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Hard times for Norwegian

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Hard times for Norwegian

Old 25th Mar 2021, 10:57
  #1221 (permalink)  
 
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That is true FlyingStone
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Old 25th Mar 2021, 14:20
  #1222 (permalink)  
 
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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
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Old 25th Mar 2021, 15:10
  #1223 (permalink)  
 
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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.
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Old 25th Mar 2021, 16:11
  #1224 (permalink)  
 
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Avenger

ALC not BCN. Sorry for the guys affected, but it was pretty obvious what was about to happen.
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Old 25th Mar 2021, 17:06
  #1225 (permalink)  
 
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Originally Posted by sangiovese. View Post
Apparently trying to be EI registered to circumnavigate restrictions on employment law in Norway. No doubt this will allow them UK access.
Not for long haul to the US - hence EI getting a UK AOC for Manchester ops
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Old 25th Mar 2021, 17:12
  #1226 (permalink)  
 
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Paul, Apologies, yes ALC, and AGP.
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Old 25th Mar 2021, 17:37
  #1227 (permalink)  
 
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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...
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Old 26th Mar 2021, 08:29
  #1228 (permalink)  
 
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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.
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Old 26th Mar 2021, 10:23
  #1229 (permalink)  
 
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Norwegian hired Adrian Dunne from Ryanair as EVP Operations.
Ex-Ryanair director lands new role at Norwegian Air | Travel Weekly
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Old 27th Mar 2021, 08:49
  #1230 (permalink)  
 
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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.
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Old 27th Mar 2021, 09:07
  #1231 (permalink)  
 
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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

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.
Basically, a lot of the initial funding will be spent, no new funding, no survival

Last edited by Kirks gusset; 27th Mar 2021 at 11:56.
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Old 14th Apr 2021, 15:08
  #1232 (permalink)  
 
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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.
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Old 15th Apr 2021, 09:31
  #1233 (permalink)  
 
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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?
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Old 15th Apr 2021, 13:01
  #1234 (permalink)  
 
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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.
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Old 16th Apr 2021, 07:10
  #1235 (permalink)  
 
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What a waste of space of a company.
Given the level of care towards their ex employees they will not be missed when they finally disappear
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Old 17th Apr 2021, 07:22
  #1236 (permalink)  
 
Join Date: Jun 2018
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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.
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