Hard times for Norwegian
Join Date: Jul 2013
Location: Never home
Age: 37
Posts: 70
Likes: 0
Received 0 Likes
on
0 Posts
There is many airlines around the world that will go bankrupt during incoming winter unless they get money from the outside (etc. state aid, cash injections by owners...)
Norwegian is obviously one of those and it's not a secret as Schram talked about it openly few days ago.
Norwegian is obviously one of those and it's not a secret as Schram talked about it openly few days ago.
Join Date: Dec 2008
Location: USA
Age: 42
Posts: 28
Likes: 0
Received 0 Likes
on
0 Posts
Join Date: Nov 2002
Location: Dublin
Posts: 652
Likes: 0
Received 0 Likes
on
0 Posts
The traffic figures for August reflect the state of uncertainty in the industry:
https://media.uk.norwegian.com/press...demand-3031945
As the CEO constantly points out they need liquid cash to keep going, the LH flights from UK are available from early Dec but take up is pretty non-existent as the boarders are closed and travel insurance/ credit card claw back won't cover if you book to a "closed destination" knowing that at the time. If Trump gets his act together and opens USA up they may have a chance, otherwise LGW LH will be much delayed, having said that, its doubtful the company would want to bleed cash into non profit making routes, as pointed out again by CEO :"and concentrate supply in line with demand."
https://media.uk.norwegian.com/press...demand-3031945
As the CEO constantly points out they need liquid cash to keep going, the LH flights from UK are available from early Dec but take up is pretty non-existent as the boarders are closed and travel insurance/ credit card claw back won't cover if you book to a "closed destination" knowing that at the time. If Trump gets his act together and opens USA up they may have a chance, otherwise LGW LH will be much delayed, having said that, its doubtful the company would want to bleed cash into non profit making routes, as pointed out again by CEO :"and concentrate supply in line with demand."
Join Date: Nov 2002
Location: Dublin
Posts: 652
Likes: 0
Received 0 Likes
on
0 Posts
“With such a bad summer as we’ve had this year, we don’t have the financial muscle to get through the winter,” Norwegian Air’s chief executive, Jacob Schram, told newspaper Dagens Næringsliv (DN
Bonus party over
Norwegian’s part of the requested bailout comes just after DN reported on bonuses paid to top Norwegian Air executives last year, just before the long-troubled airline’s founder and former CEO Bjørn Kjos stepped down. Kjos’ massive intercontinental expansion plan ended up leaving the airline with troubled aircraft from Seattle-based Boeing and huge debt. Kjos reportedly nonetheless approved bonuses of between NOK 2 million and NOK 6 million to four members of management, while also paying sky-high fees to external consultants.
The bonuses were paid out several months before the Corona crisis hit, and new CEO Schram has stressed that the days of such high extraordinary pay are over, but it’s all provoked labour unions at a time of massive layoffs. Newspaper Dagsavisen editorialized on Monday that all the talk about “solidarity” among management and workers at Norwegian Air loses credibility in the face of such high pay for a few leaders. Kjos has said he can’t remember the bonuses doled out before Norwegian Air reported huge losses for 2019.
Norwegian’s part of the requested bailout comes just after DN reported on bonuses paid to top Norwegian Air executives last year, just before the long-troubled airline’s founder and former CEO Bjørn Kjos stepped down. Kjos’ massive intercontinental expansion plan ended up leaving the airline with troubled aircraft from Seattle-based Boeing and huge debt. Kjos reportedly nonetheless approved bonuses of between NOK 2 million and NOK 6 million to four members of management, while also paying sky-high fees to external consultants.
The bonuses were paid out several months before the Corona crisis hit, and new CEO Schram has stressed that the days of such high extraordinary pay are over, but it’s all provoked labour unions at a time of massive layoffs. Newspaper Dagsavisen editorialized on Monday that all the talk about “solidarity” among management and workers at Norwegian Air loses credibility in the face of such high pay for a few leaders. Kjos has said he can’t remember the bonuses doled out before Norwegian Air reported huge losses for 2019.
Join Date: Aug 2017
Location: UK
Posts: 206
Likes: 0
Received 0 Likes
on
0 Posts
The booking levels to the US are a bit miserable to say the least but there is demand, there was even talk of using a 737 to restart JFK with a 100 passenger limit, but APD killed it anyway
Join Date: Sep 2020
Location: Salisbury, Wiltshire
Posts: 0
Likes: 0
Received 0 Likes
on
0 Posts
Do Norwegian’s 737s now belong to them, as in the company, or are they still leased from a third party? I’ve been following this thread for a while and am still no clearer.
Join Date: Dec 2014
Location: Uk
Posts: 4
Likes: 0
Received 0 Likes
on
0 Posts
EIFFS
That’s a shame but I expected it. I don’t think any thoughts of xmas market to JFK will be on without a miracle - we will have to see if they make it to the reboot in March
That’s a shame but I expected it. I don’t think any thoughts of xmas market to JFK will be on without a miracle - we will have to see if they make it to the reboot in March
Join Date: Nov 2002
Location: Dublin
Posts: 652
Likes: 0
Received 0 Likes
on
0 Posts
Their stock price has fallen form 4 euros to .083 so pretty much worthless. It helps the Norwegian Govt extended the loan scheme until Feb 2021 but based on predicted revenues they will still run out of cash this year. LH program from LGW will be slashed
0.93 NOK and at 11 to 1€, that makes it about .084 on my calculator. https://www.bloomberg.com/quote/NAS:NO