 million (€50 million) ‘cash pot’.
Norwegian Air will then seek to raise NOK 4.5 billion (€446 million) in new capital in order to release a Norwegian government loan guarantee of NOK1.5 billion (€149 million).
The new capital is needed in part to provide the ‘cash pot’ to share among creditors.
Norwegian Air will then seek to raise NOK 4.5 billion (€446 million) in new capital in order to release a Norwegian government loan guarantee of NOK1.5 billion (€149 million).
The new capital is needed in part to provide the ‘cash pot’ to share among creditors.
Last edited by Kirks gusset; 27th Mar 2021 at 11:56.
Join Date: Nov 2002
Location: Dublin
Posts: 643
As predicted they now realise the initial money raised will not be enough:
https://www.irishtimes.com/business/...nned-1.4536968
The industry uncertainty is cited as the "reason" but the initial fundraising plan did not allow enough to meet the legal obligations they agreed with the creditors and the court. Wise move as this is the last chance they have before the plug is pulled.
https://www.irishtimes.com/business/...nned-1.4536968
The industry uncertainty is cited as the "reason" but the initial fundraising plan did not allow enough to meet the legal obligations they agreed with the creditors and the court. Wise move as this is the last chance they have before the plug is pulled.
Join Date: Apr 2009
Location: UK
Posts: 474
Its like a copy and paste from the previous incarnation of Norwegian. Lure in the investors. Then a few months later ask for more cash. Good money follows bad in order to try and protect their initial investments. Rinse and repeat.
I still don't know how its going to get off the ground as surely credit card companies, fuel suppliers, airports etc will all be requiring cash up front/held in escrow?
I still don't know how its going to get off the ground as surely credit card companies, fuel suppliers, airports etc will all be requiring cash up front/held in escrow?
Join Date: Nov 2000
Location: I wish I knew
Posts: 618
Not good news for the Spain crews:
https://www.euroweeklynews.com/2021/...ucturing-deal/
Just one airframe in Malaga and Alicante being operated by Scandinavian crews.
https://www.euroweeklynews.com/2021/...ucturing-deal/
Just one airframe in Malaga and Alicante being operated by Scandinavian crews.
Join Date: Jun 2018
Location: In the sunshine
Posts: 28
Norse
Airlines, or whatever it is called will at best be a short lived chance of employment for some of the ex. Norwegian LH aircrews.
The fact that Mr. Kjos is involved again should be a massive warning sign.
This character has only ever been good at one thing in the airline industry, burning other peoples money at an astonishing rate.
There was nothing innovative about Norwegian or Norwegian longhaul.
One can only hope that Mr. Kjos will not interfere with the running of the company.
Furthermore Nobody, with the exception of Sir Freddie Laker has ever made money from low cost longhaul. The few companies that today calls them selves lowcost longhaul, are dependent on either being a subsidiary of a full service airline, or beeing a member of a group of companies that have revenue streams from other activities. Doing as Norse wants to do is a recipe for failure, even if they optimize the operation compared to the old Norwegian LH.
People like Bjorn Kjos should be banned from the industry altogether.
The fact that Mr. Kjos is involved again should be a massive warning sign.
This character has only ever been good at one thing in the airline industry, burning other peoples money at an astonishing rate.
There was nothing innovative about Norwegian or Norwegian longhaul.
One can only hope that Mr. Kjos will not interfere with the running of the company.
Furthermore Nobody, with the exception of Sir Freddie Laker has ever made money from low cost longhaul. The few companies that today calls them selves lowcost longhaul, are dependent on either being a subsidiary of a full service airline, or beeing a member of a group of companies that have revenue streams from other activities. Doing as Norse wants to do is a recipe for failure, even if they optimize the operation compared to the old Norwegian LH.
People like Bjorn Kjos should be banned from the industry altogether.
