Hard times for Norwegian
Join Date: Aug 2007
Location: Ireland
Posts: 216
Likes: 0
Received 0 Likes
on
0 Posts
Norwegian splits with its staffing partner OSM Aviation and pays the outstanding debt in shares according to this stock announcement:
https://newsweb.oslobors.no/message/510029
Press in Norway reporting it as Norwegian taking in 3000 employees in US, UK and Spain as directly employed,. But no return to work before traffic rebounds.
Natural that New Norwegian takes over the full and whole responsibility for the companies that employs our staff says Schram.
In norwegian: https://e24.no/naeringsliv/i/3JW9pv/...emanningsbyraa
Press release: https://media.no.norwegian.com/press...ngland-3022209
https://newsweb.oslobors.no/message/510029
Press in Norway reporting it as Norwegian taking in 3000 employees in US, UK and Spain as directly employed,. But no return to work before traffic rebounds.
Natural that New Norwegian takes over the full and whole responsibility for the companies that employs our staff says Schram.
In norwegian: https://e24.no/naeringsliv/i/3JW9pv/...emanningsbyraa
Press release: https://media.no.norwegian.com/press...ngland-3022209
Join Date: May 2010
Location: London
Posts: 77
Likes: 0
Received 0 Likes
on
0 Posts
Join Date: Nov 2002
Location: Dublin
Posts: 652
Likes: 0
Received 0 Likes
on
0 Posts
Pretty much in line with the announcement in May about the bail out of shares and restructure, the " new Norwegian" will take crews on "flexible" contracts and PBH for the airframes, makes sense when cash is tight.
If the pilots at least get LPCs and keep current, even if they earn next to nothing, at least they will be well placed when/if things pick up. "the email" to crews to follow.
If the pilots at least get LPCs and keep current, even if they earn next to nothing, at least they will be well placed when/if things pick up. "the email" to crews to follow.
Join Date: Jul 2013
Location: Norway
Age: 57
Posts: 140
Likes: 0
Received 0 Likes
on
0 Posts
According to Leeham News and Analysis, Norwegian have filed a claim against Boeing for more than US$1B.
The claim involves cancellation of all the 110 Max' ordered, including the 18 already delivered. Norwegian claims fraud, breach of contract and gross negligence by Boeing. They also claimes Boeing produced an airplane that was unsafe, covered up design issues and claimed the MAX is virtually identical to the 737 NG, requiring no unusual transition training would be needed.
The claim involves cancellation of all the 110 Max' ordered, including the 18 already delivered. Norwegian claims fraud, breach of contract and gross negligence by Boeing. They also claimes Boeing produced an airplane that was unsafe, covered up design issues and claimed the MAX is virtually identical to the 737 NG, requiring no unusual transition training would be needed.
Returning airplanes
NAS also wants to return its 18 737-8s that were delivered but which have been grounded since March 2019 in the wake of two fatal MAX accidents with Lion Air and Ethiopian Airlines.
Norwegian filed claims for “in excess of $1bn.” It seeks court authority to rescind contracts for 110 MAX aircraft (including ones already delivered) and an unspecified number of 787s, including some already delivered.
------
Norwegian claims fraud, breach of contract and gross negligence by Boeing. It claims BCASE is charging for maintenance services not delivered.
The claims are common to others that MAX customers made: Boeing produced an airplane that was unsafe, covered up design issues and claimed the MAX is virtually identical to the 737 NG, requiring no unusual transition training would be needed.
NAS also wants to return its 18 737-8s that were delivered but which have been grounded since March 2019 in the wake of two fatal MAX accidents with Lion Air and Ethiopian Airlines.
Norwegian filed claims for “in excess of $1bn.” It seeks court authority to rescind contracts for 110 MAX aircraft (including ones already delivered) and an unspecified number of 787s, including some already delivered.
------
Norwegian claims fraud, breach of contract and gross negligence by Boeing. It claims BCASE is charging for maintenance services not delivered.
The claims are common to others that MAX customers made: Boeing produced an airplane that was unsafe, covered up design issues and claimed the MAX is virtually identical to the 737 NG, requiring no unusual transition training would be needed.
Join Date: Nov 2002
Location: Dublin
Posts: 652
Likes: 0
Received 0 Likes
on
0 Posts
https://edition.cnn.com/2020/06/30/b...ers/index.html Looks like Boeing think the 97 Aircraft were cancelled due to financial problems at NAS. The deposits may or may not be returned, but could be off-set against future expenditure.
The compensation for the 787 is another issue. Its all rather grey area, but infact 3 separate legal issues as far s the Courts will be concerned.
NAS may be successful in the 787 engine issue and associated costs, unlikely in the 97 Airframes and little chance of returning the 18 737-800 just because they don't need them or cant afford them. Lease values have fallen 22% and CMR values down about 6M per airframe, Not attractive to have them sitting around either with NAS or with Boeing
https://www.ch-aviation.com/portal/n...spair-over-aid
The compensation for the 787 is another issue. Its all rather grey area, but infact 3 separate legal issues as far s the Courts will be concerned.
NAS may be successful in the 787 engine issue and associated costs, unlikely in the 97 Airframes and little chance of returning the 18 737-800 just because they don't need them or cant afford them. Lease values have fallen 22% and CMR values down about 6M per airframe, Not attractive to have them sitting around either with NAS or with Boeing
https://www.ch-aviation.com/portal/n...spair-over-aid
Last edited by Kirks gusset; 22nd Jul 2020 at 21:04.
Join Date: May 1999
Location: Europe
Posts: 156
Likes: 0
Received 0 Likes
on
0 Posts
Not sure what effect this will have or how critical such a guarantee was to any recovery model.
https://www.aerotime.aero/gabriele/2...edit-guarantee
https://www.aerotime.aero/gabriele/2...edit-guarantee
Join Date: Feb 2001
Location: Denmark
Posts: 418
Likes: 0
Received 0 Likes
on
0 Posts
Low-cost carrier Norwegian has warned that it will require further financing next year to survive the winter as coronavirus-related travel restrictions continue to hamper the recovery in air travel.
Norwegian today posted a net loss of NKr5.3 billion ($595 million) for the first half of 2020, a period in which passenger levels dropped from 18.1 million to 5.3 million as international passenger flights came to a virtual standstill in the second quarter.
https://www.flightglobal.com/strateg...139934.article
Norwegian today posted a net loss of NKr5.3 billion ($595 million) for the first half of 2020, a period in which passenger levels dropped from 18.1 million to 5.3 million as international passenger flights came to a virtual standstill in the second quarter.
https://www.flightglobal.com/strateg...139934.article
Join Date: Dec 2014
Location: Uk
Posts: 4
Likes: 0
Received 0 Likes
on
0 Posts
It’s not really surprising when carriers traditionally make money in the summer to survive the winter.
I think the hibernation idea is a good one , if they can hit the ground running in 2021, especially having seen some other LCCs load factors at present - appears to be a waste of fuel in a lot of cases.
I think the hibernation idea is a good one , if they can hit the ground running in 2021, especially having seen some other LCCs load factors at present - appears to be a waste of fuel in a lot of cases.
I would imagine the same place where there are currently buyers for airline shares i.e. speculative purchasers who believe the buying price will be so low that they stand a very good chance of making money when ( in their view ) markets swing back to some kind of normality.
Join Date: Nov 2009
Location: Cook Island
Posts: 56
Likes: 0
Received 0 Likes
on
0 Posts
Well, it's none-existent at the moment, so I guess they are talking about the leased frames going back to its owners. Shouldn't be too difficult a maneuver, because its the same leasing companies who in turn own Norwegian...
Join Date: Aug 2000
Posts: 1,501
Likes: 0
Received 0 Likes
on
0 Posts
uncle-traveling-matt
Not what they said. They say it’s going to be difficult to sell these aircraft, due to the current marked. Moving an aircraft from Norwegian to one of the leasing companies who owns Norwegian doesn’t make much sense. Or money.
Not what they said. They say it’s going to be difficult to sell these aircraft, due to the current marked. Moving an aircraft from Norwegian to one of the leasing companies who owns Norwegian doesn’t make much sense. Or money.
Is it better for the lessor now turned shareholder to keep the aircraft at Norwegian, stored but racking up a monthly claim of lease that will never be paid and digging Norwegian a deeper hole?
Join Date: Nov 2002
Location: Dublin
Posts: 652
Likes: 0
Received 0 Likes
on
0 Posts
Didn't they convert the leases to PBH, hence no debts, other than planned maintenance being racked up, being stored for free, it's a good deal.
The cash flow issues will start to bite in the UK with the winding down of the furlough scheme, not so much in Spain were the state "emergency fund" allows crews to be laid off without pay and just get a miserable 1000 euros or there about, hence other that social taxes, again NAR have no outlay.
They really need a bunch of funds quickly to keep solvent, not sure how they claim to be able to survive 6/7 months with no income as such, but in fairness the management are trying hard..although with shares falling it's not attractive to investors in any shape or form.
And with the doom and gloom merchants at LGW it's not surprising the LH seat take up is down 97%
The cash flow issues will start to bite in the UK with the winding down of the furlough scheme, not so much in Spain were the state "emergency fund" allows crews to be laid off without pay and just get a miserable 1000 euros or there about, hence other that social taxes, again NAR have no outlay.
They really need a bunch of funds quickly to keep solvent, not sure how they claim to be able to survive 6/7 months with no income as such, but in fairness the management are trying hard..although with shares falling it's not attractive to investors in any shape or form.
And with the doom and gloom merchants at LGW it's not surprising the LH seat take up is down 97%
Join Date: Nov 2009
Location: Cook Island
Posts: 56
Likes: 0
Received 0 Likes
on
0 Posts
Join Date: Oct 2019
Location: SW1A 2AA
Posts: 208
Likes: 0
Received 0 Likes
on
0 Posts
I’ve been through this. There is no way that Norwegian can survive this winter. Riddled with debt and no product to sell.
Let’s see who pops up next to revolutionise low cost long haul.....
Let’s see who pops up next to revolutionise low cost long haul.....